Darling Ingredients (NYSE:DAR) Posts Quarterly Earnings Results, Beats Expectations By $0.27 EPS

Key Points

• Darling reported Q1 EPS of $0.83 versus consensus $0.56, with revenue up 12.3% year-over-year and combined adjusted EBITDA of $406.8 million; management called the quarter an "inflection point" and guided Q2 Core Ingredients EBITDA to $260–$275 million with DGD volumes of ~320 million gallons.
• Diamond Green Diesel's result included a one-time $97 million LCM inventory valuation benefit, and Darling injected ~$190 million of working capital into DGD that management expects to be returned in subsequent quarters.
• Net debt rose to about $4.0 billion with preliminary covenant leverage of 3.17x, though management reiterated a target to reduce net debt toward ~$3.0 billion.

Darling Ingredients (NYSE:DAR - Get Free Report) released its earnings results on Thursday. The company reported $0.83 EPS for the quarter, beating the consensus estimate of $0.56 by $0.27, Zacks reports. Darling Ingredients had a return on equity of 2.36% and a net margin of 1.02%.Darling Ingredients's revenue was up 12.3% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.16) earnings per share.

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

• Darling reported combined adjusted EBITDA of $406.8 million in Q1 2026 (Core Ingredients $255.6M; DGD $151.2M), a sharp improvement versus the prior-year quarter driven by margin expansion and operational execution.
• Diamond Green Diesel's Q1 result included a one-time $97 million LCM inventory valuation benefit at the DGD entity, and Darling contributed ~$190 million of working capital to DGD that management expects will be returned in subsequent quarters.
• The feed segment posted EBITDA of $169 million (vs. $111M a year ago) with gross margin up to 25.3%, and the food/collagen business showed year‑over‑year sales growth and rising demand—supported by new applications and pending Nextida patents.
• Net debt (debt less cash) rose to about $4.0 billion and preliminary covenant leverage was 3.17x, although management reiterated a goal to reduce net debt toward ~$3.0 billion.
• Management guided Q2 Core Ingredients EBITDA to $260–$275 million, expects DGD volumes of ~320 million gallons in Q2, and sees improving renewables margins and cash flow as the RVO clarity supports higher feedstock prices.

Darling Ingredients Trading Up 2.3%

Shares of Darling Ingredients stock traded up $1.45 during trading on Thursday, reaching $64.25. 4,440,430 shares of the company were exchanged, compared to its average volume of 2,921,175. The company has a quick ratio of 0.99, a current ratio of 1.50 and a debt-to-equity ratio of 0.80. Darling Ingredients has a twelve month low of $29.15 and a twelve month high of $64.90. The business has a 50-day moving average price of $57.72 and a 200-day moving average price of $44.79. The firm has a market capitalization of $10.20 billion, a price-to-earnings ratio of 164.73 and a beta of 1.08.

Wall Street Analyst Weigh In

DAR has been the subject of several research reports. Scotiabank lifted their target price on Darling Ingredients from $61.00 to $70.00 and gave the company a "sector outperform" rating in a research note on Wednesday, April 22nd. TD Cowen lifted their target price on Darling Ingredients from $58.00 to $72.00 and gave the company a "buy" rating in a research note on Tuesday. Stephens lifted their target price on Darling Ingredients from $65.00 to $70.00 and gave the company an "overweight" rating in a research note on Tuesday, April 21st. JPMorgan Chase & Co. lifted their target price on Darling Ingredients from $59.00 to $69.00 and gave the company an "overweight" rating in a research note on Tuesday, March 24th. Finally, UBS Group lifted their target price on Darling Ingredients from $58.00 to $78.00 and gave the company a "buy" rating in a research note on Thursday, April 2nd. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Buy" and an average target price of $67.40.

Insider Activity at Darling Ingredients

In related news, CEO Randall C. Stuewe sold 20,000 shares of Darling Ingredients stock in a transaction on Friday, March 6th. The stock was sold at an average price of $52.12, for a total transaction of $1,042,400.00. Following the completion of the sale, the chief executive officer directly owned 1,117,085 shares of the company's stock, valued at $58,222,470.20. The trade was a 1.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Darling Ingredients

A number of institutional investors have recently made changes to their positions in DAR. No Street GP LP acquired a new stake in shares of Darling Ingredients during the third quarter worth $69,458,000. Rubric Capital Management LP acquired a new position in Darling Ingredients in the fourth quarter valued at about $24,510,000. Amundi grew its stake in Darling Ingredients by 177.7% in the fourth quarter. Amundi now owns 864,400 shares of the company's stock valued at $31,119,000 after acquiring an additional 553,081 shares during the period. BNP Paribas Financial Markets grew its stake in Darling Ingredients by 184.5% in the second quarter. BNP Paribas Financial Markets now owns 846,371 shares of the company's stock valued at $32,111,000 after acquiring an additional 548,844 shares during the period. Finally, Two Sigma Investments LP grew its stake in Darling Ingredients by 608.5% in the third quarter. Two Sigma Investments LP now owns 634,361 shares of the company's stock valued at $19,583,000 after acquiring an additional 544,821 shares during the period. 94.44% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Darling Ingredients

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

• Positive Sentiment: Q1 earnings beat and turnaround — Darling reported $0.83 EPS vs. $0.56 expected, returning to profit after a loss a year earlier and showing 12%+ revenue growth; management called the quarter an "inflection point." Business Wire Q1 Release
• Positive Sentiment: Solid near-term EBITDA outlook for core ingredients — management is guiding Q2 core-ingredients EBITDA of $260M–$275M, which supports expectations for continued margin recovery in the core business. Guidance Report
• Neutral Sentiment: Top-line view is mixed across outlets — some reports characterise Q1 sales as in-line or showing a slight revenue miss versus certain expectations, so while EPS beat was clear, revenue beats vs. all street models are not uniform. Earnings Coverage
• Neutral Sentiment: Investor materials and call provide color but highlight sector headwinds — the earnings slide deck and call transcript discuss RVO-driven pressure on renewables margins even as core ingredients strengthen; investors should review the transcript/slides for details. Earnings Call Transcript
• Negative Sentiment: Fatal workplace incident and OSHA investigation — a worker was killed at the Bastrop rendering plant and OSHA has opened a safety probe; this raises near-term operational, legal and reputational risks that could lead to fines, remediation costs or temporary disruptions. Local Coverage of Incident

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.