Track market-moving stories before they get noisy

Six industrial giants are selling off divisions while keeping payouts high, and the cash flow numbers behind those yields tell a very different story than the headline percentages suggest.

Icahn Enterprises (NASDAQ:IEP | IEP Price Prediction) units carry a forward distribution yield of 30.9%. That looks like retirement income solved. It is also the clearest case of a pattern showing up across diversified industrials: sell a division, reduce the earnings base, and try to hold the payout where it was. Each sale can make sense on its own terms. The total math is what income investors need to monitor, because a high yield only holds up as long as the company can keep paying it.

Here is the basic check: a dividend is unsustainable when the business left behind cannot pay it out of earnings or free cash flow (operating cash flow minus capital spending) without leaning on asset sales, new debt, or new shares.

Icahn Enterprises (IEP): A Shrinking NAV Behind a Huge Yield Icahn Enterprises pays $0.50 per unit each quarter, or $2 a year, against a unit price of $6.48. For a holding partnership, net asset value and cash matter, and both are declining. Estimated NAV fell $765M in the second quarter to roughly $2.60B, while cash dropped 67.74% year over year.

For fiscal 2025, operating cash flow came in at -$313 million against $288 million in distributions. The payout has already been cut twice, from $2 to $1 to $0.50, and the default election pays unitholders in additional units rather than cash. The units are down 68.31% over five years. For the payout to hold, the pending $700M Pep Boys sale must close, and the investment funds must stop losing money.

International Paper (IP): A Flat Payout on Thin Cash Flow International Paper (NYSE:IP) yields 5.5%, and much of that comes from a stock down 23.93% over the past year. The company sold Global Cellulose Fibers for about $1.10B in net proceeds and sent $660M toward debt reduction. It also plans to spin off EMEA packaging, a segment that made up 38.9% of first-quarter revenue and posted a $51M operating loss.

The $0.4625 quarterly dividend has remained unchanged. Operating cash flow of $526 million fell short of $533 million in capex during the second quarter, and the company still paid $245 million in dividends. Holding a payout through visible stress is a warning sign. North America, with $248M of operating profit, would have to carry nearly all of the dividend after the spin.

Dow (DOW): Covered for Now, but Still Tied to the Cycle Dow (NYSE:DOW) yields 4.6% after cutting its quarterly dividend from $0.70 to $0.35. Second-quarter free cash flow of $692M easily covered $253 million in dividends. That quarter got a lift from a roughly 30% jump in polyethylene prices.

For fiscal 2025, operating cash flow of $1.032 billion fell short of both capex of $2.479 billion and dividends of $1.490 billion. Management guided third-quarter EBITDA to about $1.7 billion, down from $2.3 billion, citing margin compression. Dow is also closing capacity, including a UK siloxanes unit. Its CFO said excess cash goes first toward debt it has “accumulated over the past 12 months or so” (a little over a billion dollars). Self-help savings of more than $1.3B have to show up in the numbers.

Honeywell (HON): Smaller Company, Smaller Check Honeywell (NASDAQ:HON) shows what happens after a split. Aerospace Technologies accounted for 46.6% of second-quarter revenue before the spin. After the separation, the quarterly dividend fell from $1.19 to $0.70, leaving a 1.3% yield. The company presents the change as becoming a “pure-play automation company,” and that is a legitimate strategy. The forward payout works out to roughly 34% of the $8.20 adjusted EPS midpoint, which looks comfortable. The catch is that management named debt retirement as its near-term priority. It also expects only about $2 billion in free cash flow for the year.

3M (MMM): Legal Payments Eat Into the Cash 3M (NYSE:MMM) cut its dividend from $1.51 to $0.70 after the Solventum spin and has since raised it to $0.78, a 1.8% yield. Earnings coverage looks fine at about 34% of adjusted EPS guidance of $9.10–$9.15. Cash flow is the weak spot. Third-quarter operating cash flow fell 72.32% to $486M after $1B in PFAS payments. Shareholders’ equity of $4.169B stands against $34.386B in liabilities. The payout holds only if 3M hits its ~$4.8B free cash flow target despite the legal bills.

DuPont (DD): A Bigger Dividend on a Much Smaller Base DuPont (NYSE:DD) has gone the other way. After selling its Electronics and Aramids businesses, revenue fell 44.15% year over year, yet the quarterly dividend rose from $0.20 to $0.60, for a 1.9% yield. That is about 33% of the $7.24 EPS midpoint, and second-quarter free cash flow came to $324M. The risks are PFAS litigation and competition for cash from a $250 million buyback plus M&A. Management did not discuss dividend policy on the call.

Reduce Companies Need Stronger Cash Flow When a dividend gets cut, the stock usually falls, as Icahn’s five-year record shows. Every divestiture raises the bar for whatever is left to carry the payout. To vet a yield, check free cash flow, leverage, and what the business looks like after the latest sale (we laid out seven warning signs that a big yield is about to be cut in a free dividend trap guide). Yield by itself is never a reason to buy.

Contact [email protected] for any questions or corrections.

Some of the most recognizable dividend stocks in the market have been paying shareholders with money they do not actually earn, and the accounting trail reveals exactly how far six of them have pushed that math.

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Pfizer (NYSE:PFE | PFE Price Prediction) paid $9.771 billion in dividends in 2025 and earned net income of $7.746 billion. That was the third straight year the payout ran ahead of profit. When this repeats year after year, it is company policy. A high yield lasts only as long as the cash behind it does.

How to Run the Three-Line Check Yourself Open the cash flow statement and compare three lines: cash from operations, dividends paid, and net borrowing in the financing section. If dividends beat operating cash minus capital spending for several years while debt climbs, the company is borrowing to pay owners. For a REIT, use AFFO (adjusted funds from operations). For a partnership, use distributable cash and net asset value.

Icahn Enterprises (IEP): A 30% Yield Built on Years of Losses Icahn Enterprises (NASDAQ:IEP) pays $0.50 per unit quarterly. At $6.67, that yields near 30%. Units have fallen 65.56% over five years.

Net income was negative every year from 2021 through 2025, ranging from $604 million in 2021 to $293 million in 2025. In 2025, operating cash flow was -$313 million while distributions totaled $288 million. In Q2 2026, net asset value dropped $765 million to about $2.60 billion. Total liabilities stand at $10.74 billion against equity of $1.01 billion. The quarterly payout has been cut from $2.00 to $1.00 to $0.50.

For the payout to hold, the pending $700 million Pep Boys sale needs to close and the hedge book needs to stop losing money. Hedges cost $243 million in the second quarter.

BCE (BCE): Three Straight Years of Shortfalls Before the Reset BCE (NYSE:BCE) declared a quarterly dividend of $0.315, yielding about 6.38% at $19.74. The stock is down 44.7% over five years.

BCE failed the check three years running. Operating cash minus capital spending came to C$3.229 billion, C$3.182 billion and C$2.56 billion from 2022 through 2024. Dividends in those years were C$3.448 billion, C$3.668 billion and C$3.8 billion. Net income in 2024 was only C$344 million. Interest expense climbed to C$1.775 billion in 2025 from C$1.516 billion in 2023. In 2025 the payment dropped from 0.718 to 0.319.

After that reset, 2025 operating cash of C$6.993 billion covered capital spending of C$3.7 billion and dividends of C$2.177 billion. Risk comes from new spending: BCE plans $1.7 billion in extra capital for an AI data centre, funded with debt and cash, on top of $42.38 billion in liabilities against $17.37 billion of equity.

Dow (DOW): Half the Dividend, Still Short of the Cash Dow (NYSE:DOW) pays $0.35 quarterly, about 4.92% at $28.43. The company halved the payout from $0.70.

In 2024, operating cash minus capital spending came to -$151 million before Dow paid $1.966 billion in dividends. In 2025, operating cash of $1.032 billion did not cover $1.49 billion in dividends, and the company lost $2.623 billion. Net interest expense grew to $713 million from $611 million.

Q2 2026 brought relief. Free cash flow was $692 million and adjusted EPS of $1.44 beat the $1.28 estimate, driven by a 30% rise in polyethylene prices. To keep the payout safe, those prices must hold and Dow must deliver more than $1.30 billion in savings from its Transform to Outperform cost program.

Pfizer (PFE): Three Years of Dividends Above Net Income Pfizer yields 6.25%. Its quarterly dividend rose from $0.39 in 2021 to $0.43, a steady record that attracts income investors.

In 2023, operating cash of $8.7 billion was not enough to cover $9.247 billion in dividends. In 2025, operating cash minus capital spending was $9.076 billion, still short of the payout. In Q2 2026, operating cash of $835 million covered only part of the $2.451 billion paid out, and the quarter ended with a $238 million net loss. Net debt stands at 3.26 times EBITDA and return on invested capital is -1.29%.

Pfizer reaffirmed adjusted EPS guidance of $2.80 to $3.00 and the Vyndamax settlement extends U.S. exclusivity into 2031. Generic and biosimilar competition is expected to cut about $1.5 billion from revenue.

Western Union (WU): A 15% Yield on Thinning Cash Western Union (NYSE:WU) pays $0.235 quarterly, about 15.38% at $6.11. Shares have slid 54.53% over five years.

Operating cash fell below the dividend in Q2 2024 (-$33.8 million against $81.8 million) and again a year later (-$0.3 million against $76.8 million). In both quarters of 2026, operating cash minus capital spending ($62.2 million and $63.5 million) was not enough to cover dividends of $79.4 million and $73.4 million. Liabilities total $7.05 billion against equity of $914.7 million. Adjusted EPS of $0.31 missed the $0.42 estimate.

Management guided to full-year adjusted EPS of $1.25 to $1.35, assuming the Intermex deal closes on schedule. CEO Devin McGranahan said the company must “accelerate cost reductions more forcefully.”

Omega Healthcare Investors (OHI): Covered on AFFO, With Little Room to Spare Omega Healthcare Investors (NYSE:OHI) raised its quarterly dividend to $0.68, about 6% at $45.36. Shares are up 126.98% over five years.

Operating cash was not enough to cover dividends in 2022 ($625.7 million against $632.9 million) and 2023 ($626.5 million against $643.9 million). For a REIT, AFFO is the right yardstick. The dividend uses about 84% of AFFO guidance midpoint of $3.22 to $3.26. That margin is thin. Genesis Healthcare, still in Chapter 11, owes Omega $148.5 million and some portfolios cover rent only 0.87x. Operating cash of $878.6 million in 2025 covered dividends of $780.4 million.

Yield Alone Is Never a Thesis A dividend cut usually drags shares down, so income investors lose both the payout and principal. Before trusting any yield, run the three-line check across several years of statements. If borrowing keeps the payout going, the business is falling short of earning it. (We cataloged seven warning signs that a big yield is about to be cut in a free report here, and most of the names above triggered more than one of them.)

Contact [email protected] for any questions or corrections.

Income investors chasing double-digit yields keep bumping into the same wall: Eye-popping payouts sit inside unusual structures with idiosyncratic risks. A commercial mortgage REIT working through legacy credit stress. A master limited partnership run by an activist legend. A tiny closed-end fund tied to Caribbean Basin equities. Each offers a distribution stream that dwarfs the S&P 500, and each demands you understand the plumbing before you underwrite the coupon. Structure is the story here, and the trade-off between yield and complexity is the entire investment case.

We are counting down three unconventional high-yield bets, ranked by the balance of payout, structural signal, and risk we can quantify from the data.

1. Herzfeld Caribbean Basin Fund Herzfeld Caribbean Basin Fund (NASDAQ:HERZ) is a closed-end fund, and that structural distinction matters. There are no earnings calls, no product cycles, no CEO commentary to parse. What you get is a portfolio concentrated in Caribbean Basin equities across markets like the Dominican Republic, Jamaica, Puerto Rico, Panama and Mexico, plus a distribution policy that pays 17 cents monthly on a monthly frequency.

That works out to an annualized forward rate of $2.04 against a recent price of $15.78. The fund had been paying larger year-end specials, including 68 cents in December 2025, which pushed the trailing 12-month total to $2.0534. Shares are down nearly 28% year to date even and 36.37% over the past year.

The specific risk: Concentrated geographic exposure with thin secondary trading means price-to-NAV can swing sharply against you if sentiment on frontier markets sours.

2. Icahn Enterprises Icahn Enterprises (NASDAQ:IEP | IEP Price Prediction) is Carl Icahn’s publicly traded holding company, structured as a limited partnership. Unitholders receive a K-1 and distributions taxed as ordinary income rather than qualified dividends. The board kept the payout at 50 cents per unit quarterly, with an annualized forward of $2. That is half the $1 quarterly rate paid in 2024 and a fraction of the $2 quarterly cadence run from 2019 through 2022. Investors get a choice: cash or additional units.

Q2 2026 was ugly. IEP posted a loss of 52 cents per depositary unit against an 11-cent consensus, a 572.73% miss, on revenue of $2.98 billion. Indicative NAV declined $765 million to roughly $2.60 billion, dragged by a $435 million CVR Energy mark-down and $243 million in broad market hedge losses. Icahn framed it as timing, saying “the strong rebound in our refining investment during July underscores the temporary nature of these dislocations.” The $700 million Pep Boys sale expected to close in Q3 2026 adds liquidity.

The specific risk: NAV volatility combined with a distribution history of repeated cuts means the yield you buy today may not be the yield you own next year.

3. Arbor Realty Trust Arbor Realty Trust (NYSE:ABR) tops the list because the insider signal is loudest. Arbor is a multifamily-focused commercial mortgage REIT working through legacy bridge-loan stress. The Q2 2026 GAAP loss of $0.20 per share missed the $0.03 consensus, and the dividend was cut to 17 cents quarterly from 30 cents, following an earlier reduction from 43 cents. Two cuts inside a short window is exactly the pattern our free dividend trap guide flags when an outsized yield starts breaking down. Non-performing loans stand at 19 with $428.80 million unpaid principal.

Management used its $375 million convertible debt offering to repurchase $114 million of stock at $5.42, roughly 50% of book value. CEO Ivan Kaufman said the trade priced “400 basis points inside of straight debt.” Director George Tsunis was in the open market buying between $5.48 and $5.86 across May and June. With book value at $10.95 per share and the stock around $5.09, buyers are stepping in at a steep discount to stated book. The annualized forward rate of 68 cents still generates a double-digit trailing yield.

The specific risk: Q2 distributable earnings of 10 cents do not cover the 17-cent payout, so another cut cannot be ruled out until legacy resolutions land.

What Ties These 3 Together Structure defines the opportunity, and Arbor makes the point cleanly. You buy a stressed mortgage REIT at half of book because insiders are transacting there, the convertible refinancing shrinks the share count, and Kaufman is guiding toward legacy portfolio wind-down of below $1 billion by the end of 2027. That is an unconventional bet: high income today, cushioned by a management team buying alongside you, priced for a credit outcome that may or may not arrive. Whether you own ABR, IEP or HERZ, the yield is real, and so is the structural math you agreed to underwrite.

Contact [email protected] for any questions or corrections.

Icahn Enterprises L.P. (IEP) Q2 2026 Earnings Call Prepared Remarks Transcript

, /PRNewswire/ --

Q2 2026 Adjusted EBITDA loss attributable to IEP was $134 million, compared to Adjusted EBITDA attributable to IEP of $40 million in Q2 2025 Q2 2026 net loss attributable to IEP was $355 million, compared to a net loss of $165 million in Q2 2025 Indicative Net Asset Value was approximately $2.6 billion as of June 30, 2026, a decrease of $765 million compared to March 31, 2026. This decrease was primarily due to a decrease of $435 million in the value of our long position in CVI and a decrease of $243 million related to the Holding Company's interest in the Investment Funds primarily driven by net losses from broad market hedges. IEP declares second quarter distribution of $0.50 per depositary unit Statement from Mr. Icahn

IEP Chairman Carl C. Icahn stated: "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.

Throughout the history of IEP, there have been periods when many of our controlled positions (where we have owned more than 50%) have been undervalued and I believe such a period exists today. Some examples of undervalued controlled positions ultimately becoming profitable for us due to our activism and patience as long-term holders include Pep Boys, the Nashville East Bank Scrapyard, PSC Metals, Ferrous Resources, American Railcar Industries, Tropicana Entertainment, Federal-Mogul, the Fontainebleau Las Vegas, American Railcar Leasing and the Stratosphere Hotel and Casino, each of which was sold for a value in excess of the value at which they were carried on our books. A good current example of one of these is CVR Energy, of which we own 71%. I believe the current market environment is breeding extremely attractive opportunities for refineries such as CVR given the huge capital commitments and exceedingly long time necessary to build new refineries, as well as the threats to existing worldwide refining infrastructure resulting from the current geopolitical situation. I believe that CVR will eventually be on the list of undervalued assets that prove to be extremely profitable for us just as the ones mentioned above and, together with the CVR management team, we are actively focused on opportunities to increase long-term value.

My optimism is also buoyed by our liquidity position and I look forward to updating our unitholders next quarter."

Financial Summary

For the three months ended June 30, 2026, revenues were $3.0 billion and net loss attributable to IEP was $355 million, or a loss of $0.52 per depositary unit. For the three months ended June 30, 2025, revenues were $2.4 billion and net loss attributable to IEP was $165 million, or a loss of $0.30 per depositary unit. Adjusted EBITDA loss attributable to IEP was $134 million for the three months ended June 30, 2026, compared to Adjusted EBITDA attributable to IEP of $40 million for the three months ended June 30, 2025.[1] 

For the six months ended June 30, 2026, revenues were $5.2 billion and net loss attributable to IEP was $814 million, or a loss of $1.22 per depositary unit. For the six months ended June 30, 2025, revenues were $4.2 billion and net loss attributable to IEP was $587 million, or a loss of $1.08 per depositary unit. Adjusted EBITDA loss attributable to IEP was $350 million for the six months ended June 30, 2026, compared to Adjusted EBITDA loss attributable to IEP of $188 million for the six months ended June 30, 2025.1 

As of June 30, 2026, indicative net asset value decreased $765 million compared to March 31, 2026. This decrease was primarily due to a decrease of $435 million in the value of our long position in CVI and a decrease of $243 million related to the Holding Company's interest in the Investment Funds primarily driven by net losses from broad market hedges.

On August 3, 2026, the Board of Directors of the general partner of Icahn Enterprises declared a quarterly distribution in the amount of $0.50 per depositary unit, which will be paid on or about September 23, 2026 to depositary unitholders of record at the close of business on August 17, 2026. Depositary unitholders will have until September 11, 2026 to make a timely election to receive either cash or additional depositary units. If a unitholder does not make a timely election, it will automatically be deemed to have elected to receive the distribution in additional depositary units. Depositary unitholders who elect to receive (or who are deemed to have elected to receive) additional depositary units will receive units valued at the volume weighted average trading price of the units during the five consecutive trading days ending September 18, 2026. Icahn Enterprises will make a cash payment in lieu of issuing fractional depositary units to any unitholders electing to receive (or who are deemed to have elected to receive) depositary units.

1

The presentation of Adjusted EBITDA in this release for Q2 2025 has been prepared using a calculation with different exclusions than what has been used when preparing Adjusted EBITDA for prior periods, including our prior presentation of Adjusted EBIDA for Q2 2025. See "Uses of Non-GAAP Financial Measures" at the end of this press release for additional explanation of the updates in our presentation.

Icahn Enterprises L.P., a master limited partnership, is a diversified holding company owning subsidiaries currently engaged in the following continuing operating businesses: Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion and Pharma.

Caution Concerning Forward-Looking Statements

This release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, many of which are beyond our ability to control or predict. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of Icahn Enterprises and its subsidiaries. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors, including risks related to economic downturns, substantial competition and rising operating costs; risks related to our investment activities, including the nature of the investments made by the private funds in which we invest and  the impact of the use of leverage through options, short sales, swaps, forwards and other derivative instruments, including the risk of counterparty termination and early settlement of such positions; risks related to our ability to comply with the covenants in our senior notes and the risk of foreclosure on the assets securing our notes; risks related to our ability to refinance our debt; our ability to continue to meet our liquidity needs; declines in the fair value of our investments, losses in the private funds and loss of key employees; risks related to our ability to continue to conduct our activities in a manner so as to not be deemed an investment company under the Investment Company Act of 1940, as amended, or to be taxed as a corporation; risks related to short sellers and associated litigation and regulatory inquiries; risks related to our general partner and controlling unitholder; pledges of our units by our controlling unitholder; risks related to our energy business, including the volatility and availability of crude oil, other feed stocks and refined products, declines in global demand for crude oil, refined products and liquid transportation fuels, unfavorable refining margin (crack spread), interrupted access to pipelines, significant fluctuations in nitrogen fertilizer demand in the agricultural industry and seasonality of results; volatile commodity pricing and higher industry utilization and oversupply risks related to potential strategic transactions involving our Energy segment, and the impact of tariffs; risks related to our automotive activities and exposure to adverse conditions in the automotive industry; risks related to our food packaging activities, including competition from better capitalized competitors, inability of our suppliers to timely deliver raw materials, and the failure to effectively respond to industry changes in casings technology; supply chain issues; inflation, including increased costs of raw materials and shipping; interest rate increases; labor shortages and workforce availability; risks related to our real estate activities, including the extent of any tenant bankruptcies and insolvencies; risks related to our home fashion operations, including changes in the availability and price of raw materials, manufacturing disruptions, and changes in transportation costs and delivery times; the impacts from the Russia/Ukraine conflict and conflict in the Middle East, including the U.S.-Israel and Iran war, and any related economic volatility, disruptions to global commodity markets, export controls and other economic sanctions; political and regulatory uncertainty, including changing economic policy and the imposition of tariffs; and other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission including our Annual Report on Form 10-K and our quarterly reports on Form 10-Q under the caption "Risk Factors." Additionally, there may be other factors not presently known to us or which we currently consider to be immaterial that may cause our actual results to differ materially from the forward-looking statements. Past performance in our Investment segment is not indicative of future performance. We undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise. 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

Three Months Ended
June 30, 

Six Months Ended
June 30, 

2026

2025

2026

2025

(in millions, except per unit amounts)

Revenues:

Net sales

$

3,081

$

2,143

$

5,392

$

4,145

Other revenues from operations

175

172

336

340

Net loss from investment activities

(334)

(74)

(636)

(468)

Interest and dividend income

49

69

96

152

(Loss) gain on disposition of assets, net

(1)

47

(3)

44

Other income (loss), net

5

12

(4)

23

2,975

2,369

5,181

4,236

Expenses:

Cost of goods sold

2,883

2,118

5,223

4,134

Other expenses from operations

147

154

288

305

Selling, general and administrative

203

207

412

408

Dividend expense

5

7

10

15

Impairment

—

2

—

12

Restructuring, net

2

(2)

2

5

Interest expense

121

129

244

257

3,361

2,615

6,179

5,136

Loss before income tax expense

(386)

(246)

(998)

(900)

Income tax (expense) benefit

(2)

45

47

119

Net loss

(388)

(201)

(951)

(781)

Less: net loss attributable to non-controlling interests

(33)

(36)

(137)

(194)

Net loss attributable to Icahn Enterprises

$

(355)

$

(165)

$

(814)

$

(587)

Net loss attributable to Icahn Enterprises allocated to:

Limited partners

$

(348)

$

(162)

$

(798)

$

(576)

General partner

(7)

(3)

(16)

(11)

$

(355)

$

(165)

$

(814)

$

(587)

Basic and Diluted loss per LP unit

$

(0.52)

$

(0.30)

$

(1.22)

$

(1.08)

Basic and Diluted weighted average LP units outstanding

669

545

653

534

Distributions declared per LP unit

$

0.50

$

0.50

$

1.00

$

1.00

CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

June 30, 

December 31, 

2026

2025

(in millions, except unit amounts)

ASSETS

Cash and cash equivalents

$

1,221

$

1,450

Cash held at consolidated affiliated partnerships and restricted cash

1,971

1,969

Investments

1,498

2,251

Due from brokers

1,131

1,656

Accounts receivable, net

488

393

Related party notes receivable, net

136

129

Inventories, net

978

845

Property, plant and equipment, net

3,616

3,670

Deferred tax asset

187

165

Derivative assets, net

-

7

Goodwill

289

290

Intangible assets, net

330

349

Assets held for sale

22

—

Other assets

1,023

1,041

Total Assets

$

12,890

$

14,215

LIABILITIES AND EQUITY

Accounts payable

$

721

$

690

Accrued expenses and other liabilities

1,524

1,192

Deferred tax liabilities

282

314

Derivative liabilities, net

828

595

Securities sold, not yet purchased, at fair value

1,000

1,382

Debt

6,389

6,616

Total liabilities

10,744

10,789

Equity:

Limited partners: Depositary units: 710,915,093 units issued and outstanding at
June 30, 2026 and 637,209,452 units issued and outstanding at December 31, 2025

1,813

2,728

General partner

(804)

(786)

Equity attributable to Icahn Enterprises

1,009

1,942

Equity attributable to non-controlling interests

1,137

1,484

Total equity

2,146

3,426

Total Liabilities and Equity

$

12,890

$

14,215

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures in evaluating its performance. These include non-GAAP EBITDA and Adjusted EBITDA. EBITDA represents earnings from continuing operations before net interest expense (excluding our Investment Segment), income tax (benefit) expense and depreciation and amortization. We define Adjusted EBITDA as EBITDA excluding certain effects of impairment, restructuring costs, transformation costs, certain pension plan expenses, gains/losses on disposition of assets, gains/losses on extinguishment of debt, the performance of closed stores and including closing costs, Energy segment unrealized gains/losses on hedging contracts, unrealized gains/losses on Renewable Fuel Standard ("RFS") positions, Energy segment inventory revaluation, and certain other non-operational or non-recurring charges. The Energy segment's basis for determining inventory value impacts are under a GAAP First-In, First-Out ("FIFO") basis. Changes in crude oil prices can cause fluctuations in the inventory valuation of crude oil, work in process and finished goods, thereby resulting in a favorable inventory valuation impact when crude oil prices increase and an unfavorable inventory valuation impact when crude oil prices decrease. The inventory valuation impact is calculated based upon inventory values at the beginning of the accounting period and at the end of the accounting period. We present EBITDA and Adjusted EBITDA on a consolidated basis and on a basis attributable to Icahn Enterprises net of the effects of non-controlling interests. We conduct substantially all of our operations through subsidiaries. The operating results of our subsidiaries may not be sufficient to make distributions to us. In addition, our subsidiaries are not obligated to make funds available to us for payment of our indebtedness, payment of distributions on our depositary units or otherwise, and distributions and intercompany transfers from our subsidiaries to us may be restricted by applicable law or covenants contained in debt agreements and other agreements to which these subsidiaries currently may be subject or into which they may enter into in the future. The terms of any borrowings of our subsidiaries or other entities in which we own equity may restrict dividends, distributions or loans to us. 

We believe that providing EBITDA and Adjusted EBITDA to investors has economic substance as these measures provide important supplemental information of our performance to investors and permits investors and management to evaluate the core operating performance of our business without regard to interest (except with respect to our Investment segment), taxes and depreciation and amortization and certain effects of impairment, restructuring costs, certain pension plan expenses, gains/losses on disposition of assets, gains/losses on extinguishment of debt and certain other non-operational charges. Additionally, we believe this information is frequently used by securities analysts, investors and other interested parties in the evaluation of companies that have issued debt. Management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results, as well as in planning, forecasting and analyzing future periods. Adjusting earnings for these charges allows investors to evaluate our performance from period to period, as well as our peers, without the effects of certain items that may vary depending on accounting methods and the book value of assets. Additionally, EBITDA and Adjusted EBITDA present meaningful measures of performance exclusive of our capital structure and the method by which assets were acquired and financed. Effective March 31, 2026, we modified our calculation of Adjusted EBITDA to exclude the impacts of certain of our Energy segment results, including unrealized gains/losses on hedging contracts, unrealized gains/losses on RFS positions, and inventory revaluation. We believe that this revised presentation improves the supplemental information provided to our investors because management believes these are not attributable to or indicative of our underlying operational results of the period or that may obscure results and trends we deem useful and the significance of these measures have been disproportionately impacted by increased volatility in recent periods.

EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of our results as reported under generally accepted accounting principles in the United States, or U.S. GAAP. For example, EBITDA and Adjusted EBITDA: 

do not reflect our cash expenditures, or future requirements for capital expenditures, or contractual commitments;  do not reflect changes in, or cash requirements for, our working capital needs; and  do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments on our debt.  Although depreciation and amortization are non-cash charges, the assets being depreciated or amortized often will have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements. Other companies in the industries in which we operate may calculate EBITDA and Adjusted EBITDA differently than we do, limiting their usefulness as comparative measures. In addition, EBITDA and Adjusted EBITDA do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations. 

EBITDA and Adjusted EBITDA are not measurements of our financial performance under U.S. GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with U.S. GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity. Given these limitations, we rely primarily on our U.S. GAAP results and use EBITDA and Adjusted EBITDA only as a supplemental measure of our financial performance.  

Use of Indicative Net Asset Value Data

The Company uses indicative net asset value as an additional method for considering the value of the Company's assets, and we believe that this information can be helpful to investors. Please note, however, that the indicative net asset value does not represent the market price at which the depositary units trade. Accordingly, data regarding indicative net asset value is of limited use and should not be considered in isolation.

The Company's depositary units are not redeemable, which means that investors have no right or ability to obtain from the Company the indicative net asset value of units that they own. Units may be bought and sold on The Nasdaq Global Select Market at prevailing market prices. Those prices may be higher or lower than the indicative net asset value of the depositary units as calculated by management. 

See below for more information on how we calculate the Company's indicative net asset value. 

June 30, 

March 31,

December 31,

2026

2026

2025

(in millions)(unaudited)

Market-valued Subsidiaries and Investments:

   Holding Company interest in Investment Funds(1)

$ 1,978

$ 2,221

$ 2,711

   CVR Energy(2)

1,961

2,396

1,791

   CVR Partners LP(2)

30

34

28

Total market-valued subsidiaries and investments

$ 3,969

$ 4,651

$ 4,530

Other Subsidiaries:

   Viskase(3)

$ 96

$ 98

$ 53

   Real Estate Segment(4)

1,417

1,394

1,367

   WestPoint Home(1)

148

151

155

   Vivus(1)

153

161

169

   Icahn Automotive Group(5)

765

704

619

Operating Business Indicative Gross Asset Value

$ 6,548

$ 7,159

$ 6,893

   Add: Other Net Assets(6)

99

9

98

Indicative Gross Asset Value

$ 6,647

$ 7,168

$ 6,991

   Add: Holding Company cash and cash equivalents(7)

381

624

839

   Less: Holding Company debt(7)

(4,426)

(4,425)

(4,664)

Indicative Net Asset Value

$ 2,602

$ 3,367

$ 3,166

Indicative net asset value does not purport to reflect a valuation of IEP. The calculated indicative net asset value does not include any value for our Investment Segment other than the fair market value of our investment in the Investment Funds. A valuation is a subjective exercise and indicative net asset value does not necessarily consider all elements or consider in the adequate proportion the elements that could affect the valuation of IEP. Investors may reasonably differ on what such elements are and their impact on IEP. No representation or assurance, express or implied, is made as to the accuracy and correctness of indicative net asset value as of these dates or with respect to any future indicative or prospective results which may vary.  

(1)

Represents GAAP equity attributable to IEP as of each respective date.

(2)

Based on closing share price on each date (or if such date was not a trading day, the immediately preceding trading day) and the number of shares owned by us as of each respective date.

(3)

Management performed a valuation of Viskase with the assistance of third-party consultants to estimate fair-market value. This analysis utilized the average results of a discounted cashflow methodology and a guideline public company methodology. Different judgments or assumptions would result in different estimates of value. Viskase indicative net asset value is derived by allocating our portion of ownership to the total equity value.

(4)

For each period presented, management performed a valuation with the assistance of third-party consultants to estimate fair-market value, which utilized the average results of discounted cashflow and sales comparison methodologies. Different judgments or assumptions would result in different estimates of value. For certain properties under a purchase and sale agreement, indicative fair market value is based on the anticipated sales price adjusted for customary closing costs. In August 2025, certain properties were sold and the value of the consideration received and held in our Real Estate Segment consisted of preferred equity investment and debt and was used in the calculation of indicative fair value.

(5)

For each period presented, management performed a valuation of Icahn Automotive Group ("IAG"), including the Automotive Services business and Automotive Owned Real Estate, with the assistance of third party consultants to estimate fair value. This analysis utilized the average results of a discounted cashflow methodology and a guideline public company methodology. Different judgments or assumptions would result in different estimates of value. During the fourth quarter of 2025 the majority of the Automotive Owned Real Estate was transferred to the Real Estate Segment and as of December 31, 2025 are now presented in the Real Estate Segment line item. In July 2026, IAG entered into a stock purchase agreement to sell Pep Boys – Manny Moe & Jack Holding Corp. for $700 million subject to customary closing conditions and the transaction is expected to close in the coming months. IAG will retain certain businesses, assets and liabilities in connection with this sale. As of June 30, 2026, the value of IAG includes an estimated increase of $97 million in connection with this sale agreement.

(6)

Represents GAAP equity of the Holding Company segment, excluding cash and cash equivalents, debt and non-cash deferred tax assets or liabilities. As of December 31, 2025, March 31, 2026 and June 30, 2026, Other Net Assets includes $6, $5 million and $5 million respectively, of liabilities assumed from the Auto Plus bankruptcy.

(7)

Holding Company's balance as of each respective date.

Three Months Ended June 30, 

Six Months Ended June 30, 

2026

2025

2026

2025

(in millions)(unaudited)

Adjusted EBITDA

Net loss

($388)

($201)

($951)

($781)

Interest expense, net

101

102

207

196

Income tax expense (benefit)

2

(45)

(47)

(119)

Depreciation and amortization

124

132

247

250

EBITDA before non-controlling interests

(161)

(12)

(544)

(454)

Impairment

-

2

-

12

Restructuring costs

1

(1)

1

6

Revaluation of RFS Liability

73

89

124

200

Unrealized loss (gain) on Energy segment derivatives

(7)

2

151

(1)

Inventory valuation impacts, (favorable) unfavorable

(18)

32

(138)

8

(Gain) on disposition of assets

(1)

(46)

-

(44)

Transformation costs

11

12

21

20

(Gain) loss on extinguishment of debt, net

-

(3)

32

(3)

Out of period adjustments

(4)

-

(4)

-

Same store adjustment including closing costs

3

7

8

11

Other

2

-

5

3

Adjusted EBITDA before non-controlling interests

($101)

$82

($344)

($242)

Adjusted EBITDA attributable to IEP

Net loss

($355)

($165)

($814)

($587)

Interest expense, net

90

88

185

171

Income tax expense (benefit)

2

(30)

(37)

(86)

Depreciation and amortization

83

90

166

169

EBITDA attributable to IEP

(180)

(17)

(500)

(333)

Impairment

-

2

-

11

Restructuring costs

1

(1)

1

5

Revaluation of RFS Liability

52

62

88

136

Unrealized loss (gain) on Energy segment derivatives

(5)

1

106

(1)

Inventory valuation impacts, (favorable) unfavorable

(13)

22

(97)

6

(Gain) on disposition of assets

(1)

(46)

-

(44)

Transformation costs

11

12

21

20

(Gain) loss on extinguishment of debt, net

-

(3)

22

(3)

Out of period adjustments

(4)

-

(4)

-

Same store adjustment including closing costs

3

7

8

11

Other

2

1

5

4

Adjusted EBITDA attributable to IEP

($134)

$40

($350)

($188)

Investor Contact:
Robert Flint, Chief Financial Officer
[email protected] 
(800) 255-2737

SOURCE Icahn Enterprises L.P.

WHITE PLAINS, N.Y. & SUNNY ISLES BEACH, Fla.--(BUSINESS WIRE)--Mavis Tire Express Services Corp. (“Mavis” or the “Company”), one of the largest independent tire and service providers in North America, and Icahn Enterprises L.P. (NASDAQ: IEP) (“IEP”) today announced that they have entered into a definitive agreement pursuant to which a subsidiary of Mavis will acquire The Pep Boys-Manny, Moe & Jack Holding Corp. (“Pep Boys”) from Icahn Automotive Group LLC, a subsidiary of IEP, for approxima.

Icahn Enterprises offers a diversified portfolio spanning energy, automotive, real estate, and more, guided by Carl Icahn's value-investing approach. IE maintains a robust 26.14% annual dividend yield, supported by a 50c per quarter payout, despite previous reductions to enhance free cash flow. Recent operating results indicate a potential turnaround, with a strong cash position and improved performance in key holdings, notably CVR Energy.

Ted Papapostolou Named Chief Executive Officer

Robert Flint Named Chief Financial Officer

, /PRNewswire/ -- Icahn Enterprises L.P. (NASDAQ: IEP) today announced the promotion of Ted Papapostolou, our Chief Financial Officer, to President and Chief Executive Officer, effective today.

Mr. Papapostolou has served as Chief Financial Officer of Icahn Enterprises since November 2021, a member of the board of directors since December 2021, and as Secretary since April 2020. Mr. Papapostolou previously served as Chief Accounting Officer from April 2020 to December 2023 and in various progressive accounting positions at Icahn Enterprises from March 2007 to March 2020. Prior to joining Icahn Enterprises, Mr. Papapostolou worked at Grant Thornton LLP in their audit practice. In addition, Mr. Papapostolou currently serves on the board of directors of Caesars Entertainment, Inc. and previously served as a director and chairman of each of Viskase Companies, Inc. and CVR Energy, Inc. 

In connection with the promotion of Mr. Papapostolou, Icahn Enterprises also announced the resignation of Andrew Teno as President and Chief Executive Officer and as a member of the board of directors. Mr. Teno is departing to relocate with his family to another state and will pursue another opportunity closer to his new home. We wish him well. Mr. Teno's resignation was not the result of any disagreement with Icahn Enterprises. Mr. Teno stated: "I am honored and grateful to have spent the last five years working with, and learning from, the inventor and master of activism. I leave with confidence that Carl and his team are well-positioned for continued success. I greatly appreciate my experience at Icahn Enterprises and wish everyone at the firm best wishes for a prosperous future." Chairman Carl C. Icahn stated: "I want to thank Andrew for his many contributions over the past six years and wish him well in his future endeavors."

Robert Flint, who has served as Chief Accounting Officer of Icahn Enterprises since December 2023 and will continue in that role, has been promoted to Chief Financial Officer, succeeding Mr. Papapostolou in that role, and was also appointed as a member of the board of directors. Mr. Flint previously served as Director of Accounting since November 2021 and the Chief Audit Executive from March 2020 to November 2021. Prior to joining Icahn Enterprises, Mr. Flint was an independent management consultant, serving a variety of clients and industries, including Icahn Automotive Group.

About Icahn Enterprises L.P.

Icahn Enterprises L.P., a master limited partnership, is a diversified holding company engaged in seven primary business segments: Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion and Pharma.

Caution Concerning Forward-Looking Statements

This release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, many of which are beyond our ability to control or predict. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of Icahn Enterprises and its subsidiaries. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors, including risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission. There can be no assurance that any forward-looking information will result or be achieved. We undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise.

Investor Contact:
Ted Papapostolou, Chief Executive Officer
(305) 422-4100

SOURCE Icahn Enterprises L.P.

Icahn Enterprises L.P. (IEP) Q1 2026 Earnings Call Prepared Remarks Transcript