Darling Ingredients Inc. Reports Strong Q4 and Fiscal Year 2024 Results, Highlighting Growth and Strategic Milestones
Darling Ingredients Inc. (NYSE: DAR) announced its financial results for the fourth quarter and fiscal year 2024, showcasing solid performance despite challenging market conditions. The company reported a net income of $101.9 million, or $0.63 per diluted share, for Q4 2024, up from $84.5 million, or $0.52 per diluted share, in the same period last year. This improvement reflects Darling’s continued focus on operational excellence, which drove gross margin growth in Q4 2024 compared to Q3 2024, even as fat prices remained low.
Total net sales for the quarter were $1.4 billion, down from $1.6 billion in Q4 2023, primarily due to lower finished product pricing. However, the company achieved significant milestones during the period, including the successful startup of one of the world’s largest sustainable aviation fuel (SAF) facilities in Port Arthur, Texas. This facility, now debt-free, contributed meaningful dividends through its joint venture operations throughout the year. Additionally, Darling completed several strategic acquisitions globally, positioning itself for future growth amid evolving market dynamics.
For the full fiscal year ending December 28, 2024, Darling reported net sales of $5.7 billion, compared to $6.8 billion in 2023. Net income for the year totaled $278.9 million, or $1.73 per diluted share, versus $647.7 million, or $3.99 per diluted share, in 2023. These figures reflect the impact of reduced pricing and market volatility but underscore the company’s resilience and adaptability.
The Diamond Green Diesel (DGD) joint venture performed exceptionally well, selling 293.8 million gallons of renewable diesel in Q4 2024 at an average EBITDA of $0.40 per gallon. Darling received $68.6 million in cash dividends from DGD during the quarter. For the full year, DGD sold 1.25 billion gallons at an average EBITDA of $0.46 per gallon, demonstrating consistent demand for renewable fuels.
Combined Adjusted EBITDA for Q4 2024 was $289.5 million, compared to $350.9 million in Q4 2023. For the full fiscal year, Combined Adjusted EBITDA reached $1.08 billion, down from $1.61 billion in 2023, reflecting the broader economic pressures faced by the industry.
As of December 28, 2024, Darling maintained a strong financial position with $76.0 million in cash and cash equivalents and $1.16 billion available under its revolving credit agreement. Total debt stood at $4.0 billion, with a preliminary leverage ratio of 3.93x as measured by the company’s bank covenant. Capital expenditures for the quarter were $73.3 million, bringing the annual total to $332.5 million.
Looking ahead, Chairman and CEO Randall C. Stuewe expressed optimism about 2025. “Global raw material volumes remain robust, and stronger fat prices expected in Q1 2025 should provide a boost as pending tariffs and the Clean Fuel Production Credit add greater certainty to domestic feedstock values,” he said. “We anticipate 2025 will outperform 2024, gaining momentum as DGD turnarounds are completed and SAF sales become a larger part of our product mix.”
Based on Q4 2024 performance and early indications for 2025, Darling provided initial guidance of $1.25 to $1.30 billion in Combined Adjusted EBITDA for the upcoming year. The company plans to update stakeholders as the year progresses, emphasizing its commitment to driving long-term value for shareholders while advancing sustainability initiatives.
About Darling Ingredients
A pioneer in circularity, Darling Ingredients Inc. (NYSE: DAR) takes material from the animal agriculture and food industries, and transforms them into valuable ingredients that nourish people, feed animals and crops, and fuel the world with renewable energy. The company operates over 260 facilities in more than 15 countries and processes about 15% of the world’s animal agricultural by-products, produces about 30% of the world’s collagen (both gelatin and hydrolyzed collagen), and is one of the largest producers of renewable energy. To learn more, visit darlingii.com. Follow us on LinkedIn.
