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.
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.