Icahn Enterprises L P
Q2 2026 Earnings
Market Reaction
Did IEP Beat Earnings? Q2 2026 Results
Icahn Enterprises L.P. delivered a deeply disappointing second quarter, posting a loss of $0.52 per depositary unit against a consensus estimate of $0.11, a miss of 572.73%, as a brutal combination of portfolio markdowns overwhelmed a 23.0% year-over-year surge in revenue to $2.98 billion. The quarter's principal wound came from a $435.00 million decline in the value of IEP's long position in CVR Energy, compounded by a $243.00 million loss tied to broad market hedges within the Investment Funds, driving adjusted EBITDA attributable to IEP to a loss of $134.00 million from positive $40.00 million a year ago and pulling indicative net asset value down $765.00 million to roughly $2.60 billion. Carl Icahn pinned the damage on geopolitical dislocations that disproportionately hit refining exposures, while pointing to a strong July rebound in refining investments as evidence the pressures were transitory; the pending $700.00 million sale of Pep Boys offers an additional near-term catalyst as the company works to right-size its hedge portfolio and reduce periodic volatility.
- Decline of $435 million in value of long position in CVR Energy
- Net losses of $243 million from broad market hedges in Investment Funds
- Exceptional geopolitical events disproportionately affecting long refining exposure versus crack spreads
- Net loss from investment activities of $334 million vs $74 million in prior year
- Higher net sales of $3,081 million vs $2,143 million year-over-year
“Over the years, we have maintained a significant hedge position against our refining investments. While I believe this strategy has generally served well in mitigating risk, our results this quarter were impacted by exceptional geopolitical events that disproportionately affected our long refining exposure versus crack spreads and other short refinery positions. Importantly, the strong rebound in our refining investment during July underscores the temporary nature of these dislocations and highlights the timing differences that can occur between our underlying positions and related hedges. In addition, we are continuing to right-size our hedge portfolio to better align with our underlying exposures. We believe these adjustments will help reduce periodic volatility, improve the consistency of our performance, and support more balanced risk-adjusted returns going forward.”
Icahn Enterprises CEO, on the earnings call
Forward Guidance & Outlook
Carl Icahn expressed optimism about the company's liquidity position and long-term value of CVR Energy, citing the current geopolitical environment as creating attractive opportunities for refineries given the capital commitments and long timelines needed to build new capacity, as well as threats to existing worldwide refining infrastructure. The company is actively right-sizing its hedge portfolio to better align with underlying exposures and reduce periodic volatility. Icahn Automotive Group has entered into a stock purchase agreement to sell Pep Boys for $700 million, expected to close in the coming months.
IEP YoY Financials
Figures from SEC filings and company reports. Not investment advice.