Darling Ingredients (NYSE:DAR) Posts Quarterly Earnings Results, Beats Estimates By $1.01 EPS

Darling Ingredients (NYSE:DAR) posted its quarterly earnings data on Thursday. The company reported $2.41 EPS for the quarter, topping the consensus estimate of $1.40 by $1.01, FiscalAI reports. The firm had revenue of $1.72 billion for the quarter, compared to the consensus estimate of $1.71 billion. Darling Ingredients had a return on equity of 13.23% and a net margin of 9.13%.The business’s revenue for the quarter was up 16.4% compared to the same quarter last year. During the same quarter last year, the company earned $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 Down 0.4%

Shares of DAR stock opened at $60.77 on Friday. Darling Ingredients has a 12-month low of $29.15 and a 12-month high of $66.02. The company has a current ratio of 3.89, a quick ratio of 1.03 and a debt-to-equity ratio of 0.13. The stock’s 50-day moving average price is $58.50 and its 200-day moving average price is $56.00. The stock has a market capitalization of $9.66 billion, a price-to-earnings ratio of 16.38 and a beta of 1.04.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on DAR shares. Scotiabank increased their price objective on shares of Darling Ingredients from $61.00 to $70.00 and gave the stock a “sector outperform” rating in a research note on Wednesday, April 22nd. Weiss Ratings upgraded shares of Darling Ingredients from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, July 15th. Stephens increased their price target on Darling Ingredients from $65.00 to $70.00 and gave the stock an “overweight” rating in a research note on Tuesday, April 21st. Zacks Research cut Darling Ingredients from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 21st. Finally, Wall Street Zen upgraded Darling Ingredients from a “hold” rating to a “buy” rating in a research report on Sunday, July 5th. Ten analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $68.73.

Key Headlines Impacting Darling Ingredients

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

• Positive Sentiment: Darling reported second-quarter net income of $387.3 million, or $2.41 per diluted share, up sharply from $12.7 million, or $0.08 per share, a year earlier. EPS exceeded analyst expectations of approximately $1.40-$1.45, providing a significant earnings catalyst. Darling Ingredients Inc. Reports Second Quarter 2026 Results
• Positive Sentiment: Revenue increased 16.4% year over year to about $1.72 billion, roughly in line with or slightly above the $1.71 billion consensus estimate. Stronger renewable diesel, or DGD, performance, improved markets, higher margins and better cash flow supported the earnings beat. Darling Ingredients Q2 Earnings Beat on DGD Strength, Sales Miss
• Positive Sentiment: Management expects third-quarter core Ingredients EBITDA of $325 million to $340 million and is targeting 335 million DGD gallons, signaling continued operating momentum. Ongoing deleveraging also improves the company’s financial flexibility. Darling Ingredients Q3 Outlook
• Neutral Sentiment: The completed share-repurchase program may support per-share results, but it also removes a potential source of incremental buying support until a new authorization is announced. Darling Ingredients Q2 EPS Surge and Completed Buyback Program
• Negative Sentiment: Although earnings were strong, some coverage highlighted a sales shortfall or limited revenue upside, while the shares trade near their 12-month high at a relatively elevated earnings multiple. That combination may be prompting profit-taking and caution about how much of the recovery is already priced in.

Hedge Funds Weigh In On Darling Ingredients

Institutional investors have recently added to or reduced their stakes in the company. Danske Bank A S purchased a new stake in shares of Darling Ingredients during the 3rd quarter worth approximately $25,000. Litman Gregory Wealth Management LLC purchased a new position in shares of Darling Ingredients in the fourth quarter valued at $29,000. EverSource Wealth Advisors LLC increased its position in Darling Ingredients by 681.5% in the second quarter. EverSource Wealth Advisors LLC now owns 1,016 shares of the company’s stock worth $39,000 after purchasing an additional 886 shares during the last quarter. Wilmington Savings Fund Society FSB raised its stake in Darling Ingredients by 138.3% during the third quarter. Wilmington Savings Fund Society FSB now owns 1,511 shares of the company’s stock valued at $47,000 after purchasing an additional 877 shares in the last quarter. Finally, Advisory Services Network LLC purchased a new stake in Darling Ingredients during the third quarter valued at $48,000. Hedge funds and other institutional investors own 94.44% of the company’s stock.

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.