Darling Ingredients Inc. Q2 2026 Earnings Recap

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.