IEP · Icahn Enterprises L.P.

Icahn Enterprises’ Q1 2026 results reflect pronounced volatility in its Investment and Energy segments, dominated by mark-to-market accounting for derivatives and strategic equity positions. The $459 million GAAP net loss was substantially driven by $425 million in refining hedge losses in the Investment segment and $158 million in unrealized derivative losses in the Energy segment — both non-cash, non-operational items excluded from Adjusted EBITDA. Crucially, the $605 million gain on its long position in CVI (CVR Energy, Inc.) contributed directly to a $201 million increase in indicative NAV to $3.4 billion as of March 31, 2026, underscoring the outsized impact of concentrated equity holdings on the partnership’s valuation. Excluding those CVI gains and refining hedges, the Investment segment delivered $110 million of positive performance — suggesting underlying portfolio strength beneath the noise. Adjusted EBITDA loss improved modestly to $216 million from $228 million year-over-year, though management explicitly noted the Q1 2026 calculation now excludes Energy segment hedging and inventory revaluation impacts — a methodological change that breaks comparability with prior periods and warrants caution when assessing trend data. The $0.50 per unit distribution — unchanged from Q1 2025 — signals continued capital return discipline despite the GAAP loss, supported by liquidity: cash and cash equivalents stood at $1.3 billion as of quarter-end, and total liquidity (including restricted cash and broker-held cash) exceeded $3.3 billion. No forward guidance was provided in Exhibit 99.1; however, the press release highlighted $447 million of aggregate locked-in value expected from NYMEX crack spread swaps entered in Q1 2026 — a deferred benefit not reflected in current-period earnings but material to future Energy segment profitability.