Darling Ingredients Inc. Q1 2026 Earnings Recap

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.