Darling Ingredients (DAR) shares rallied 9.2% in the last trading session to close at $36.01. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.6% loss over the past four weeks.Darling Ingredients stock is rising amid optimism surrounding recent developments, which suggest proposed rise in biofuel blending mandates. This policy shift may support stronger margins and improved performance across DAR’s core rene ...

Darling Ingredients (DAR) FY Conference May 14, 2025 11:00 AM ET Speaker0 All right. Darling has positioned itself as a global leader across rendering biofuels and food ingredients as strategic acquisitions, capacity expansions and its Diamond Green Diesel joint venture have transformed its business model over time. CEO Randy Stuewe has led Darling through that business transformation and the business could be poised to demonstrate its improved earnings potential moving forward given evolving biofuels polic ...

Everyday better to do everything you loveEveryday better to do everything you loveOne very interesting but volatile company for investors to take into consideration is Darling Ingredients (NYSE: DAR ). Really, this firm is three separate businesses all rolled up into one. However, management describes the businessCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects wi ...

Summary of Darling Ingredients Inc. Conference Call Company and Industry - **Company**: Darling Ingredients Inc. - **Industry**: Collagen and Gelatin Production, Health and Wellness Sector Key Points and Arguments 1. **Joint Venture Announcement**: Darling Ingredients announced a nonbinding term sheet with the Centrelo Group to form a new joint venture called NexTita, with Darling holding an 85% stake and Centrelo holding 15% [4][5][21] 2. **Revenue Expectations**: The new company is projected to generate annual revenue of approximately $1.5 billion, with significant growth potential and attractive margins [5][21] 3. **Production Capacity**: NexTita will have gelatin and collagen production capacity of around 200,000 metric tons annually across 23 facilities in nine countries [5][6] 4. **Market Position**: The joint venture aims to create a leading company in the collagen-based health, wellness, and nutrition market, which is still in its early stages of development [6][7] 5. **Focus on Innovation**: Darling Ingredients has nearly a dozen product concepts in development, emphasizing science and innovation in the health and wellness sector [7][8] 6. **Financial Strategy**: The merger is designed to optimize shareholder value without leveraging debt, potentially leading to deleveraging [9][21] 7. **Market Dynamics**: The food segment's contribution to margins and growth potential has not been fully recognized, and the merger aims to highlight this value [8][9] 8. **Supply Chain Management**: The combined entity will enhance supply chain management capabilities, which is crucial for maintaining consistent margins [13][14] 9. **Future Growth**: The joint venture is expected to diversify the portfolio and enhance growth in hydrolyzed collagen, which has seen significant demand [39][41] 10. **Regulatory Considerations**: The joint venture will undergo regulatory approvals, and the companies believe they will not dominate the market share significantly [58][59] Additional Important Content 1. **Market Size**: The global collagen market is estimated to be between $60 billion, with the joint venture representing a minor player in this space [59][60] 2. **Capital Allocation**: There are no expected significant changes in capital allocation for the joint venture, as both companies have maintained their assets well [41][61] 3. **Potential IPO**: There is a possibility of taking the joint venture public in the future, depending on market conditions and growth [24][62] 4. **Raw Material Sourcing**: The joint venture will benefit from diversified sourcing of raw materials, reducing risks associated with supply chain bottlenecks [68][71] 5. **Strategic Relationships**: The merger will leverage existing relationships and technologies from both companies to enhance market reach and product development [66][67] This summary encapsulates the key discussions and insights from the Darling Ingredients Inc. conference call, focusing on the formation of the joint venture and its implications for the company and the industry.

Financial Data and Key Metrics Changes - In Q1 2025, combined adjusted EBITDA was $195.8 million, down from $280.1 million in Q1 2024. Adjusted EBITDA, excluding DGD, was $190 million compared to approximately $165 million in Q1 2024 [13][22] - Total net sales for Q1 2025 were $1.38 billion, a decrease from $1.42 billion in Q1 2024. Raw material volume remained stable at approximately 3.79 million metric tons [13][22] - Gross margins improved to 22.6% in Q1 2025 from 21.4% in Q1 2024 [13] Business Line Data and Key Metrics Changes Feed Ingredients Segment - Total net sales increased to $896.3 million in Q1 2025 from $889.8 million in Q1 2024. EBITDA rose to $110.6 million from $106.8 million [14] - Gross margins for the feed segment decreased slightly to 20.3% from 20.7% due to one-time items [14] Food Segment - Total sales decreased to $349.2 million in Q1 2025 from $391.3 million in Q1 2024, but EBITDA increased to $70.9 million from $61.7 million [15] - Raw material volume increased to 329,400 metric tons from 299,800 metric tons [15] Fuel Segment - Sales for the fuel segment were $135.1 million in Q1 2025, down from $139.2 million in Q1 2024. EBITDA dropped significantly to $24.2 million from $133.1 million [16][18] Market Data and Key Metrics Changes - The renewable diesel and sustainable aviation fuel markets are expected to improve due to a reduction in imported biofuels and adjustments in domestic production [11][19] - The transition from the blenders tax credit to the producers tax credit has created challenges but is anticipated to optimize tax credits in the upcoming quarters [10][17] Company Strategy and Development Direction - The company aims to continue generating cash flow, deleveraging the balance sheet, and opportunistically repurchasing shares throughout the year [4][24] - Management is optimistic about the core business's performance, expecting to achieve between $950 million and $1 billion in EBITDA for the year [24][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the worst challenges related to DGD's performance are behind them, with expectations for improved margins and operational adjustments [24][26] - The company is optimistic about the sustainable aviation fuel market and anticipates a positive impact from the 45Z tax credit [10][19] Other Important Information - The company paid down $146.2 million in debt, reducing the financial leverage ratio to 3.33 times [5][20] - The effective tax rate for Q1 2025 was 4.6%, primarily due to the producer's tax credit [21] Q&A Session Summary Question: What is the value of an optimized feedstock slate for DGD? - Management indicated that DGD processes a mix of feedstocks driven by margins, including animal fat and various oils, and they are optimistic about maximizing the value of feedstocks eligible for the producer's tax credit [30][34] Question: What were the drivers for lower margins in Q1? - Management acknowledged that there were one-time items affecting margins and noted that the market dynamics have improved since March [40][41] Question: What is the expected RVO for 2026? - Management expects a common RVO of 5.25 billion gallons, which would significantly increase demand for feedstocks [59][88] Question: How does the current tariff regime impact the business? - The company views the tariff regime as a slight net positive, as it limits the availability of waste fats, supporting North American prices [103][105] Question: What are the capital allocation priorities moving forward? - The company plans to continue paying down debt and aims to reach a leverage ratio of 2.5% by the end of the year or early 2026 [112][113]

Group 1 - The conference call is focused on discussing Darling Ingredients Inc.'s Q1 2025 financial results [2][3] - Key participants in the call include the Chairman and CEO, CFO, and COO of North America [3] - The earnings news release and slide presentation are available on the company's investor relations page [3] Group 2 - The call will include forward-looking statements regarding future events, based on current expectations and assumptions [4]

Financial Data and Key Metrics Changes - In Q1 2025, combined adjusted EBITDA was $195.8 million, down from $280.1 million in Q1 2024. Adjusted EBITDA, excluding DGD, was $190 million compared to approximately $165 million in Q1 2024 [13][22] - Total net sales for Q1 2025 were $1.38 billion, a decrease from $1.42 billion in Q1 2024. Raw material volume remained stable at approximately 3.79 million metric tons [13][22] - Gross margins improved to 22.6% in Q1 2025 from 21.4% in Q1 2024 [13] Business Line Data and Key Metrics Changes Feed Ingredients Segment - Total net sales increased to $896.3 million in Q1 2025 from $889.8 million in Q1 2024, with EBITDA rising to $110.6 million from $106.8 million [14] - Gross margins for the feed segment decreased slightly to 20.3% from 20.7% due to one-time items [14] Food Segment - Total sales for Q1 2025 were $349.2 million, down from $391.3 million in Q1 2024, but EBITDA increased to $70.9 million from $61.7 million [15] - Raw material volume increased to 329,400 metric tons from 299,800 metric tons [15] Fuel Segment - Sales for Q1 2025 were $135.1 million, down from $139.2 million in Q1 2024, with EBITDA significantly impacted by DGD's results, falling to $24.2 million from $133.1 million [16][18] Market Data and Key Metrics Changes - DGD's EBITDA contribution was approximately $6 million in Q1 2025, a significant drop from approximately $115 million in Q1 2024, primarily due to the transition from the blenders tax credit to the producers tax credit and other operational challenges [18] - The renewable diesel and sustainable aviation fuel markets are expected to improve in Q2 2025, driven by a reduction in imported biofuels and adjustments in domestic production [11][19] Company Strategy and Development Direction - The company aims to continue deleveraging its balance sheet and opportunistically repurchase shares throughout the year, with a target of achieving a leverage ratio of 2.5% by the end of 2025 [20][112] - Management is optimistic about the core business's performance, expecting to generate between $950 million and $1 billion in EBITDA for the year [24][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter started slowly but gained momentum in March, with rising fat prices contributing positively to the business outlook [24] - The company expects to recognize 100% of the producer's tax credit for eligible feedstocks in Q2 2025, which should enhance profitability [10][38] Other Important Information - The company paid down $146.2 million in debt during Q1 2025, reducing its financial leverage ratio to 3.33 times [5][20] - The effective tax rate for Q1 2025 was 4.6%, primarily due to the producer's tax credit [21] Q&A Session Summary Question: DGD's feedstock optimization for 45Z policy - Management explained that DGD processes a mix of feedstocks driven by margin, with a focus on low carbon intensity feedstocks to maximize value [30][34] Question: Drivers for lower margins in Q1 - Management acknowledged one-time items and inventory adjustments as factors affecting margins, but noted improvements in March [40][41] Question: RVO expectations for 2026 - Management expressed optimism about a potential RVO of 5.25 billion gallons, which could positively impact feedstock demand and margins [59][88] Question: Current tariff regime impacts - Management indicated that tariffs have had a slight net positive effect on the core business by supporting North American waste fat prices [103] Question: Capital allocation priorities - The company remains focused on deleveraging and expects to approach a leverage ratio of 2.5% by the end of 2025 or early 2026 [112][113]

Darling Ingredients (DAR) reported $1.38 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 2.8%. EPS of -$0.16 for the same period compares to $0.50 a year ago.The reported revenue represents a surprise of -8.36% over the Zacks Consensus Estimate of $1.51 billion. With the consensus EPS estimate being $0.20, the EPS surprise was -180.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Financial Results Q1 2025 April 24, 2025 This presentation includes "forward-looking" statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. Statements that are not statements of historical facts are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "estimate," "guidance," "outlook," "project," "planned," " ...

Company Performance - Darling Ingredients reported a quarterly loss of $0.16 per share, missing the Zacks Consensus Estimate of $0.20, compared to earnings of $0.50 per share a year ago [1] - The earnings surprise for this quarter was -180%, while the previous quarter saw an earnings surprise of 80% with actual earnings of $0.63 per share against an expectation of $0.35 [2] - Revenues for the quarter ended March 2025 were $1.38 billion, missing the Zacks Consensus Estimate by 8.36%, and down from $1.42 billion year-over-year [3] Stock Performance - Darling shares have declined approximately 9.9% since the beginning of the year, compared to a decline of -8.6% for the S&P 500 [4] - The current Zacks Rank for Darling is 5 (Strong Sell), indicating expectations of underperformance in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.58 on revenues of $1.53 billion, and for the current fiscal year, it is $1.98 on revenues of $6.1 billion [8] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [7] Industry Context - The Food - Miscellaneous industry, to which Darling belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges for stock performance [9]