- Q4 NAV Decline Net asset value dropped $654M QoQ, primarily due to CVI share price decline.
- Fund Performance Funds rose 11% with refining hedges and 9% without, driven by EchoStar, refining hedges, and Sentry.
- Energy Segment EBITDA Adjusted EBITDA fell to $51M in Q4 2025 vs. $99M in Q4 2024.
- Real Estate Growth Adjusted EBITDA increased $6M YoY, supported by income from transferred assets.
- Liquidity Position Holding company held $3.5B cash/investments; subsidiaries had $913M cash revolver availability.
Segment Performance
The energy segment faced challenges, with adjusted EBITDA declining to $51 million from $99 million in Q4 2024. CVI completed the reversion of the RDU at the Wynnewood refinery back to hydrocarbon processing. On the other hand, the real estate segment saw an increase in adjusted EBITDA by $6 million, driven by income from transferred assets. As Andrew Teno mentioned, "EchoStar, refining hedges, and Sentry were big contributors" to the funds' performance, while Caesars was a detractor.
Investment and Liquidity
Icahn Enterprises maintained a strong liquidity position, with the holding company having cash and investment in the funds of $3.5 billion and subsidiaries having cash and revolver availability of $913 million. The cash balance at the funds increased to over $1.2 billion, indicating a significant "war chest" to capitalize on attractive opportunities. The company's investment in EchoStar yielded positive results, with the sale of additional spectrum to SpaceX.
Valuation and Outlook
With a P/E Ratio of 167.88 and an EV/EBITDA of 4.68, the company's valuation appears to be sensitive to changes in earnings. The Dividend Yield stands at 25.09%, which may be attractive to income-focused investors. Given the estimated revenue growth of -1.4% for the next year, the company's outlook appears challenging. However, Icahn Enterprises' diverse portfolio and significant liquidity position it to navigate these challenges and capitalize on new opportunities.