For the second quarter of 2025, Icahn Enterprises reported $355 million in total revenue from customers from its automotive segment (the Icahn Automotive Group) — a decrease of $13 million, or 3.5%, compared to a year ago, mainly related to closed locations as well as the exit of the aftermarket parts business, which was completed in the first quarter of 2025.
During the quarter, the segment closed 22 underperforming locations, bringing the total number of closures to 44 thus far in 2025. To offset these closures, Ichan Automotive is adding to its greenfield pipeline in attractive markets and plans on adding 16 locations by the end of the year.
It’s worth noting that same-store automotive services revenue was relatively flat when compared to the prior-year quarter. Additionally, management called out sequential revenue improvement. After seeing first quarter automotive service revenue down roughly 5% year-over-year, revenue improved to 1% growth in both May and June, with further acceleration expected for July.
Meanwhile, Icahn Automotive’s gross profit declined 15.8% to $96 million, and its gross margin slipped from 31% to 27% on a year-over-year basis.
The automotive segment reported a net loss of $25 million for the quarter compared to $7 million in net income a year ago. Also, adjusted segment EBITDA declined 79.4% to $7 million, impacted by higher labor costs and operating expenses.
Ichan Automotive is engaged in providing a range of automotive repair and maintenance services, along with the sale of any installed parts or material related to automotive services, to its customers.
