Icahn Enterprises Sells Pep Boys as Quarterly Loss Widens
Icahn Enterprises agreed to sell Pep Boys to Mavis for about $700 million as its first-quarter net loss widened to $459 million even as net asset value climbed to $3.4 billion.
Icahn Enterprises (IEP) agreed to sell its Pep Boys auto-service chain to Mavis Tire Supply for approximately $700 million in cash, retaining the underlying real estate while keeping AAMCO Transmissions and Precision Tune Auto Care within its Automotive segment. The deal shrinks the company's directly operated service footprint by nearly 800 locations and marks the first divestiture disclosure of its kind across the company's recent quarterly filings.
The sale lands as Icahn Enterprises works through a volatile stretch in its investment portfolio. First-quarter revenue rose to $2.2 billion, or $2,311 million in net sales, from $1.9 billion a year earlier, a gain of roughly 15% to 16%. Net loss attributable to the company widened slightly to $459 million, or $0.71 a unit, from $422 million, or $0.79 a unit, in the prior-year period. Adjusted EBITDA loss attributable to the company narrowed to $216 million from $228 million, a modest improvement that diverged from the wider GAAP shortfall.
The quarter also marked a sharp reversal from the prior period. Icahn Enterprises reported net income of $1 million in the fourth quarter of 2025 on Adjusted EBITDA of $281 million, before swinging to the first-quarter loss — a shift of roughly $500 million in Adjusted EBITDA quarter over quarter. Indicative Net Asset Value moved in the opposite direction, rising to about $3.4 billion at March 31, 2026, up $201 million from year-end, after falling $654 million in the fourth quarter to about $3.2 billion. Both swings traced largely to the company's long position in CVI Energy, which generated a $605 million gain in the first quarter after a $778 million loss in the fourth.
The Investment segment absorbed losses tied to refining and energy hedges, with $320 million to $425 million in refining-hedge losses and $158 million of unrealized derivative losses in the Energy segment weighing on results. Icahn Enterprises has $447 million of locked-in future value from first-quarter sales of NYMEX crack spread swaps, a forward-looking offset not referenced in prior filings.
A risk disclosure tied to the automotive-parts subsidiary's Chapter 11 filing, present in the company's March 2026 investor presentation, was absent from the May 2026 presentation, consistent with the subsidiary emerging from or exiting bankruptcy proceedings between the two filings.
Icahn Enterprises held its quarterly distribution at $0.50 a depositary unit across both the fourth-quarter 2025 and first-quarter 2026 declarations, unchanged despite the swing from profit to loss. For the full year 2025, revenue declined to $9.7 billion from $10.0 billion in 2024, a drop of about 3%, while net loss narrowed to $299 million, or $0.52 a unit, from $445 million, or $0.94 a unit, and Adjusted EBITDA nearly doubled to $338 million from $184 million.