Financial Results Darling Ingredients Delivers Strong Third-Quarter 2026 Performance
Darling Ingredients Inc. (NYSE: DAR) has reported strong financial results for the third quarter of fiscal 2026, highlighting significant improvements in profitability, revenue growth, cash flow generation and balance sheet performance. The company’s results reflect continued strength across its core businesses and contributions from Diamond Green Diesel (DGD), its renewable fuels joint venture.
For the third quarter of 2026, Darling Ingredients reported net income attributable to the company of $267.0 million, equivalent to $1.67 per diluted share under generally accepted accounting principles (GAAP). This represents a substantial improvement compared with the third quarter of 2025, when the company recorded net income attributable to Darling of $19.4 million, or $0.12 per diluted share.
The company also reported total net sales of $1.8 billion for the third quarter of 2026, compared with $1.6 billion during the same period in the previous year. The increase in revenue, combined with stronger profitability, underscores the company’s improved financial performance during the quarter.
Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients, said the company’s core business delivered another quarter of exceptional performance, demonstrating resilience and strong cash flow generation.
“Our core business delivered another quarter of exceptional performance, demonstrating its resilience and strong cash flow generation,” Stuewe said.
He added that the company’s financial strength, supported by substantial cash generated from Diamond Green Diesel, enabled Darling Ingredients to reduce net debt by $420 million and return capital to shareholders.
“With a strong balance sheet and a great outlook, the momentum is undeniable as we position the company for a successful 2027,” Stuewe said.
Strong Financial Performance During the First Nine Months of 2026
Darling Ingredients also reported significant improvements in its financial performance for the first nine months of fiscal 2026.
For the nine months ended October 3, 2026, net income attributable to Darling reached $788.6 million, or $4.91 per GAAP diluted share. This compares with net income attributable to Darling of $5.9 million, or $0.04 per diluted share, during the corresponding period in 2025.
The company’s net sales for the first nine months of 2026 totaled $5.1 billion, compared with $4.4 billion for the same period in 2025.
The substantial increase in earnings reflects improved operating performance and the company’s ability to generate stronger financial results across its business portfolio.
Darling Ingredients operates globally in the collection and processing of animal-based and other organic materials, transforming these resources into ingredients used in food, feed, fuel and other industrial applications. Its operations support a circular economy model by converting materials that might otherwise be discarded into valuable products.
The company’s renewable fuels business also plays an important role in its financial performance, particularly through Diamond Green Diesel, which contributes to cash generation and overall profitability.
Diamond Green Diesel Supports Renewable Fuels Performance
Diamond Green Diesel continued to contribute to Darling Ingredients’ financial results during the third quarter of 2026.
For the three months ended September 30, 2026, DGD sold or shipped 314.9 million gallons of renewable fuels. During the first nine months of 2026, the joint venture sold or shipped a total of 936.1 million gallons.
Darling Ingredients reported that Diamond Green Diesel generated adjusted EBITDA per gallon of $1.30 for the third quarter of 2026, calculated on a standalone basis by the company.
For the nine months ended September 30, 2026, standalone adjusted EBITDA per gallon reached $1.59.
These results demonstrate the importance of renewable fuels production and sales to Darling Ingredients’ overall financial performance.
During the third quarter, Darling Ingredients received approximately $33.4 million in dividends from Diamond Green Diesel. The company also received approximately $137.6 million from the sale of production tax credits generated by DGD.
The proceeds from dividends and production tax credit sales contributed to Darling Ingredients’ cash generation and supported its ongoing efforts to strengthen its balance sheet.
Diamond Green Diesel remains a key component of the company’s strategy to capitalize on demand for renewable fuels while generating financial returns from its integrated operations.
Combined Adjusted EBITDA More Than Doubles
Darling Ingredients reported a significant increase in combined adjusted EBITDA during the third quarter of 2026.
Combined adjusted EBITDA for the quarter reached $514.3 million, compared with $244.9 million during the third quarter of 2025.
The increase reflects the company’s stronger operating performance and contributions from its business segments, including renewable fuels.
For the first nine months of fiscal 2026, combined adjusted EBITDA totaled approximately $1.7 billion, compared with $690.2 million during the same period in 2025.
The substantial year-over-year improvement highlights the company’s ability to generate stronger earnings and cash flow while maintaining a focus on operational efficiency and financial discipline.
Combined adjusted EBITDA is an important performance measure for Darling Ingredients, providing insight into the operating performance of its businesses before interest, taxes, depreciation and amortization, as well as certain other adjustments.
The company’s improved earnings performance has also supported its efforts to reduce debt, repurchase shares and maintain financial flexibility.
Balance Sheet Strength and Debt Reduction
Darling Ingredients continued to strengthen its balance sheet during the third quarter of 2026.
As of October 3, 2026, the company reported cash and cash equivalents of $121.7 million. In addition, Darling Ingredients had approximately $1.7 billion available under its committed revolving credit agreement.
Total outstanding debt stood at $3.5 billion as of October 3, 2026.
The company’s preliminary leverage ratio, as measured under its bank covenant, was 1.7 times at the end of the third quarter.
During the quarter, Darling Ingredients reduced its net debt by approximately $420 million, supported by cash generation from its core operations and Diamond Green Diesel.
The company remains focused on reducing leverage and maintaining a strong financial position as it prepares for future growth opportunities.
Darling Ingredients also continued returning capital to shareholders through its share repurchase program.
During the third quarter of 2026, the company repurchased approximately $75.9 million of its common stock. Total share repurchases through the third quarter reached $149.4 million.
The repurchases reflect management’s confidence in the company’s financial performance and its commitment to delivering value to shareholders.
Capital Expenditures and Investment Priorities
Darling Ingredients continued investing in its operations and long-term business development during 2026.
Capital expenditures for the first nine months of the year totaled approximately $343.5 million.
The company estimates that capital expenditures for the full fiscal year 2026 will reach approximately $450.0 million.
These investments are expected to support operational capabilities, maintain existing infrastructure and advance the company’s long-term strategic priorities.
Darling Ingredients’ capital allocation strategy remains focused on balancing investments in its global operations with debt reduction and shareholder returns.
The company’s improved cash flow generation provides additional flexibility to pursue these objectives while maintaining a disciplined approach to capital spending.
Fiscal 2026 Outlook Reaffirmed
Darling Ingredients reaffirmed its financial guidance for fiscal year 2026, reflecting confidence in the continued cash-generating capabilities of its global operations.
The company expects to end fiscal 2026 with net debt at or below $3.0 billion and a leverage ratio below 1.5 times.
The company also reaffirmed its full-year combined adjusted EBITDA guidance of $2.2 billion to $2.3 billion.
The outlook reflects management’s expectations for continued strong operating performance, supported by the company’s core ingredients businesses and renewable fuels operations.
Darling Ingredients said its focus on deleveraging, operational performance and cash flow generation will remain central to its strategy as it moves into 2027.
The company expects its strong balance sheet and improved financial position to provide a solid foundation for future business opportunities.
Positioning for Continued Growth in 2027
Darling Ingredients’ third-quarter 2026 results demonstrate substantial improvement in profitability, revenue and cash generation compared with the previous year.
The company’s net income, adjusted EBITDA and renewable fuels performance all contributed to its stronger financial position.
At the same time, the reduction in net debt and continued share repurchases highlight management’s focus on strengthening the balance sheet while returning capital to shareholders.
With fiscal 2026 adjusted EBITDA guidance reaffirmed at $2.2 billion to $2.3 billion, Darling Ingredients is positioning itself to carry its financial momentum into 2027.
The company expects its global operations, renewable fuels activities and disciplined capital allocation strategy to remain important drivers of performance as it continues to focus on long-term growth and shareholder value creation.
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