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Darling Ingredients Inc.
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$9.5B
Market Cap
96.5
P/E
0.58
PEG
3.6%
ROCE
1.5%
ROE
0.84
D/E
4.5%
OPM
-11.8%
% from 52W High
90
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for DAR including FX impact
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📈 Price History
Ratio Health
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By Category
📊 Peer Medians
About

Darling Ingredients Inc. develops, produces, and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. The Feed Ingredients segment collects and processes animal by-products into non-food grade oils and protein meals; bakery residuals into cookie meal used in poultry and swine rations; used cooking oil into non-food grade fats; and porcine and bovine blood into blood plasma powder and hemoglobin. This segment is also involved in the processing of selected portions of slaughtered animals into pet food, as well as of cattle hides and hog skins; production of organic fertilizers; rearing and processing of black soldier fly larvae into specialty proteins and fats for use in animal feed and pet food; and grease trap collection services to food service establishments. Its Food Ingredients segment engages in the purchase and processing of beef and pork bone chips, beef hides, and pig and fish skins into collagen; collection and processing of porcine and bovine intestines into natural casings; extraction and processing of porcine mucosa into crude heparin; collection and refining of animal fat into food grade fat; and processing of bones to bone chips and bone ash. The Fuel Ingredients segment is involved in the conversion of organic sludge and food waste into biogas; collection and conversion of fallen stock and certain animal by-products into low-grade energy sources; and processing of manure into natural bio-phosphate. It also provides environmental services, including disposal services; and yellow grease, fuel feedstock, and agriculture-based biofuels. The company sells its products under the Rendac, Sonac, FASA, Ecoson, Rousselot, Gelnex, and CTH brands. The company was formerly known as Darling International Inc. and changed its name to Darling Ingredients Inc. in May 2014. Darling Ingredients Inc. was founded in 1882 and is headquartered in Irving, Texas.

Key Ratios Snapshot
📈 Growth Pattern
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 523.5K $32.4M 0.04% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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🎙 Management Tone Confident Specific ↑ Improving 4 quarters Full tone analysis in Intelligence →
📊 MIXED Darling Ingredients Q1 2026 EBITDA $407M, net income $134M, strong core ingredients rebound.
Revenue & Profitability
Combined Adjusted EBITDA for Q1 2026 was $406.8 million, up from $196 million in Q1 2025 and $336 million in Q4 2025. Core ingredients EBITDA was $255.6 million; DGD contributed $151.2 million. Net sales rose to $1.6 billion from $1.4 billion. Net income was $134 million ($0.83 per diluted share) versus a net loss of $26 million (-$0.16) in the prior year. Total debt net of cash stood at approximately $4 billion as of quarter-end.
Outlook
Management views the operating environment as significantly improved, driven by a constructive final RVO and higher fat prices. They expect renewable diesel margins to strengthen through the year as the industry ramps up to meet mandates. Tailwinds include higher energy prices in Europe and increased demand for collagen. Risks include volatility in feedstock prices and global tariff impacts, particularly in Brazil.
Growth Drivers
Key growth drivers include expanding collagen sales in Europe and Asia, improved fat and protein pricing due to higher renewable diesel demand, and DGD volume growth (expected 320 million gallons in Q2 2026). The food segment is benefiting from new applications for collagen in nutrition and health products. Management also highlighted potential tailwinds from the company's European biogas business.
Balance Sheet & CapEx
Capital expenditures in Q1 2026 were $95 million. The company contributed approximately $190 million to DGD for working capital, most of which is expected to be returned in subsequent quarters. Darling also monetized $45 million in production tax credit sales. No specific full-year CapEx guidance was provided.
Margins
Gross margins improved to 26.1% in Q1 2026 from 22.6% a year ago and 25.1% in Q4 2025. Feed segment gross margins rose to 25.3% (vs. 20.3% prior year), while food segment margins were 28.9% (vs. 29.3%). DGD EBITDA margin per gallon was $1.11. Management expects margin expansion in the core ingredients business in Q2, driven by higher fat prices and operational improvements.
Key Risks
Management flagged risks from global tariff impacts on South American operations, volatility in feedstock and energy prices, and timing lags in pricing adjustments (30-90 days). Regulatory uncertainties related to RVO and LCFS credits were noted. The company also highlighted that its effective tax rate (32% excluding production tax credits) and cash taxes of approximately $60 million for the remainder of 2026 could impact cash flows.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-30
Q2 2026 saw record earnings, strong cash flow, and margin expansion, driven by robust demand in feed, food, and renewable fuels. Debt reduction, strategic acquisitions, and portfolio optimization position the business for continued growth and potential shareholder returns.
Q1 2026 Q1 2026 2026-04-30
First quarter 2026 saw a dramatic earnings turnaround, with EBITDA more than doubling year-over-year and margin expansion across all segments. Regulatory clarity and strong demand in renewables and collagen drove results, while management remains focused on debt reduction and operational excellence.
Q4 2025 Q4 2025 2026-02-12
Q4 and FY2025 saw strong EBITDA and margin growth, driven by operational excellence and robust demand across segments. Portfolio optimization, debt reduction, and strategic acquisitions position the business for continued momentum, with 2026 outlook dependent on policy clarity.
Q3 2025 Q3 2025 2025-10-23
Core ingredients business achieved its best results in 18 months, with strong EBITDA and margin growth across feed and food segments, while the renewables segment faced policy-driven headwinds. Management expects stable core performance for Q4 and 2026, with upside tied to regulatory clarity.
Q2 2025 Q2 2025 2025-07-24
Q2 saw improved gross margins and stable sales, but EBITDA and net income declined year-over-year. Guidance anticipates sequential improvement, with rising fat prices and policy clarity expected to drive stronger results in 2025 and 2026.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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