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Sep 30, 2024
Icahn Enterprises Q3 2024 Earnings Report
Icahn Enterprises' financial performance remained positive with revenue of $2.8 billion and a net income of $22 million, although adjusted EBITDA decreased compared to the same period last year.
Key Takeaways
Icahn Enterprises reported revenues of $2.8 billion and net income of $22 million, or $0.05 per depositary unit, for the three months ended September 30, 2024. Adjusted EBITDA was $183 million. The company decreased its quarterly distribution from $1.00 to $0.50 per depositary unit to fund investments and maintain liquidity.
Revenues for Q3 2024 were $2.8 billion, compared to $3.0 billion for Q3 2023.
Net income for Q3 2024 was $22 million, or $0.05 per depositary unit, compared to a net loss of $6 million, or a loss of $0.01 per depositary unit for Q3 2023.
Adjusted EBITDA for Q3 2024 was $183 million, compared to $243 million for Q3 2023.
The company decreased the quarterly distribution to $0.50 per depositary unit to fund investments and maintain a war chest of liquidity.
Icahn Enterprises
Icahn Enterprises
Forward Guidance
Icahn Enterprises believes its portfolio has significant opportunities ahead, particularly in undervalued situations that create opportunities for activists. The company intends to launch a tender offer to acquire additional shares of CVI and has decreased the quarterly distribution to fund this investment and maintain liquidity.
Positive Outlook
- Portfolio seen as having significant opportunities.
- Belief that actions taken will lead to increased capital returns to unitholders.
- Intention to launch a tender offer to acquire additional shares of CVI.
- Maintaining a war chest of liquidity to take advantage of opportunities.
- Early signs of recovery in Automotive Services business after leadership change.
Challenges Ahead
- Decrease in quarterly distribution from $1.00 to $0.50 per depositary unit.
- Decrease in indicative net asset value driven by decline in CVI and Automotive Services.
- Extreme valuations in the stock market with some companies trading at unjustifiable premiums.
- Risks related to economic downturns and substantial competition.
- Impacts from ongoing Russia/Ukraine conflict and conflict in the Middle East.