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Q1 results: Icahn Enterprises reported a net loss of $459 million (−$0.71/unit) as $425 million of refining hedge losses and $158 million of unrealized derivative losses weighed on results, though NAV rose $201 million driven by a $605 million gain in its CVI position and the board kept the distribution at $0.50 per unit.
Leadership change: CFO Ted Papapostolou was promoted to CEO with Robert Flint stepping into the CFO role, signaling a management transition as the firm pursues portfolio and operational opportunities.
Funds and liquidity: The Investment Funds returned +4.4% excluding refining hedges but −8.2% including them, with net short notional exposure rising to 29% (from 13% at year-end); total funds investment was about $2.2 billion with ~$782 million cash, and the holding company and subsidiaries had roughly $2.8 billion and $1.3 billion of liquidity, respectively.
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Icahn Enterprises (NASDAQ:IEP) reported a first-quarter 2026 net loss attributable to the company of $459 million, or a loss of $0.71 per unit, as losses tied to refining hedges and derivatives weighed on results despite gains in the firm’s long position in CVI and positive performance in key equity holdings.
Andrew Teno opened the call by thanking colleagues and noting his departure from the CEO role. Teno said it had been an “honor and privilege” to work with Chairman Carl Icahn, and that the company had worked in recent years “to high-grade the investment fund portfolio and to get our controlled operations moving in the right direction.” He added that he was leaving with the view that Icahn Enterprises is “in good hands with a significant war chest to take advantage of opportunities as they arise.”
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Ted Papapostolou, previously chief financial officer, said he is taking on the role of CEO and thanked Teno for his leadership. Papapostolou said he is “honored” by the opportunity and described Icahn Enterprises as having “a unique portfolio” and a “strong heritage of disciplined capital allocation.” He also said he looked forward to working with Robert Flint in his “new role as CFO.”
Papapostolou said first-quarter net asset value increased by $201 million compared to year-end. He attributed the increase primarily to a $605 million increase in Icahn Enterprises’ long position in CVI, partially offset by $320 million of losses on refining hedges in the Investment segment (also referred to as the Funds).
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On CVI, Papapostolou said “major geopolitical events drove volatility,” which he said has created “attractive market opportunities for the balance of 2026.” He added that the company believes CVI is “well-positioned to allow for potential future debt reductions and capital returns to shareholders,” and noted CVI’s announcement of a $0.10 dividend.
Robert Flint, chief accounting officer, said the Investment Funds generated a positive return of 4.4% for the quarter excluding refining hedges, but a negative return of 8.2% including those hedges. Flint also detailed performance attribution, saying long and other positions contributed a net positive 4.1%, while short positions contributed a negative 12.9%.
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Flint said the Funds ended the quarter with net short notional exposure of 29%, compared with a net short of 13% at year-end. Excluding refining hedges, he said the Funds had net short notional exposure of 2% at quarter-end, compared with net long exposure of 19% at year-end. Flint reported that the funds investment was approximately $2.2 billion as of quarter-end, and Papapostolou said there was about $782 million in cash at the funds at quarter-end.
Papapostolou reviewed several of the Funds’ top positions and the quarter’s stock performance for each, while highlighting business developments described on the call:
American Electric Power (AEP): Papapostolou said AEP benefits from the AI infrastructure build. He noted the company reaffirmed its 2026 operating EPS outlook and raised its long-term operating earnings CAGR to “greater than 9%,” supported by “63 gigawatt of incremental contracted load and 11% rate base growth through 2030.” He said AEP stock was up about 14% in Q1.
Centuri: He said Centuri reported base revenue and gross profit growth of 28% and 50% in Q4, and guided to “strong double-digit” base revenue and gross profit growth for 2026 amid increased energy infrastructure investment. He said the stock was up about 16% in Q1.
International Flavors & Fragrances (IFF): Papapostolou said IFF continued portfolio optimization, including a sale process for its food ingredients business and the completion of its divestiture of the soy crush business. He said the stock was up about 8% in Q1.
Caesars: He said Caesars posted “solid” Q1 results, with Las Vegas stabilizing, regional sales growing in the low single digits, and digital delivering EBITDA growth of 61%. He said Caesars is expected to generate significant cash flow in 2026, which Icahn Enterprises hopes can support share repurchases and debt paydown. He said Caesars stock was up about 13% in Q1.
EchoStar: Papapostolou said EchoStar lowered its expected tax and decommissioning costs related to divested assets, and added that the firm believes “meaningful upside remains for the position,” with a potential SpaceX IPO cited as a possible catalyst. He said EchoStar stock was up about 8% in Q1.
Flint said consolidated first-quarter results included $425 million of losses on refining hedges in the Investment segment and $158 million of unrealized derivative losses in the Energy segment. Adjusted EBITDA loss attributable to Icahn Enterprises was $216 million in Q1 2026, compared with an adjusted EBITDA loss of $228 million in the prior-year quarter.
In the Energy segment, Flint said adjusted EBITDA attributable to Icahn Enterprises was negative $5 million, compared with negative $6 million a year earlier. He said refining operations were “solid” with crude utilization of 97%, though margins were pressured by higher RFS obligation costs and unrealized derivative losses. Flint also said the Fertilizer segment posted strong results driven by spring planting demand, and added that CVI’s assets are “well-positioned to benefit from the global tightness in refined product and nitrogen fertilizer.”
In Automotive, Flint said service revenues fell $9 million versus the prior-year quarter, primarily due to store closures during the balance of 2025, partially offset by higher pricing. He added that same-store sales increased about 2% year over year, calling it a more positive indicator, while emphasizing there is “still a lot more work to be done” and that management is focusing on product, pricing, labor, and distribution strategy.
Flint also addressed other operating segments. Real Estate adjusted EBITDA rose by $18 million year over year, driven by income from assets transferred from Automotive, including $9 million of intercompany income from Automotive and $2 million from third-party tenants. Food Packaging adjusted EBITDA declined by $6 million due to lower volume and “disruptive headwinds” from a restructuring plan. Home Fashion adjusted EBITDA fell by $2 million, which Flint attributed to softening demand in retail and hospitality and supply chain disruptions in the Strait of Hormuz. Pharma adjusted EBITDA declined by $10 million due to reduced sales from generic competition in the anti-obesity market and higher R&D expense tied to ongoing pivotal drug trials. Flint said preparation for the TRANSCEND trial for the company’s PAH drug is on schedule, and that the first patient is expected to be dosed in the next 60 to 90 days, adding that physicians remain “excited” about the potential for a disease-modifying designation.
On liquidity, Flint said the company maintained flexibility “to take advantage of attractive opportunities.” As of quarter-end, he said the holding company had cash and an investment in the funds totaling $2.8 billion, and subsidiaries had $1.3 billion of cash and revolver availability.
The company’s board declared an unchanged distribution of $0.50 per depository unit, Papapostolou said.
No analyst questions were taken during the call. Papapostolou closed by thanking participants and said he looked forward to the next update.
Icahn Enterprises L.P. (NASDAQ: IEP) is a diversified holding company based in New York City. Controlled by veteran investor Carl C. Icahn, the partnership makes strategic investments and owns wholly or partially controlled subsidiaries across a broad range of industries. With a flexible capital structure, Icahn Enterprises seeks to generate long-term value through active ownership, asset optimization and operational improvements.
The company reports its activities through five principal business segments.
The article "Icahn Enterprises Q1 Earnings Call Highlights" was originally published by MarketBeat.