Darling Ingredients Inc. Earnings Recaps
Q2 2026
Aug 3, 2026
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.
Key takeaways
- 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.
Q1 2026
May 3, 2026
Darling Ingredients shares finished up 1.5% post-earnings as first quarter 2026 results delivered sequential EBITDA and gross margin improvement but without dramatic upside surprises. Performance benefited from constructive policy developments and strength in core segments, while the stock’s modest move suggests investors found results largely in line with expectations.
Key takeaways
- Combined adjusted EBITDA was $407 million, up from $196 million in Q1 2025 and $336 million in the prior quarter; margin improvement was noted across segments.
- Gross margins rose to 26.1%, versus 22.6% a year ago, with Feed segment EBITDA increasing to $169 million from $111 million in the prior year.
- Food segment sales increased to $405 million, but gross margin slipped slightly to 28.9% (from 29.3% a year ago); raw material volumes remained flat.
- Diamond Green Diesel (DGD) contributed $151 million EBITDA on 272 million gallons sold, helped by a $97 million LCM inventory valuation adjustment; working capital contributions to DGD and timing of tax credits caused quarter-end net debt to increase to $4 billion.
- Management pointed to a more favorable policy backdrop and anticipated continued tailwinds for renewables and core ingredients in subsequent quarters.