Darling Ingredients (NYSE:DAR) Announces Quarterly Earnings Results

Darling Ingredients (NYSE:DAR) released its quarterly earnings data on Thursday. The company reported $2.41 earnings per share for the quarter, beating the consensus estimate of $1.40 by $1.01, FiscalAI reports. Darling Ingredients had a return on equity of 5.65% and a net margin of 3.54%.The business had revenue of $1.72 billion for the quarter, compared to analyst estimates of $1.71 billion. During the same period in the previous year, the company posted $0.08 EPS. The company’s revenue was up 16.4% compared to the same quarter last year.

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 3.8%

Shares of Darling Ingredients stock traded up $2.25 on Thursday, hitting $60.87. 2,112,649 shares of the company’s stock traded hands, compared to its average volume of 2,657,920. Darling Ingredients has a one year low of $29.15 and a one year high of $66.02. The firm’s 50-day moving average price is $58.40 and its two-hundred day moving average price is $55.82. 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 stock has a market capitalization of $9.67 billion, a PE ratio of 44.23 and a beta of 1.04.

Analyst Upgrades and Downgrades

Several analysts recently commented on the stock. Zacks Research lowered shares of Darling Ingredients from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 21st. Wall Street Zen raised shares of Darling Ingredients from a “hold” rating to a “buy” rating in a research report on Sunday, July 5th. TD Cowen increased their price target on shares of Darling Ingredients from $70.00 to $80.00 and gave the company a “buy” rating in a report on Monday. Robert W. Baird increased their price target on Darling Ingredients from $64.00 to $75.00 and gave the stock an “outperform” rating in a research report on Tuesday, April 7th. Finally, Weiss Ratings upgraded Darling Ingredients from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, July 15th. Ten equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $68.73.

Trending Headlines about 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

Insider Activity

In related news, CAO Joseph Manzi sold 3,000 shares of the stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $63.89, for a total value of $191,670.00. Following the sale, the chief accounting officer directly owned 19,969 shares in the company, valued at $1,275,819.41. This trade represents a 13.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Darling Ingredients

Several institutional investors and hedge funds have recently made changes to their positions in the company. Invesco Ltd. grew its stake in Darling Ingredients by 32.8% in the fourth quarter. Invesco Ltd. now owns 964,452 shares of the company’s stock valued at $34,720,000 after acquiring an additional 238,138 shares during the period. Corient Private Wealth LLC lifted its holdings in shares of Darling Ingredients by 64.1% during the 4th quarter. Corient Private Wealth LLC now owns 14,974 shares of the company’s stock valued at $539,000 after purchasing an additional 5,847 shares in the last quarter. Mercer Global Advisors Inc. ADV grew its position in shares of Darling Ingredients by 11.9% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 53,345 shares of the company’s stock valued at $1,920,000 after purchasing an additional 5,665 shares during the period. Empowered Funds LLC acquired a new stake in Darling Ingredients during the 4th quarter worth approximately $431,000. Finally, Wellington Management Group LLP lifted its stake in Darling Ingredients by 63.6% in the fourth quarter. Wellington Management Group LLP now owns 1,044,448 shares of the company’s stock valued at $37,600,000 after buying an additional 405,839 shares in the last quarter. Institutional investors and hedge funds own 94.44% of the company’s stock.

Darling Ingredients Company Profile

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.