[Management View]
Icahn Enterprises reported a net asset value increase of $567 million in fiscal Q3 2025, driven by improved crack spreads and the resolution of refinery liabilities. The company emphasized its strategic focus on activism and asset optimization, leveraging its unique permanent capital structure to drive shareholder value.

[Outlook]
The company plans to continue its activism strategy, focusing on high-growth opportunities and asset value enhancement. The Transcendent trial in the pharma segment is expected to begin in fiscal Q1 2026, potentially positioning the segment for significant growth if successful.

[Financial Performance]
The energy segment reported a consolidated EBITDA of $625 million, a significant improvement from a $35 million loss in the prior year. Automotive service revenue increased by 6%, while real estate gains contributed $223 million pretax. However, EBITDA declines were noted in food packaging, home fashion, and pharma segments due to various market pressures.

[Q&A Highlights]
Question 1: Can you elaborate on the impact of the small refinery exemptions on your financials?
Answer: The resolution of small refinery exemptions from 2019 to 2024 removed a $488 million liability from the CVI balance sheet, significantly boosting our net asset value. We believe Wynnewood is entitled to 100% exemptions going forward, which will continue to positively impact our financials.

Question 2: What are the growth prospects for Southwest Gas following its separation from Century?
Answer: Southwest Gas has a best-in-class balance sheet post-separation and is expected to grow earnings faster than pure gas utilities due to favorable legislation and policies. Analysts predict a 14% CAGR in net income from 2025 to 2029, driven by pipeline expansions and strategic investments.

Question 3: How is EchoStar contributing to your investment gains?
Answer: EchoStar's stock appreciated significantly due to spectrum asset transactions with AT&T and SpaceX, increasing from the teens to approximately $75 per share. We see considerable upside remaining, driven by the value of its spectrum assets.

Question 4: What is the status of the Transcendent trial in the pharma segment?
Answer: The Transcendent trial for PAH is set to begin in fiscal Q1 2026, with 300 global patients targeted. If successful, it could be the first disease-modifying product for PAH, marking a significant development inflection point for the pharma segment.

[Sentiment Analysis]
Analysts and management maintained a positive tone, focusing on strategic growth opportunities and asset optimization. Management expressed confidence in their activism strategy and the potential of their investment portfolio.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|-------------------------------|-----------------|-----------------|
| Net Asset Value Increase | $567 million | N/A |
| Energy Segment EBITDA | $625 million | ($35 million) |
| Automotive Service Revenue | +6% | N/A |
| Real Estate Gains | $223 million | N/A |
| Food Packaging EBITDA Decline | ($8 million) | N/A |
| Home Fashion EBITDA Decline | ($4 million) | N/A |
| Pharma EBITDA Decline | ($7 million) | N/A |

[Risks and Concerns]
The company faces risks from declining EBITDA in food packaging, home fashion, and pharma segments due to market pressures and restructuring impacts. The ongoing restructuring plan in food packaging is expected to affect results through fiscal Q2 2026.

[Final Takeaway]
Icahn Enterprises demonstrated strong financial performance in Q3 2025, driven by strategic asset optimization and activism. The resolution of refinery liabilities and significant investment gains, particularly from EchoStar, contributed to a substantial increase in net asset value. While certain segments faced EBITDA declines, the company's focus on high-growth opportunities and strategic investments positions it well for future growth. The upcoming Transcendent trial in the pharma segment could further enhance its growth trajectory if successful.