Darling Ingredients Reports Strong Q2 Earnings Driven by Improved Operations and Higher Margins
Darling Ingredients (NYSE:DAR) reported a significant increase in second-quarter earnings, with net income rising to $387 million from just $13 million the previous year. Adjusted EBITDA nearly tripled to approximately $742 million due to stronger ingredient markets and operational improvements. The company's Diamond Green Diesel segment was the primary driver of growth, contributing $389 million in EBITDA and generating around $280 million in cash distributions. Darling also reduced debt by over $220 million during the quarter while repurchasing $73 million worth of shares. Management expects leverage to fall below two times by year-end 2026, signaling improved financial health. The company projects third-quarter Core Ingredients EBITDA between $325 million and $340 million and plans to focus on organic growth rather than major acquisitions. The strong performance was supported by higher fat prices in the Feed segment due to biofuel demand and tighter fish meal supplies, as well as improved protein values from increased U.S. poultry production.
Tickers: $DAR
Topics: cash generation debt reduction earnings ebitda net income