Key Highlights:

  • Net Sales came in at USD 1.7 billion for the second quarter, rising from USD 1.5 billion during the second.
  • Core Ingredients EBITDA Guidance totaled USD 325 million to USD 340 million for the third quarter.
  • Net Income stood at USD 387 million, or USD 2.41 per GAAP diluted share, compared to USD 13 million.
  • Combined Adjusted EBITDA was reported at USD 742 million, comprising USD 353 million from the global ingredients business and USD.

Darling Ingredients Inc. (NYSE:DAR) is scheduled to report third quarter results on Wednesday, Oct. 28, after the market close. Consensus estimates call for adjusted earnings per share of USD 1.70 on revenue of USD 1.79 billion, against a market capitalization of USD 9.02 billion.

In the most recently reported quarter, Net Sales came in at USD 1.7 billion for the second quarter, rising from USD 1.5 billion during the second quarter of 2025 due to strengthened finished product markets.

Diamond Green Diesel EBITDA per Gallon and Other Business Trends

Diamond Green Diesel EBITDA per Gallon came in at USD 2.23 per gallon, supported by favorable market conditions and a USD 51 million recovery of IEEPA tariffs at the entity level. Renewable Fuel Production totaled 1.3 million metric tons of advanced biofuels produced during the quarter, maintaining the joint venture's position as the largest global producer. Cash Distributions from DGD stood at USD 280 million received, consisting of USD 211 million in dividends and USD 69 million from 2025 production tax credit sales. Debt Reduction was reported at USD 223 million in total debt paid down during the quarter, bringing the leverage ratio to 2.3x compared to 2.9x at the end of last year.

Year-End Debt Target and Capital Position

Year-End Debt Target came in at Under USD 3 billion by the end of 2026, which management anticipates will result in a leverage ratio well below 2.0x. Capital Expenditures totaled USD 450 million projected for fiscal year 2026, revised upward from USD 400 million to fund efficiency, debottlenecking, and capacity improvements. Stock Repurchases stood at USD 73 million worth of shares bought back during the quarter as part of the company's capital return strategy. Potenze Group Acquisition was reported at USD 122 million for three rendering facilities in Brazil, which are expected to be immediately accretive to earnings. Trap Business Divestiture came in at USD 90 million received from the sale of the majority of the company's grease trap business on July 22.

Food Segment Margins and Additional Detail

Food Segment Margins came in at 2.5 to 3.0 times higher for collagen compared to gelatin, with targeted health ingredients generating margins sevenfold to 11-fold higher than gelatin. Third Quarter DGD Production Target totaled 335 million gallons, reflecting high run rates to meet mandated renewable fuel volumes. Effective Tax Rate stood at 22% for the quarter, or 27% excluding the impact of production tax credits and certain discrete items. Global Ingredients EBITDA Growth was reported at USD 353 million, up from USD 207 million in the prior year, driven by a rally in fat and protein prices. Fish Meal Impact came in at Strengthening protein values due to tightening global fish meal supplies and increased poultry production in the U.S.

Figures to Follow in the Release

Investors can watch third quarter results against the figures management has already put on record, including the following: Core Ingredients EBITDA Guidance came in at USD 325 million to USD 340 million for the third quarter, representing underlying performance consistent with second quarter levels after excluding specific net recoveries.