Icahn Enterprises L.P. (IEP)

A. Company Overview

Icahn Enterprises L.P. is a master limited partnership established on February 17, 1987, in Delaware, with its headquarters situated in Sunny Isles Beach, Florida. The company operates as a diversified holding firm with several subsidiaries involved in diverse business sectors, including Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion, and Pharmaceuticals. Icahn Enterprises holds a 99% limited partner interest in Icahn Enterprises Holdings L.P., which encompasses the vast majority of the company’s assets and liabilities, as well as its operational proceedings. The general partner interest in both Icahn Enterprises and Icahn Enterprises Holdings is owned by Icahn Enterprises G.P. Inc., which is indirectly held by activist investor Carl C. Icahn.

As of December 31, 2025, approximately 86% of the outstanding depositary units of Icahn Enterprises were owned by Mr. Icahn and his affiliates. The company carefully structures its operations to avoid being classified as an investment company under the Investment Company Act of 1940, ensuring that no more than 40% of its total assets are invested in investment securities. Investments are subjected to strategies designed to be taxed as a partnership rather than a corporation, thus optimizing tax positions for the entity.

B. Business Strategy and Core Strengths

The Icahn Strategy

Icahn Enterprises’ approach to business, termed the Icahn Strategy, is predicated on the identification of undervalued companies, following the principles set forth by Benjamin Graham and David Dodd. This strategy not only involves purchasing undervalued securities but also includes actively influencing the management of targeted companies to enhance shareholder value. This can entail acquiring a controlling stake or full ownership of the target companies, enabling operational changes believed to improve financial performance. This activist investment approach has historically resulted in significant returns.

Key Business Segments

The company operates through seven diversified segments. Notably, the Investment segment includes significant stakes in companies such as American Electric Power Company, Inc., Southwest Gas Holdings, Inc., and International Flavors and Fragrances, Inc. Many of the company’s operating segments were originally positions in securities, which later evolved into controlling interests through strategic acquisitions.

Activist Investment Strategy

The company employs an activist strategy to stimulate change and operational improvements in its target investments, aiming to increase their market value. This strategy often involves negotiating with company boards, executing proxy fights, or mounting tender offers. The management believes that many businesses are undervalued due to ineffective management, creating opportunities for intervention and improvement.

The long-standing leadership of Carl C. Icahn, known for his role as an activist investor since 1980, emphasizes the importance of accountability among target management teams. Icahn Enterprises seeks to capitalize on financial distress or underperformance in companies, pursuing investments that display value destruction or operational inefficiencies.

C. Business Description

Icahn Enterprises began its operations as American Real Estate Partners L.P. in 1987. Currently, its vast portfolio spreads across seven reporting segments, with the Investment segment generating revenue primarily through realized gains and losses. The remaining operating segments derive sales from their respective products or services, with significant contributions from the Energy and Automotive segments, which formed the bulk of consolidated net sales over the previous years.

The company's investment strategy is maintained through the establishment of private investment funds, focusing on acquiring undervalued securities across multiple industries. Activist approaches are employed as needed to influence management decisions that enhance investment value.

D. Segment Descriptions

Energy

The Energy segment operates primarily through CVR Energy, Inc., a majority-owned subsidiary, focusing on petroleum refining and marketing, as well as nitrogen fertilizer manufacturing. CVR Energy refines various crude oil blends, maintaining high-output refineries located in Kansas and Oklahoma. This segment represents a substantial portion of Icahn Enterprises’ net sales, generating income primarily from petroleum and renewable fuels.

Automotive

Icahn Automotive Group LLC manages the Automotive segment, offering automotive repair and maintenance services in addition to aftermarket parts sales. The segment has strategically exited the aftermarket parts business but continues to provide substantial automotive services. It also prioritizes optimizing its real estate assets through long-term leases and operational efficiencies.

Food Packaging

The Food Packaging segment, through Viskase Companies, Inc., specializes in producing casings for processed meat products. A significant portion of its sales is international, showcasing the segment's global operational footprint.

Real Estate

The Real Estate segment consists of investment properties leased to various corporate tenants, alongside efforts in development and sales of single-family homes. Significant transfers of ownership from the Automotive segment recently bolstered its portfolio.

Home Fashion

WestPoint Home LLC operates the Home Fashion segment, focusing on manufacturing and marketing home consumer products from its dual facilities in Florida and Bahrain, highlighting its capabilities in international manufacturing.

Pharmaceuticals

Vivus LLC manages the Pharma segment, focusing on specialty pharmaceutical products targeting chronic weight management and exocrine pancreatic insufficiency, while also involved in clinical development for promising product candidates.

E. Employees

Icahn Enterprises employs a total of approximately 13,500 individuals across its various segments, with a majority working in the Automotive, Food Packaging, Home Fashion, and Energy sectors. The diverse geographical spread of its workforce includes significant international representation, primarily in Food Packaging and Home Fashion segments.