Darling Ingredients Announces Second Quarter 2026 Financial Results
Darling Ingredients Inc. delivered a significantly stronger financial performance during the second quarter of 2026, reporting substantial increases in earnings, revenue, and cash generation as the company continued to benefit from operational improvements, disciplined margin management, and robust contributions from its renewable fuels joint venture. The company also strengthened its balance sheet through debt reduction, share repurchases, and strategic portfolio actions while maintaining confidence in its outlook for the remainder of 2026 and into 2027.
The global leader in converting food waste and animal by-products into sustainable ingredients and renewable energy products reported net income of $387.3 million, equal to $2.41 per diluted share on a GAAP basis for the second quarter of 2026. This marks a dramatic improvement compared with $12.7 million, or $0.08 per diluted share, reported during the same period in 2025.
Quarterly revenue also showed healthy growth. Darling Ingredients generated $1.7 billion in net sales during the second quarter of 2026, up from $1.5 billion in the corresponding quarter a year earlier. The increase reflects improved business momentum across multiple operating segments and stronger market conditions.
Operational Execution Drives Performance
Chairman and Chief Executive Officer Randall C. Stuewe said the company’s continued operational focus played a key role in delivering stronger financial results despite ongoing market challenges.
According to Stuewe, the company remained focused on areas within its control, including operational excellence, cost discipline, and effective margin management. Those efforts translated into improved profitability, stronger cash flow generation, reduced debt levels, and continued capital returns to shareholders through share repurchases.
Management emphasized that the company’s strategy of enhancing operational efficiency while strengthening its financial position continues to generate measurable results across the business.
First-Half Results Show Significant Improvement
For the first six months of fiscal 2026, Darling Ingredients reported net income of $521.6 million, or $3.24 per diluted share, representing a remarkable turnaround from the net loss of $13.5 million, or $0.09 per diluted share loss, recorded during the same period in 2025.
Revenue for the first half of 2026 reached $3.3 billion, compared with $2.9 billion in the prior-year period, reflecting continued demand across the company’s diversified portfolio of sustainable ingredients and value-added products.
The strong first-half performance highlights the company’s recovery from weaker market conditions experienced in the previous year while demonstrating the resilience of its diversified business model.
Diamond Green Diesel Continues to Deliver Strong Returns
Darling Ingredients’ renewable diesel joint venture, Diamond Green Diesel (DGD), remained a significant contributor to overall profitability during the quarter.
During the three months ended June 30, 2026, DGD sold approximately 348.8 million gallons of renewable fuels while generating an average EBITDA of $2.23 per gallon.
For the first six months of 2026, renewable fuel sales totaled 621.2 million gallons, with average EBITDA reaching $1.74 per gallon.
The joint venture also generated substantial cash returns for Darling Ingredients. During the first half of the year, the company received approximately $211 million in dividends from DGD, along with nearly $69 million from Production Tax Credit sales related to renewable fuel operations.
These contributions continue to underscore the strategic importance of the renewable fuels business within Darling Ingredients’ long-term growth strategy.
Adjusted EBITDA More Than Doubles
One of the strongest indicators of the company’s improving financial performance was its sharp increase in Adjusted EBITDA.
Combined Adjusted EBITDA for the second quarter reached $741.7 million, compared with $249.5 million during the same period in 2025. The significant increase reflects stronger operating margins, improved business performance, and higher profitability from renewable fuels.
For the first six months of fiscal 2026, combined Adjusted EBITDA totaled $1.15 billion, compared with $445.3 million during the first half of 2025.
The improvement demonstrates the company’s ability to convert stronger revenues into substantially higher earnings while maintaining operational discipline.
Balance Sheet Continues to Strengthen
Darling Ingredients ended the second quarter with a healthy liquidity position and continued progress in reducing leverage.
As of July 4, 2026, the company held approximately $160.7 million in cash and cash equivalents. In addition, it maintained approximately $1.3 billion of available borrowing capacity under its committed revolving credit facility, providing significant financial flexibility.
Total outstanding debt stood at $3.9 billion, while the company’s preliminary bank covenant leverage ratio improved to 2.3 times, reflecting continued progress toward management’s long-term leverage objectives.
The stronger balance sheet positions Darling Ingredients to continue investing in growth opportunities while returning capital to shareholders and maintaining financial flexibility.
Continued Investment in Growth
Darling Ingredients maintained a strong pace of capital investment during the first half of 2026.
Year-to-date capital expenditures totaled approximately $224 million, supporting capacity expansion, operational improvements, and strategic projects throughout the company’s global operations.
Management expects total capital expenditures for the full 2026 fiscal year to reach approximately $450 million, reinforcing its commitment to long-term growth initiatives and infrastructure investments.
Strategic Portfolio Optimization
During the quarter, Darling Ingredients completed several strategic transactions designed to strengthen its core business and improve portfolio efficiency.
The company finalized the acquisition of three rendering facilities in Brazil from the Patense Group for approximately $122 million. The acquisition expands Darling’s rendering network in one of the world’s largest agricultural markets and supports future growth opportunities in sustainable ingredients.
Following the close of the quarter, on July 22, 2026, Darling Ingredients also completed the sale of a majority interest in its non-core grease trap environmental services business to Waste Resource Management for approximately $90 million.
The transaction reflects management’s ongoing strategy of focusing resources on higher-value core operations while monetizing non-core assets.
Positive Outlook for the Rest of 2026
Management expressed confidence that the opportunities presented during the company’s recent Investor Day remain firmly intact.
Stuewe said the second-quarter results demonstrate meaningful progress toward achieving the company’s long-term strategic objectives. He noted that management remains optimistic about business conditions during the remainder of 2026 and expects continued earnings growth and strong cash generation heading into 2027.
According to the company, the underlying fundamentals of its business remain favorable, positioning Darling Ingredients to continue creating long-term shareholder value.
Continued Focus on Debt Reduction
Darling Ingredients expects to further strengthen its balance sheet over the remainder of the year.
Management anticipates ending fiscal 2026 with net debt at or below $3 billion while reducing its bank leverage ratio to below 2.0 times. Achieving these targets would further enhance the company’s financial flexibility and support future investments and shareholder returns.
The company’s consistent focus on deleveraging remains an important component of its broader capital allocation strategy.
Third-Quarter Guidance
As previously announced, Darling Ingredients will now provide financial guidance exclusively for its core ingredients business, excluding contributions from Diamond Green Diesel.
For the third quarter of 2026, the company expects its core ingredients business to generate Adjusted EBITDA between $325 million and $340 million.
The guidance reflects management’s confidence in the continued strength of its core operations while maintaining a more focused reporting approach for investors.
Strong Momentum Supports Long-Term Growth
Darling Ingredients entered the second half of 2026 with considerable momentum across its global operations. Significant earnings growth, improving revenues, robust renewable fuels performance, disciplined capital management, strategic acquisitions, and continued debt reduction have all contributed to a much stronger financial position compared with the previous year.
With healthy liquidity, expanding operations, improving profitability, and continued investment in sustainable growth opportunities, the company appears well positioned to capitalize on favorable industry trends. Management remains confident that its operational strategy and disciplined financial approach will continue to support earnings growth, strong cash flow generation, and enhanced shareholder value throughout the remainder of 2026 and into 2027.
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