Darling Ingredients Q2 Earnings Surge: Net Income Hits $387M, Debt Slashed, Guidance Raised
DAR has more than doubled off its 52-week low of $29.15.
Summary
Darling Ingredients reported Q2 2026 net income of $387.3 million, up from $12.7 million a year ago, driven by surging renewable diesel margins and strong cash flow. The company reduced net debt by $223 million, repurchased $73 million in stock, and issued upbeat Q3 guidance.
Key Events · Earnings and Guidance · DAR
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Q2 Net Income Soars to $387M
Net income of $387.3 million ($2.41 diluted EPS) compared to $12.7 million ($0.08) in Q2 2025, driven by a $350 million equity pickup from Diamond Green Diesel and strong margins across all segments.
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DGD Cash Distributions Hit $280M
Darling received $280 million in cash from its Diamond Green Diesel joint venture — $211 million in dividends and $69 million from Production Tax Credit sales — fueling debt paydown and buybacks.
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Net Debt Reduced by $223M; $73M in Stock Repurchased
Strong cash flow allowed the company to cut net debt to $3.79 billion and repurchase $73 million of common stock, with leverage ratio improving to 2.3x from 2.9x at year-end 2025.
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Q3 Core EBITDA Guidance Set at $325-340M
Management guided for core ingredients business (ex-DGD) Adjusted EBITDA of $325-340 million in Q3 2026, signaling continued momentum.
Analysis · DAR · Manufacturing
A blowout second quarter swung Darling Ingredients from a modest profit a year ago to $387.3 million in net income. The Diamond Green Diesel joint venture was the star, generating $389.2 million in Darling's share of EBITDA and sending $280 million in cash distributions back to the parent. That cash, combined with strong core operations, allowed the company to pay down $223 million in debt and buy back $73 million in stock — tangible proof the turnaround is real. Management backed up the numbers with bullish guidance, forecasting core EBITDA of $325-340 million for Q3 and targeting net debt below $3 billion by year-end. After years of volatile results, this quarter shows the business firing on all cylinders and deleveraging fast.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 36.1% of the 1051 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.56%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, DAR was trading at $59.00 on NYSE in the Manufacturing sector, with a market capitalization of approximately $9.3B. The 52-week trading range was $29.15 to $66.02. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.