Darling Ingredients (DAR) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered significant year-over-year growth in net income, revenue, and operating income, with net income rising to $387.3 million ($2.41 per diluted share) from $12.7 million ($0.08 per share) in Q2 2025, driven by strong operational execution, margin expansion, and robust performance across all segments.

• Combined adjusted EBITDA for Q2 2026 reached $741.7 million, up from $249.5 million in Q2 2025, with Diamond Green Diesel (DGD) contributing $389 million.

• Received $280 million in cash distributions from DGD, used for debt reduction, acquisitions, and share repurchases.

• Completed the acquisition of three rendering facilities in Brazil for $122 million and advanced a joint venture with Tessenderlo Group NV.

• Repurchased $73 million of stock and sold majority of the grease trap business for $90 million; agreement signed to sell European casings business.

Financial highlights

• Q2 2026 total net sales rose to $1.72 billion, up 16% from $1.48 billion in Q2 2025; six-month net sales reached $3.27 billion, up 14% year-over-year.

• Net income for Q2 2026 was $387.3 million ($2.41 per diluted share), up from $12.7 million ($0.08 per share) in Q2 2025; six-month net income was $521.6 million, compared to a net loss of $13.5 million a year ago.

• Combined adjusted EBITDA for Q2 2026 was $741.7 million, up from $249.5 million in Q2 2025.

• Operating income for Q2 2026 was $555.2 million, up from $75.9 million in Q2 2025.

• Net debt decreased by $223 million sequentially.

Outlook and guidance

• Core ingredients business Adjusted EBITDA for Q3 2026 is estimated at $325–340 million, excluding $18 million in one-time tariff recovery from Q2.

• Management expects continued strong demand for renewable fuels and feed ingredients, supported by favorable government policies and commodity price trends.

• Company expects to end FY 2026 with net debt at or below $3 billion and leverage ratio below 2x.

• Capital expenditures for FY 2026 are projected at approximately $450 million.

• Management expresses confidence in continued earnings growth and strong fundamentals into 2027.