Darling Ingredients Inc. develops, produces, and sells sustainable natural ingredients from edible and inedible bio-nutrients across North America, Europe, China, South America, and other international markets. The company operates through three segments: Feed Ingredients, which processes animal by-products, bakery residuals, used cooking oil, and blood into non-food grade oils, protein meals, and other products; Food Ingredients, which processes beef and pork bone chips, hides, skins, and intestines into collagen, natural casings, crude heparin, and food grade fat; and Fuel Ingredients, which converts organic sludge, food waste, fallen stock, and manure into biogas, low-grade energy sources, and natural bio-phosphate. It also provides environmental services and sells yellow grease, fuel feedstock, and agriculture-based biofuels. The company sells its products under the Rendac, Sonac, FASA, Ecoson, Rousselot, Gelnex, and CTH brands. Formerly known as Darling International Inc., it changed its name to Darling Ingredients Inc. in May 2014. Founded in 1882, it is headquartered in Irving, Texas.
Q2 profit surge on fat, protein and fuel prices Darling's second-quarter profit jumped to $2.41 a share from 8 cents a year earlier, far above expectations. Fat and protein prices rallied, biofuel demand was strong, and fish meal supplies tightened. Higher prices for what Darling sells mean more profit, which pushes the stock up.
The earnings beat is the core new reason the stock moved and resets the profit baseline.
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DGD fuel earnings explode, but one-time tariff boost Darling's diesel joint venture earned $2.23 per gallon versus 34 cents a year earlier, with EBITDA of $389 million. Tight renewable fuel credits support margins into 2027. About $50 million of that came from a one-time tariff refund, so the underlying run-rate is lower than it looks.
DGD is Darling's biggest profit engine and the swing factor in the quarter, including the caveat.
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$1 billion buyback signals capital return ahead Darling raised its share buyback program to $1 billion and expects net debt below $3 billion by year-end, after which it may add dividends or more repurchases. Buying back stock shrinks the share count, lifting earnings per share and supporting the price.
New capital-return commitment is a fresh, price-relevant signal for investors.
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RIN credit prices plunge on EPA delay and exemptions Ethanol RIN credits fell to $1.75, a four-month low, after the EPA extended a compliance deadline and moved to grant small-refinery exemptions that could free 1.2–1.8 billion credits. Weaker credits cut the value of renewable diesel and the feedstocks Darling supplies, a real drag on future profit.
This is the main counterweight and the newest regulatory risk to Darling's biofuel economics.
Q3 2026
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Darling's biofuel boom meets a RIN-price warning
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Q2 profit surge on fat, protein and fuel prices Darling's second-quarter profit jumped to $2.41 a share from 8 cents a year earlier, far above expectations. Fat and protein prices rallied, biofuel demand was strong, and fish meal supplies tightened. Higher prices for what Darling sells mean more profit, which pushes the stock up.
The earnings beat is the core new reason the stock moved and resets the profit baseline.
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DGD fuel earnings explode, but one-time tariff boost Darling's diesel joint venture earned $2.23 per gallon versus 34 cents a year earlier, with EBITDA of $389 million. Tight renewable fuel credits support margins into 2027. About $50 million of that came from a one-time tariff refund, so the underlying run-rate is lower than it looks.
DGD is Darling's biggest profit engine and the swing factor in the quarter, including the caveat.
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$1 billion buyback signals capital return ahead Darling raised its share buyback program to $1 billion and expects net debt below $3 billion by year-end, after which it may add dividends or more repurchases. Buying back stock shrinks the share count, lifting earnings per share and supporting the price.
New capital-return commitment is a fresh, price-relevant signal for investors.
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RIN credit prices plunge on EPA delay and exemptions Ethanol RIN credits fell to $1.75, a four-month low, after the EPA extended a compliance deadline and moved to grant small-refinery exemptions that could free 1.2–1.8 billion credits. Weaker credits cut the value of renewable diesel and the feedstocks Darling supplies, a real drag on future profit.
This is the main counterweight and the newest regulatory risk to Darling's biofuel economics.
News & notes movingDAR
United States
Energy Transition & Power Demand▼
Trump weighs shielding farmers from expanded biofuel waivers
The Trump administration is discussing plans to shield the U.S. Farm Belt from an expected expansion of biofuel waivers, a move under consideration to cut gasoline prices for motorists, Reuters reported. The plan would increase biofuel quotas for 2027 by about 500 million gallons to offset damage from exemptions for smaller refineries, which are expected to roughly double from 990 million renewable fuel credits to as many as 1.8 billion. During Trump's first term, broad refinery exemptions drew fierce opposition from Midwest farmers and ethanol producers, and the issue has resurfaced as the administration seeks to lower fuel costs ahead of the November midterm elections. A coalition of farm and biofuel groups urged Trump to reject any waiver expansion, warning of severe and immediate consequences that could collapse biofuel markets and reduce demand for corn and soybean oil. Trump is expected to meet with refiners and fuel retailers in the coming week to highlight efforts to lower gasoline prices.
Energy Transition & Power Demand › Natural Gas Value Chain ▼Demand
ADM · Regulation · Negative Expanded biofuel waivers would reduce demand for corn and soybean oil, hurting ADM's ethanol and oilseed processing.
DINO · Regulation · Positive Refiners benefit from expanded waivers, reducing their compliance costs under the RFS.
REX · Demand · Positive REX American Resources, an ethanol producer, would benefit from increased biofuel quotas that offset waiver expansion, supporting ethanol demand.
BG · Regulation · Negative Waiver expansion lowers biofuel demand, reducing demand for soybean oil and other feedstocks Bunge processes.
DAR · Regulation · Negative Waiver expansion cuts biofuel demand, reducing demand for rendered products and feedstocks used in biodiesel.
PBF · Regulation · Negative Expanded biofuel waivers for small refineries could reduce demand for RINs, lowering compliance costs but potentially hurting refiners' margins.
U.S. RIN prices plunge after EPA delays biofuel compliance deadline
U.S. ethanol blending credit prices plunged Monday to their lowest levels in more than four months after the Environmental Protection Agency extended a September 1 compliance deadline for refiners and ruled on long-pending small refinery exemption requests by the end of August. Conventional ethanol RINs traded as low as $1.75, down $0.34 from Friday and their lowest level since April 15, according to data from Argus Media, after the credits had traded as high as $2.50 on July 7. RIN prices lost substantial value again during Monday's session in response to the EPA's impending small refinery exemption decisions, after falling 5% on Friday. Market participants expect the EPA's rulings to free up a significant number of credits, with refining and ethanol industry analysts estimating that the exemptions could free up 1.2 billion to 1.8 billion RINs that small refiners could use to meet their 2025 compliance obligations, after the EPA had previously indicated it could reallocate 990 million RINs associated with exemptions. Extending the compliance deadline is seen as signaling some form of RIN relief for refiners' 2026 and 2027 obligations as well, University of Illinois agricultural economist Scott Irwin told Reuters.
DINO · Regulation · Positive EPA's compliance deadline extension and exemption rulings provide RIN relief for refiners like HF Sinclair, lowering compliance costs.
ADM · Regulation · Negative EPA's delay and exemption rulings lower RIN prices, reducing demand for ethanol and pressuring ADM's ethanol margins.
BG · Regulation · Negative Lower RIN prices and extended compliance deadline reduce ethanol demand, negatively impacting Bunge's ethanol business.
DAR · Regulation · Negative Lower RIN prices and exemptions reduce demand for renewable diesel feedstocks, hurting Darling's rendering and biofuel segments.
DK · Regulation · Negative EPA's compliance deadline extension and small refinery exemptions reduce RIN demand, lowering compliance costs for refiners like Delek.
MPC · Regulation · Negative Marathon Petroleum, as a refiner, benefits from lower RIN compliance costs, but the news is negative for its ethanol operations.
Darling Ingredients' 12.8% Weekly Rally Backed by Stronger Core Earnings
Darling Ingredients shares have gained 12.8% in the past week, supported by a sharp improvement in core ingredients profitability and stronger renewable-fuel economics. Core ingredients adjusted EBITDA climbed to $352.5 million in the second quarter of 2026 from $206.9 million a year earlier, and management expects third-quarter core ingredients adjusted EBITDA of $325 million to $340 million. Darling's share of Diamond Green Diesel adjusted EBITDA surged to $389.2 million from $42.6 million a year earlier, with EBITDA per gallon sold rising to $2.23 from 34 cents. The Zacks Consensus Estimate for 2026 earnings has risen 55.1% in the past four weeks, and Darling reported second-quarter earnings of $2.41 per share versus 8 cents a year earlier, topping the consensus mark of $1.45. However, feed raw material processed remained at 3.1 million metric tons, unchanged from a year earlier, and selling, general and administrative expenses rose to $151 million from $138.1 million, while acquisition and integration costs increased to $13.2 million from $3.4 million.
Darling Ingredients' DGD Earnings Surge on Renewable Fuel Policy
Darling Ingredients Inc. reported a sharp increase in earnings from its Diamond Green Diesel joint venture, with adjusted EBITDA reaching $389.2 million in the second quarter of 2026, up from $42.6 million a year earlier. Production rose to 355.9 million gallons, and EBITDA per gallon sold climbed to $2.23 from 34 cents. Management expects continued tightness in Renewable Identification Numbers to support margins, though the quarter included about $50.5 million of favorable tariff recovery that should not be treated as recurring. DGD is expected to produce about 335 million gallons in the third quarter, and Darling views margins through 2027 as attractive under the current Renewable Volume Obligation.
Ingredients, Flavors & Fragrances Stocks Post Mixed Q2 Earnings
Ingredients, flavors, and fragrances companies reported mixed second-quarter results, with the five tracked stocks missing revenue consensus estimates by 2.4% as a group. Darling Ingredients posted revenue of $1.72 billion, up 16.4% year over year and beating expectations by 0.5%, though EBITDA missed significantly. Archer-Daniels-Midland delivered the best quarter with revenue of $22.68 billion, up 7.2% and 2.2% above estimates, while International Flavors & Fragrances was the weakest, with revenue down 29.3% to $1.95 billion and missing by 25%. Ingredion reported flat revenue of $1.85 billion, topping estimates by 0.9%, and Bunge Global grew revenue 88.3% to $24.04 billion, beating by 9.3%. Shares of the group have risen 4.9% on average since the latest earnings results.
Darling Ingredients Boosts Buyback Authorization to $1 Billion
Darling Ingredients has increased its equity buyback authorization, lifting the remaining capacity to $500 million and bringing the total program size to $1.00 billion. The company reported $1,724.08 million in quarterly sales and $387.31 million in net income for Q2 2026, a sharp improvement from a year earlier. Operating margin improved by 9.5 percentage points over the past year despite a 2.5% annual revenue decline over three years. Management's focus on efficiency and capital return comes amid top-line pressure and unresolved policy risks around RINs, LCFS credits, and small refinery exemptions.
Archer Daniels Midland raised its 2026 adjusted earnings outlook following a strong second quarter, supported by robust commercial and operational execution and a constructive biofuels environment. The company now projects 2026 adjusted EPS of $5.15 to $5.60, up sharply from its previous forecast of $4.15 to $4.70. In the second quarter, adjusted EPS came in at $1.84, while total segment operating profit reached $1.5 billion. ADM also raised its expected 2026 net benefit from the 45Z tax credit to roughly $250 million from $150 million, reflecting greater visibility into carbon-intensity verification, ethanol production and operational improvements.
Darling Ingredients has authorized a new $1 billion share repurchase program. The company has returned 94% over the past year and currently trades at a price-to-earnings ratio of 15.8 times, below the food industry average of 17.7 times and a peer average of 23.8 times. A fair P/E multiple for the stock based on its profile is estimated at 18.5 times, suggesting the shares are priced at a discount. The buyback is expected to support per-share metrics and market confidence, though questions around the durability of recent margin improvements may limit further re-rating.
Darling Ingredients Q2 2026 Earnings Beat Driven by Fat and Protein Price Rally
Darling Ingredients reported strong second-quarter 2026 results, with management attributing the outperformance to a rally in finished product markets, specifically fat and protein prices, and favorable trade-related developments. The Feed Ingredients segment benefited from robust biofuel demand and tightening global fish meal supplies, while operational excellence programs are on track to deliver $150 million to $300 million in additional EBITDA over three years. The Food segment is shifting from gelatin to higher-margin collagen, which generates 2.5 to 3 times the margin of traditional gelatin products, and Diamond Green Diesel maintained global leadership with $2.23 EBITDA per gallon. Q2 results included a $51 million favorable IEEPA tariff recovery at DGD and $18 million for the Rousselot business, and the company projects Q3 Core Ingredients EBITDA between $325 million and $340 million. Management expects net debt below $3 billion by year-end 2026 and will then evaluate shareholder returns including potential dividends and share repurchases.
DAR · Demand · Positive Strong Q2 results driven by rally in fat and protein prices, robust biofuel demand, and tightening fish meal supplies.
Diamond Green Diesel · Capital · Positive Diamond Green Diesel maintained global leadership with $2.23 EBITDA per gallon and benefited from $51 million IEEPA tariff recovery.
Rousselot · Capital · Positive Rousselot business received $18 million IEEPA tariff recovery.
Darling Ingredients to report Q2 earnings with consensus EPS of $1.48 and revenue of $1.72 billion
Darling Ingredients is scheduled to announce its second-quarter earnings results on Thursday, July 30th, before the market opens. The consensus earnings per share estimate stands at $1.48, while the consensus revenue estimate is $1.72 billion, representing a 16.2% increase year-over-year. Over the past year, the company has beaten EPS estimates 50% of the time and has beaten revenue estimates 0% of the time. Over the last three months, EPS estimates have seen seven upward revisions and two downward revisions, while revenue estimates have seen eight upward revisions and one downward revision.
Darling Ingredients has drawn attention as analysts highlight its history of outperforming earnings estimates and a positive setup for its upcoming quarterly report. The company delivered US$1,550.82 million in sales and US$134.31 million in net income in the first quarter of 2026, reversing a loss a year earlier. Its long-term narrative projects US$7.2 billion in revenue and US$676.3 million in earnings by 2029, requiring 5.4% yearly revenue growth and a US$613.5 million earnings increase from US$62.8 million today. Some analysts hold a more cautious view, assuming revenue grows only about 2.5% a year and earnings reach roughly US$750.7 million by 2029. The renewed confidence around earnings surprises interacts with the existing investment case centered on renewable fuels, value-added ingredients, and policy tailwinds, while near-term risks remain around policy and margin volatility in renewable diesel.
International Flavors & Fragrances beats Q1 estimates, stock jumps 18.4%
International Flavors & Fragrances reported first-quarter revenues of $2.74 billion, down 3.6% year on year but exceeding analysts' expectations by 3.9%, with strong beats on EBITDA and organic revenue estimates. Among the five ingredients, flavors and fragrances stocks tracked, the group's revenues were in line with consensus, though share prices have fallen 3.3% on average since reporting. Bunge Global posted the fastest revenue growth at $21.86 billion, up 87.8% year on year, but missed revenue estimates by 3.1% and its stock fell 15.7%. Ingredion's revenues of $1.79 billion, down 1.2%, were in line with expectations, but it significantly missed EBITDA and gross margin estimates, sending shares down 8.7%. Archer-Daniels-Midland reported $20.49 billion in revenues, up 1.6%, missing estimates by 1.2% with misses on gross margin and EBITDA, leaving its stock flat. Darling Ingredients' revenues rose 12.3% to $1.55 billion, in line with expectations, but a significant miss on adjusted operating income pushed shares down 10%.
Marine collagen market projected to reach USD 1.66 billion by 2031
The global marine collagen market is projected to grow from USD 1.14 billion in 2026 to USD 1.66 billion by 2031, at a compound annual growth rate of 6.7%. The liquid segment leads this growth, valued for its convenient and fast absorption benefits. Predominantly sourced from fish skin, scales, and muscles, marine collagen's nutritional products segment dominates, driven by its health benefits for skin, joints, and bones. Asia Pacific leads the market due to its abundant marine resources and rising demand for collagen-based nutraceuticals and cosmetics. Key players include Ashland, Darling Ingredients, Weishardt, and Nitta Gelatin.
4977.JP · Demand · Positive Market growth forecast for marine collagen, in which Nitta Gelatin is a key player, indicates rising demand for its products.
ASH · Demand · Positive Market growth forecast for marine collagen, in which Ashland is a key player, indicates rising demand for its products.
DAR · Demand · Positive Market growth forecast for marine collagen, in which Darling Ingredients is a key player, indicates rising demand for its products.
Weishardt Group · Demand · Positive Market growth forecast for marine collagen, in which Weishardt Group is a key player, indicates rising demand for its products.
Darling Ingredients Awarded US Patent for Rousselot’s Nextida GC Collagen Peptide
Darling Ingredients has been granted US Patent No. US12636339 for its Rousselot brand’s Nextida GC collagen peptide ingredient. The patent covers both the production process and the use of the ingredient as a dietary supplement to support healthy post-meal blood glucose levels. CEO Randall C. Stuewe said the patent validates the company’s scientific research and commitment to targeted health solutions. The innovation has already received patent protection in Australia, Europe, Japan, and China, with additional applications pending in North and South America, India, and Korea.
Darling Ingredients has secured a U.S. patent for Nextida GC, a collagen peptide designed to support healthy blood sugar levels, while Barclays initiated coverage on the company with an Equal-Weight rating. The patent supports Darling's push into higher-margin health and nutrition markets, complementing the formation of an 85/15 joint venture with Tessenderlo that combines its Rousselot business with PB Leiner, expected to generate about US$1.5 billion in annual revenue. These moves aim to rebalance Darling's mix beyond renewable diesel, though near-term catalysts remain margin recovery at Diamond Green Diesel and ongoing regulatory and feedstock volatility. The company's narrative projects $7.2 billion in revenue and $676.3 million in earnings by 2029, implying a 5.4% annual revenue growth and a significant earnings increase from the current $62.8 million.
Zacks Highlights Four Value Stocks With High Earnings Yield
Zacks Investment Research identifies Darling Ingredients, Green Plains, Ternium, and Nexa Resources as value stocks with earnings yields above 10% and strong earnings growth estimates. Darling Ingredients sees its 2026 EPS estimate implying 588% year-over-year growth, while Green Plains' 2026 EPS estimate implies 217% growth. Ternium's 2026 EPS estimate implies 138% growth, and Nexa's 2026 EPS estimate implies 230% growth. All four stocks carry a Zacks Rank of 1, equivalent to Strong Buy, and have Value Scores of A or B.
DAR · Capital · Positive Zacks highlights Darling Ingredients as a value stock with high earnings yield and strong EPS growth estimates, giving it a Strong Buy rating.
GPRE · Capital · Positive Zacks highlights Green Plains Renewable Energy as a value stock with high earnings yield and strong EPS growth estimates, giving it a Strong Buy rating.
Darling Ingredients has seen its stock price surge 46.4% over the past six months to $52.65 per share, but analysts at StockStory recommend avoiding the stock due to three key concerns. The company's revenue declined at an annual rate of 3.2% over the last three years, signaling weak demand. Its gross margin averaged just 23.8% over the past two years, indicating poor unit economics and limited pricing power. Additionally, earnings per share fell by 25.6% annually over the same three-year period, outpacing the revenue decline and highlighting struggles with fixed costs. While the stock trades at a fair forward price-to-earnings multiple of 10.3 times, the analysts lack confidence in the business and suggest there are better investment opportunities elsewhere.
Online Grocery Sales Surge 19% in Q1, Four Stocks to Buy
Online grocery sales jumped 19% in the first quarter of 2026, following a 20% increase in the final quarter of 2025, according to Brick Meets Click. The report highlights that delivery and ship-to-home services have grown nearly six times faster than pickup, driven by faster fulfillment and ultra-fast delivery. Total grocery spending share has climbed every quarter, rising more than 19% over the last six quarters to its highest level by the end of the first quarter of 2025. Zacks Investment Research recommends four grocery stocks with strong online arms: Tyson Foods, The Chefs' Warehouse, Darling Ingredients, and Mama's Creations. Tyson Foods holds a Zacks Rank #2, while the other three carry a Zacks Rank #1, with Darling Ingredients expected to see earnings growth of more than 100% this year.
Trump administration asks Congress to allow year-round E15 gasoline sales
The Trump administration formally asked Congress on Wednesday to pass legislation allowing year-round sales of gasoline blended with 15% ethanol, marking the first formal push by the White House to enact the policy. The request came in a supplemental bill released by the Office of Management and Budget, which called the measure an urgent and needed fix that codifies the permanent, year-round sale of E15. Supporters argue the higher-ethanol blend offers motorists a cheaper alternative to conventional gasoline, while U.S. refiners warn it could raise costs and complicate fuel distribution. Legislation allowing year-round E15 sales narrowly passed the House last month but faces long odds in the Senate, where major bills typically need 60 votes. The national average for regular gasoline stood at $3.93 per gallon as of Wednesday morning.
Vita Coco and Darling Ingredients Surge Over 47% This Year, Outpacing Consumer Staples Sector
Vita Coco Company and Darling Ingredients have each returned more than 47% year-to-date, far exceeding the Consumer Staples sector's average gain of 5.6%. Vita Coco has returned about 56.4% since the start of the year, while Darling Ingredients has returned 47.8%. Both stocks carry a Zacks Rank of 1, or Strong Buy, and have seen their full-year consensus earnings estimates revised sharply higher over the past 90 days—up 11.4% for Vita Coco and 40.3% for Darling Ingredients. Within their respective industries, Vita Coco's beverages-soft drinks group has gained an average of 10.8% this year, and Darling Ingredients' food-miscellaneous industry has declined 6.7%, highlighting the stocks' standout performance.
StockStory flags Hillman, First Merchants, and Darling Ingredients as value traps
StockStory identified three value stocks it views with skepticism, warning that their cheap valuations may reflect underlying business weaknesses. Hillman Solutions trades at 13 times forward earnings but has posted only 2% annual revenue growth over five years and a weak free cash flow margin of 2.9%. First Merchants, priced at 0.9 times forward book value, saw earnings per share grow just 4% annually over the past two years and net interest income rise 7.5% annually over five years, both below sector norms. Darling Ingredients, at 11 times forward earnings, has suffered 3.2% annual revenue declines over three years and falling earnings per share, with a gross margin of 23.8% reflecting commoditized products.
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