Welcome back to Market on Close. I'm Sam Vardis live from the floor of the New York Stock Exchange. It's time now for overlooked stocks.So, we're looking at Darly Ingredients which is gaining after bed upgraded shares there to outperform earlier today. So, George Sillis is with us, senior markets correspondent. What has B said that's a catalyst for this upside today, George.>> Well, I think there's several catalysts going on with with Darling Industries or Ingredients Incorporated. Um, this is essentially a ...

EXHIBIT 99.1 FOR IMMEDIATE RELEASE January 29, 2026 Darling Ingredients Issues Statement on Fourth Quarter and Fiscal Year 2025 Earnings; Announces Timing of Earnings Release and Conference Call IRVING, Texas, – Darling Ingredients Inc. (NYSE: DAR) today issued the following statement regarding fourth quarter and fiscal year 2025 earnings. For the 12 months ended Dec. 31, 2025, net loss for DGD was ($68) million. During the same time period, DGD sold/shipped 1.003 billion gallons of renewable fuels. As dete ...

Core Viewpoint - Darling Ingredients Inc. reported its fourth quarter and fiscal year 2025 earnings, highlighting the performance of its joint venture, Diamond Green Diesel (DGD), within the renewable diesel segment [1][2]. Financial Performance - For the three months ended December 31, 2025, DGD generated approximately $92 million in operating income, despite incurring a $24 million unfavorable lower of cost-or-market (LCM) inventory valuation adjustment [2]. - DGD's net income for the same period was $55 million, with sales of 285.3 million gallons of renewable fuels, resulting in an Adjusted EBITDA of $58 million or $0.41 per gallon [3]. - For the 12 months ended December 31, 2025, DGD reported a net loss of $68 million, with total sales of 1.003 billion gallons of renewable fuels, leading to an Adjusted EBITDA of $104 million or $0.21 per gallon [4]. Adjusted EBITDA Insights - Darling Ingredients' share of DGD Adjusted EBITDA for the three months and 12 months ended December 31, 2025, includes discounts related to the sale and prospective sale of Section 45Z Production Tax Credits [5]. - The company anticipates solid improvement in performance over prior outlooks, with further details to be provided in upcoming earnings materials [6]. Upcoming Events - Darling Ingredients will release its fourth quarter and fiscal year 2025 financial results on February 11, 2026, followed by a conference call on February 12, 2026, to discuss the results and company operations [7][8]. Company Overview - Darling Ingredients is a leader in circularity, transforming by-products from the animal agriculture and food industries into valuable ingredients and renewable energy, operating over 260 facilities globally [10].

Group 1 - The soft commodity sector, including grains, livestock, and dairy products, is gaining momentum and attracting market attention, alongside the strong performance of hard commodities like gold and silver [1] - The VanEck Agribusiness ETF (MOO.US) offers diversified exposure across the agricultural value chain, including fertilizers, machinery, and food processing, rather than solely betting on spot prices [1] - Nutrien (NTR.US) has seen a nearly 20% increase over the past two weeks and is considered a strong stock in the agricultural sector [1] Group 2 - CF Industries Holdings (CF.US) has risen over 18% year-to-date and has recorded four consecutive weeks of gains, marking its longest winning streak since last year [2] - Archer Daniels Midland (ADM.US) has increased approximately 17% this year, with a dividend yield close to 3%, and has recently broken through the key $65 resistance level [2] - Darling Ingredients (DAR.US) has seen a cumulative increase of about 23% over the past three months, with its stock price recently surpassing the critical $40 resistance level [2]

Core Viewpoint - Darling Ingredients (DAR) is currently trading at low levels not seen since the pandemic, presenting a potential investment opportunity despite temporary margin compression concerns [1] Company Analysis - The company has been researched in-depth, focusing on various sectors including commodities (oil, natural gas, gold, copper) and technology (Google, Nokia) [1] - The analyst has transitioned from writing a blog to a value investing-focused YouTube channel, indicating a shift in strategy to reach a broader audience [1] Industry Insights - The analyst expresses a preference for covering metals and mining stocks but is also comfortable analyzing other sectors such as consumer discretionary/staples, REITs, and utilities [1]

Core Viewpoint - Darling Ingredients (DAR) is currently trading at low levels not seen since the pandemic, presenting a potential investment opportunity despite temporary margin compression concerns [1] Company Analysis - The company operates in the commodities sector, with a focus on various industries including metals and mining, consumer discretionary/staples, REITs, and utilities [1] - The analyst has over a decade of experience researching companies across different sectors, which enhances the depth of analysis provided [1] Market Context - The current market focus is on temporary margin compression, which may be influencing the stock's low trading levels [1] - The shift in focus from a personal blog to a value investing-focused YouTube channel indicates a strategic approach to reach a broader audience and share insights on various companies [1]

Core Viewpoint - Darling Ingredients Inc. has successfully sold approximately $50 million in production tax credits generated under the Inflation Reduction Act through its Diamond Green Diesel joint venture, contributing to a total of $235 million in tax credit sales for 2025 [1] Group 1: Financial Performance - The company has previously sold $125 million and $60 million in production tax credits, indicating a strong performance in leveraging tax incentives [1] Group 2: Business Operations - The production tax credits are a result of the company's operations in the renewable diesel sector through the Diamond Green Diesel joint venture, highlighting the company's strategic focus on sustainable energy solutions [1]

Group 1 - Sun Communities Inc reported strong financial performance with a revenue increase of 15% year-over-year, reaching $1.2 billion [1] - Darling Ingredients Inc has expanded its production capacity, which is expected to boost its revenue by an estimated 20% in the next fiscal year [1] - Wave Life Sciences Ltd is advancing its pipeline with several new drug candidates entering clinical trials, indicating potential for significant growth in the biotech sector [1] Group 2 - The overall market sentiment remains positive, driven by strong earnings reports and optimistic forecasts from key players in the industry [1] - Analysts highlight the importance of innovation and strategic partnerships as critical factors for sustained growth in the sectors represented by these companies [1] - The investment landscape is becoming increasingly competitive, with emerging companies challenging established players, necessitating a focus on agility and adaptability [1]

Core Viewpoint - Darling Ingredients Inc. and Tessenderlo Group have signed a definitive agreement to combine their collagen and gelatin segments into a new company, aiming to leverage global collagen market growth without requiring cash or initial investment from either party [1][2]. Group 1: Joint Venture Details - The new company will merge Darling Ingredients' Rousselot business with Tessenderlo Group's PB Leiner business, with Darling holding an 85% ownership stake and Tessenderlo holding 15% [2]. - The combined entity is projected to generate approximately $1.5 billion in annual revenue and will have a total gelatin and collagen capacity of about 200,000 metric tons across 22 facilities in South America, North America, Europe, and Asia [2]. Group 2: Strategic Benefits - The integration is expected to create significant synergies and opportunities to develop the Nextida product portfolio, which aims to deliver targeted health benefits and enhance earnings potential [3]. - The partnership is anticipated to foster growth and enhance shareholder value for Darling Ingredients, as collagen is identified as the fastest-growing segment within its food division [4]. Group 3: Company Backgrounds - Darling Ingredients is a leader in circularity, processing about 15% of the world's animal agricultural by-products and producing approximately 30% of the world's collagen [5]. - Tessenderlo Group operates in over 100 countries, focusing on agriculture, bio-residual valorization, and industrial solutions, employing more than 7,000 people globally [6].

Core Thesis - Darling Ingredients Inc. is well-positioned for growth due to favorable biofuel policy trends, which are expected to sustain strong demand and pricing for fats and used cooking oil [2] - The company is projected to generate total adjusted EBITDA of $1.4–$1.8 billion, with a significant contribution from its joint venture, Diamond Green Diesel [3] Financial Performance - Darling's trailing and forward P/E ratios are 54.88 and 11.07 respectively, indicating a potential undervaluation based on future earnings [1] - The enterprise value of Darling Ingredients is $8.8 billion, with a focus on deleveraging and capital returns [3] Policy Environment - The finalization of the Renewable Volume Obligation (RVO) and small refinery exemptions is expected to drive revaluation of feedstock and RIN prices, positively impacting Darling's operations [4] - A proposed 50% reduction in RINs for foreign feedstock and biodiesel has already increased domestic feedstock prices, which may benefit Darling's logistics and operational flexibility [4] Strategic Initiatives - The company plans to spin off its Food segment into a new joint venture, Nextida, which could significantly enhance EBITDA and market valuation [5] - The upcoming GLP-1-stimulating supplement line from Nextida is expected to double the joint venture's EBITDA from approximately $340 million, potentially exceeding 75% of Darling's market cap at peer multiples [5] Market Sentiment - The stock has appreciated by 2.54% since previous coverage, reflecting ongoing commodity headwinds, but the bullish thesis remains intact due to policy-driven tailwinds and the Nextida spin-off [6]