Darling Ingredients Q2 Earnings Surge on DGD Joint Venture Boom; $1B Buyback Authorized
DAR has more than doubled off its 52-week low of $29.15.
Summary
Darling Ingredients posted Q2 net income of $387.3 million, up from $12.7 million a year ago, fueled by a $350.0 million contribution from its Diamond Green Diesel joint venture. The board authorized a $1.0 billion share buyback.
Key Events · Earnings and Guidance · DAR
-
Q2 Net Income Soars to $387.3M
Net income attributable to Darling was $387.3 million in Q2 2026, up from $12.7 million in Q2 2025. For the first six months, net income was $521.6 million versus a loss of $13.5 million a year ago.
-
DGD Joint Venture Drives Earnings
Equity in net income of Diamond Green Diesel was $350.0 million in Q2, compared to $6.0 million a year ago. The JV benefited from higher production, stronger RIN values, increased tax credits, and improved diesel margins.
-
$1.0 Billion Share Repurchase Authorized
On August 5, 2026, the board refreshed and increased the share repurchase program to $1.0 billion. The company repurchased $73.4 million of stock in the first half of 2026 under the prior authorization.
-
Portfolio Reshaping with Acquisitions and Divestitures
Acquired UPI Bovinos NewCo in Brazil for ~$122.2 million; agreed to sell the U.S. grease trap environmental services business for ~$90.0 million and the natural casings business for ~€58.0 million.
Analysis · DAR · Manufacturing
A dramatic earnings turnaround defined Darling Ingredients' Q2 2026, with net income reaching $387.3 million compared to just $12.7 million a year ago. The Diamond Green Diesel joint venture was the overwhelming driver, contributing $350.0 million in equity income as renewable diesel margins expanded sharply on higher production, stronger RIN values, and increased tax credits. While the core Feed and Food segments also improved, DGD is the story. Against this backdrop, the board refreshed and increased the share repurchase authorization to $1.0 billion, signaling confidence in the cash generation outlook. The company also disclosed two asset sales and a Brazilian acquisition, reshaping its portfolio. This filing materially updates the investment thesis — earnings power has structurally improved, and capital allocation is shifting toward shareholder returns.
At the time of this filing, DAR was trading at $59.41 on NYSE in the Manufacturing sector, with a market capitalization of approximately $9.4B. 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.