Core Insights - Palo Duro Investment Partners initiated a new position in Darling Ingredients by acquiring 632,050 shares valued at approximately $22.75 million during Q4 2025 [2][3] - As of February 25, 2026, Darling Ingredients' stock price was $53.08, reflecting a 34.8% increase over the past year, outperforming the S&P 500 by 19 percentage points [4] - The company reported a revenue of $6.14 billion and a net income of $62.80 million for the trailing twelve months [5] Company Overview - Darling Ingredients converts animal by-products and waste into specialty products for food, feed, fuel, and industrial markets globally [1][6] - The company operates a vertically integrated model that processes waste streams into value-added products, serving various sectors including pharmaceutical, food, pet food, animal feed, industrial, fuel, and fertilizer [8] Financial Performance - In its most recent quarter, Darling Ingredients reported a 21% increase in sales and a 16% increase in adjusted EBITDA [7][11] - Over the past decade, the company has seen sales and free cash flow grow by 5% and 15% annually, respectively [11] Investment Perspective - The recent acquisition by Palo Duro Investment Partners represents 6.8% of the fund's reportable assets under management as of December 31, 2025 [3] - Darling Ingredients is viewed as a stable investment opportunity with market-beating potential, trading at 12 times free cash flow even after a nearly 50% rise in stock price this year [11]