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Icahn Enterprises LP (IEP)
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Icahn Enterprises (IEP) AI Stock Analysis

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IEP

Icahn Enterprises

(NASDAQ:IEP)

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Neutral 49 (OpenAI - 4o)
Rating:49Neutral
Price Target:
$8.00
▼(-3.50% Downside)
Icahn Enterprises faces significant financial challenges, with declining revenues, high leverage, and cash flow constraints being the most impactful factors. The technical analysis suggests a neutral outlook, while the valuation highlights a high dividend yield but also profitability concerns. The earnings call provided a mixed view, with some improvements but ongoing challenges in key segments.

Icahn Enterprises (IEP) vs. SPDR S&P 500 ETF (SPY)

Icahn Enterprises Business Overview & Revenue Model

Company DescriptionIcahn Enterprises (IEP) is a diversified holding company controlled by investor Carl Icahn. It operates across multiple sectors, including energy, automotive, pharmaceuticals, real estate, and food packaging. The company's core products and services span from investments in publicly traded companies to ownership stakes in private businesses, as well as providing advisory services in the areas of corporate governance and strategic planning.
How the Company Makes MoneyIcahn Enterprises generates revenue primarily through its investment activities. The company invests in a range of industries, acquiring significant stakes in publicly traded companies and engaging in activist investing to drive changes that enhance shareholder value. Revenue streams include capital gains from the appreciation of investments, dividend income from portfolio companies, and income from operating subsidiaries in its various sectors. Additionally, IEP may generate revenue through advisory services, leveraging the expertise of its management team and network. The company's diversified portfolio mitigates risks and allows for multiple sources of income, contributing to its overall financial performance.

Icahn Enterprises Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable improvements in NAV and certain segments like Auto Services and Caesars' digital business. However, challenges remain in key areas such as the Energy segment and Food Packaging, which experienced significant declines.
Q2-2025 Updates
Positive Updates
Increase in NAV
NAV increased by $252 million from the first quarter, driven primarily by positive performance in CVI.
CVI Share Price Surge
CVI share price increased by 38%, contributing to an increase of $561 million from the first quarter.
Improvement in Auto Service Revenue
After a 5% year-over-year decline in Q1, Auto Service revenue saw 1% growth in both May and June and is expected to accelerate in July.
Cash Reserves
The company ended the quarter with $1.1 billion of cash and cash equivalents at the holding company, with an additional $700 million of cash at the funds.
Growth in Digital Business at Caesars
Caesars' digital business grew revenue by 24% and EBITDA by 100% in the second quarter.
Negative Updates
Negative EBITDA in Energy Segment
Energy segment consolidated EBITDA was negative $24 million for Q2 '25 compared to $103 million in Q2 '24, due to unfavorable RINs valuation and reduced throughput volumes.
Decrease in Automotive Service Revenues
Q2 '25 automotive service revenues decreased by $8 million compared to the prior year quarter, and 22 underperforming locations were closed.
Decline in Food Packaging EBITDA
Food Packaging's adjusted EBITDA decreased by $9 million for Q2 '25 compared to the prior year quarter, primarily due to lower volume and higher inefficiencies.
Decrease in Real Estate EBITDA
Real Estate's adjusted EBITDA decreased by $2 million compared to the prior year quarter.
Company Guidance
During the Icahn Enterprises L.P. second quarter 2025 earnings call, significant metrics were discussed, highlighting both positive developments and ongoing challenges. The net asset value (NAV) increased by $252 million from the first quarter, primarily due to a 38% increase in CVI's share price and additional share purchases totaling $32 million. However, CVR's refining business faced a negative EBITDA of $24 million, impacted by unfavorable RINs valuations and reduced throughput volumes. The Auto Service division showed improvement with a 1% revenue growth in May and June, recovering from a 5% decline in the first quarter. Additionally, the investment funds were down by 0.5% for the quarter but would have realized a 2% positive return excluding refining hedges. The company ended the quarter with $1.1 billion in cash and cash equivalents at the holding company and $700 million at the funds, maintaining a strong liquidity position to capitalize on future opportunities.

Icahn Enterprises Financial Statement Overview

Summary
Icahn Enterprises is experiencing financial challenges across income, balance sheet, and cash flow metrics. The company faces declining revenues, profitability issues, high leverage, and cash flow constraints. These factors pose significant risks, and the company needs to address operational inefficiencies and improve its financial stability to enhance its financial health.
Income Statement
45
Neutral
Icahn Enterprises has faced declining revenues and profitability over recent years. The TTM data shows a negative net profit margin of -6.77% and a gross profit margin of 9.17%, indicating challenges in maintaining profitability. The revenue growth rate is negative, reflecting a contraction in sales. The EBIT and EBITDA margins are also negative or very low, highlighting operational inefficiencies.
Balance Sheet
40
Negative
The company's balance sheet shows a high debt-to-equity ratio of 3.24 in the TTM period, indicating significant leverage and potential financial risk. Return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio is relatively low, further emphasizing the high leverage.
Cash Flow
50
Neutral
Cash flow analysis reveals a negative free cash flow growth rate of -107.82% in the TTM period, indicating cash flow challenges. The operating cash flow to net income ratio is positive but low, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is negative, highlighting cash flow difficulties.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.29B9.90B11.85B14.13B10.94B7.42B
Gross Profit852.00M1.28B1.88B2.44B1.46B1.10B
EBITDA55.00M467.00M150.00M755.00M605.00M-1.45B
Net Income-629.00M-445.00M-684.00M-25.00M-500.00M-2.47B
Balance Sheet
Total Assets14.84B16.28B20.86B27.91B27.75B24.99B
Cash, Cash Equivalents and Short-Term Investments4.48B2.60B2.95B9.15B11.47B10.61B
Total Debt8.21B7.34B7.21B7.10B7.69B8.06B
Total Liabilities11.42B11.66B14.79B18.36B18.40B15.73B
Stockholders Equity2.53B3.24B3.97B9.56B9.34B9.26B
Cash Flow
Free Cash Flow-47.00M552.00M3.43B717.00M16.00M-615.00M
Operating Cash Flow283.00M832.00M3.74B1.05B321.00M-416.00M
Investing Cash Flow-352.00M-215.00M-290.00M-260.00M528.00M-581.00M
Financing Cash Flow-1.11B-1.32B-2.38B-344.00M293.00M-653.00M

Icahn Enterprises Technical Analysis

Technical Analysis Sentiment
Negative
Last Price8.29
Price Trends
50DMA
8.34
Negative
100DMA
8.34
Negative
200DMA
8.24
Negative
Market Momentum
MACD
-0.04
Negative
RSI
45.67
Neutral
STOCH
52.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IEP, the sentiment is Negative. The current price of 8.29 is above the 20-day moving average (MA) of 8.26, below the 50-day MA of 8.34, and above the 200-day MA of 8.24, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 52.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IEP.

Icahn Enterprises Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
65
Neutral
$3.50B56.1448.69%0.94%-3.37%-61.83%
59
Neutral
$604.90M-5.2213.74%6.77%9.95%
58
Neutral
$3.95B18.407.98%2.73%-40.60%-47.10%
49
Neutral
$4.75B-21.56%24.45%-11.23%-6.85%
47
Neutral
$424.66M230.99-0.11%14.79%-141.14%
47
Neutral
$653.70M-9.32%1.51%16.07%30.39%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IEP
Icahn Enterprises
8.18
-4.41
-35.03%
CODI
Compass Diversified Holdings
7.28
-13.08
-64.24%
GFF
Griffon
75.52
11.76
18.44%
MDU
Mdu Resources Group
19.40
3.90
25.16%
TRC
Tejon Ranch Company
15.92
-0.39
-2.39%
FIP
FTAI Infrastructure Incorporation
5.59
-3.22
-36.55%

Icahn Enterprises Corporate Events

Private Placements and Financing
Icahn Enterprises Completes $500 Million Notes Sale
Neutral
Aug 19, 2025

On August 19, 2025, Icahn Enterprises L.P. and Icahn Enterprises Finance Corp. completed the sale of $500 million in Senior Secured Notes, priced at 99.010% of their face value. The proceeds, approximately $493 million, will be used to partially redeem existing 6.250% Senior Notes due 2026. The Notes are secured by the Issuers’ assets and interest payments will commence on November 15, 2025.

The most recent analyst rating on (IEP) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Icahn Enterprises stock, see the IEP Stock Forecast page.

Private Placements and Financing
Icahn Enterprises Announces Conditional Redemption of Senior Notes
Neutral
Aug 6, 2025

On August 6, 2025, Icahn Enterprises L.P. and Icahn Enterprises Finance Corp. announced a conditional partial redemption of up to $500 million of their outstanding 6.250% Senior Notes due 2026, scheduled for September 5, 2025. The redemption is contingent upon the completion of an offering of additional 10.000% Senior Secured Notes due 2029, expected to be finalized on August 19, 2025, and other customary conditions.

The most recent analyst rating on (IEP) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Icahn Enterprises stock, see the IEP Stock Forecast page.

Icahn Enterprises LP Earnings Call: Mixed Outlook with Growth and Challenges
Aug 6, 2025

The recent earnings call for Icahn Enterprises LP presented a mixed outlook, reflecting both achievements and challenges. While the company reported a notable increase in Net Asset Value (NAV) and significant growth in Caesars’ digital business, it also faced hurdles such as negative EBITDA in the Energy segment and a decrease in automotive service revenues.

Private Placements and Financing
Icahn Enterprises Announces $500M Senior Notes Offering
Neutral
Aug 5, 2025

On August 5, 2025, Icahn Enterprises announced the pricing of a $500 million offering of 10.000% Senior Secured Notes due 2029, expected to close on August 19, 2025. The proceeds will be used to partially redeem existing 6.250% Senior Notes due 2026, impacting the company’s financial strategy and stakeholder interests.

The most recent analyst rating on (IEP) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Icahn Enterprises stock, see the IEP Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Icahn Enterprises Announces $500M Senior Notes Offering
Neutral
Aug 5, 2025

On August 5, 2025, Icahn Enterprises announced its intention to offer an additional $500 million in 10.000% Senior Secured Notes due 2029 through a private placement. The proceeds from this offering will be used to partially redeem the company’s existing 6.250% Senior Notes due 2026, reflecting a strategic move to manage its debt obligations. The issuance of these notes is secured by the assets of the company and its guarantor, Icahn Enterprises Holdings L.P., although the completion of the sale is not guaranteed.

The most recent analyst rating on (IEP) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Icahn Enterprises stock, see the IEP Stock Forecast page.

Icahn Enterprises Reports Improved Q2 2025 Results
Aug 5, 2025

Icahn Enterprises L.P. is a diversified holding company operating in various sectors including Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion, and Pharma. The company recently announced its financial results for the second quarter of 2025, highlighting an increase in indicative net asset value to approximately $3.3 billion, up by $252 million from the previous quarter. Despite reporting a net loss of $165 million for Q2 2025, this was an improvement from the $331 million loss in the same period of the previous year. Additionally, the adjusted EBITDA loss narrowed to $43 million from $155 million year-over-year. The company declared a quarterly distribution of $0.50 per depositary unit, offering unitholders the option to receive cash or additional units. Looking forward, Icahn Enterprises remains focused on enhancing its financial performance and strategic positioning across its diverse business segments.

Business Operations and StrategyFinancial Disclosures
Icahn Enterprises Highlights Q2 2025 Financial Performance
Negative
Aug 4, 2025

Icahn Enterprises L.P. has released updated presentation materials intended for meetings with investors and media, highlighting its diversified business operations and financial performance as of June 30, 2025. The company reported an Adjusted EBITDA attributable to IEP of negative $92 million, with a focus on creating incremental value through organic growth and strategic investments across its subsidiary companies. The presentation also outlines the risks and uncertainties facing the company, including economic volatility and industry-specific challenges.

The most recent analyst rating on (IEP) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Icahn Enterprises stock, see the IEP Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 09, 2025