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 ...

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]

The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Post Hearing Information Pack, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Post Hearing Information Pack. Post Hearing Information Pack of Qingdao Gon Technology Co., Ltd. 青島國恩科技股份有限公司 (the "Company") (A joint stock co ...

Application Proof of Qingdao Gon Technology Co., Ltd. 青島國恩科技股份有限公司 (the "Company") The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Application Proof. (A joint stock company incorporated in the People's R ...

Group 1: Trade Tensions - The recent market drop was triggered by renewed trade tensions between the US and China, raising concerns of a potential trade war [1] - China announced plans to impose export controls on rare earth elements, which are critical for various industries, including smartphones, electric vehicles, and military systems [2] - China currently dominates approximately 70% of the global supply of rare earths, providing it with significant leverage in this sector [2] Group 2: Market Reactions - In response to China's actions, President Trump announced new tariffs on Chinese imports, with some tariffs reaching up to 100%, causing a significant market decline [3] - The S&P 500 fell by 2.71%, and the Nasdaq dropped by 3.56% following the announcement of tariffs [3] - Trump's subsequent comments suggesting that "it will all be fine" helped to calm investors, leading to a recovery in U.S. stocks [3] Group 3: Investment Opportunities - Despite market volatility, analysts suggest that pullbacks can create attractive entry points for quality stocks [4] - Bank of America analysts have identified two stocks that they believe present solid investment opportunities [4] Group 4: Darling Ingredients Overview - Darling Ingredients operates in recycling, food technology, and agribusiness, focusing on converting waste materials into valuable products [5] - The company produces animal feeds, human food products, and renewable biofuels, making it the largest rendering company in the global feed market [6] - Darling is recognized as a global leader in gelatin and collagen solutions, with 16 factories worldwide and sales in over 80 countries [7] Group 5: Joint Venture and Revenue Projections - Darling Ingredients has formed a joint venture with Tessenderlo Group called Nextida, which will focus on their collagen and gelatin segments [7] - The joint venture is projected to generate $1.5 billion in revenue and will be 85% owned by Darling [7]

Financial Data and Key Metrics Changes - Combined adjusted EBITDA for Q2 2025 was $249.5 million, down from $273.6 million in Q2 2024, while year-to-date combined adjusted EBITDA totaled $445.3 million compared to $553.7 million for the same period in 2024 [13][14] - Total net sales in Q2 2025 were $1.48 billion, slightly up from $1.46 billion in Q2 2024, with raw material volume remaining nearly unchanged at approximately 3.74 million metric tons [14] - Gross margins improved to 23.3% in Q2 2025 from 22.5% in Q2 2024, with year-to-date gross margins at 23% compared to 21.9% in the first half of 2024 [14][16] Business Line Data and Key Metrics Changes - In the Feed Ingredients segment, total net sales increased to $936.5 million in Q2 2025 from $934.1 million in Q2 2024, with gross margins improving to 22.9% from 21% [15][16] - The Food segment saw total sales rise to $386.1 million in Q2 2025 from $378.8 million in Q2 2024, with gross margins unchanged at 26.9% [17] - The Fuel segment's sales for Q2 2025 were $158.8 million, up from $142.3 million in Q2 2024, but the share of DGD EBITDA dropped to $42.6 million from $76.6 million year-over-year [19][20] Market Data and Key Metrics Changes - The regulatory environment has shown signs of improvement, particularly in the Feed segment, which is expected to enhance performance into 2026 [6] - Tariff volatility and increased domestic oilseed crush have pressured protein prices, especially in Asia, but rising fat prices are expected to support the Feed segment [7][11] - The renewable fuel environment remains challenging, with DGD facing near-term pressure but expected to benefit from policy support in the long term [11][12] Company Strategy and Development Direction - The company announced the formation of NexTata, a joint venture focused on health and wellness, aligning with its strategy to diversify into high-margin markets [6] - The company is focused on operational discipline and strategic timing to position itself for improved margins in the future [12] - The outlook for the core ingredients platform remains strong, with expectations for sequential improvement driven by rising fat prices [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core ingredients business, anticipating a more constructive market environment ahead [24][25] - The company expects full-year combined adjusted EBITDA in the range of $1.05 billion to $1.1 billion, reflecting optimism about market recovery [26] - Management acknowledged challenges in the renewable fuel sector but highlighted the potential for margin recovery as policy rules clarify [12][24] Other Important Information - The company successfully refinanced its Eurobond and replaced its revolving credit facility, enhancing financial flexibility [21][22] - Total debt net of cash decreased to $3.89 billion as of June 28, 2025, from $3.97 billion at the end of 2024, lowering the leverage ratio to 3.34 times [22] - The effective tax rate for Q2 2025 was 22.2%, slightly above the federal statutory rate, with expectations for a full-year effective tax rate around 15% [23] Q&A Session Summary Question: Discussion on policy benefits for domestic renewable diesel - Management noted that evolving domestic markets are expected to reduce reliance on imported raw materials, benefiting U.S. fat pricing and production [28][30] Question: Outlook for LCFS prices - Management indicated that carbon prices are moving positively, with expectations for further increases in the coming years [34] Question: Impact of lower UCO pricing - Management explained that pricing dynamics in a rising market can lead to temporary impacts on margins, but they expect improvements as prices stabilize [37][41] Question: Opportunities for DGD outside California - Management confirmed that while California is a significant market, they also export renewable diesel to Europe and other states, with demand growing globally [48][50] Question: Expectations for SREs - Management expressed uncertainty regarding the timing and impact of SREs but indicated that they expect an announcement soon [51][55] Question: CapEx plans and capital allocation - Management emphasized a commitment to maintaining capital discipline, with plans to keep CapEx below $400 million for the year while focusing on debt reduction [102][104]

Financial Performance - Total Net Sales increased by 1.8% to $1,481.5 million in Q2 2025 compared to $1,455.3 million in Q2 2024[4] - Gross Margin increased by 5.8% to $345.9 million in Q2 2025 compared to $326.9 million in Q2 2024[4] - Net Income decreased significantly by 83.9% to $12.7 million in Q2 2025 compared to $78.9 million in Q2 2024[4] - EPS Diluted decreased by 83.7% to $0.08 in Q2 2025 compared to $0.49 in Q2 2024[4] - Total combined adjusted EBITDA decreased by 8.8% to $249.5 million in Q2 2025 compared to $273.6 million in Q2 2024[4] Segment Performance - Feed segment adjusted EBITDA increased by 11.3% to $135.9 million in Q2 2025 compared to $122.1 million in Q2 2024[4] - Food segment adjusted EBITDA decreased by 4.5% to $69.9 million in Q2 2025 compared to $73.2 million in Q2 2024[4] - Fuel segment adjusted EBITDA decreased by 29.1% to $61.3 million in Q2 2025 compared to $96.8 million in Q2 2024[4] Balance Sheet - Cash and cash equivalents were $95 million as of June 28, 2025, compared to $76 million as of December 28, 2024[5] - Total debt was $3,980 million as of June 28, 2025, compared to $4,042 million as of December 28, 2024[5]