Icahn Enterprises Reports $422 Million Net Loss and 24% Revenue Decline in Q1 2025

Icahn Enterprises L.P. reported a net loss of $422 million for the first quarter of 2025, a significant decline from a net loss of $38 million in the same period last year. The company's revenues decreased to $1.87 billion, down 24% from $2.47 billion in the first quarter of 2024. This decline was primarily driven by a decrease in net sales across several segments, particularly in the Energy segment, which saw a drop in petroleum product sales due to lower production and refined product prices.

The company's financial performance reflects a challenging environment, with total assets decreasing to $15.48 billion as of March 31, 2025, compared to $16.28 billion at the end of 2024. Cash and cash equivalents also fell to $2.18 billion from $2.60 billion. The decrease in cash was attributed to higher operational costs and a significant increase in accrued expenses, which rose to $1.95 billion from $1.55 billion. The company reported a basic and diluted loss per LP unit of $0.79, compared to a loss of $0.09 per unit in the prior year.

Strategically, Icahn Enterprises has been active in its investment segment, with a fair market value of investments in its private funds totaling approximately $2.5 billion as of March 31, 2025. The company also completed a $15 million equity private placement in its subsidiary, Viskase Companies, increasing its ownership to about 91%. Additionally, Icahn Enterprises is exploring potential strategic transactions involving its Energy segment, including acquisitions of refining assets and other entities.

Operationally, the Energy segment reported net sales of $1.65 billion, down from $1.86 billion in the previous year, primarily due to lower sales volumes and prices. The Automotive segment also faced challenges, with net sales decreasing to $335 million from $369 million, largely due to a shift in consumer behavior and the exit from the Aftermarket Parts business. The company is undergoing a transformation plan in its Automotive segment, focusing on optimizing its service offerings and store footprint.

Looking ahead, Icahn Enterprises anticipates continued challenges due to market volatility, geopolitical tensions, and regulatory changes affecting its operations. The company remains focused on improving its financial stability and exploring growth opportunities across its diversified portfolio.