Icahn Enterprises L.P.

Good morning and welcome to the ICANN Enterprises LP first quarter 2026 earnings call with Andrew Tino, President and CEO, Ted Papapostolo, Chief Financial Officer, Robert Flint, Chief Accounting Officer, and Joseph Passetti, Director of SEC Reporting. I would now like to hand the call over to Joseph Passetti, who will read the opening statement.

Thank you, Operator. The Private Securities Litigation 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 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 risk, 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 at 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.

Thank you, Joe, and good morning, everyone. I wanted to say thank you to everyone who I've worked with over the past few years, both before becoming CEO and after. It is an honor and privilege to work with and learn from the living legend of activism and our chairman, Carl Icahn. Over the past few years, we have worked hard to high grade the investment fund portfolio and to get our controlled operations moving in the right direction. I leave the company knowing that it's in good hands with a significant war chest to take advantage of opportunities as they arise. It's been a pleasure and honor. And with that, I will hand it over to Ted, our new CEO. Congratulations, Ted.

Thank you, Andrew. Before turning to the work ahead, I want to begin by thanking Andrew for his leadership and service to Icon Enterprises and wish him continued success in his next chapter. I am honored to take on the role of CEO and excited by the opportunity ahead. Icon Enterprises has a unique portfolio, a strong heritage of disciplined capital allocation, and a culture of accountability and long-term thinking. I look forward to building on that foundation, working closely with Carl and our board, to continue strengthening the enterprise and executing on our priorities. I also look forward to working with Rob in his new role as CFO. With that, let's get into the results. First quarter NAV increased by 201 million compared to year end. The increase was primarily driven by an increase of 605 million in our long position in CVI which was offset in part by losses on refining hedges of $320 million in our investment segment, also known as the funds. Regarding CVI, major geopolitical events drove volatility, which has set up attractive market opportunities for the balance of 2026. We believe CVI is well positioned to allow for potential future debt reductions and capital returns to shareholders. We are pleased with CVI's announcement of a $0.10 dividend. For Q1, the investment segment was up approximately 4%, excluding the refining hedges. In terms of our top positions, AEP is an electric utility that benefits from the AI infrastructure build. In the first quarter, the company reaffirmed its 2026 operating EPS outlook and increased its long-term operating earnings CAGR to greater than 9%, supported by 63 gigawatt of incremental contracted load and 11% rate-based growth through 2030. AEP stock was up approximately 14% for Q1. Century reported strong base revenue and gross profit growth of 28% and 50% in Q4. The company also guided to strong double-digit base revenue and gross profit growth for 2026 as it continues to capture the tremendous tailwinds from increased energy infrastructure investment. The stock was up approximately 16% for Q1. IFF continues to execute on its portfolio optimization, running a sale process for its food ingredients business, and announcing the completion of its divestiture of the soy crush business. IFF stock was up approximately 8% for Q1. Caesars reported solid Q1 results, with Vegas stabilizing, regional sales growing in the low single digits, and digital posting strong EBITDA growth of 61%. Caesars is expected to generate significant cash flow in 2026, which we hope to fund meaningful share repurchases and debt pay down. Caesars stock was up approximately 13% for Q1. Echostar lowered its total expected tax and decommissioning costs related to its divested assets, which we believe meaningful upside remains for the position, with the IPO of SpaceX potentially serving as a material positive catalyst. Echostar stock was up approximately 8% for Q1. As of quarter end, we had approximately $782 million in cash at the funds. Lastly, the Board declared an unchanged distribution at $0.50 per depository unit. I will now pass it to Rob to discuss our financial results.

Thank you, Ted. For the first quarter of 2026, net loss attributable to IEP was $459 million, or a loss of $0.71 per unit. Our first quarter consolidated results include $425 million of losses on refining hedges in our investment segment and $158 million of unrealized derivative losses in our energy segment. Q1-26 adjusted EBITDA loss attributable to IEP was $216 million compared to adjusted EBITDA loss attributable to IEP of $228 million for the prior year quarter. I will now provide more detail regarding the performance of our individual segments. The investment funds had a positive return of 4.4% for the quarter, excluding refining hedges. Including the refining hedges, the funds had a negative return of 8.2% for the quarter. Long and other positions had a net positive performance attribution of 4.1%, and short positions had a negative performance attribution of 12.9%. The investment funds had a net short notional exposure of 29% at the end of the quarter, compared to net short of 13% at year end. Excluding our refining hedges, the funds had a net short notional exposure of 2% as of quarter end compared to net long of 19% at year end. Our investment of the funds was approximately $2.2 billion as of quarter end. Moving to our energy segment. Energy segment adjusted EBITDA attributable to IEP was negative $5 million for Q126 compared to negative $6 million for Q125. The first quarter refining operations were solid with crude utilization of 97%, although margins were weighed down by higher RFS obligation costs and unrealized derivative losses. The fertilizer segment had strong results driven by robust demand for the spring planting season. We believe that CVI's assets are well positioned to benefit from the global tightness in refined product and nitrogen fertilizer. Now turning to our automotive segment. Q1 26 automotive service revenues decreased by $9 million compared to the prior year quarter, primarily driven by the closure of stores during the balance of 2025, offset in part by increased price. Same-source sales paints a better picture, having increased by approximately 2% as compared to the prior year quarter. We are pleased with this positive revenue trajectory, but there's still a lot more work to be done. We continue to focus our efforts on product, pricing, labor, and distribution strategy. Now turning to all other operating segments. Real estate's Q126 adjusted EBITDA increased by $18 million compared to the prior year quarter. The increase is primarily driven by income from the assets that were transferred from the automotive segment, of which $9 million is intercompany income from the auto segment and $2 million from third-party tenants. Food packaging's adjusted EBITDA attributable to IEP decreased by $6 million for Q126 as compared to the prior year quarter. The decrease is primarily due to lower volume and disruptive headwinds from the restructuring plan. Home fashions adjusted EBITDA decreased by $2 million when compared to the prior year quarter, primarily due to softening demand in retail and hospitality business and supply chain disruptions in the Strait of Hormuz. Farmers adjusted EBITDA decreased by $10 million when compared to the prior year quarter, primarily due to reduced sales resulting from generic competition in the anti-obesity market, and increased R&D expenses related to our ongoing pivotal drug trials. The Transcend trial preparation for our PAH drug is on schedule, and the first patient will be dosed in the next 60 to 90 days. The physician community remains excited by the potential for a disease-modifying designation. Now turning to our liquidity. We maintain liquidity at the holding company and at our operating subsidiaries to take advantage of attractive opportunities. As of quarter end, The holding company had cash and investment in the funds of $2.8 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 the call for questions?

Thank you, and as a reminder, to ask a question, simply press star 11 on your telephone and wait for your name to be announced. To remove yourself, press star 11 again. One moment, please. As I see no questions in the queue, I will pass it back to Ted Papapostolo for closing comments.

Thank you, everyone, and looking forward to our next update call.

conclude our conference. Thank you for participating and you may now disconnect.