Darling Ingredients (NYSE:DAR) Announces Quarterly Earnings Results, Beats Expectations By $0.27 EPS

Darling Ingredients (NYSE:DAR) released its quarterly earnings data on Thursday. The company reported $0.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.56 by $0.27, Zacks reports. Darling Ingredients had a net margin of 3.54% and a return on equity of 5.76%. The firm had revenue of $1.55 billion during the quarter, compared to analysts’ expectations of $1.56 billion. During the same period last year, the business earned ($0.16) earnings per share. Darling Ingredients’s revenue was up 12.3% compared to the same quarter last year.

Here are the key takeaways from Darling Ingredients’ conference call:

• Darling reported combined adjusted EBITDA of $406.8 million in Q1 2026 (Core Ingredients $255.6M; DGD $151.2M), a sharp improvement versus the prior-year quarter driven by margin expansion and operational execution.
• Diamond Green Diesel’s Q1 result included a one-time $97 million LCM inventory valuation benefit at the DGD entity, and Darling contributed ~$190 million of working capital to DGD that management expects will be returned in subsequent quarters.
• The feed segment posted EBITDA of $169 million (vs. $111M a year ago) with gross margin up to 25.3%, and the food/collagen business showed year‑over‑year sales growth and rising demand—supported by new applications and pending Nextida patents.
• Net debt (debt less cash) rose to about $4.0 billion and preliminary covenant leverage was 3.17x, although management reiterated a goal to reduce net debt toward ~$3.0 billion.
• Management guided Q2 Core Ingredients EBITDA to $260–$275 million, expects DGD volumes of ~320 million gallons in Q2, and sees improving renewables margins and cash flow as the RVO clarity supports higher feedstock prices.

Darling Ingredients Trading Down 0.6%

DAR stock traded down $0.41 during mid-day trading on Friday, hitting $63.82. 3,390,681 shares of the company were exchanged, compared to its average volume of 2,843,295. The company has a quick ratio of 0.99, a current ratio of 4.64 and a debt-to-equity ratio of 0.15. The firm has a market capitalization of $10.13 billion, a P/E ratio of 163.64 and a beta of 1.08. The business has a fifty day simple moving average of $57.96 and a 200-day simple moving average of $44.93. Darling Ingredients has a 12-month low of $29.15 and a 12-month high of $64.90.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on DAR shares. Jefferies Financial Group raised their price objective on shares of Darling Ingredients from $66.00 to $73.00 and gave the stock a “buy” rating in a research report on Friday, April 10th. UBS Group raised their price objective on shares of Darling Ingredients from $58.00 to $78.00 and gave the stock a “buy” rating in a research report on Thursday, April 2nd. Zacks Research raised shares of Darling Ingredients from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, April 14th. TD Cowen increased their target price on shares of Darling Ingredients from $58.00 to $72.00 and gave the stock a “buy” rating in a research note on Tuesday. Finally, JPMorgan Chase & Co. increased their target price on shares of Darling Ingredients from $59.00 to $69.00 and gave the stock an “overweight” rating in a research note on Tuesday, March 24th. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $67.40.

More Darling Ingredients News

Here are the key news stories impacting Darling Ingredients this week:

• Positive Sentiment: Q1 earnings beat and profitability turnaround — DAR reported $0.83 EPS vs. consensus ~$0.58 and swung to net income of $134.3M from a loss a year ago, highlighting margin recovery and operational leverage. Business Wire: Q1 Results
• Positive Sentiment: Q2 core ingredients EBITDA guide supports near-term cash generation — management expects core ingredients EBITDA of $260M–$275M for Q2, giving investors a clearer earnings runway despite renewable margin pressure from RVO shifts. MSN: Q2 EBITDA Guidance
• Neutral Sentiment: Revenue roughly in line — Q1 sales were about $1.55B vs. ~$1.56B consensus (YoY +12%), so top-line growth is modestly positive but not a surprise. Yahoo Finance: Sales In Line
• Neutral Sentiment: Analyst/coverage notes and investor materials released — earnings call transcript and slide deck are available for detail on segment performance, useful for reassessing estimates. Seeking Alpha: Call Transcript
• Negative Sentiment: Fatal incident and OSHA probe at Bastrop rendering plant — a worker death prompted an OSHA investigation and negative publicity that could lead to fines, operational disruption or higher compliance costs. This likely weighed on sentiment despite the beat. Hoodline: OSHA Probe
• Negative Sentiment: Insider sale by CAO — Joseph Manzi sold 3,000 shares (~13% reduction in his holding), a small but visible insider sale disclosed to the SEC that can be read negatively by some investors. SEC: Insider Filing

Insider Activity

In other news, CEO Randall C. Stuewe sold 20,000 shares of the firm’s stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $52.12, for a total value of $1,042,400.00. Following the completion of the transaction, the chief executive officer owned 1,117,085 shares of the company’s stock, valued at approximately $58,222,470.20. This trade represents a 1.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CAO Joseph Manzi sold 3,000 shares of the firm’s stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $63.89, for a total transaction of $191,670.00. Following the completion of the transaction, the chief accounting officer directly owned 19,969 shares of the company’s stock, valued at approximately $1,275,819.41. The trade was a 13.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in DAR. No Street GP LP purchased a new position in shares of Darling Ingredients in the third quarter valued at approximately $69,458,000. Rubric Capital Management LP purchased a new position in shares of Darling Ingredients in the fourth quarter valued at approximately $24,510,000. Amundi lifted its stake in Darling Ingredients by 177.7% in the fourth quarter. Amundi now owns 864,400 shares of the company’s stock worth $31,119,000 after acquiring an additional 553,081 shares during the last quarter. BNP Paribas Financial Markets lifted its stake in Darling Ingredients by 184.5% in the second quarter. BNP Paribas Financial Markets now owns 846,371 shares of the company’s stock worth $32,111,000 after acquiring an additional 548,844 shares during the last quarter. Finally, Two Sigma Investments LP lifted its stake in Darling Ingredients by 608.5% in the third quarter. Two Sigma Investments LP now owns 634,361 shares of the company’s stock worth $19,583,000 after acquiring an additional 544,821 shares during the last quarter. Hedge funds and other institutional investors own 94.44% of the company’s stock.

About Darling Ingredients

Darling Ingredients Inc (NYSE: DAR) is a global leader in converting edible and inedible bio-nutrient streams into sustainable food, feed ingredients, renewable fuels and specialty products. Founded in 1882 and headquartered in Irving, Texas, the company builds on more than a century of experience in animal rendering and by-product recycling. Over time, Darling has expanded its capabilities beyond traditional rendering to include advanced processing technologies that support a circular economy and reduce waste from food and agricultural industries.

The company’s core operations revolve around four primary segments: Feed Ingredients & Services, Food & Nutrition, Fuel Ingredients & Services, and Specialty Ingredients.