Darling Ingredients (NYSE:DAR) Issues Quarterly Earnings Results

Key Points

• Darling Ingredients delivered a major earnings beat: Quarterly EPS reached $2.41 versus the $1.40 consensus, while revenue rose 16.4% year over year to $1.72 billion.
• Profitability and operations improved substantially: Adjusted EBITDA climbed to approximately $742 million, driven by stronger pricing, operational efficiencies, improved product mix, and strong performance at Diamond Green Diesel.
• Deleveraging strengthened the outlook: The company reduced net debt by more than $220 million and expects leverage to fall below two times, potentially supporting greater buybacks, dividends, or other shareholder returns.

Darling Ingredients (NYSE:DAR - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $2.41 earnings per share for the quarter, topping the consensus estimate of $1.40 by $1.01, FiscalAI reports. The company had revenue of $1.72 billion during the quarter, compared to analyst estimates of $1.71 billion. Darling Ingredients had a net margin of 3.54% and a return on equity of 5.65%. The company's revenue was up 16.4% on a year-over-year basis. During the same quarter last year, the business posted $0.08 earnings per share.

Here are the key takeaways from Darling Ingredients' conference call:

• Second-quarter results substantially improved: adjusted EBITDA rose to approximately $742 million from $250 million a year ago, while GAAP net income increased to $387 million, or $2.41 per diluted share.
• The core ingredients business benefited from stronger fat and protein pricing, operational efficiencies, and commercial optimization, while collagen and higher-value health ingredients continued to improve the Food segment’s product mix and margins.
• Diamond Green Diesel delivered $389 million of EBITDA on approximately 350 million gallons sold, supported by attractive renewable-fuel margins and a $51 million IEEPA tariff recovery; management expects continued favorable margins and roughly 335 million gallons of production in the third quarter.
• Darling reduced net debt by more than $220 million in the quarter and expects debt to approach or fall below $3 billion by year-end, with leverage well below two times. Further cash generation, asset-sale proceeds, and reaching debt targets could enable increased buybacks, dividends, or other shareholder returns.
• Management expects third-quarter Core Ingredients EBITDA of $325 million to $340 million, generally consistent with second-quarter underlying performance after excluding an $18 million tariff benefit. The outlook remains dependent on strong protein demand, renewable-fuel margins, and continued tightness in the RIN market.

Darling Ingredients Trading Up 4.1%

Shares of NYSE DAR traded up $2.39 during midday trading on Thursday, hitting $61.01. The stock had a trading volume of 1,931,385 shares, compared to its average volume of 2,657,665. The firm has a market cap of $9.70 billion, a P/E ratio of 44.26 and a beta of 1.04. Darling Ingredients has a fifty-two week low of $29.15 and a fifty-two week high of $66.02. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.58 and a quick ratio of 1.03. The company's 50-day simple moving average is $58.40 and its 200 day simple moving average is $55.82.

Insider Activity

In related news, CAO Joseph Manzi sold 3,000 shares of the firm's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $63.89, for a total value of $191,670.00. Following the transaction, the chief accounting officer owned 19,969 shares in the company, valued at $1,275,819.41. This trade represents a 13.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 1.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Goldman Sachs Group Inc. raised its stake in shares of Darling Ingredients by 17.0% during the first quarter. Goldman Sachs Group Inc. now owns 644,022 shares of the company's stock worth $20,119,000 after buying an additional 93,408 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Darling Ingredients by 10.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 600,777 shares of the company's stock worth $18,768,000 after acquiring an additional 58,925 shares during the period. Focus Partners Wealth bought a new stake in shares of Darling Ingredients during the 1st quarter valued at $205,000. M&T Bank Corp raised its position in shares of Darling Ingredients by 11.2% during the 2nd quarter. M&T Bank Corp now owns 8,384 shares of the company's stock valued at $318,000 after acquiring an additional 847 shares during the last quarter. Finally, Invesco Ltd. lifted its stake in shares of Darling Ingredients by 5.0% in the 2nd quarter. Invesco Ltd. now owns 677,528 shares of the company's stock valued at $25,705,000 after purchasing an additional 32,553 shares during the period. 94.44% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

DAR has been the topic of a number of recent analyst reports. Zacks Research lowered Darling Ingredients from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 21st. JPMorgan Chase & Co. raised their target price on Darling Ingredients from $78.00 to $79.00 and gave the company an "overweight" rating in a research note on Tuesday, May 12th. TD Cowen upped their price target on shares of Darling Ingredients from $70.00 to $80.00 and gave the stock a "buy" rating in a research report on Monday. Stephens increased their price objective on shares of Darling Ingredients from $65.00 to $70.00 and gave the stock an "overweight" rating in a report on Tuesday, April 21st. Finally, Scotiabank raised their price objective on shares of Darling Ingredients from $61.00 to $70.00 and gave the company a "sector outperform" rating in a research report on Wednesday, April 22nd. Ten analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, Darling Ingredients has a consensus rating of "Moderate Buy" and an average target price of $68.73.

Key Headlines Impacting Darling Ingredients

Here are the key news stories impacting Darling Ingredients this week:

• Positive Sentiment: Major earnings beat: Darling reported second-quarter GAAP earnings of $2.41 per diluted share, well above analysts’ estimates of approximately $1.40–$1.45 and up from $0.08 in the year-ago quarter. Net income surged to $387.3 million from $12.7 million. Darling Ingredients Inc. Reports Second Quarter 2026 Results
• Positive Sentiment: Revenue exceeded expectations: Second-quarter sales rose 16.4% year over year to about $1.72 billion, narrowly topping the $1.71 billion consensus estimate. The company said momentum continued across its businesses. Darling Ingredients Exceeds Q2 CY2026 Expectations
• Positive Sentiment: Balance-sheet progress: Management highlighted continued deleveraging, which could improve financial flexibility and reduce investor concerns about debt. Darling Ingredients Reports Strong Q2 Results
• Positive Sentiment: Analyst outlook remains favorable: The average Wall Street price target implies roughly 32.4% potential upside. Positive earnings-estimate revisions provide additional support, although price targets are not reliable guarantees of future performance. Wall Street Analysts Believe Darling Could Rally
• Neutral Sentiment: Comparisons with other consumer-staples stocks, including Kraft Heinz, provide sector context but do not materially change Darling’s stock-specific outlook. Darling Ingredients Versus Other Consumer Staples Stocks

About Darling Ingredients

Darling Ingredients Inc NYSE: DAR is a global leader in converting edible and inedible bio-nutrient streams into sustainable food, feed ingredients, renewable fuels and specialty products. Founded in 1882 and headquartered in Irving, Texas, the company builds on more than a century of experience in animal rendering and by-product recycling. Over time, Darling has expanded its capabilities beyond traditional rendering to include advanced processing technologies that support a circular economy and reduce waste from food and agricultural industries.

The company's core operations revolve around four primary segments: Feed Ingredients & Services, Food & Nutrition, Fuel Ingredients & Services, and Specialty Ingredients.

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