Darling Ingredients Q2 Net Income Surges to $387M, Guides Strong Q3 EBITDA
DAR has more than doubled off its 52-week low of $29.15.
Summary
Darling Ingredients reported Q2 net income of $387.3 million, a massive jump from $12.7 million a year ago, driven by strong operational execution and cash distributions from its Diamond Green Diesel joint venture. Sales of $1.70 billion slightly missed the $1.71 billion consensus, but the bottom-line beat and robust guidance overshadow the marginal revenue miss. The company guided Q3 2026 core ingredients Adjusted EBITDA to $325–340 million and expects to end the year with net debt at or below $3 billion, reflecting significant deleveraging after reducing net debt by $223 million in Q2 alone. A $73 million stock buyback further underscores management's confidence. This follows a strong Q1 turnaround and positive Investor Day outlook in May, reinforcing the earnings growth narrative. The stock trades at 12x forward earnings, down from 19x three months ago, suggesting room for multiple expansion if execution continues.
At the time of this announcement, DAR was trading at $60.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $9.3B. The 52-week trading range was $29.15 to $66.02. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.