Darling Ingredients Inc (DAR)

The company reported disappointing financial results for Q2 2025, with earnings per share and revenue falling short of analyst expectations, leading to a stock decline. Darling Ingredients announced a non-binding term sheet to form Nextida, a new joint venture aimed at unlocking value and accelerating growth for its global collagen business. Brad Phillips, Executive Vice President and Chief Financial Officer, retired from the company, effective June 15, 2025. Darling Ingredients announced an agreement to monetize $125 million in production tax credits from its Diamond Green Diesel joint venture. The company reported net income of $19.4 million for Q3 2025, an increase from Q3 2024, but year-to-date net income was significantly lower. The share price declined by 18.41% from November 20, 2024, to November 19, 2025.

Demand seasonality for Darling Ingredients' products varies across its segments. The Food Ingredients segment generally experiences more stable cash flows and less cyclical demand. The Feed Ingredients segment benefits from robust global demand for feed ingredients and strong domestic fat markets. The Fuel segment's earnings are highly volatile and tied to the market for Renewable Identification Numbers (RINs) and regulatory policy.

Darling Ingredients Inc. is a global leader in transforming organic by-products and food waste into sustainable natural ingredients and renewable energy. The company's business model revolves around maximizing resource value through innovative processes, converting materials that would otherwise be waste into high-value products across three primary segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. The Feed Ingredients segment involves collecting and processing animal by-products and used cooking oil into non-food grade oils, protein meals, and other essential nutrients. The Food Ingredients segment focuses on producing high-purity ingredients for human consumption and health, including edible fats, natural casings, gelatin, and collagen. Through its Diamond Green Diesel (DGD) joint venture, the Fuel Ingredients segment produces low-carbon intensity renewable diesel and sustainable aviation fuel from waste oils and generates biogas from organic waste.

Darling Ingredients has a significant global presence, operating over 260 facilities in more than 15 countries across five continents.

Darling Ingredients maintains a brand reputation centered on sustainability and its leadership in the circular economy. The company emphasizes its role in repurposing and recycling materials from the animal agriculture and food industries, transforming them into essential ingredients and renewable energy.

Darling Ingredients Inc. is a publicly traded company with its ownership heavily weighted towards institutional investors, who control over 90% of the stock. Major institutional shareholders include Vanguard Group Inc., BlackRock, Inc., UBS Group AG, Dimensional Fund Advisors Lp, and Fmr Llc. Individual insider ownership is modest, at approximately 1.15%.