Darling Ingredients (NYSE:DAR) Issues Earnings Results

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

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 Stock Up 4.1%

DAR traded up $2.39 during trading on Thursday, hitting $61.01. The company had a trading volume of 1,931,385 shares, compared to its average volume of 2,657,665. The firm’s 50-day moving average price is $58.40 and its 200 day moving average price is $55.82. The company has a market capitalization of $9.70 billion, a PE ratio of 44.26 and a beta of 1.04. The company has a quick ratio of 1.03, a current ratio of 1.58 and a debt-to-equity ratio of 0.82. Darling Ingredients has a one year low of $29.15 and a one year high of $66.02.

Analysts Set New Price Targets

Several research firms recently weighed in on DAR. Weiss Ratings raised shares of Darling Ingredients from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, July 15th. UBS Group increased their target price on shares of Darling Ingredients from $58.00 to $78.00 and gave the stock a “buy” rating in a report on Thursday, April 2nd. Wall Street Zen raised shares of Darling Ingredients from a “hold” rating to a “buy” rating in a research report on Sunday, July 5th. JPMorgan Chase & Co. upped their price objective on shares of Darling Ingredients from $78.00 to $79.00 and gave the company an “overweight” rating in a research report on Tuesday, May 12th. Finally, Scotiabank raised their price objective on Darling Ingredients from $61.00 to $70.00 and gave the stock a “sector outperform” rating in a research note on Wednesday, April 22nd. Ten investment 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 company currently has a consensus rating of “Moderate Buy” and an average price target of $68.73.

Darling Ingredients News Roundup

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 Buying and Selling at Darling Ingredients

In related news, CAO Joseph Manzi sold 3,000 shares of the stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $63.89, for a total transaction of $191,670.00. Following the completion of the transaction, the chief accounting officer directly owned 19,969 shares in the company, valued at approximately $1,275,819.41. This trade represents a 13.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Danske Bank A S acquired a new position in shares of Darling Ingredients during the 3rd quarter worth about $25,000. Litman Gregory Wealth Management LLC bought a new stake in Darling Ingredients during the fourth quarter worth about $29,000. EverSource Wealth Advisors LLC raised its holdings in Darling Ingredients by 681.5% during the second quarter. EverSource Wealth Advisors LLC now owns 1,016 shares of the company’s stock worth $39,000 after acquiring an additional 886 shares in the last quarter. Wilmington Savings Fund Society FSB boosted its position 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 during the last quarter. Finally, Advisory Services Network LLC acquired a new position in Darling Ingredients during the third quarter valued at approximately $48,000. 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.