Darling Ingredients delivers Q3 earnings miss alongside revenue beat

IRVING, Texas - On Thursday, Darling Ingredients Inc. (NYSE:DAR) reported third quarter net income of $19.4 million, or $0.12 per diluted share, missing analyst expectations of $0.25 per share despite posting stronger-than-expected revenue of $1.6 billion versus the consensus estimate of $1.51 billion.

The company’s shares edged down 0.39% in pre-market trading following the results.

The sustainable food and fuel ingredients company saw its core business gain momentum while its Diamond Green Diesel (DGD) joint venture struggled, posting a negative EBITDA of -$0.02 per gallon for the quarter.

"Our core ingredients business continues to build momentum, driven by strong fundamentals across all segments," said Randall C. Stuewe, Chairman and Chief Executive Officer. "We are on the heels of public policy developments that we expect to play out in our favor – reinforcing our unmatched position in the industry and our focus on delivering long-term value to shareholders."

Combined Adjusted EBITDA for the third quarter reached $244.9 million, up from $236.7 million in the same period last year. During the quarter, Darling agreed to sell $125 million of production tax credits to be paid in the fourth quarter, with plans to sell another $125-175 million by year-end.

For the first nine months of 2025, the company reported significantly lower net income of $5.9 million, or $0.04 per share, compared to $177 million, or $1.10 per share, in the same period of 2024. This decline was primarily attributed to lower earnings at DGD, which sold 717.7 million gallons of renewable fuel during the period.

Given ongoing uncertainty in the fuel segment, Darling now provides financial guidance exclusively for its core ingredients business, estimating full-year 2025 Adjusted EBITDA of approximately $875-900 million for all segments excluding DGD.

As of September 27, the company had $91.5 million in cash and cash equivalents with $1.17 billion available under its credit agreement, while total debt outstanding was $4.01 billion.

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