Darling Ingredients Inc (DAR)

Darling Ingredients' stock price has been impacted by several events over the past six months. The Q3 2025 earnings were released on October 23, 2025, with revenue exceeding expectations but non-GAAP profit missing estimates, although the stock saw a significant increase since the reporting. On December 22, 2025, the company announced the sale of approximately $50 million in production tax credits, bringing the total for 2025 to $235 million. On December 10, 2025, Darling Ingredients signed an agreement with Tessenderlo Group to combine their collagen and gelatin segments into Nextida™, with Darling Ingredients holding an 85% stake. On January 12, 2026, Jefferies raised its price target for Darling Ingredients to $50.00, maintaining a "Buy" rating. The stock price has shown strong momentum, increasing by 7.66% over the past year and approximately 18.3% over the past 12 months, trading near its 52-week high. The near-term outlook is influenced by regulatory uncertainty and margin pressure in the renewable diesel market, with upcoming RVO policy updates potentially impacting Diamond Green Diesel margins.

While specific detailed information on the demand seasonality for individual Darling Ingredients products and services is limited, the company's end markets can be cyclical. Management expects strong performance in the Feed Ingredients segment to continue into Q4, with collagen also anticipated to be stronger in Q4 compared to Q3. There is also a general mention of "potential seasonality" in the company's free cash flow.

Darling Ingredients Inc. is a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, operating within the circular economy. The company transforms materials from the animal agriculture and food industries into valuable ingredients that nourish people, feed animals and crops, and fuel the world with renewable energy. Its business is segmented into Feed Ingredients, Food Ingredients, and Fuel Ingredients. Major products include non-food grade oils, protein meals, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, and organic fertilizers for Feed Ingredients; collagen, gelatin, edible fats, and natural casings for Food Ingredients; and renewable diesel, sustainable aviation fuel (SAF), yellow grease, fuel feedstock, and green bioenergy for Fuel Ingredients.

Darling Ingredients has a significant global presence, operating over 260 facilities in more than 15 countries across five continents, including North America, Europe, South America, and Asia.

Darling Ingredients maintains a strong brand reputation centered on its commitment to sustainability and its role in the circular economy. In August 2024, Darling Ingredients announced a target to reduce its Scope 1 and 2 emissions by 42% by 2030, aligning with the Science Based Targets initiative (SBTi). The company's Nature Safe brand innovates organic fertilizers, preventing millions of pounds of organic waste from entering landfills. Darling Ingredients is recognized as a global leader in transforming waste streams from the animal agriculture and food industries into valuable ingredients.

Darling Ingredients Inc. is predominantly owned by institutional shareholders, who hold 111.54% of the company's shares, while insiders own 7.77% and retail investors hold 0.00%. Major institutional owners include Vanguard Group Inc., BlackRock Inc., UBS Group AG, Dimensional Fund Advisors LP, Fmr LLC, Gates Capital Management Inc., and State Street Corp. MSD Capital L.P. is the largest individual shareholder, owning 4.56% of the company.