Darling Ingredients Posts Q1 Profit, Doubles EBITDA, Guides Strong Q2 Core Earnings

Darling Ingredients Inc. reported a dramatic swing in first‑quarter results, posting GAAP net income of $134.3 million ($0.83 per diluted share) versus a loss of $26.2 million a year earlier. Total net sales rose to $1.6 billion, up $170.2 million YoY, driven by robust performance across its three operating segments.

The company’s Combined Adjusted EBITDA surged to $406.8 million, more than double the $195.8 million recorded in Q1 2025. A key catalyst was the $45.0 million generated from monetizing Production Tax Credit (PTC) sales, which bolstered cash flow and helped the firm meet its covenant‑linked leverage target of 3.17× (preliminary). As of April 4, cash and cash equivalents stood at $116.0 million, with a revolving credit facility providing $1.119 billion of liquidity.

Segment‑level detail shows the Feed Ingredients business leading sales at $985.3 million, contributing $168.7 million of Adjusted EBITDA. Food Ingredients generated $405.2 million in sales and $80.8 million of Adjusted EBITDA, while Fuel Ingredients posted $160.3 million in sales and $28.7 million of Adjusted EBITDA. The renewable fuel arm, Diamond Green Diesel (DGD), sold 272.4 million gallons at an average price of $1.11 per gallon, delivering a $151.2 million Adjusted EBITDA contribution (Darling’s 50% share) and a $48.4 million favorable LCM inventory valuation adjustment.

Capital spending accelerated to $94.8 million in the quarter, with FY 2026 capex guidance of roughly $400 million. Debt remains at $4.1 billion, with the current portion of long‑term borrowings at $75.1 million.

Looking ahead, Darling set Q2 2026 Adjusted EBITDA guidance for its core ingredients business at $260‑$275 million, signaling confidence that the momentum from the first quarter will continue. The guidance, coupled with the strong cash‑generation profile, has investors reacting positively; the stock rose 2.26% in intraday trading, positioning it near the top of its 52‑week range.

Analysts note that the turnaround aligns with broader industry trends favoring sustainable protein and renewable fuels, and the PTC monetization underscores Darling’s ability to capitalize on policy‑driven incentives.

Forward‑looking statements are subject to risks and uncertainties, including commodity price volatility, regulatory changes, and execution of the company’s growth strategy.