Darling Ingredients Director Gary Mize to retire from Board at Annual Meeting; Robert Aspell elected to Board of DirectorsFeb 25, 2026 4:45 PM Eastern Standard Time# Darling Ingredients Director Gary Mize to retire from Board at Annual Meeting; Robert Aspell elected to Board of DirectorsShare---IRVING, Texas-- ([BUSINESS WIRE])-- [Darling Ingredients Inc.](NYSE: DAR), today announced that long-time board member Gary Mize has informed the board that he plans to retire, effective at the company's 2026 Annual ...

Core Viewpoint - The Texas Attorney General has filed a lawsuit against Darling Ingredients, Inc. due to harmful odors emanating from its Bastrop plant, which are affecting residents' quality of life and health within a 10-mile radius [1][2][3]. Group 1: Lawsuit Details - The lawsuit claims that the odors from the facility, described by residents as similar to dog food and burning feathers, violate state air quality laws [2][5]. - The Texas Commission on Environmental Quality (TCEQ) requested the lawsuit to enforce the Texas Clean Air Act, which categorizes strong odors as air contaminants impacting public health [5][8]. - The state is seeking civil penalties ranging from less than $250,000 to over $1 million and demands immediate action to mitigate the odors and comply with environmental permits [8]. Group 2: Company Response - Darling Ingredients' global communications director stated the company is committed to being a good neighbor and addressing community concerns [4]. - The company processes poultry byproducts and used grease at its Bastrop facility, which has been linked to ongoing odor issues [5]. Group 3: Environmental Violations - TCEQ has documented multiple environmental violations by the facility, including potential excessive emissions of hydrogen sulfide, a toxic gas [7]. - The lawsuit alleges that Darling has not maintained its equipment properly and has failed to keep required records [7].

Core Insights - Darling Ingredients, Inc. (DAR) reported strong fourth-quarter 2025 results, with earnings per share (EPS) of 64 cents, exceeding the Zacks Consensus Estimate of 43 cents and increasing 1.6% year over year [1][9] - Net sales reached $1,709.8 million, a 20.6% increase from the previous year, surpassing the Zacks Consensus Estimate of $1,534 million [2][9] Financial Performance - Gross profit rose 28.6% year over year to $429.2 million, with gross margin improving by 160 basis points to 25.1% [3] - Adjusted EBITDA grew 16.1% year over year to $336.1 million, including DGD's adjusted EBITDA of $57.9 million [3][9] - Net income was reported at $56.9 million, reflecting a decline of 44.2% year over year [3] Segment Performance - **Feed Segment**: Total net sales reached $1,128.1 million, exceeding the Zacks Consensus Estimate of $984 million. Adjusted EBITDA increased 28.9% to $193.4 million, surpassing the consensus estimate of $165 million [4] - **Food Segment**: Net sales were $429.07 million, ahead of the Zacks Consensus Estimate of $384 million. Adjusted EBITDA rose 28.8% to $82.4 million, exceeding the consensus estimate of $72 million [5] - **Fuel Segment**: Net sales totaled $152.6 million, slightly below the Zacks Consensus Estimate of $155 million. Adjusted EBITDA rose 0.9% to $27.2 million, exceeding the Zacks Consensus Estimate of $23.5 million [6] Financial Health - As of January 3, 2026, the company reported cash and cash equivalents of $89 million and total debt of $3,937 million, resulting in net debt of $3,849 million. The preliminary leverage ratio was 2.90x [7] Future Outlook - The company anticipates modestly lower performance in the first quarter of 2026, with expectations of improved fat prices as RVO clarity emerges. Fuel volumes are estimated at approximately 260 million gallons for the first quarter of 2026 [10] - Positive demand trends in the food segment support a constructive outlook for 2026 [10]

Financial Data and Key Metrics Changes - Combined adjusted EBITDA for Q4 2025 was $336.1 million, an increase from $289 million in Q4 2024 and $245 million in Q3 2025 [12] - Total net sales for Q4 2025 reached $1.7 billion, compared to $1.4 billion in Q4 2024 [12] - Gross margins improved to 25.1% in Q4 2025 from 23.5% in Q4 2024 [13] - For the full year 2025, core ingredients EBITDA was $922 million, up from $790 million in 2024 [12] Business Line Data and Key Metrics Changes - Core ingredients EBITDA for Q4 2025 was $278 million, compared to $230 million in Q4 2024 [12] - Feed segment EBITDA improved to $193 million in Q4 2025 from $150 million a year ago, with total sales of $1.13 billion versus $924 million [13] - Food segment total sales for Q4 2025 were $429 million, up from $362 million in Q4 2024 [14] - Fuel segment, specifically Diamond Green Diesel (DGD), achieved $57.9 million in EBITDA for Q4 2025, marking its strongest quarter of the year [8][15] Market Data and Key Metrics Changes - Demand for domestic fats in the U.S. remains robust, supported by favorable agricultural and energy policies [8] - Internationally, the global rendering business in Europe, Canada, and Brazil showed solid year-over-year growth [8] - DGD sold approximately 1 billion gallons in 2025, earning $103.7 million in EBITDA, or $0.21 per gallon [9] Company Strategy and Development Direction - The company aims to be the world's largest and most profitable processor of animal byproducts, focusing on operational excellence and core strengths [5] - Plans to sharpen the portfolio may lead to asset sales, while also exploring opportunities to strengthen and expand core business [10] - The company is optimistic about the policy backdrop for renewable fuels, which is expected to enhance DGD's earning potential [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainties from evolving renewables public policy and global trade but emphasized a commitment to fundamentals [5] - The outlook for 2026 is encouraging, with positive global demand trends and expectations for improved margins in the fuel segment [8][20] - Management anticipates a modest pullback in Q1 2026 but expects core ingredients adjusted EBITDA to be in the range of $240 million to $250 million [21] Other Important Information - The company recorded an income tax benefit of $11 million for Q4 2025, with an effective tax rate of -15.3% [18] - Restructuring and impairment charges of $58 million were recorded in the quarter [19] - The company ended 2025 with approximately $1.3 billion available on its revolving credit facility [17] Q&A Session Summary Question: Guidance for DGD margins and potential inclusion in future guidance - Management indicated that guidance for DGD will depend on clarity regarding the Renewable Volume Obligation (RVO) [27][28] Question: Sensitivity of the feed business to RVO changes - Management noted that the feed business is sensitive to U.S. and North American feedstock values, which are expected to be supportive [29] Question: Insights on biofuels production and feedstock demand - Management stated that there hasn't been a significant increase in biofuel production yet, and better margins are needed to incentivize more production [33] Question: Expectations for the food business and EBITDA - Management expressed optimism for the collagen and gelatin business, expecting a year similar to or better than the previous year [35] Question: RVO expectations and potential impact on Darling's feed business - Management supports an RVO for advanced biofuels translating to 5.25 billion to 5.61 billion gallons, which would be constructive for margins [40] Question: Rationale for the Potencei Group acquisition - Management highlighted the strategic fit of the Potencei facilities within their existing footprint and the potential for margin enhancement [68] Question: Capital allocation priorities post-leverage targets - Management emphasized that capital allocation will focus on paying down debt, with reassessment following clarity on cash flow from DGD [79]

Financial Data and Key Metrics Changes - For Q4 2025, combined adjusted EBITDA was $336.1 million, up from $289 million in Q4 2024 and $245 million in the previous quarter [11] - Total net sales for Q4 2025 reached $1.7 billion, compared to $1.4 billion in Q4 2024 [11] - Gross margins improved to 25.1% in Q4 2025 from 23.5% in Q4 2024 [12] - For the full year 2025, core ingredients EBITDA was $922 million, an increase from $790 million in 2024 [11] Business Line Data and Key Metrics Changes - In the feed ingredients segment, Q4 EBITDA improved to $193 million from $150 million a year ago, with total sales of $1.13 billion compared to $924 million [12] - The food segment saw total sales for Q4 2025 at $429 million, up from $362 million in Q4 2024, with EBITDA increasing to $82 million from $64 million [13][14] - The fuel segment, specifically Diamond Green Diesel (DGD), delivered $57.9 million of EBITDA in Q4 2025, marking its strongest quarter of the year [8][15] Market Data and Key Metrics Changes - In the U.S., demand for domestic fats remains robust, supported by favorable agricultural and energy policies [8] - Internationally, the global rendering business in Europe, Canada, and Brazil showed solid year-over-year growth [8] - DGD sold approximately 1 billion gallons in 2025, earning $103.7 million of EBITDA, reinforcing its position as the lowest cost operator [9] Company Strategy and Development Direction - The company aims to be the world's largest and most profitable processor of animal byproducts, focusing on core strengths and operational excellence [5] - Strategic acquisitions are being pursued, including a stalking horse bid for three rendering facilities in Brazil, which are expected to enhance operational capabilities [10] - The company is open to opportunities that strengthen its core business, potentially leading to asset sales in the near future [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing positive global demand trends and a favorable policy backdrop for renewable fuels [8][20] - The company anticipates a modest pullback in Q1 2026 but expects core ingredients adjusted EBITDA to range between $240 million and $250 million [22] - Management highlighted the importance of regulatory clarity regarding the Renewable Volume Obligation (RVO) for future growth [90] Other Important Information - Total debt net of cash was approximately $3.8 billion at year-end 2025, down from $4 billion at the end of 2024 [17] - The company recorded an income tax benefit of $11 million for Q4 2025, with an effective tax rate of -15.3% [18] - Restructuring and impairment charges amounted to $58 million in Q4 2025 [19] Q&A Session Summary Question: Guidance on DGD margins and potential RVO impact - Management indicated that guidance on DGD will depend on clarity regarding the RVO, with strong results expected to carry into Q1 [29] Question: Sensitivity of feed business to RVO changes - Management noted that the feed business is sensitive to policy changes, with supportive policies likely benefiting rendering businesses in the U.S. and Canada [30] Question: Insights on biofuels production and feedstock demand - Management stated that there hasn't been a significant increase in biofuel production yet, and better margins are needed to incentivize more production [34] Question: Expectations for food business EBITDA - Management expressed confidence in the collagen and gelatin business, expecting a strong year ahead due to rebounding demand [36] Question: RVO expectations and LCFS market dynamics - Management supports an RVO for advanced biofuels translating to 5.25 billion gallons, which would be constructive for margins [41] Question: Potential for asset sales - Management indicated that asset sales would be opportunistic, focusing on areas where the company has core capabilities [71]

Financial Data and Key Metrics Changes - For Q4 2025, combined adjusted EBITDA was $336.1 million, up from $289 million in Q4 2024 and $245 million in Q3 2025 [11][12] - Total net sales for Q4 2025 were $1.7 billion, compared to $1.4 billion in Q4 2024 [12] - Gross margins improved to 25.1% in Q4 2025 from 23.5% in Q4 2024 [12] - For the full year 2025, core ingredients EBITDA was $922 million, up from $790 million in 2024 [11] Business Line Data and Key Metrics Changes - In the feed segment, Q4 2025 EBITDA improved to $193 million from $150 million a year ago, with total sales of $1.13 billion compared to $924 million [12] - The food segment saw total sales for Q4 2025 reach $429 million, up from $362 million in Q4 2024, with EBITDA increasing to $82 million from $64 million [13] - The fuel segment, specifically Diamond Green Diesel (DGD), delivered $57.9 million of EBITDA in Q4 2025, marking its strongest quarter of the year [6][14] Market Data and Key Metrics Changes - In the U.S., demand for domestic fats remains robust, supported by favorable agricultural and energy policies [6] - Internationally, the global rendering business in Europe, Canada, and Brazil showed solid year-over-year growth [6] - DGD sold approximately 1 billion gallons in 2025, earning $103.7 million of EBITDA, reinforcing its position as the lowest cost operator [7] Company Strategy and Development Direction - The company aims to be the world's largest and most profitable processor of animal byproducts, focusing on core strengths and operational excellence [4] - The company is open to opportunities that strengthen its core business, including potential asset sales and acquisitions, such as the stalking horse bid for rendering facilities in Brazil [9][71] - The company is optimistic about the policy backdrop for renewable fuels, which is expected to enhance DGD's earning potential [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainties from evolving renewables public policy and trade-related challenges but emphasized a commitment to operational fundamentals [4] - The company is optimistic about 2026, expecting positive global demand trends and improved margins in the fuel segment [6][20] - Management anticipates that DGD will produce about 260 million gallons in Q1 2026 at improved margins [20] Other Important Information - The company recorded an income tax benefit of $11 million for Q4 2025, with an effective tax rate of -15.3% [18] - Total debt net of cash was approximately $3.8 billion at year-end 2025, down from $4 billion at the end of 2024 [16] - Capital expenditures totaled $156 million in Q4 2025 and $380 million for the fiscal year [17] Q&A Session Summary Question: Guidance for DGD margins and potential inclusion in future guidance - Management indicated that future guidance for DGD will depend on clarity regarding the Renewable Volume Obligation (RVO) [26][28] Question: Sensitivity of the feed business to RVO changes - Management noted that the feed business is sensitive to policy changes, particularly regarding tariffs and feedstock values [29] Question: Insights on biofuels production and feedstock demand - Management stated that there hasn't been a significant increase in biofuel production yet, and better margins are needed to incentivize more production [31][32] Question: Expectations for the food business and EBITDA - Management expressed optimism for the collagen and gelatin business, expecting a year similar to or better than the previous year [34] Question: RVO expectations and implications for Darling - Management supports an RVO for advanced biofuels translating to 5.25 billion gallons or more, which would be constructive for margins [40] Question: Potential for incremental asset sales - Management indicated that asset sales would be opportunistic and based on fair market value assessments [71]

Financial Results Q4 FY 2025 February 11, 2026 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," "plann ...

Group 1 - The consumer staples sector is showing signs of potential overvaluation, particularly for stocks that investors consider based on momentum [1] - Two specific stocks identified as overbought are Hershey Co (NYSE:HSY) and Darling Ingredients Inc (NYSE:DAR) [2]

Core Insights - Darling Ingredients reported $1.71 billion in revenue for Q4 2025, a year-over-year increase of 20.6%, and an EPS of $0.64, slightly up from $0.63 a year ago, with revenue exceeding Zacks Consensus Estimate by 11.44% [1] Financial Performance - Revenue from Feed Ingredients was $1.13 billion, surpassing the estimated $983.58 million, reflecting a 22.1% increase year-over-year [4] - Revenue from Fuel Ingredients was $152.57 million, slightly below the estimated $154.77 million, but still showing a 15.7% increase year-over-year [4] - Revenue from Food Ingredients reached $429.07 million, exceeding the average estimate of $384.12 million, marking an 18.6% year-over-year increase [4] EBITDA Analysis - Segment Adjusted EBITDA for Food Ingredients was $82.41 million, above the average estimate of $72.22 million [4] - Segment Adjusted EBITDA for Feed Ingredients was $193.37 million, exceeding the average estimate of $164.92 million [4] - Segment Adjusted EBITDA for Fuel Ingredients was $27.17 million, surpassing the average estimate of $23.47 million [4] - Corporate Segment Adjusted EBITDA was reported at -$24.73 million, worse than the estimated -$19.11 million [4] - Combined Adjusted EBITDA for Fuel Ingredients was $85.08 million, significantly higher than the average estimate of $62.1 million [4] Stock Performance - Darling's shares have returned +21.6% over the past month, contrasting with a -0.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

分组1 - Darling Ingredients reported quarterly earnings of $0.64 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, and showing a slight increase from $0.63 per share a year ago [1] - The earnings surprise for the quarter was +47.70%, contrasting with a previous quarter where the company reported earnings of $0.12 per share against an expectation of $0.13, resulting in a surprise of -7.69% [2] - The company generated revenues of $1.71 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 11.44%, and up from $1.42 billion year-over-year [3] 分组2 - Darling's stock has appreciated approximately 35.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.4% [4] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $1.53 billion, and for the current fiscal year, it is $2.80 on revenues of $6.26 billion [8] - The Zacks Industry Rank for Food - Miscellaneous is currently in the bottom 23% of over 250 Zacks industries, indicating potential challenges for stock performance [9]