Icahn Enterprises Reports Fourth Quarter 2024 Financial Performance with Reduced Losses

Icahn Enterprises Reports Fourth Quarter 2024 Financial Performance

Icahn Enterprises L.P., traded under the Nasdaq symbol IEP, has disclosed its financial results for the fourth quarter of 2024. The company reported a significant reduction in its net losses, coupled with a notable increase in adjusted EBITDA compared to the previous year.

In the latest report, Icahn Enterprises recorded a net loss of $98 million for Q4 2024. While this figure remains negative, it shows an improvement of $41 million from the $139 million loss reported in Q4 2023. This reduction underscores the company's ongoing efforts to enhance its financial position and operational efficiency as it navigates through a competitive and often volatile business environment.

For the fourth quarter, the company's revenues fell slightly to $2.6 billion, compared to $2.7 billion in the same quarter last year. Despite this decline, Icahn Enterprises achieved an adjusted EBITDA of $12 million for the quarter, an increase from $9 million in Q4 2023. This growth in adjusted EBITDA indicates a slight operational improvement and reflects better management of expenses relative to its revenues.

As of December 31, 2024, the indicative net asset value of Icahn Enterprises stood at approximately $3.3 billion. This figure represents a substantial decrease of $223 million compared to the previous quarter ending September 30, 2024. The decline can be attributed mainly to a notable drop in the value of CVR Energy, which saw a decrease of $286 million. Also impacting the indicative net asset value were substantial distributions amounting to $71 million to the depositary unit holders and a $57 million drop in the valuation of Viskase.

However, Icahn Enterprises' real estate segment experienced a positive adjustment, with its value increasing by $292 million owing to an agreement for the sale of certain properties and a revaluation of remaining real estate assets based on fair-market estimates.

In terms of distributions, the Board of Directors declared a fourth-quarter distribution of $0.50 per depositary unit, which is scheduled for payment on or around April 16, 2025. Unitholders of record as of March 10, 2025, will have the option to choose between cash and additional depositary units for their distributions. Those who do not make a selection will automatically receive additional units, valued at the average trading price over the five trading days leading up to April 11, 2025. Notably, fractional units may be paid in cash.

Icahn Enterprises operates as a master limited partnership and has diversified interests across a range of sectors, including investment, energy, automotive, food packaging, real estate, home fashion, and pharmaceuticals. Its extensive portfolio positions the company to capitalize on various markets and economic conditions.

It's important to note that while the results offer some positive indicators, they also come with cautionary statements regarding future performance. The company acknowledges the potential impacts from economic volatility, regulatory changes, and other market factors that could affect upcoming results. Investors are encouraged to monitor these developments closely as Icahn Enterprises continues to adapt its strategies and operations in response to the changing landscape.

In conclusion, Icahn Enterprises’ Q4 2024 financial performance reflects a reduction in losses and a slight uptick in operational efficiency. As the company moves forward, its diversified portfolio and strategic decisions will be crucial in navigating potential challenges and opportunities in the market.