Icahn Enterprises L.P. Investor Presentation August 2024
Icahn Enterprises L.P. (IEP) recently released its investor presentation for August 2024, revealing a comprehensive overview of the company's performance and strategic direction.
Financial Performance: As of June 30, 2024, IEP reported total assets of approximately $18 billion, with its investment segment leading the way with $4,869 million in assets. The energy segment followed closely with $4,522 million in assets. The company's net income (loss) attributable to IEP stood at ($514) million, while adjusted EBITDA attributable to IEP was $231 million. Net sales and other revenue from operations totaled $11,000 million for the twelve months ended June 30, 2024.
Evolution and Strategy: IEP has evolved significantly since its inception as American Real Estate Partners in 1987. Over the years, it has diversified its portfolio to encompass seven operating businesses and approximately $18 billion in assets as of June 30, 2024. The company's long-term horizon aims to enhance business value for continued operations or facilitate a profitable exit strategy. IEP has a history of successfully acquiring undervalued assets, improving and enhancing their operations and financial results. Notable transactions include the sale of American Railcar Leasing for $3.3 billion in 2017, Federal-Mogul for $5.1 billion in 2018, and Ferrous Resources for approximately $550 million in 2019.
Operating Segments: IEP's operating segments are diverse, including investment, energy, automotive, real estate, food packaging, home fashion, and pharma. The company's investment segment consists of various private investment funds in which it has general partner interests and through which it invests its proprietary capital. The company's activist strategy seeks to unlock hidden value through various tactics such as financial/balance sheet restructurings, operational turnarounds, strategic initiatives, and corporate governance changes.
Subsidiary Companies: The company's subsidiary companies possess key competitive strengths and leading market positions, aiming to create incremental value by investing in organic growth and targeting businesses that offer consolidation opportunities. IEP's diversification across multiple industries and geographies provides a natural hedge against cyclical and general economic swings.
Maximizing Shareholder Value: IEP seeks undervalued companies and often becomes "actively" involved in the targeted companies, employing significant capital, rapid execution, and a willingness to take control. The company's investment and legal team is capable of unlocking a target's hidden value through various means, including financial/balance sheet restructuring, operation turnarounds, strategic initiatives, and corporate governance changes.
As a result of these announcements, the company's shares have moved 1.2% on the market, and are now trading at a price of $16.1. Check out the company's full 8-K submission here.
