Financial Data and Key Metrics Changes - For Q4 2024, net income was $101.9 million or $0.63 per diluted share, compared to $84.5 million or $0.52 per diluted share in Q4 2023 [16] - Total net sales for Q4 2024 were $1.4 billion, down from $1.5 billion in Q4 2023 [16] - Operating income decreased by $36.4 million to $122.4 million in Q4 2024, primarily due to lower gross margins from significantly lower fat prices [17] - For fiscal year 2024, net income was $278.9 million or $1.73 per diluted share, down from $647.7 million or $3.99 per diluted share in fiscal 2023 [17] - Total net sales for fiscal year 2024 were $5.7 billion, compared to $6.8 billion in fiscal 2023 [17] - The company paid down $353 million in debt for fiscal year 2024, reducing total debt outstanding to $4 billion [7][22] Business Segment Data and Key Metrics Changes - In the feed ingredients segment, gross margin improved from 21.5% in Q3 2024 to 22.6% in Q4 2024, with global rendering volumes remaining strong [10] - The food segment saw a gross margin improvement from 23.9% in Q3 2024 to 25.7% in Q4 2024, with slight sales improvement due to better industry conditions [11] - The fuel segment received a cash dividend of $68.6 million in Q4 2024 from Diamond Green Diesel, totaling $179.8 million for the full fiscal year [12][23] Market Data and Key Metrics Changes - Global raw material volumes remain robust, with stronger fat prices expected in Q1 2025 [26] - Regulatory clarity on US biofuel policies is believed to stabilize the market, with a decline in foreign biofuel imports noted [27] - The company anticipates a balanced supply and demand environment for 2025, driven by domestic biodiesel and renewable diesel production adjustments [27] Company Strategy and Development Direction - The company aims to maintain a strong financial policy focused on deleveraging, targeting a 2.5 times bank leverage ratio in the future [28] - Continued emphasis on disciplined capital deployment, efficient working capital management, operational excellence, and margin management is planned for 2025 [28] - The company is exploring expansion opportunities in renewable natural gas markets in the US and Europe [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, expecting strong momentum to build throughout the year [25] - The company is confident in its ability to monetize the clean fuel production tax credit, which is expected to enhance financial performance [14][20] - Management noted that the market is stabilizing, with expectations for ingredient prices and RINs to adjust positively throughout the year [27] Other Important Information - The company plans to increase capital expenditures to approximately $400 million in 2025, which will be managed based on market conditions [24][126] - The company has received an additional cash dividend of $86.4 million in January 2025 from Diamond Green Diesel [12][23] Q&A Session Summary Question: How does the 45Z tax credit benefit Darling Ingredients? - Management confirmed that the 45Z tax credit is favorable for Darling, as it is designed for US biofuel producers and aligns with the company's low CI score feedstocks [36][38] Question: Can you elaborate on the SAF production plans? - Management indicated that they are looking to increase SAF production capacity and are exploring opportunities for additional SAF plants [41][43] Question: What are the expectations for dividends in 2025? - Management anticipates larger distributions in 2025 compared to 2024, driven by strong performance and the monetization of tax credits [71][74] Question: What is the outlook for the renewable natural gas (RNG) market? - Management highlighted ongoing interest in RNG opportunities, particularly in the US, leveraging the company's existing capabilities in Europe [122][123] Question: How is the company positioned regarding regulatory risks? - Management expressed confidence in adapting to regulatory changes, noting broad bipartisan support for US biofuel policy [138]

Core Insights - Darling Ingredients surpassed earnings expectations in Q4 2024 with an EPS of $0.63, significantly above the analysts' estimate of $0.42, but total revenue of $1.42 billion fell short of the consensus forecast of $1.449 billion and decreased from $1.61 billion in the prior-year period [2][3] Financial Performance - Q4 2024 metrics showed a diluted EPS of $0.63, a 21.2% increase from $0.52 in Q4 2023, while total revenue decreased by 12.2% from $1.61 billion to $1.42 billion [3] - Net income rose 20.7% year over year to $101.9 million, reflecting improved profitability in some segments despite overall revenue decline [6] - Combined adjusted EBITDA decreased by 17.5% to $289.5 million from $350.9 million in the prior-year period [3][8] Business Overview and Strategy - Darling Ingredients operates a diversified business model, transforming by-products from the food and agriculture sectors into value-added products, with a strategic focus on sustainability and renewable energy [4] - The company is expanding its geographical reach and focusing on strategic acquisitions in response to increasing global demand for sustainable products [5] Segment Performance - The feed ingredients segment saw a decline in net sales to $924.2 million from $1.046 billion in the prior-year period, while food ingredients sales dropped to $361.7 million from $423.8 million, partly due to softer demand in markets like China [7] - Fuel ingredients sales decreased to $131.9 million from $144.6 million, impacted by weaker pricing and uncertainties regarding renewable energy policies [7] Future Outlook - For 2025, Darling Ingredients anticipates an adjusted EBITDA of $1.25 billion to $1.30 billion, driven by expectations of higher fat prices and capacity growth through planned plant turnarounds and sustainable aviation fuel sales integration [10]

Darling Ingredients (DAR) reported $1.42 billion in revenue for the quarter ended December 2024, representing a year-over-year decline of 12.2%. EPS of $0.63 for the same period compares to $0.62 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.46 billion, representing a surprise of -2.75%. The company delivered an EPS surprise of +80.00%, with the consensus EPS estimate being $0.35.While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

Darling Ingredients (DAR) came out with quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 80%. A quarter ago, it was expected that this producer of natural ingredients from edible and inedible bionutrients would post earnings of $0.40 per share when it actually produced earnings of $0.11, delivering ...

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported) January 30, 2025 DARLING INGREDIENTS INC. (Exact Name of Registrant as Specified in Charter) Delaware 001-13323 36-2495346 (State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.) 5601 N. MacArthur Blvd., Irving, Texas 75038 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Registrant's telephone ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are underva ...

Brad Phillips, Executive Vice President and Chief Financial Officer, to retire Robert Day to be named Executive Vice President and Chief Financial Officer Sandra Dudley to be named Executive Vice President, Renewables and Chief Strategy Officer Carlos Paz joins as Executive Vice President, Global Risk Management, IngredientsIRVING, Texas, Dec. 12, 2024 /PRNewswire/ -- Darling Ingredients Inc. (NYSE: DAR) today announced that Brad Phillips, Executive Vice President and Chief Financial Officer, will retire f ...

IRVING, Texas, Oct. 28, 2024 /PRNewswire/ -- Darling Ingredients Inc. (NYSE: DAR), the world's leading company turning food waste into sustainable products and producer of renewable energy, today announced that the company will participate in the Jefferies Renewables & Clean Energy Conference on Wednesday, December 4, 2024. The company will hold investor meetings, and Chairman and Chief Executive Officer Randall C. Stuewe will participate in a fireside chat at 9:30 a.m. ET. View details and register for the ...

Darling Ingredients Inc. (NYSE:DAR) Q3 2024 Earnings Conference Call October 24, 2024 9:00 AM ET Company Participants Suann Guthrie - Senior Vice President of Investor Relations, Sustainability and Global Communications Randall Stuewe - Chairman and Chief Executive Officer Brad Phillips - Executive Vice President and Chief Financial Officer Robert Day - Executive Vice President and Chief Strategy Officer Matt Jansen - Chief Operating Officer of North America Conference Call Participants Thomas Palmer - Citi ...

| --- | --- | --- | |-------|-------------------|-------| | | | | | | | | | | | | | | | | | | Financial Results | | | | | | | | Q3 2024 | | | | | | | | | | | | | | | | | | 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 provision ...