Is Icahn Enterprises a Buy, Sell, or Hold Post Q1 Earnings?

Icahn Enterprises posted Q1 disappointing results, with a 5.2% loss over six months, underperforming the S&P 500's 5.8% gain. The company's long-term revenue growth is mediocre at 6.6% CAGR, and its return on invested capital has declined significantly. Additionally, Icahn Enterprises has negative EBITDA and high debt levels, making it a risky investment. As such, investors should exercise caution when considering Icahn Enterprises in their portfolio.

Icahn Enterprises, a prominent investment firm led by billionaire Carl Icahn, has reported disappointing financial results for the first quarter of 2025. The company's performance has lagged behind the S&P 500, with a 5.2% loss over six months compared to the index's 5.8% gain [1]. This underperformance is compounded by the company's mediocre long-term revenue growth of 6.6% CAGR and a significant decline in return on invested capital.

Moreover, Icahn Enterprises has been grappling with negative EBITDA and high debt levels, which have raised concerns among investors about the company's financial health. The company's recent lawsuit against Endeavor Group Holdings Inc., seeking damages over a $25 billion buyout, may also impact its financial standing and reputation [2].

Investors should exercise caution when considering Icahn Enterprises in their portfolios. The company's financial struggles, coupled with its legal challenges, suggest a higher level of risk. However, it is essential to note that the company's long-term growth prospects remain uncertain, and further analysis is needed to assess its future performance.

References:
[1] https://news.bloomberglaw.com/litigation/icahns-firm-vies-to-lead-suit-over-25-billion-endeavor-buyout
[2] https://www.satellitetoday.com/finance/2025/07/24/iridium-trims-service-revenue-outlook-for-2025-despite-8-revenue-growth-in-q2/