Darling Ingredients beat expectations as stronger-than-anticipated product prices and margin expansion drove adjusted EBITDA to $742 million, lifting the stock by 3.4%. The rally was supported by robust performance across Feed Ingredients, Food, and Fuel segments, as well as strategic acquisitions and debt reduction.
- Combined adjusted EBITDA surged to approximately $742 million, with $353 million from the global ingredients business and $389 million from Diamond Green Diesel.
- Feed Ingredients benefited from rising fat prices and strong demand in biofuels, alongside improved protein values driven by tightening fish meal supplies and increased U.S. poultry production.
- Food segment showed improved collagen sales year-over-year, gaining traction from new applications and increased demand as whey prices rise.
- Diamond Green Diesel produced over 1.3 million metric tons of renewable fuel, selling 350 million gallons at $2.23 EBITDA per gallon, including a $51 million favorable tariff recovery.
- Company used $280 million cash distributions from Diamond Green Diesel to reduce debt by $223 million, complete Potenze acquisition in Brazil, and repurchase $73 million of stock.
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