Core Insights - Darling Ingredients Inc. reported a decline in net income for the fourth quarter and fiscal year 2025, with net income of $56.9 million or $0.35 per diluted share compared to $101.9 million or $0.63 per diluted share in the same period of 2024 [1][2] - The company achieved total net sales of $1.7 billion in Q4 2025, up from $1.42 billion in Q4 2024, and total net sales for the fiscal year reached $6.1 billion, compared to $5.7 billion in 2024 [1][2] - Combined Adjusted EBITDA for Q4 2025 was $336.1 million, an increase from $289.5 million in Q4 2024, while for the fiscal year, it totaled $1.03 billion, down from $1.08 billion in 2024 [1][2] Fourth Quarter Highlights - Combined Adjusted EBITDA was $336.1 million, compared to $289.5 million for Q4 2024 [1] - Total net sales were $1.7 billion, an increase from $1.42 billion for Q4 2024 [1] - Net income was $56.9 million, or $0.35 per GAAP diluted share, down from $101.9 million, or $0.63 per GAAP diluted share in Q4 2024 [1][2] Fiscal Year Highlights - Bank leverage ratio declined to 2.90X, indicating a commitment to deleveraging [1] - The company monetized $255 million of the $285 million in Production Tax Credit sales, enhancing cash generation [1] - Total net sales for the fiscal year were $6.1 billion, compared to $5.7 billion for fiscal year 2024 [1][2] - Net income for fiscal year 2025 was $62.8 million, or $0.39 per GAAP diluted share, compared to $278.9 million, or $1.73 per GAAP diluted share for fiscal year 2024 [1][2] Segment Performance - For the three months ended January 3, 2026, total net sales by segment included $1.13 billion from Feed Ingredients, $429 million from Food Ingredients, and $152.6 million from Fuel Ingredients [2] - The company reported a gross margin of $429.2 million for Q4 2025, compared to $333.8 million in Q4 2024 [2] - Segment Adjusted EBITDA for Feed Ingredients was $193.4 million, for Food Ingredients was $82.4 million, and for Fuel Ingredients was $27.2 million [2] Cash and Debt Position - As of January 3, 2026, the company had $88.7 million in cash and cash equivalents, with $1.32 billion available under its committed revolving credit agreement [1] - Total debt outstanding was $3.94 billion as of January 3, 2026 [1] Future Outlook - The company anticipates core ingredients business adjusted EBITDA for Q1 2026 to be approximately $240-$250 million [1] - Management expressed confidence in building on operational excellence and core strengths moving into 2026 [1]