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DAR · Darling Ingredients Inc.

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$67.04 +1.30 (+1.98%)
Market Cap
$10.63B
Shares
157.80M
All earnings calls

Earnings call · FY2027 Q2

Darling Ingredients Inc. Q1 FY2027 Earnings Call

Darling Ingredients Inc. Q1 FY2027 Earnings Call

Concluded Jul 30, 2026 Audio replay Verified speakers
Jul 30, 2026 4:30 11 turns
Period
FY2027 Q2
Runtime
4:30
Sources
5 artifacts

Executive readout · one minute

What matters this quarter

Darling Ingredients reported Q2 2026 net income of $387.3 million ($2.41 diluted EPS) on $1.7 billion in net sales, with Combined Adjusted EBITDA of $741.7 million versus $249.5 million a year ago, supported by strong DGD renewable diesel results averaging $2.23 per gallon EBITDA and $280 million in DGD cash distributions.

DGD margins 10 Investment grade / leverage 8 Supply chain positioning 4 Long-term growth outlook 2 Tariffs / IEPA 2

Management tone

Positive

Net tone +30 · low hedging

Grounding quotes
  • “we will be investment grade if we want to be”
  • “we expect a margin environment for our business to look more like the spot market, which is very healthy”
  • “$2.25 a gallon average for the quarter and second quarter, that was on average higher than what we saw in the spot market environment”
  • “really fundamental and strong growth for the next you know three to five years”

Forward guidance

3 guided metrics

Management's latest ranges and targets are included below.

Research coverage

5 live sources

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Research materials

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Key takeaways

What improved, and what deserves a closer read.

Constructive signals

  • Net income surged to $387.3 million ($2.41/diluted share) from $12.7 million ($0.08) in Q2 2025
  • Combined Adjusted EBITDA more than doubled to $741.7 million from $249.5 million in Q2 2025
  • Total net sales rose to $1.7 billion from $1.5 billion year-over-year
  • DGD sold 348.8 million gallons at an average $2.23 per gallon EBITDA in Q2; H1 DGD EBITDA averaged $1.74 per gallon
  • Received $280.0 million in cash distributions from Diamond Green Diesel in the quarter
  • Reduced net debt by $223.0 million and repurchased $73.0 million in common stock

Risks & pressure points

  • DGD Q2 EBITDA margin of $2.23 per gallon was on average higher than the spot market environment, which management expects to normalize as the market stabilizes
  • $51 million IEPA tariffs impacted Q2 results
  • Total debt outstanding was $3.9 billion as of July 4, 2026, including a half-billion-dollar bond maturing in April
  • Company has not publicly disclosed the potential value of the tariff basket

Key moments

Jump directly to management's words in the synchronized transcript.

Forward guidance

From the 8-K filed Jul 30, 2026.

Metric Guided
Capital expenditures
fiscal year 2026
$450M
Net debt
ending fiscal year 2026
$3B
Core ingredients business Adjusted EBITDA
third quarter 2026
$325M – $340M
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