Fourth Quarter Highlights
- Net income of $56.9 million, or $0.35 per GAAP diluted share, compared to $101.9 million for fourth quarter 2024, or $0.63 per GAAP diluted share
- Total net sales were $1.7 billion, compared to $1.42 billion for fourth quarter 2024
- Combined Adjusted EBITDA was $336.1 million, compared to $289.5 million for fourth quarter 2024
Fiscal Year Highlights
- Net income of $62.8 million, or $0.39 per GAAP diluted share, compared to $278.9 million for fiscal year 2024, or $1.73 per GAAP diluted share
- Total net sales were $6.1 billion, compared to $5.7 billion for fiscal year 2024
- Combined Adjusted EBITDA was $1.03 billion, compared to $1.08 billion for fiscal year 2024
- The company monetized $255 of the $285 million of Production Tax Credit sales, enhancing cash generation
- Bank leverage ratio declined to 2.90X, demonstrating a commitment to deleveraging
IRVING, Texas–(BUSINESS WIRE)–$DAR—Darling Ingredients Inc. (NYSE: DAR) today reported net income of $56.9 million, or $0.35 per diluted share for the fourth quarter of 2025, compared to net income of $101.9 million, or $0.63 per diluted share, for the fourth quarter of 2024. The company strategically realigned its portfolio of businesses in the quarter, resulting in restructuring and asset impairment charges of $58.0 million primarily related to its Enviroflight and CTH natural casing businesses. The company also reported total net sales of $1.7 billion for the fourth quarter of 2025, compared with total net sales of $1.4 billion for the same period a year ago.
“Our commitment to operational excellence drove a strong fourth quarter, delivering solid EBITDA growth and sequential gross margin improvement, despite lower fat prices. While Diamond Green Diesel (DGD) had a challenging year, our best-in-class operations led the industry and produced industry-leading results,” said Randall C. Stuewe, Chairman and Chief Executive Officer. “We have taken the steps to sharpen our portfolio and focus on our core strengths, and are well positioned to build on this momentum in 2026.”
For the fiscal year ended Jan. 3, 2026, Darling Ingredients reported total net sales of $6.1 billion, compared to total net sales of $5.7 billion for the same period in 2024. Net income for fiscal year 2025 was $62.8 million, or $0.39 per diluted share, as compared to net income of $278.9 million, or $1.73 per diluted share, for fiscal year 2024.
For the three months ended Dec. 31, 2025, Diamond Green Diesel (DGD) sold 285.3 million gallons of renewable diesel at an average of $0.41 per gallon EBITDA. For the twelve months ended, Dec. 31, 2025, DGD sold 1.003 billion gallons at an average of $0.21 per gallon EBITDA.
Combined Adjusted EBITDA for the fourth quarter of 2025 was $336.1 million, compared to $289.5 million for the same period in 2024. For fiscal year 2025, Combined Adjusted EBITDA totaled $1.03 billion, as compared to $1.08 billion for the same period in 2024.
The company enhanced its liquidity by monetizing $255 million of the $285 million in Production Tax Credit (PTC) sales during fiscal year 2025, improving cash generation for continued deleveraging in 2026.
As of Jan. 3, 2026, Darling Ingredients had $88.7 million in cash and cash equivalents, and $1.32 billion available under its committed revolving credit agreement. Total debt outstanding as of Jan. 3, 2026, was $3.94 billion. The preliminary leverage ratio as measured by the company’s bank covenant was 2.90X as of Jan. 3, 2026. Capital expenditures were $156.4 million for the fourth quarter 2025 and $380.5 million for the year.
“The additional week in our fiscal year, combined with a favorable lag in fat pricing, supported higher volumes and sales in the fourth quarter,” said Stuewe. “While current market pricing will modestly impact our core ingredients performance in the first quarter, we anticipate the EPA’s upcoming Renewable Volume Obligation will provide a constructive backdrop for fat prices once finalized.”
As previously announced, Darling Ingredients will provide financial guidance exclusively for its core ingredients business (all segments excluding DGD). For first quarter 2026, the company estimates core ingredients business adjusted EBITDA to be approximately $240-$250 million.
|
Darling Ingredients Inc. and Subsidiaries Consolidated Operating Results For the Three and Twelve Months Ended January 3, 2026 and December 28, 2024 (in thousands, except per share data) |
|||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||||||
|
|
(unaudited) |
|
(unaudited) |
|
$ Change |
|
(unaudited) |
|
|
|
$ Change |
||||||||||||
|
|
January 3, |
|
December 28, |
|
Favorable |
|
January 3, |
|
December 28, |
|
Favorable |
||||||||||||
|
|
2026 |
|
2024 |
|
(Unfavorable) |
|
2026 |
|
2024 |
|
(Unfavorable) |
||||||||||||
|
Net sales to third parties |
$ |
1,363,671 |
|
|
$ |
1,194,900 |
|
|
$ |
168,771 |
|
|
$ |
4,938,147 |
|
|
$ |
4,746,292 |
|
|
$ |
191,855 |
|
|
Net sales to related party – Diamond Green Diesel |
|
346,128 |
|
|
|
222,793 |
|
|
|
123,335 |
|
|
|
1,197,730 |
|
|
|
968,883 |
|
|
|
228,847 |
|
|
Total net sales |
|
1,709,799 |
|
|
|
1,417,693 |
|
|
|
292,106 |
|
|
|
6,135,877 |
|
|
|
5,715,175 |
|
|
|
420,702 |
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Cost of sales and operating expenses (excludes depreciation and amortization, shown separately below) |
|
1,280,618 |
|
|
|
1,083,931 |
|
|
|
(196,687 |
) |
|
|
4,662,419 |
|
|
|
4,437,337 |
|
|
|
(225,082 |
) |
|
Gain on sale of assets |
|
(979 |
) |
|
|
(4,056 |
) |
|
|
(3,077 |
) |
|
|
(340 |
) |
|
|
(4,157 |
) |
|
|
(3,817 |
) |
|
Selling, general and administrative expenses |
|
151,939 |
|
|
|
107,514 |
|
|
|
(44,425 |
) |
|
|
551,158 |
|
|
|
492,105 |
|
|
|
(59,053 |
) |
|
Restructuring and asset impairment charges |
|
57,960 |
|
|
|
5,794 |
|
|
|
(52,166 |
) |
|
|
57,960 |
|
|
|
5,794 |
|
|
|
(52,166 |
) |
|
Acquisition and integration costs |
|
4,869 |
|
|
|
2,440 |
|
|
|
(2,429 |
) |
|
|
15,942 |
|
|
|
7,842 |
|
|
|
(8,100 |
) |
|
Change in fair value of contingent consideration |
|
— |
|
|
|
(4,491 |
) |
|
|
(4,491 |
) |
|
|
18,024 |
|
|
|
(46,706 |
) |
|
|
(64,730 |
) |
|
Depreciation and amortization |
|
139,543 |
|
|
|
128,158 |
|
|
|
(11,385 |
) |
|
|
508,504 |
|
|
|
503,825 |
|
|
|
(4,679 |
) |
|
Total costs and expenses |
|
1,633,950 |
|
|
|
1,319,290 |
|
|
|
(314,660 |
) |
|
|
5,813,667 |
|
|
|
5,396,040 |
|
|
|
(417,627 |
) |
|
Equity in net income/(loss) of Diamond Green Diesel |
|
21,597 |
|
|
|
24,036 |
|
|
|
(2,439 |
) |
|
|
(48,770 |
) |
|
|
149,082 |
|
|
|
(197,852 |
) |
|
Operating income |
|
97,446 |
|
|
|
122,439 |
|
|
|
(24,993 |
) |
|
|
273,440 |
|
|
|
468,217 |
|
|
|
(194,777 |
) |
|
Other expense: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest expense |
|
(55,514 |
) |
|
|
(54,911 |
) |
|
|
(603 |
) |
|
|
(222,279 |
) |
|
|
(253,858 |
) |
|
|
31,579 |
|
|
Loss on early retirement of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,978 |
) |
|
|
— |
|
|
|
(2,978 |
) |
|
Foreign currency loss |
|
(1,402 |
) |
|
|
(1,669 |
) |
|
|
267 |
|
|
|
(384 |
) |
|
|
(1,154 |
) |
|
|
770 |
|
|
Other income, net |
|
2,999 |
|
|
|
9,486 |
|
|
|
(6,487 |
) |
|
|
468 |
|
|
|
22,309 |
|
|
|
(21,841 |
) |
|
Total other expense |
|
(53,917 |
) |
|
|
(47,094 |
) |
|
|
(6,823 |
) |
|
|
(225,173 |
) |
|
|
(232,703 |
) |
|
|
7,530 |
|
|
Equity in net income of other unconsolidated subsidiaries |
|
4,328 |
|
|
|
2,885 |
|
|
|
1,443 |
|
|
|
12,759 |
|
|
|
11,994 |
|
|
|
765 |
|
|
Income from operations before income taxes |
|
47,857 |
|
|
|
78,230 |
|
|
|
(30,373 |
) |
|
|
61,026 |
|
|
|
247,508 |
|
|
|
(186,482 |
) |
|
Income tax benefit |
|
(11,022 |
) |
|
|
(25,547 |
) |
|
|
(14,525 |
) |
|
|
(9,359 |
) |
|
|
(38,337 |
) |
|
|
(28,978 |
) |
|
Net income |
|
58,879 |
|
|
|
103,777 |
|
|
|
(44,898 |
) |
|
|
70,385 |
|
|
|
285,845 |
|
|
|
(215,460 |
) |
|
Net income attributable to noncontrolling interests |
|
(1,939 |
) |
|
|
(1,869 |
) |
|
|
(70 |
) |
|
|
(7,581 |
) |
|
|
(6,965 |
) |
|
|
(616 |
) |
|
Net income attributable to Darling |
$ |
56,940 |
|
|
$ |
101,908 |
|
|
$ |
(44,968 |
) |
|
$ |
62,804 |
|
|
$ |
278,880 |
|
|
$ |
(216,076 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Basic income per share: |
$ |
0.36 |
|
|
$ |
0.64 |
|
|
$ |
(0.28 |
) |
|
$ |
0.40 |
|
|
$ |
1.75 |
|
|
$ |
(1.35 |
) |
|
Diluted income per share: |
$ |
0.35 |
|
|
$ |
0.63 |
|
|
$ |
(0.28 |
) |
|
$ |
0.39 |
|
|
$ |
1.73 |
|
|
$ |
(1.34 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Number of diluted common shares: |
|
160,414 |
|
|
|
161,071 |
|
|
|
|
|
160,157 |
|
|
|
161,418 |
|
|
|
||||
|
Segment Financial Tables (in thousands) |
|||||||||||||||
|
|
Feed |
Food |
Fuel |
Corporate |
Total |
||||||||||
|
Three Months Ended January 3, 2026 (unaudited) |
|
|
|
|
|
||||||||||
|
Total net sales |
$ |
1,128,158 |
|
$ |
429,074 |
|
$ |
152,567 |
|
$ |
— |
|
$ |
1,709,799 |
|
|
Cost of sales and operating expenses |
|
850,841 |
|
|
312,213 |
|
|
117,564 |
|
|
— |
|
|
1,280,618 |
|
|
Gross margin |
|
277,317 |
|
|
116,861 |
|
|
35,003 |
|
|
— |
|
|
429,181 |
|
|
|
|
|
|
|
|
||||||||||
|
Gain on sale of assets |
|
(196 |
) |
|
(651 |
) |
|
(132 |
) |
|
— |
|
|
(979 |
) |
|
Selling, general and administrative expenses |
|
84,139 |
|
|
35,100 |
|
|
7,970 |
|
|
24,730 |
|
|
151,939 |
|
|
Restructuring and asset impairment charges |
|
32,120 |
|
|
25,840 |
|
|
— |
|
|
— |
|
|
57,960 |
|
|
Acquisition and integration costs |
|
— |
|
|
— |
|
|
— |
|
|
4,869 |
|
|
4,869 |
|
|
Depreciation and amortization |
|
97,363 |
|
|
30,506 |
|
|
9,874 |
|
|
1,800 |
|
|
139,543 |
|
|
Equity in net income of Diamond Green Diesel |
|
— |
|
|
— |
|
|
21,597 |
|
|
— |
|
|
21,597 |
|
|
Segment operating income/(loss) |
$ |
63,891 |
|
$ |
26,066 |
|
$ |
38,888 |
|
$ |
(31,399 |
) |
$ |
97,446 |
|
|
|
|
|
|
|
|
||||||||||
|
Equity in net income of other unconsolidated subsidiaries |
|
4,328 |
|
|
— |
|
|
— |
|
|
— |
|
|
4,328 |
|
|
Segment income/(loss) |
|
68,219 |
|
|
26,066 |
|
|
38,888 |
|
|
(31,399 |
) |
|
101,774 |
|
|
|
|
|
|
|
|
||||||||||
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
193,374 |
|
$ |
82,412 |
|
$ |
27,165 |
|
$ |
(24,730 |
) |
$ |
278,221 |
|
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) |
|
— |
|
|
— |
|
|
57,917 |
|
|
— |
|
|
57,917 |
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
193,374 |
|
$ |
82,412 |
|
$ |
85,082 |
|
$ |
(24,730 |
) |
$ |
336,138 |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
Reconciliation of Net Income/(Loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA: |
|||||||||||||||
|
Net income/(loss) attributable to Darling |
$ |
68,219 |
|
$ |
26,066 |
|
$ |
38,888 |
|
$ |
(76,233 |
) |
$ |
56,940 |
|
|
Net income attributable to noncontrolling interests |
|
— |
|
|
— |
|
|
— |
|
|
1,939 |
|
|
1,939 |
|
|
Income tax benefit |
|
— |
|
|
— |
|
|
— |
|
|
(11,022 |
) |
|
(11,022 |
) |
|
Interest expense |
|
— |
|
|
— |
|
|
— |
|
|
55,514 |
|
|
55,514 |
|
|
Foreign currency loss |
|
— |
|
|
— |
|
|
— |
|
|
1,402 |
|
|
1,402 |
|
|
Other income, net |
|
— |
|
|
— |
|
|
— |
|
|
(2,999 |
) |
|
(2,999 |
) |
|
Segment income/(loss) |
$ |
68,219 |
|
$ |
26,066 |
|
$ |
38,888 |
|
$ |
(31,399 |
) |
$ |
101,774 |
|
|
Restructuring and asset impairment charges |
|
32,120 |
|
|
25,840 |
|
|
— |
|
|
— |
|
|
57,960 |
|
|
Acquisition and integration costs |
|
— |
|
|
— |
|
|
— |
|
|
4,869 |
|
|
4,869 |
|
|
Depreciation and amortization |
|
97,363 |
|
|
30,506 |
|
|
9,874 |
|
|
1,800 |
|
|
139,543 |
|
|
Equity in net income of Diamond Green Diesel |
|
— |
|
|
— |
|
|
(21,597 |
) |
|
— |
|
|
(21,597 |
) |
|
Equity in net income of other unconsolidated subsidiaries |
|
(4,328 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(4,328 |
) |
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
193,374 |
|
$ |
82,412 |
|
$ |
27,165 |
|
$ |
(24,730 |
) |
$ |
278,221 |
|
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) * |
|
— |
|
|
— |
|
|
57,917 |
|
|
— |
|
|
57,917 |
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
193,374 |
|
$ |
82,412 |
|
$ |
85,082 |
|
$ |
(24,730 |
) |
$ |
336,138 |
|
|
|
|
|
|
|
|
||||||||||
|
*See reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Income |
|||||||||||||||
|
|
Feed |
Food |
Fuel |
Corporate |
Total |
||||||||||
|
Three Months Ended December 28, 2024 (unaudited) |
|
|
|
|
|
||||||||||
|
Total net sales |
$ |
924,157 |
|
$ |
361,686 |
|
$ |
131,850 |
|
$ |
— |
|
$ |
1,417,693 |
|
|
Cost of sales and operating expenses |
|
714,843 |
|
|
268,582 |
|
|
100,506 |
|
|
— |
|
|
1,083,931 |
|
|
Gross margin |
|
209,314 |
|
|
93,104 |
|
|
31,344 |
|
|
— |
|
|
333,762 |
|
|
|
|
|
|
|
|
||||||||||
|
Gain on sale of assets |
|
(1,210 |
) |
|
(1,550 |
) |
|
(1,296 |
) |
|
— |
|
|
(4,056 |
) |
|
Selling, general and administrative expenses |
|
60,497 |
|
|
30,665 |
|
|
7,459 |
|
|
8,893 |
|
|
107,514 |
|
|
Restructuring and asset impairment charges |
|
3,671 |
|
|
2,123 |
|
|
— |
|
|
— |
|
|
5,794 |
|
|
Acquisition and integration costs |
|
— |
|
|
— |
|
|
— |
|
|
2,440 |
|
|
2,440 |
|
|
Change in fair value of contingent consideration |
|
(4,491 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(4,491 |
) |
|
Depreciation and amortization |
|
90,648 |
|
|
26,119 |
|
|
9,189 |
|
|
2,202 |
|
|
128,158 |
|
|
Equity in net income of Diamond Green Diesel |
|
— |
|
|
— |
|
|
24,036 |
|
|
— |
|
|
24,036 |
|
|
Segment operating income/(loss) |
$ |
60,199 |
|
$ |
35,747 |
|
$ |
40,028 |
|
$ |
(13,535 |
) |
$ |
122,439 |
|
|
|
|
|
|
|
|
||||||||||
|
Equity in net income of other unconsolidated subsidiaries |
|
2,885 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,885 |
|
|
Segment income/(loss) |
$ |
63,084 |
|
$ |
35,747 |
|
$ |
40,028 |
|
$ |
(13,535 |
) |
$ |
125,324 |
|
|
|
|
|
|
|
|
||||||||||
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
150,027 |
|
$ |
63,989 |
|
$ |
25,181 |
|
$ |
(8,893 |
) |
$ |
230,304 |
|
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) |
|
— |
|
|
— |
|
|
59,159 |
|
|
— |
|
|
59,159 |
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
150,027 |
|
$ |
63,989 |
|
$ |
84,340 |
|
$ |
(8,893 |
) |
$ |
289,463 |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
Reconciliation of Net Income/(Loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA: |
|||||||||||||||
|
Net income/(loss) attributable to Darling |
$ |
63,084 |
|
$ |
35,747 |
|
$ |
40,028 |
|
$ |
(36,951 |
) |
$ |
101,908 |
|
|
Net income attributable to noncontrolling interests |
|
— |
|
|
— |
|
|
— |
|
|
1,869 |
|
|
1,869 |
|
|
Income tax benefit |
|
— |
|
|
— |
|
|
— |
|
|
(25,547 |
) |
|
(25,547 |
) |
|
Interest expense |
|
— |
|
|
— |
|
|
— |
|
|
54,911 |
|
|
54,911 |
|
|
Foreign currency loss |
|
— |
|
|
— |
|
|
— |
|
|
1,669 |
|
|
1,669 |
|
|
Other income, net |
|
— |
|
|
— |
|
|
— |
|
|
(9,486 |
) |
|
(9,486 |
) |
|
Segment income/(loss) |
$ |
63,084 |
|
$ |
35,747 |
|
$ |
40,028 |
|
$ |
(13,535 |
) |
$ |
125,324 |
|
|
Restructuring and asset impairment charges |
|
3,671 |
|
|
2,123 |
|
|
— |
|
|
— |
|
|
5,794 |
|
|
Acquisition and integration costs |
|
— |
|
|
— |
|
|
— |
|
|
2,440 |
|
|
2,440 |
|
|
Change in fair value of contingent consideration |
|
(4,491 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(4,491 |
) |
|
Depreciation and amortization |
|
90,648 |
|
|
26,119 |
|
|
9,189 |
|
|
2,202 |
|
|
128,158 |
|
|
Equity in net income of Diamond Green Diesel |
|
— |
|
|
— |
|
|
(24,036 |
) |
|
— |
|
|
(24,036 |
) |
|
Equity in net income of other unconsolidated subsidiaries |
|
(2,885 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(2,885 |
) |
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
150,027 |
|
$ |
63,989 |
|
$ |
25,181 |
|
$ |
(8,893 |
) |
$ |
230,304 |
|
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) * |
|
— |
|
|
— |
|
|
59,159 |
|
|
— |
|
|
59,159 |
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
150,027 |
|
$ |
63,989 |
|
$ |
84,340 |
|
$ |
(8,893 |
) |
$ |
289,463 |
|
|
|
|
|
|
|
|
||||||||||
|
*See reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Income |
|||||||||||||||
|
|
Feed |
Food |
Fuel |
Corporate |
Total |
||||||||||
|
Twelve Months Ended January 3, 2026 (unaudited) |
|
|
|
|
|
||||||||||
|
Total net sales |
$ |
3,990,088 |
|
$ |
1,545,030 |
|
$ |
600,759 |
|
$ |
— |
|
$ |
6,135,877 |
|
|
Cost of sales and operating expenses |
|
3,066,243 |
|
|
1,116,978 |
|
|
479,198 |
|
|
— |
|
|
4,662,419 |
|
|
Gross margin |
|
923,845 |
|
|
428,052 |
|
|
121,561 |
|
|
— |
|
|
1,473,458 |
|
|
|
|
|
|
|
|
||||||||||
|
Loss/(Gain) on sale of assets |
|
879 |
|
|
(685 |
) |
|
(534 |
) |
|
— |
|
|
(340 |
) |
|
Selling, general and administrative expenses |
|
309,112 |
|
|
133,809 |
|
|
33,615 |
|
|
74,622 |
|
|
551,158 |
|
|
Restructuring and asset impairment charges |
|
32,120 |
|
|
25,840 |
|
|
— |
|
|
— |
|
|
57,960 |
|
|
Acquisition and integration costs |
|
— |
|
|
— |
|
|
— |
|
|
15,942 |
|
|
15,942 |
|
|
Change in fair value of contingent consideration |
|
18,024 |
|
|
— |
|
|
— |
|
|
— |
|
|
18,024 |
|
|
Depreciation and amortization |
|
348,502 |
|
|
117,298 |
|
|
36,355 |
|
|
6,349 |
|
|
508,504 |
|
|
Equity in net loss of Diamond Green Diesel |
|
— |
|
|
— |
|
|
(48,770 |
) |
|
— |
|
|
(48,770 |
) |
|
Segment operating income/(loss) |
$ |
215,208 |
|
$ |
151,790 |
|
$ |
3,355 |
|
$ |
(96,913 |
) |
$ |
273,440 |
|
|
|
|
|
|
|
|
||||||||||
|
Equity in net income of other unconsolidated subsidiaries |
|
12,759 |
|
|
— |
|
|
— |
|
|
— |
|
|
12,759 |
|
|
Segment income/(loss) |
$ |
227,967 |
|
$ |
151,790 |
|
$ |
3,355 |
|
$ |
(96,913 |
) |
$ |
286,199 |
|
|
|
|
|
|
|
|
||||||||||
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
613,854 |
|
$ |
294,928 |
|
$ |
88,480 |
|
$ |
(74,622 |
) |
$ |
922,640 |
|
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) |
|
— |
|
|
— |
|
|
103,716 |
|
|
— |
|
|
103,716 |
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
613,854 |
|
$ |
294,928 |
|
$ |
192,196 |
|
$ |
(74,622 |
) |
$ |
1,026,356 |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
Reconciliation of Net Income/(Loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA: |
|||||||||||||||
|
Net income/(loss) attributable to Darling |
$ |
227,967 |
|
$ |
151,790 |
|
$ |
3,355 |
|
$ |
(320,308 |
) |
$ |
62,804 |
|
|
Net income attributable to noncontrolling interests |
|
— |
|
|
— |
|
|
— |
|
|
7,581 |
|
|
7,581 |
|
|
Income tax benefit |
|
— |
|
|
— |
|
|
— |
|
|
(9,359 |
) |
|
(9,359 |
) |
|
Loss on early retirement of debt |
|
— |
|
|
— |
|
|
— |
|
|
2,978 |
|
|
2,978 |
|
|
Interest expense |
|
— |
|
|
— |
|
|
— |
|
|
222,279 |
|
|
222,279 |
|
|
Foreign currency loss |
|
— |
|
|
— |
|
|
— |
|
|
384 |
|
|
384 |
|
|
Other income, net |
|
— |
|
|
— |
|
|
— |
|
|
(468 |
) |
|
(468 |
) |
|
Segment income/(loss) |
$ |
227,967 |
|
$ |
151,790 |
|
$ |
3,355 |
|
$ |
(96,913 |
) |
$ |
286,199 |
|
|
Restructuring and asset impairment charges |
|
32,120 |
|
|
25,840 |
|
|
— |
|
|
— |
|
|
57,960 |
|
|
Acquisition and integration costs |
|
— |
|
|
— |
|
|
— |
|
|
15,942 |
|
|
15,942 |
|
|
Change in fair value of contingent consideration |
|
18,024 |
|
|
— |
|
|
— |
|
|
— |
|
|
18,024 |
|
|
Depreciation and amortization |
|
348,502 |
|
|
117,298 |
|
|
36,355 |
|
|
6,349 |
|
|
508,504 |
|
|
Equity in net loss of Diamond Green Diesel |
|
— |
|
|
— |
|
|
48,770 |
|
|
— |
|
|
48,770 |
|
|
Equity in net income of other unconsolidated subsidiaries |
|
(12,759 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(12,759 |
) |
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
613,854 |
|
$ |
294,928 |
|
$ |
88,480 |
|
$ |
(74,622 |
) |
$ |
922,640 |
|
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) * |
|
— |
|
|
— |
|
|
103,716 |
|
|
— |
|
|
103,716 |
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
613,854 |
|
$ |
294,928 |
|
$ |
192,196 |
|
$ |
(74,622 |
) |
$ |
1,026,356 |
|
|
|
|
|
|
|
|
||||||||||
|
*See reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Income |
|||||||||||||||
|
|
Feed |
Food |
Fuel |
Corporate |
Total |
||||||||||
|
Twelve Months Ended December 28, 2024 |
|
|
|
|
|
||||||||||
|
Total net sales |
$ |
3,675,609 |
|
$ |
1,489,101 |
|
$ |
550,465 |
|
$ |
— |
|
$ |
5,715,175 |
|
|
Cost of sales and operating expenses |
|
2,886,125 |
|
|
1,115,348 |
|
|
435,864 |
|
|
— |
|
|
4,437,337 |
|
|
Gross margin |
|
789,484 |
|
|
373,753 |
|
|
114,601 |
|
|
— |
|
|
1,277,838 |
|
|
|
|
|
|
|
|
||||||||||
|
Gain on sale of assets |
|
(669 |
) |
|
(1,758 |
) |
|
(1,730 |
) |
|
— |
|
|
(4,157 |
) |
|
Selling, general and administrative expenses |
|
279,095 |
|
|
119,604 |
|
|
32,370 |
|
|
61,036 |
|
|
492,105 |
|
|
Restructuring and asset impairment charges |
|
3,671 |
|
|
2,123 |
|
|
— |
|
|
— |
|
|
5,794 |
|
|
Acquisition and integration costs |
|
— |
|
|
— |
|
|
— |
|
|
7,842 |
|
|
7,842 |
|
|
Change in fair value of contingent consideration |
|
(46,706 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(46,706 |
) |
|
Depreciation and amortization |
|
350,141 |
|
|
109,102 |
|
|
35,876 |
|
|
8,706 |
|
|
503,825 |
|
|
Equity in net income of Diamond Green Diesel |
|
— |
|
|
— |
|
|
149,082 |
|
|
— |
|
|
149,082 |
|
|
Segment operating income/(loss) |
$ |
203,952 |
|
$ |
144,682 |
|
$ |
197,167 |
|
$ |
(77,584 |
) |
$ |
468,217 |
|
|
|
|
|
|
|
|
||||||||||
|
Equity in net income of other unconsolidated subsidiaries |
|
11,994 |
|
|
— |
|
|
— |
|
|
— |
|
|
11,994 |
|
|
Segment income/(loss) |
$ |
215,946 |
|
$ |
144,682 |
|
$ |
197,167 |
|
$ |
(77,584 |
) |
$ |
480,211 |
|
|
|
|
|
|
|
|
||||||||||
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
511,058 |
|
$ |
255,907 |
|
$ |
83,961 |
|
$ |
(61,036 |
) |
$ |
789,890 |
|
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) |
|
— |
|
|
— |
|
|
289,945 |
|
|
— |
|
|
289,945 |
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
511,058 |
|
$ |
255,907 |
|
$ |
373,906 |
|
$ |
(61,036 |
) |
$ |
1,079,835 |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
Reconciliation of Net Income/(Loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA: |
|||||||||||||||
|
Net income/(loss) attributable to Darling |
$ |
215,946 |
|
$ |
144,682 |
|
$ |
197,167 |
|
$ |
(278,915 |
) |
$ |
278,880 |
|
|
Net income attributable to noncontrolling interests |
|
— |
|
|
— |
|
|
— |
|
|
6,965 |
|
|
6,965 |
|
|
Income tax benefit |
|
— |
|
|
— |
|
|
— |
|
|
(38,337 |
) |
|
(38,337 |
) |
|
Interest expense |
|
— |
|
|
— |
|
|
— |
|
|
253,858 |
|
|
253,858 |
|
|
Foreign currency loss |
|
— |
|
|
— |
|
|
— |
|
|
1,154 |
|
|
1,154 |
|
|
Other income, net |
|
— |
|
|
— |
|
|
— |
|
|
(22,309 |
) |
|
(22,309 |
) |
|
Segment income/(loss) |
$ |
215,946 |
|
$ |
144,682 |
|
$ |
197,167 |
|
$ |
(77,584 |
) |
$ |
480,211 |
|
|
Restructuring and asset impairment charges |
|
3,671 |
|
|
2,123 |
|
|
— |
|
|
— |
|
|
5,794 |
|
|
Acquisition and integration costs |
|
— |
|
|
— |
|
|
— |
|
|
7,842 |
|
|
7,842 |
|
|
Change in fair value of contingent consideration |
|
(46,706 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(46,706 |
) |
|
Depreciation and amortization |
|
350,141 |
|
|
109,102 |
|
|
35,876 |
|
|
8,706 |
|
|
503,825 |
|
|
Equity in net income of Diamond Green Diesel |
|
— |
|
|
— |
|
|
(149,082 |
) |
|
— |
|
|
(149,082 |
) |
|
Equity in net income of other unconsolidated subsidiaries |
|
(11,994 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(11,994 |
) |
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
511,058 |
|
$ |
255,907 |
|
$ |
83,961 |
|
$ |
(61,036 |
) |
$ |
789,890 |
|
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) * |
|
— |
|
|
— |
|
|
289,945 |
|
|
— |
|
|
289,945 |
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
511,058 |
|
$ |
255,907 |
|
$ |
373,906 |
|
$ |
(61,036 |
) |
$ |
1,079,835 |
|
|
|
|
|
|
|
|
||||||||||
|
*See reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Income |
|||||||||||||||
|
Darling Ingredients Inc. and Subsidiaries Balance Sheet Disclosures As of January 3, 2026 and December 28, 2024 (in thousands) |
|||||
|
|
|
||||
|
|
(unaudited) |
|
|
||
|
|
January 3, |
|
December 28, |
||
|
|
2026 |
|
2024 |
||
|
Cash and cash equivalents |
$ |
88,671 |
|
$ |
75,973 |
|
Property, plant and equipment, net |
|
2,796,139 |
|
|
2,713,669 |
|
Current portion of long-term debt |
|
75,217 |
|
|
133,020 |
|
Long-term debt, net of current portion |
|
3,862,243 |
|
|
3,908,978 |
|
|
|
|
|
||
|
|
|
|
|
||
|
Other Financial Data |
|||||
|
As of January 3, 2026 |
|||||
|
|
(unaudited) |
|
|
||
|
|
January 3, |
|
|
||
|
|
2026 |
|
|
||
|
Revolver availability |
$ |
1,324,496 |
|
|
|
|
Capital expenditures – YTD |
$ |
380,477 |
|
|
|
|
Preliminary Leverage Ratio |
2.90X |
|
|
||
|
Diamond Green Diesel Joint Venture Consolidated Statements of Income For the Three and Twelve Months Ended December 31, 2025 and December 31, 2024 (in thousands) |
|||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||||||
|
|
(unaudited) |
|
(unaudited) |
|
$ Change |
|
(unaudited) |
|
|
|
$ Change |
||||||||||||
|
|
December 31, |
|
December 31, |
|
Favorable |
|
December 31, |
|
December 31, |
|
Favorable |
||||||||||||
|
|
2025 |
|
2024 |
|
(Unfavorable) |
|
2025 |
|
2024 |
|
(Unfavorable) |
||||||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Operating revenues |
$ |
1,395,358 |
|
|
$ |
1,245,722 |
|
|
$ |
149,636 |
|
|
$ |
4,596,830 |
|
|
$ |
5,065,592 |
|
|
$ |
(468,762 |
) |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Total costs and expenses excluding lower of cost or market inventory valuation adjustment and depreciation, amortization and accretion expense |
|
1,243,285 |
|
|
|
1,009,285 |
|
|
|
(234,000 |
) |
|
|
4,500,398 |
|
|
|
4,309,768 |
|
|
|
(190,630 |
) |
|
Lower of cost or market (LCM) inventory valuation adjustment |
|
24,353 |
|
|
|
118,120 |
|
|
|
93,767 |
|
|
|
(140,085 |
) |
|
|
175,934 |
|
|
|
316,019 |
|
|
Depreciation, amortization and accretion expense |
|
62,488 |
|
|
|
69,489 |
|
|
|
7,001 |
|
|
|
266,887 |
|
|
|
264,992 |
|
|
|
(1,895 |
) |
|
Total costs and expenses |
|
1,330,126 |
|
|
|
1,196,894 |
|
|
|
(133,232 |
) |
|
|
4,627,200 |
|
|
|
4,750,694 |
|
|
|
123,494 |
|
|
Operating income/(loss) |
|
65,232 |
|
|
|
48,828 |
|
|
|
16,404 |
|
|
|
(30,370 |
) |
|
|
314,898 |
|
|
|
(345,268 |
) |
|
Other income |
|
1,817 |
|
|
|
7,778 |
|
|
|
(5,961 |
) |
|
|
9,321 |
|
|
|
22,114 |
|
|
|
(12,793 |
) |
|
Interest and debt expense, net |
|
(12,268 |
) |
|
|
(8,301 |
) |
|
|
(3,967 |
) |
|
|
(46,340 |
) |
|
|
(38,673 |
) |
|
|
(7,667 |
) |
|
Income/(loss) before income tax expense |
|
54,781 |
|
|
|
48,305 |
|
|
|
6,476 |
|
|
|
(67,389 |
) |
|
|
298,339 |
|
|
|
(365,728 |
) |
|
Income tax expense/(benefit) |
|
(299 |
) |
|
|
233 |
|
|
|
532 |
|
|
|
1,066 |
|
|
|
175 |
|
|
|
(891 |
) |
|
Net income/(loss) |
$ |
55,080 |
|
|
$ |
48,072 |
|
|
$ |
7,008 |
|
|
$ |
(68,455 |
) |
|
$ |
298,164 |
|
|
$ |
(366,619 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA: |
|
|
|||||||||||||||||||||
|
Net income/(loss) |
$ |
55,080 |
|
|
$ |
48,072 |
|
|
|
|
$ |
(68,455 |
) |
|
$ |
298,164 |
|
|
|
||||
|
Income tax expense/(benefit) |
|
(299 |
) |
|
|
233 |
|
|
|
|
|
1,066 |
|
|
|
175 |
|
|
|
||||
|
Interest and debt expense, net |
|
12,268 |
|
|
|
8,301 |
|
|
|
|
|
46,340 |
|
|
|
38,673 |
|
|
|
||||
|
Other income |
|
(1,817 |
) |
|
|
(7,778 |
) |
|
|
|
|
(9,321 |
) |
|
|
(22,114 |
) |
|
|
||||
|
Operating income/(loss) |
|
65,232 |
|
|
|
48,828 |
|
|
|
|
|
(30,370 |
) |
|
|
314,898 |
|
|
|
||||
|
Depreciation, amortization and accretion expense |
|
62,488 |
|
|
|
69,489 |
|
|
|
|
|
266,887 |
|
|
|
264,992 |
|
|
|
||||
|
DGD Adjusted EBITDA (Non-GAAP) |
|
127,720 |
|
|
|
118,317 |
|
|
|
|
|
236,517 |
|
|
|
579,890 |
|
|
|
||||
|
Less: Discount and Broker Fees |
|
(11,887 |
) |
|
|
— |
|
|
|
|
|
(29,086 |
) |
|
|
— |
|
|
|
||||
|
DGD Adjusted EBITDA (Non-GAAP) after Discount and Broker Fees |
|
115,833 |
|
|
|
118,317 |
|
|
|
|
|
207,431 |
|
|
|
579,890 |
|
|
|
||||
|
Darling’s Share 50% |
|
50 |
% |
|
|
50 |
% |
|
|
|
|
50 |
% |
|
|
50 |
% |
|
|
||||
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) |
$ |
57,917 |
|
|
$ |
59,159 |
|
|
|
|
$ |
103,716 |
|
|
$ |
289,945 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Diamond Green Diesel Joint Venture Condensed Consolidated Balance Sheets December 31, 2025 and December 31, 2024 (in thousands) |
|||||
|
|
December 31, |
|
December 31, |
||
|
|
2025 |
|
2024 |
||
|
|
(unaudited) |
|
|
||
|
Assets: |
|
|
|
||
|
Cash |
$ |
195,765 |
|
$ |
353,446 |
|
Total other current assets |
|
1,199,194 |
|
|
1,137,821 |
|
Property, plant and equipment, net |
|
3,702,254 |
|
|
3,868,943 |
|
Other assets |
|
139,765 |
|
|
100,307 |
|
Total assets |
$ |
5,236,978 |
|
$ |
5,460,517 |
|
|
|
|
|
||
|
Liabilities and members’ equity: |
|
|
|
||
|
Revolver |
$ |
— |
|
$ |
— |
|
Total other current portion of long term debt |
|
29,487 |
|
|
29,809 |
|
Total other current liabilities |
|
332,256 |
|
|
319,688 |
|
Total long term debt |
|
677,671 |
|
|
707,158 |
|
Total other long term liabilities |
|
17,748 |
|
|
17,195 |
|
Total members’ equity |
|
4,179,816 |
|
|
4,386,667 |
|
Total liabilities and members’ equity |
$ |
5,236,978 |
|
$ |
5,460,517 |
|
Reconciliation of Net Income to (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro forma Adjusted EBITDA to Foreign Currency For the Three and Twelve Months Ended January 3, 2026 and December 28, 2024 (in thousands) |
||||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
|
||||||||||||||
|
Adjusted EBITDA |
January 3 |
|
December 28, |
|
January 3 |
|
December 28, |
|
||||||||||
|
(U.S. dollars in thousands) |
2026 |
|
2024 |
|
2026 |
|
2024 |
|
||||||||||
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
|
||||||||||
|
Net income attributable to Darling |
|
56,940 |
|
|
|
101,908 |
|
|
|
62,804 |
|
|
|
278,880 |
|
|
||
|
Depreciation and amortization |
|
139,543 |
|
|
|
128,158 |
|
|
|
508,504 |
|
|
|
503,825 |
|
|
||
|
Interest expense |
|
55,514 |
|
|
|
54,911 |
|
|
|
222,279 |
|
|
|
253,858 |
|
|
||
|
Income tax benefit |
|
(11,022 |
) |
|
|
(25,547 |
) |
|
|
(9,359 |
) |
|
|
(38,337 |
) |
|
||
|
Restructuring and asset impairment charges |
|
57,960 |
|
|
|
5,794 |
|
|
|
57,960 |
|
|
|
5,794 |
|
|
||
|
Acquisition and integration costs |
|
4,869 |
|
|
|
2,440 |
|
|
|
15,942 |
|
|
|
7,842 |
|
|
||
|
Change in fair value of contingent consideration |
|
— |
|
|
|
(4,491 |
) |
|
|
18,024 |
|
|
|
(46,706 |
) |
|
||
|
Foreign currency loss |
|
1,402 |
|
|
|
1,669 |
|
|
|
384 |
|
|
|
1,154 |
|
|
||
|
Other income, net |
|
(2,999 |
) |
|
|
(9,486 |
) |
|
|
(468 |
) |
|
|
(22,309 |
) |
|
||
|
Loss on early retirement of debt |
|
— |
|
|
|
— |
|
|
|
2,978 |
|
|
|
— |
|
|
||
|
Equity in net (income)/loss of Diamond Green Diesel |
|
(21,597 |
) |
|
|
(24,036 |
) |
|
|
48,770 |
|
|
|
(149,082 |
) |
|
||
|
Equity in net income of other unconsolidated subsidiaries |
|
(4,328 |
) |
|
|
(2,885 |
) |
|
|
(12,759 |
) |
|
|
(11,994 |
) |
|
||
|
Net income attributable to noncontrolling interests |
|
1,939 |
|
|
|
1,869 |
|
|
|
7,581 |
|
|
|
6,965 |
|
|
||
|
Adjusted EBITDA (Non-GAAP) |
$ |
278,221 |
|
|
$ |
230,304 |
|
|
$ |
922,640 |
|
|
$ |
789,890 |
|
|
||
|
Foreign currency exchange impact |
|
(11,594 |
) |
(1 |
) |
|
— |
|
|
|
(20,420 |
) |
(2 |
) |
|
— |
|
|
|
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP) |
$ |
266,627 |
|
|
$ |
230,304 |
|
|
$ |
902,220 |
|
|
$ |
789,890 |
|
|
||
|
DGD Adjusted EBITDA (Darling’s share) (Non-GAAP)* |
$ |
57,917 |
|
|
$ |
59,159 |
|
|
$ |
103,716 |
|
|
$ |
289,945 |
|
|
||
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
336,138 |
|
|
$ |
289,463 |
|
|
$ |
1,026,356 |
|
|
$ |
1,079,835 |
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
*See reconciliation of DGD Net Income to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Income |
|
|||||||||||||||||
|
(1) The average rates for the three months ended January 3, 2026 were €1.00:$1.16, R$1.00:$0.19 and C$1.00:$0.72 as compared to the average rates for the three months ended December 28, 2024 of €1.00:$1.07, R$1.00:$0.17 and C$1.00:$0.72, respectively. |
|
|||||||||||||||||
|
(2) The average rates for the twelve months ended January 3, 2026 of €1.00:$1.13, R$1.00:$0.18 and C$1.00:$0.72 as compared to the average rates for the twelve months ended December 28, 2024 of €1.00:USD$1.08, R$1.00:$0.19 and C$1.00:$0.73, respectively. |
|
|||||||||||||||||
Contacts
Investors:
Suann Guthrie
Senior VP, Investor Relations and Global Affairs
(469) 214-8202; suann.guthrie@darlingii.com
Media:
Jillian Fleming
Director, Global Communications
(972) 541-7115; jillian.fleming@darlingii.com
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