Darling Ingredients Inc. Reports Strong Q2 Performance in Earnings Call
Darling Ingredients Inc. delivered strong second-quarter performance, driven by rising prices for fat and protein products as well as favorable trade developments. The Feed Ingredients segment benefited from increased biofuel demand and tighter global fish meal supplies, which improved gross margins. Operational initiatives are on track to deliver $150 million to $300 million in additional EBITDA over three years. The Food segment is transitioning toward higher-margin collagen products, with current margins 2.5x to 3x those of traditional gelatin. Diamond Green Diesel (DGD) maintained strong performance despite market volatility by leveraging a sophisticated supply chain and generating $2.23 in EBITDA per gallon. Strategic moves included the acquisition of Potenze rendering assets in Brazil and divesting non-core trap and casing businesses. Looking ahead, management expects Q3 Core Ingredients EBITDA to range between $325 million and $340 million, with a target net debt level below $3 billion by year-end 2026. DGD production is expected at around 335 million gallons for the quarter.
Topics: Biofuels Earnings Gross Margins Strategic Acquisitions