Icahn Enterprises L.P.

Reform Act of 1995 provides a safe harbor for forward-looking statements we make in this presentation, including statements regarding our future performance and plans for our businesses and potential acquisitions. 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 Icon Enterprises LP 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 that are discussed in our filings with the Securities and Exchange Commission, including economic, competitive, legal, and other factors. Accordingly, there is no assurance that our expectations will be realized. We assume no obligation to update or revise any forward-looking statements should circumstances change, except as otherwise required by law. This presentation also includes certain non-GAAP financial measures, including adjusted EBITDA. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the back of this presentation. We also present indicative net asset value. Indicative net asset value includes, among other things, changes in the fair value of certain subsidiaries which are not included in our GAAP earnings. All net income and EBITDA amounts we will discuss are attributable to Icon Enterprises unless otherwise specified. I'll now turn it over to Andrew Tino, our Chief Executive Officer.

Thank you, Rob, and good morning, everyone. NAV decreased $336 million from the fourth quarter of 2024. driven primarily by negative performance in the funds and the accrual for the distribution, which was partially offset by increases in CVI and auto service. CVI share price increased by 3%, which when combined with additional share purchases of $33 million, led to an increase of $80 million from the fourth quarter. The improvement in crack spreads that we discussed last quarter has continued, and now that Coffeyville's turnaround is complete, We look forward to getting back to business and generating cash flow. Regarding RINs, we remain hopeful that the new administration may lead to the resolution of our outstanding litigation regarding small refinery exemptions, which has the potential to remove the $438 million liability that was recorded as of 1Q2025 and potentially provide clarity to future years. As a reminder, during the last Trump administration, Winnie Wood received small refinery exemptions. The investment funds ended down approximately 8.4% for the quarter, primarily driven by our healthcare investments. Given the recent market volatility, we thought it would be helpful to provide an update as to performance through the end of last week. If you were to mark to market the funds and add in CVI and UAN, we would be modestly positive quarter to date. We ended the quarter with $1.3 billion of cash and cash equivalents at the holding company, an additional $900 million of cash at the funds. So as Carl likes to say, we have a significant war chest to take advantage of opportunities as they arise. Lastly, the board has maintained a quarterly distribution at 50 cents per depository unit. Now turning to our investment segment. Despite the market volatility, we see considerable value creation potential in our portfolio. At AAP, we see new management closing its ROE gap, improving regulatory outcomes, solidifying its balance sheet through accretive asset sales, and benefiting from tremendous electricity load growth due to AI-driven data center demand. We think AI growth is real, and electric utilities, particularly AEP, are an excellent way to benefit in the picks and shovels of AI. At SWIX, we see a gas utility that is closing its ROE gap to peers and separating a utility services business with significant growth opportunities. we see upside in both the gas utility and the services business. In particular, centuries should see increasing growth trends as utility customers need to spend additional capex to improve and build out both the electrical grid and natural gas networks to support increasing power demands. At Caesars, we recently had two employees join the company's board of directors. We think Caesars has an excellent management team with tremendous real estate value, a growing digital business, that is deploying its greater than 15% free cash flow yield to repurchase shares and repay debt. In time, we would expect CSER's digital business to be unlocked from its current structure. The funds ended the quarter approximately 20% net long. Adjusting for our refining hedges, the fund was 35% net long. And now I will pass it on to Ted to cover our controlled businesses.

Thank you, Andrew. I will start at our energy segment. Energy segment consolidated EBITDA was negative 61 million for Q125 compared to 203 million in Q124. PVR's refining business was negatively impacted by the turnaround at the Coffeyville Refinery and unfavorable mark-to-market RINS valuation, offset in part by positive performance in the fertilizer business due to continued higher prices and strong utilization. Turning to our automotive segment, Our automotive segment continues to underperform compared to prior year period. Sales were down 9% year over year. Excluding the wind down of the parts business, which is not complete, sales were down 6%. In order to give the business the resources it needs to succeed, we are investing in labor, inventory, equipment, facilities, marketing, and adjusting our distribution footprint. We saw early signs of top line improvement as we have experienced positive trends in car count, tire volumes, and revenue as we move through the quarter. Adjusted EBITDA in the quarter was negative 6 million. Profitability suffered as we worked to get the labor hired, optimized, and trained, the inventory in the right place at the right margin, and upgrade the facilities and equipment earlier in the year so that we can benefit as the year progresses. We believe that while painful in the short term, these are the right investments to improve long-term profitability. The store portfolio is also going through significant changes. We are closing money-losing locations and growing in areas we have historically generated strong profitability. During the quarter, we closed 24 underperforming locations. We were awarded a contract to operate approximately 15 locations on military bases that allow us to grow in a capital-light manner. We have been adding additional locations to our greenfield pipeline and our leasing efforts for the access and available space continue to bear fruit as we have approximately 60 properties under LOI. We continue to believe that our auto segment will see increasing sales, profitability, and cash flows over the coming quarters. Now turning to the other segments. Real estate's Q125 adjusted EBITDA decreased by 1 million compared to the prior year quarter. As a reminder, we have limited inventory at our legacy country club and expect to be sold out during 2027. We are expecting to see increased single-family home sales from our newest country club, which has recently cleared the permitting process, and we expect to begin taking home sale reservations by the end of 2025. In addition, our resort property continues to perform at high levels. On our last call, we discussed a potential sale of certain properties, which was expected to be complete during Q1. This is now expected to close during this quarter. We are also exploring the sale of additional properties in our portfolio, which, if successful, could close later this year. In addition, we are actively seeking new opportunities that fit our investment strategy. Food packaging's adjusted EBITDA decreased by $6 million for Q125 as compared to the prior year quarter. The decrease is primarily due to lower price, higher manufacturing inefficiencies, and higher material costs. During the quarter, the business commenced a restructuring plan, which includes consolidating two North American facilities into one and adding a state-of-the-art manufacturing line. We anticipate this plan will increase operational efficiency and drive margins while maintaining volumes and is expected to be completed during the second half of 2025. Home fashions adjusted EBITDA decreased by $1 million as compared to the prior year quarter, mainly driven by product mix. Pharma's adjusted EBITDA for Q125 came in lower by 3 million as compared to the prior year quarter. The decrease is primarily due to higher R&D spend for the therapies and clinical development and increased sales and marketing expenses due to the recent global product launch of QSEVA. And now turning to our liquidity. We maintain liquidity at the holding company and at each of our operating subsidiaries to take advantage of attractive opportunities. As of quarter end, the holding company had cash and investment in the funds of $3.8 billion, and our subsidiaries had cash and revolver availability of $1.3 billion. We continue to focus on building asset value and maintaining liquidity to enable us to capitalize on opportunities within and outside our existing operating segments. Thank you. Operator, can you please open up the call for questions?