Darling Ingredients (NYSE:DAR) Issues Earnings Results

Darling Ingredients (NYSE:DAR) released its quarterly earnings data on Thursday. The company reported $2.41 EPS 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 firm had revenue of $1.72 billion during the quarter, compared to the consensus estimate of $1.71 billion. During the same quarter in the previous year, the company posted $0.08 earnings per share. The company’s quarterly revenue was up 16.4% on a year-over-year basis.

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 Price Performance

DAR opened at $60.96 on Friday. 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 company has a market capitalization of $9.69 billion, a price-to-earnings ratio of 44.17 and a beta of 1.04. The firm’s fifty day moving average price is $58.46 and its two-hundred day moving average price is $55.97. Darling Ingredients has a 1 year low of $29.15 and a 1 year high of $66.02.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in DAR. No Street GP LP purchased a new position in Darling Ingredients during the third quarter worth about $69,458,000. Rubric Capital Management LP purchased a new stake in Darling Ingredients in the 4th quarter valued at about $24,510,000. Amundi lifted its position in shares of Darling Ingredients by 177.7% during the 4th quarter. Amundi now owns 864,400 shares of the company’s stock worth $31,119,000 after buying an additional 553,081 shares in the last quarter. BNP Paribas Financial Markets lifted its position in shares of Darling Ingredients by 184.5% during the 2nd quarter. BNP Paribas Financial Markets now owns 846,371 shares of the company’s stock worth $32,111,000 after buying an additional 548,844 shares in the last quarter. Finally, Two Sigma Investments LP boosted its stake in shares of Darling Ingredients by 608.5% in the 3rd quarter. Two Sigma Investments LP now owns 634,361 shares of the company’s stock worth $19,583,000 after buying an additional 544,821 shares during the last quarter. 94.44% of the stock is owned by institutional investors.

Trending Headlines about Darling Ingredients

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

• Positive Sentiment: Major earnings beat: Darling reported GAAP earnings of $2.41 per diluted share, up from $0.08 a year earlier and well above analyst estimates of roughly $1.40–$1.45. Net income rose to $387.3 million from $12.7 million, providing the primary catalyst for the stock’s move higher. Darling Ingredients Inc. Reports Second Quarter 2026 Results
• Positive Sentiment: Revenue exceeded expectations: Second-quarter sales increased 16.4% year over year to approximately $1.72 billion, slightly ahead of the $1.71 billion consensus estimate. Management said business momentum continues to build. Darling Ingredients Exceeds Q2 Expectations
• Positive Sentiment: Deleveraging and capital returns support sentiment: Coverage highlighted continued debt reduction, while the completed share-buyback program may improve per-share value and signal management confidence. Investors are evaluating whether the earnings improvement and buyback completion warrant further action. Should Darling Ingredients’ Q2 EPS Surge and Completed Buyback Program Require Action From DAR Investors?
• Positive Sentiment: Analyst outlook remains favorable: The average Wall Street price target implies about 32.4% potential upside, and positive earnings-estimate revisions could provide additional support. However, price-target-based projections are not guarantees. Wall Street Analysts Believe Darling Could Rally
• Neutral Sentiment: The earnings-call transcript and metric reviews give investors additional detail on quarterly performance, but the stock’s response will depend on whether the improved results can be sustained across Darling’s businesses. Darling Ingredients Q2 2026 Earnings Call Transcript

Wall Street Analyst Weigh In

Several research firms recently issued reports on DAR. Scotiabank lifted their price target on shares of Darling Ingredients from $61.00 to $70.00 and gave the company a “sector outperform” rating in a research report on Wednesday, April 22nd. UBS Group raised their price objective on shares of Darling Ingredients from $58.00 to $78.00 and gave the company a “buy” rating in a research note on Thursday, April 2nd. Stephens lifted their price objective on shares of Darling Ingredients from $65.00 to $70.00 and gave the company an “overweight” rating in a report on Tuesday, April 21st. Wall Street Zen upgraded shares of Darling Ingredients from a “hold” rating to a “buy” rating in a report on Sunday, July 5th. Finally, Barclays raised their price target on shares of Darling Ingredients from $58.00 to $62.00 and gave the company an “equal weight” rating in a research report on Thursday, July 2nd. Ten research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Darling Ingredients currently has a consensus rating of “Moderate Buy” and an average price target of $68.73.

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.