Darling Ingredients Inc. Reports Second Quarter 2025 Results
- Net income of $12.7 million, or $0.08 per GAAP diluted share
- Total net sales of $1.5 billion
- Combined Adjusted EBITDA of $249.5 million
- Refinanced long-term debt
- Signed non-binding term sheet to form Nextida, a new collagen and gelatin company
IRVING, Texas–(BUSINESS WIRE)–$DAR—Darling Ingredients Inc. (NYSE: DAR) today reported a net income of $12.7 million, or $0.08 per diluted share for the second quarter of 2025, compared to net income of $78.9 million, or $0.49 per diluted share, for the second quarter of 2024, driven by lower earnings at Diamond Green Diesel (DGD). The company also reported total net sales of $1.5 billion for the second quarter of 2025, compared with total net sales of $1.5 billion for the same period a year ago.
“Our second quarter displayed improving market dynamics, building momentum through the quarter and beyond. The recent regulatory announcements for biofuels are supportive and should create an improving environment for our renewables business,” said Randall C. Stuewe, Chairman and Chief Executive Officer. “We delivered positive earnings, maintained strict capital discipline and enhanced our financial flexibility through a successful refinancing that locks our borrowing costs for years to come. We also advanced our strategic agenda with the launch of Nextida, a new joint venture that should position us to unlock value and accelerate growth for our global collagen business in the high-potential health and wellness markets.”
For the six months ended June 28, 2025, Darling Ingredients reported net sales of $2.9 billion, consistent with the $2.9 billion reported during the same period in 2024. For the first six months of 2025, Darling Ingredients reported a net loss of $13.5 million, or ($0.09) per diluted share, as compared to net income of $160.0 million, or $0.99 per diluted share, for the first six months of 2024, driven by lower earnings at DGD.
DGD sold 248.6 million gallons of renewable fuel during the second quarter 2025 at an average of $0.36 per gallon EBITDA. For the first six months of 2025, DGD sold 467.8 million gallons of renewable fuel at an average of $0.22 per gallon EBITDA.
Combined adjusted EBITDA for the second quarter 2025 was $249.5 million, compared to $273.6 million for the same period in 2024. On a year-to-date basis, combined adjusted EBITDA totaled $445.3 million, as compared to $553.7 million for the same period in 2024.
As of June 28, 2025, Darling Ingredients had $95.0 million in cash and cash equivalents, and $1.27 billion available under its committed revolving credit agreement. Total debt outstanding as of June 28, 2025, was $3.98 billion. The preliminary leverage ratio as measured by the company’s bank covenant was 3.34X as of June 28, 2025. Capital expenditures were $71.0 million for the second quarter 2025 and $133.9 million for the first six months ended June 28, 2025.
“We anticipate continued improvement in the third quarter for our core ingredients business, led by strengthening fat prices. Global tariffs continue to present supply chain disruptions and uncertainty; however, our global footprint provides flexibility to arbitrage to the most profitable markets. Due to the uncertainty concerning small refinery exemptions in the renewable fuel standard and delayed reaction from RIN pricing, the company has adjusted its 2025 outlook to $1.05-$1.10 billion in Combined Adjusted EBITDA.”
|
Darling Ingredients Inc. and Subsidiaries Consolidated Statements of Operations For the Three and Six Months Ended June 28, 2025 and June 29, 2024 (in thousands, except per share data, unaudited) |
|||||||||||||||||||||||
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Three Months Ended |
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Six Months Ended |
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$ Change |
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$ Change |
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June 28, |
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June 29, |
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Favorable |
|
June 28, |
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June 29, |
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Favorable |
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|
|
2025 |
|
|
|
2024 |
|
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(Unfavorable) |
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2025 |
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|
2024 |
|
|
(Unfavorable) |
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Net sales to third parties |
$ |
1,189,988 |
|
|
$ |
1,220,755 |
|
|
$ |
(30,767 |
) |
|
$ |
2,352,630 |
|
|
$ |
2,394,317 |
|
|
$ |
(41,687 |
) |
|
Net sales to related party – Diamond Green Diesel |
|
291,530 |
|
|
|
234,537 |
|
|
|
56,993 |
|
|
|
509,482 |
|
|
|
481,274 |
|
|
|
28,208 |
|
|
Total net sales |
|
1,481,518 |
|
|
|
1,455,292 |
|
|
|
26,226 |
|
|
|
2,862,112 |
|
|
|
2,875,591 |
|
|
|
(13,479 |
) |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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Cost of sales and operating expenses (excludes depreciation and amortization, shown separately below) |
|
1,135,601 |
|
|
|
1,128,421 |
|
|
|
(7,180 |
) |
|
|
2,204,844 |
|
|
|
2,245,087 |
|
|
|
40,243 |
|
|
(Gain)/loss on sale of assets |
|
952 |
|
|
|
222 |
|
|
|
(730 |
) |
|
|
1,014 |
|
|
|
(352 |
) |
|
|
(1,366 |
) |
|
Selling, general and administrative expenses |
|
138,069 |
|
|
|
129,731 |
|
|
|
(8,338 |
) |
|
|
259,625 |
|
|
|
268,874 |
|
|
|
9,249 |
|
|
Acquisition and integration costs |
|
3,383 |
|
|
|
1,130 |
|
|
|
(2,253 |
) |
|
|
4,917 |
|
|
|
5,184 |
|
|
|
267 |
|
|
Change in fair value of contingent consideration |
|
12,583 |
|
|
|
(33,122 |
) |
|
|
(45,705 |
) |
|
|
18,024 |
|
|
|
(58,371 |
) |
|
|
(76,395 |
) |
|
Depreciation and amortization |
|
121,062 |
|
|
|
124,605 |
|
|
|
3,543 |
|
|
|
244,897 |
|
|
|
252,114 |
|
|
|
7,217 |
|
|
Total costs and expenses |
|
1,411,650 |
|
|
|
1,350,987 |
|
|
|
(60,663 |
) |
|
|
2,733,321 |
|
|
|
2,712,536 |
|
|
|
(20,785 |
) |
|
Equity in net income/(loss) of Diamond Green Diesel |
|
6,000 |
|
|
|
44,197 |
|
|
|
(38,197 |
) |
|
|
(24,523 |
) |
|
|
122,616 |
|
|
|
(147,139 |
) |
|
Operating income |
|
75,868 |
|
|
|
148,502 |
|
|
|
(72,634 |
) |
|
|
104,268 |
|
|
|
285,671 |
|
|
|
(181,403 |
) |
|
Other expense: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest expense |
|
(51,873 |
) |
|
|
(69,225 |
) |
|
|
17,352 |
|
|
|
(109,840 |
) |
|
|
(132,101 |
) |
|
|
22,261 |
|
|
Loss on early retirement of debt |
|
(2,978 |
) |
|
|
— |
|
|
|
(2,978 |
) |
|
|
(2,978 |
) |
|
|
— |
|
|
|
(2,978 |
) |
|
Foreign currency gain/(loss) |
|
1,313 |
|
|
|
413 |
|
|
|
900 |
|
|
|
(49 |
) |
|
|
649 |
|
|
|
(698 |
) |
|
Other income/(expense), net |
|
(6,526 |
) |
|
|
(568 |
) |
|
|
(5,958 |
) |
|
|
(3,193 |
) |
|
|
8,088 |
|
|
|
(11,281 |
) |
|
Total other expense |
|
(60,064 |
) |
|
|
(69,380 |
) |
|
|
9,316 |
|
|
|
(116,060 |
) |
|
|
(123,364 |
) |
|
|
7,304 |
|
|
Equity in net income of other unconsolidated subsidiaries |
|
2,526 |
|
|
|
3,017 |
|
|
|
(491 |
) |
|
|
5,154 |
|
|
|
5,327 |
|
|
|
(173 |
) |
|
Income/(loss) from operations before income taxes |
|
18,330 |
|
|
|
82,139 |
|
|
|
(63,809 |
) |
|
|
(6,638 |
) |
|
|
167,634 |
|
|
|
(174,272 |
) |
|
Income tax expense |
|
4,065 |
|
|
|
774 |
|
|
|
(3,291 |
) |
|
|
2,911 |
|
|
|
4,681 |
|
|
|
1,770 |
|
|
Net income/(loss) |
|
14,265 |
|
|
|
81,365 |
|
|
|
(67,100 |
) |
|
|
(9,549 |
) |
|
|
162,953 |
|
|
|
(172,502 |
) |
|
Net income attributable to noncontrolling interests |
|
(1,604 |
) |
|
|
(2,499 |
) |
|
|
895 |
|
|
|
(3,950 |
) |
|
|
(2,930 |
) |
|
|
(1,020 |
) |
|
Net income/(loss) attributable to Darling |
$ |
12,661 |
|
|
$ |
78,866 |
|
|
$ |
(66,205 |
) |
|
$ |
(13,499 |
) |
|
$ |
160,023 |
|
|
$ |
(173,522 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
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Basic income/(loss) per share: |
$ |
0.08 |
|
|
$ |
0.49 |
|
|
$ |
(0.41 |
) |
|
$ |
(0.09 |
) |
|
$ |
1.00 |
|
|
$ |
(1.09 |
) |
|
Diluted income/(loss) per share: |
$ |
0.08 |
|
|
$ |
0.49 |
|
|
$ |
(0.41 |
) |
|
$ |
(0.09 |
) |
|
$ |
0.99 |
|
|
$ |
(1.08 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Number of diluted common shares: |
|
159,734 |
|
|
|
161,705 |
|
|
|
|
|
158,436 |
|
|
|
161,805 |
|
|
|
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|
Segment Financial Tables (in thousands, unaudited) |
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|
Feed Ingredients |
Food Ingredients |
Fuel Ingredients |
Corporate |
Total |
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Three Months Ended June 28, 2025 |
|
|
|
|
|
||||||||||
|
Total net sales |
$ |
936,532 |
|
$ |
386,142 |
|
$ |
158,844 |
|
$ |
— |
|
$ |
1,481,518 |
|
|
Cost of sales and operating expenses |
|
722,081 |
|
|
282,233 |
|
|
131,287 |
|
|
— |
|
|
1,135,601 |
|
|
Gross margin |
|
214,451 |
|
|
103,909 |
|
|
27,557 |
|
|
— |
|
|
345,917 |
|
|
|
|
|
|
|
|
||||||||||
|
Loss (gain) on sale of assets |
|
1,085 |
|
|
(24 |
) |
|
(109 |
) |
|
— |
|
|
952 |
|
|
Selling, general and administrative expenses |
|
77,464 |
|
|
33,987 |
|
|
9,027 |
|
|
17,591 |
|
|
138,069 |
|
|
Acquisition and integration costs |
|
— |
|
|
— |
|
|
— |
|
|
3,383 |
|
|
3,383 |
|
|
Change in fair value of contingent consideration |
|
12,583 |
|
|
— |
|
|
— |
|
|
— |
|
|
12,583 |
|
|
Depreciation and amortization |
|
83,419 |
|
|
27,391 |
|
|
8,763 |
|
|
1,489 |
|
|
121,062 |
|
|
Equity in net income of Diamond Green Diesel |
|
— |
|
|
— |
|
|
6,000 |
|
|
— |
|
|
6,000 |
|
|
Segment operating income/(loss) |
$ |
39,900 |
|
$ |
42,555 |
|
$ |
15,876 |
|
$ |
(22,463 |
) |
$ |
75,868 |
|
|
Equity in net income of other unconsolidated subsidiaries |
|
2,526 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,526 |
|
|
Segment income/(loss) |
|
42,426 |
|
|
42,555 |
|
|
15,876 |
|
|
(22,463 |
) |
|
78,394 |
|
|
|
|
|
|
|
|
— |
|
||||||||
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
135,902 |
|
$ |
69,946 |
|
$ |
18,639 |
|
$ |
(17,591 |
) |
$ |
206,896 |
|
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) |
|
— |
|
|
— |
|
|
42,648 |
|
|
— |
|
|
42,648 |
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
135,902 |
|
$ |
69,946 |
|
$ |
61,287 |
|
$ |
(17,591 |
) |
$ |
249,544 |
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
Reconciliation of Net Income/(loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA: |
|||||||||||||||
|
Net income/(loss) attributable to Darling |
$ |
42,426 |
|
$ |
42,555 |
|
$ |
15,876 |
|
$ |
(88,196 |
) |
$ |
12,661 |
|
|
Net income attributable to noncontrolling interests |
|
— |
|
|
— |
|
|
— |
|
|
1,604 |
|
|
1,604 |
|
|
Income tax expense |
|
— |
|
|
— |
|
|
— |
|
|
4,065 |
|
|
4,065 |
|
|
Interest expense |
|
— |
|
|
— |
|
|
— |
|
|
51,873 |
|
|
51,873 |
|
|
Loss on early retirement of debt |
|
— |
|
|
— |
|
|
— |
|
|
2,978 |
|
|
2,978 |
|
|
Foreign currency gain |
|
— |
|
|
— |
|
|
— |
|
|
(1,313 |
) |
|
(1,313 |
) |
|
Other expense, net |
|
— |
|
|
— |
|
|
— |
|
|
6,526 |
|
|
6,526 |
|
|
Segment income/(loss) |
$ |
42,426 |
|
$ |
42,555 |
|
$ |
15,876 |
|
$ |
(22,463 |
) |
$ |
78,394 |
|
|
Acquisition and integration costs |
|
— |
|
|
— |
|
|
— |
|
|
3,383 |
|
|
3,383 |
|
|
Change in fair value of contingent consideration |
|
12,583 |
|
|
— |
|
|
— |
|
|
— |
|
|
12,583 |
|
|
Depreciation and amortization |
|
83,419 |
|
|
27,391 |
|
|
8,763 |
|
|
1,489 |
|
|
121,062 |
|
|
Equity in net income of Diamond Green Diesel |
|
— |
|
|
— |
|
|
(6,000 |
) |
|
— |
|
|
(6,000 |
) |
|
Equity in net income of other unconsolidated subsidiaries |
|
(2,526 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(2,526 |
) |
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
135,902 |
|
$ |
69,946 |
|
$ |
18,639 |
|
$ |
(17,591 |
) |
$ |
206,896 |
|
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) * |
|
— |
|
|
— |
|
|
42,648 |
|
|
— |
|
|
42,648 |
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
135,902 |
|
$ |
69,946 |
|
$ |
61,287 |
|
$ |
(17,591 |
) |
$ |
249,544 |
|
|
|
|
|
|
|
|
||||||||||
|
*See reconciliation of DGD Net Income/(loss) to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Operations |
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|
|
Feed Ingredients |
Food Ingredients |
Fuel Ingredients |
Corporate |
Total |
||||||||||
|
Three Months Ended June 29, 2024 |
|
|
|
|
|
||||||||||
|
Total net sales |
$ |
934,147 |
|
$ |
378,841 |
$ |
142,304 |
|
$ |
— |
|
$ |
1,455,292 |
|
|
|
Cost of sales and operating expenses |
|
737,871 |
|
|
276,760 |
|
113,790 |
|
|
— |
|
|
1,128,421 |
|
|
|
Gross margin |
|
196,276 |
|
|
102,081 |
|
28,514 |
|
|
— |
|
|
326,871 |
|
|
|
|
|
|
|
|
|
||||||||||
|
Loss (gain) on sale of assets |
|
205 |
|
|
37 |
|
(20 |
) |
|
— |
|
|
222 |
|
|
|
Selling, general and administrative expenses |
|
74,015 |
|
|
28,844 |
|
8,409 |
|
|
18,463 |
|
|
129,731 |
|
|
|
Acquisition and integration costs |
|
— |
|
|
— |
|
— |
|
|
1,130 |
|
|
1,130 |
|
|
|
Change in fair value of contingent consideration |
|
(33,122 |
) |
|
— |
|
— |
|
|
— |
|
|
(33,122 |
) |
|
|
Depreciation and amortization |
|
86,444 |
|
|
27,372 |
|
8,723 |
|
|
2,066 |
|
|
124,605 |
|
|
|
Equity in net income of Diamond Green Diesel |
|
— |
|
|
— |
|
44,197 |
|
|
— |
|
|
44,197 |
|
|
|
Segment operating income/(loss) |
$ |
68,734 |
|
$ |
45,828 |
$ |
55,599 |
|
$ |
(21,659 |
) |
$ |
148,502 |
|
|
|
Equity in net income of other unconsolidated subsidiaries |
|
3,017 |
|
|
— |
|
— |
|
|
— |
|
|
3,017 |
|
|
|
Segment income/(loss) |
|
71,751 |
|
|
45,828 |
|
55,599 |
|
|
(21,659 |
) |
|
151,519 |
|
|
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
122,056 |
|
$ |
73,200 |
$ |
20,125 |
|
$ |
(18,463 |
) |
$ |
196,918 |
|
|
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) |
|
— |
|
|
— |
|
76,642 |
|
|
— |
|
$ |
76,642 |
|
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
122,056 |
|
$ |
73,200 |
$ |
96,767 |
|
$ |
(18,463 |
) |
$ |
273,560 |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
Reconciliation of Net Income/(loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA: |
|||||||||||||||
|
Net income/(loss) attributable to Darling |
$ |
71,751 |
|
$ |
45,828 |
$ |
55,599 |
|
$ |
(94,312 |
) |
$ |
78,866 |
|
|
|
Net income attributable to noncontrolling interests |
|
— |
|
|
— |
|
— |
|
|
2,499 |
|
|
2,499 |
|
|
|
Income tax expense |
|
— |
|
|
— |
|
— |
|
|
774 |
|
|
774 |
|
|
|
Interest expense |
|
— |
|
|
— |
|
— |
|
|
69,225 |
|
|
69,225 |
|
|
|
Foreign currency gain |
|
— |
|
|
— |
|
— |
|
|
(413 |
) |
|
(413 |
) |
|
|
Other expense, net |
|
— |
|
|
— |
|
— |
|
|
568 |
|
|
568 |
|
|
|
Segment income/(loss) |
$ |
71,751 |
|
$ |
45,828 |
$ |
55,599 |
|
$ |
(21,659 |
) |
$ |
151,519 |
|
|
|
Acquisition and integration costs |
|
— |
|
|
— |
|
— |
|
|
1,130 |
|
|
1,130 |
|
|
|
Change in fair value of contingent consideration |
|
(33,122 |
) |
|
— |
|
— |
|
|
— |
|
|
(33,122 |
) |
|
|
Depreciation and amortization |
|
86,444 |
|
|
27,372 |
|
8,723 |
|
|
2,066 |
|
|
124,605 |
|
|
|
Equity in net income of Diamond Green Diesel |
|
— |
|
|
— |
|
(44,197 |
) |
|
— |
|
|
(44,197 |
) |
|
|
Equity in net income of other unconsolidated subsidiaries |
|
(3,017 |
) |
|
— |
|
— |
|
|
— |
|
|
(3,017 |
) |
|
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
122,056 |
|
$ |
73,200 |
$ |
20,125 |
|
$ |
(18,463 |
) |
$ |
196,918 |
|
|
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) * |
|
— |
|
|
— |
|
76,642 |
|
|
— |
|
|
76,642 |
|
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
122,056 |
|
$ |
73,200 |
$ |
96,767 |
|
$ |
(18,463 |
) |
$ |
273,560 |
|
|
|
|
|
|
|
|
|
||||||||||
|
*See reconciliation of DGD Net Income/(loss) to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Operations |
|||||||||||||||
|
|
Feed Ingredients |
Food Ingredients |
Fuel Ingredients |
Corporate |
Total |
||||||||||
|
Six Months Ended June 28, 2025 |
|
|
|
|
|
||||||||||
|
Total net sales |
$ |
1,832,815 |
$ |
735,382 |
$ |
293,915 |
|
$ |
— |
|
$ |
2,862,112 |
|
||
|
Cost of sales and operating expenses |
|
1,436,096 |
|
529,014 |
|
239,734 |
|
|
— |
|
|
2,204,844 |
|
||
|
Gross margin |
|
396,719 |
|
206,368 |
|
54,181 |
|
|
— |
|
|
657,268 |
|
||
|
|
|
|
|
|
|
||||||||||
|
Loss (gain) on sale of assets |
|
1,200 |
|
31 |
|
(217 |
) |
|
— |
|
|
1,014 |
|
||
|
Selling, general and administrative expenses |
|
149,035 |
|
65,459 |
|
17,568 |
|
|
27,563 |
|
|
259,625 |
|
||
|
Acquisition and integration costs |
|
— |
|
— |
|
— |
|
|
4,917 |
|
|
4,917 |
|
||
|
Change in fair value of contingent consideration |
|
18,024 |
|
— |
|
— |
|
|
— |
|
|
18,024 |
|
||
|
Depreciation and amortization |
|
167,549 |
|
56,953 |
|
17,352 |
|
|
3,043 |
|
|
244,897 |
|
||
|
Equity in net loss of Diamond Green Diesel |
|
— |
|
— |
|
(24,523 |
) |
|
— |
|
|
(24,523 |
) |
||
|
Segment operating income/(loss) |
$ |
60,911 |
$ |
83,925 |
$ |
(5,045 |
) |
$ |
(35,523 |
) |
$ |
104,268 |
|
||
|
Equity in net income of other unconsolidated subsidiaries |
|
5,154 |
|
— |
|
— |
|
|
— |
|
|
5,154 |
|
||
|
Segment income/(loss) |
$ |
66,065 |
$ |
83,925 |
$ |
(5,045 |
) |
$ |
(35,523 |
) |
$ |
109,422 |
|
||
|
|
|
|
|
|
|
||||||||||
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
246,484 |
$ |
140,878 |
$ |
36,830 |
|
$ |
(27,563 |
) |
$ |
396,629 |
|
||
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) |
|
— |
|
— |
|
48,683 |
|
|
— |
|
|
48,683 |
|
||
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
246,484 |
$ |
140,878 |
$ |
85,513 |
|
$ |
(27,563 |
) |
$ |
445,312 |
|
||
|
|
|
|
|
|
|
||||||||||
|
Reconciliation of Net Income/(Loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA: |
|||||||||||||||
|
Net income/(loss) attributable to Darling |
$ |
66,065 |
|
$ |
83,925 |
$ |
(5,045 |
) |
$ |
(158,444 |
) |
$ |
(13,499 |
) |
|
|
Net income attributable to noncontrolling interests |
|
— |
|
|
— |
|
— |
|
|
3,950 |
|
|
3,950 |
|
|
|
Income tax expense |
|
— |
|
|
— |
|
— |
|
|
2,911 |
|
|
2,911 |
|
|
|
Interest expense |
|
— |
|
|
— |
|
— |
|
|
109,840 |
|
|
109,840 |
|
|
|
Loss on early retirement of debt |
|
— |
|
|
— |
|
— |
|
|
2,978 |
|
|
2,978 |
|
|
|
Foreign currency loss |
|
— |
|
|
— |
|
— |
|
|
49 |
|
|
49 |
|
|
|
Other expense, net |
|
— |
|
|
— |
|
— |
|
|
3,193 |
|
|
3,193 |
|
|
|
Segment income/(loss) |
$ |
66,065 |
|
$ |
83,925 |
$ |
(5,045 |
) |
$ |
(35,523 |
) |
$ |
109,422 |
|
|
|
Acquisition and integration costs |
|
— |
|
|
— |
|
— |
|
|
4,917 |
|
|
4,917 |
|
|
|
Change in fair value of contingent consideration |
|
18,024 |
|
|
— |
|
— |
|
|
— |
|
|
18,024 |
|
|
|
Depreciation and amortization |
|
167,549 |
|
|
56,953 |
|
17,352 |
|
|
3,043 |
|
|
244,897 |
|
|
|
Equity in net loss of Diamond Green Diesel |
|
— |
|
|
— |
|
24,523 |
|
|
— |
|
|
24,523 |
|
|
|
Equity in net income of other unconsolidated subsidiaries |
|
(5,154 |
) |
|
— |
|
— |
|
|
— |
|
|
(5,154 |
) |
|
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
246,484 |
|
$ |
140,878 |
$ |
36,830 |
|
$ |
(27,563 |
) |
$ |
396,629 |
|
|
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) * |
|
— |
|
|
— |
|
48,683 |
|
|
— |
|
|
48,683 |
|
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
246,484 |
|
$ |
140,878 |
$ |
85,513 |
|
$ |
(27,563 |
) |
$ |
445,312 |
|
|
|
|
|
|
|
|
|
||||||||||
|
*See reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Operations |
|||||||||||||||
|
|
Feed Ingredients |
Food Ingredients |
Fuel Ingredients |
Corporate |
Total |
||||||||||
|
Six Months Ended June 29, 2024 |
|
|
|
|
|
||||||||||
|
Total net sales |
$ |
1,823,995 |
|
$ |
770,123 |
|
$ |
281,473 |
|
$ |
— |
|
$ |
2,875,591 |
|
|
Cost of sales and operating expenses |
|
1,443,640 |
|
|
574,905 |
|
|
226,542 |
|
|
— |
|
|
2,245,087 |
|
|
Gross margin |
|
380,355 |
|
|
195,218 |
|
|
54,931 |
|
|
— |
|
|
630,504 |
|
|
|
|
|
|
|
|
||||||||||
|
Loss/(gain) on sale of assets |
|
337 |
|
|
(257 |
) |
|
(432 |
) |
|
— |
|
|
(352 |
) |
|
Selling, general and administrative expenses |
|
151,153 |
|
|
60,588 |
|
|
17,154 |
|
|
39,979 |
|
|
268,874 |
|
|
Acquisition and integration costs |
|
— |
|
|
— |
|
|
— |
|
|
5,184 |
|
|
5,184 |
|
|
Change in fair value of contingent consideration |
|
(58,371 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(58,371 |
) |
|
Depreciation and amortization |
|
174,013 |
|
|
56,240 |
|
|
17,390 |
|
|
4,471 |
|
|
252,114 |
|
|
Equity in net income of Diamond Green Diesel |
|
— |
|
|
— |
|
|
122,616 |
|
|
— |
|
|
122,616 |
|
|
Segment operating income/(loss) |
$ |
113,223 |
|
$ |
78,647 |
|
$ |
143,435 |
|
$ |
(49,634 |
) |
$ |
285,671 |
|
|
Equity in net income of other unconsolidated subsidiaries |
|
5,327 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,327 |
|
|
Segment income/(loss) |
$ |
118,550 |
|
$ |
78,647 |
|
$ |
143,435 |
|
$ |
(49,634 |
) |
$ |
290,998 |
|
|
|
|
|
|
|
|
||||||||||
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
228,865 |
|
$ |
134,887 |
|
$ |
38,209 |
|
$ |
(39,979 |
) |
$ |
361,982 |
|
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) |
|
— |
|
|
— |
|
|
191,702 |
|
|
— |
|
|
191,702 |
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
228,865 |
|
$ |
134,887 |
|
$ |
229,911 |
|
$ |
(39,979 |
) |
$ |
553,684 |
|
|
|
|
|
|
|
|
||||||||||
|
Reconciliation of Net Income/(Loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA: |
|||||||||||||||
|
Net income/(loss) attributable to Darling |
$ |
118,550 |
|
$ |
78,647 |
$ |
143,435 |
|
$ |
(180,609 |
) |
$ |
160,023 |
|
|
|
Net income attributable to noncontrolling interests |
|
— |
|
|
— |
|
— |
|
|
2,930 |
|
|
2,930 |
|
|
|
Income tax expense |
|
— |
|
|
— |
|
— |
|
|
4,681 |
|
|
4,681 |
|
|
|
Interest expense |
|
— |
|
|
— |
|
— |
|
|
132,101 |
|
|
132,101 |
|
|
|
Foreign currency gain |
|
— |
|
|
— |
|
— |
|
|
(649 |
) |
|
(649 |
) |
|
|
Other income, net |
|
— |
|
|
— |
|
— |
|
|
(8,088 |
) |
|
(8,088 |
) |
|
|
Segment income/(loss) |
$ |
118,550 |
|
$ |
78,647 |
$ |
143,435 |
|
$ |
(49,634 |
) |
$ |
290,998 |
|
|
|
Acquisition and integration costs |
|
— |
|
|
— |
|
— |
|
|
5,184 |
|
|
5,184 |
|
|
|
Change in fair value of contingent consideration |
|
(58,371 |
) |
|
— |
|
— |
|
|
— |
|
|
(58,371 |
) |
|
|
Depreciation and amortization |
|
174,013 |
|
|
56,240 |
|
17,390 |
|
|
4,471 |
|
|
252,114 |
|
|
|
Equity in net income of Diamond Green Diesel |
|
— |
|
|
— |
|
(122,616 |
) |
|
— |
|
|
(122,616 |
) |
|
|
Equity in net income of other unconsolidated subsidiaries |
|
(5,327 |
) |
|
— |
|
— |
|
|
— |
|
|
(5,327 |
) |
|
|
Segment Adjusted EBITDA (Non-GAAP) |
$ |
228,865 |
|
$ |
134,887 |
$ |
38,209 |
|
$ |
(39,979 |
) |
$ |
361,982 |
|
|
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) * |
|
— |
|
|
— |
|
191,702 |
|
|
— |
|
|
191,702 |
|
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
228,865 |
|
$ |
134,887 |
$ |
229,911 |
|
$ |
(39,979 |
) |
$ |
553,684 |
|
|
|
|
|
|
|
|
|
||||||||||
|
*See reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Operations |
|||||||||||||||
|
Darling Ingredients Inc. and Subsidiaries Balance Sheet Disclosures As of June 28, 2025 and December 28, 2024 (in thousands) |
||||||
|
|
|
|||||
|
|
(unaudited) |
|
|
|||
|
|
June 28, |
|
December 28, |
|||
|
|
2025 |
|
2024 |
|||
|
Cash and cash equivalents |
$ |
94,577 |
|
$ |
75,973 |
|
|
Property, plant and equipment, net |
$ |
2,786,827 |
|
$ |
2,713,669 |
|
|
Current portion of long-term debt |
$ |
51,637 |
|
$ |
133,020 |
|
|
Long-term debt, net of current portion |
$ |
3,928,689 |
|
$ |
3,908,978 |
|
|
|
|
|
|
|||
|
|
|
|
|
|||
|
Other Financial Data |
||||||
|
As of June 28, 2025 |
||||||
|
|
(unaudited) |
|
|
|||
|
|
June 28, |
|
|
|||
|
|
|
2025 |
|
|
||
|
Revolver availability |
$ |
1,272,268 |
|
|
||
|
Capital expenditures – YTD |
$ |
133,943 |
|
|
||
|
Preliminary Leverage Ratio |
3.34x |
|
|
|||
|
Diamond Green Diesel Joint Venture Consolidated Statements of Operations For the Three and Six Months Ended June 30, 2025 and June 30, 2024 (in thousands, unaudited) |
||||||||||||||||
|
|
|
|
|
|||||||||||||
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
||||||||
|
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
||||||||
|
Operating revenues |
|
$ |
1,097,831 |
|
|
$ |
1,184,076 |
|
|
$ |
1,997,740 |
|
|
$ |
2,595,191 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
||||||||
|
Total costs and expenses less lower of cost or market inventory valuation adjustment and depreciation, amortization and accretion expense |
|
|
1,119,445 |
|
|
|
1,014,927 |
|
|
|
2,096,551 |
|
|
|
2,174,283 |
|
|
Lower of cost or market (LCM) inventory valuation adjustment |
|
|
(111,245 |
) |
|
|
15,866 |
|
|
|
(202,249 |
) |
|
|
37,504 |
|
|
Depreciation, amortization and accretion expense |
|
|
61,529 |
|
|
|
61,910 |
|
|
|
129,001 |
|
|
|
127,200 |
|
|
Total costs and expenses |
|
|
1,069,729 |
|
|
|
1,092,703 |
|
|
|
2,023,303 |
|
|
|
2,338,987 |
|
|
Operating income/(loss) |
|
|
28,102 |
|
|
|
91,373 |
|
|
|
(25,563 |
) |
|
|
256,204 |
|
|
Other income |
|
|
2,181 |
|
|
|
6,058 |
|
|
|
5,883 |
|
|
|
9,278 |
|
|
Interest and debt expense, net |
|
|
(12,844 |
) |
|
|
(9,037 |
) |
|
|
(22,150 |
) |
|
|
(20,279 |
) |
|
Income/(loss) before income tax expense |
|
|
17,439 |
|
|
|
88,394 |
|
|
|
(41,830 |
) |
|
|
245,203 |
|
|
Income tax expense/(benefit) |
|
$ |
1,105 |
|
|
$ |
— |
|
|
$ |
1,144 |
|
|
$ |
(29 |
) |
|
Net income/(loss) |
|
$ |
16,334 |
|
|
$ |
88,394 |
|
|
$ |
(42,974 |
) |
|
$ |
245,232 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA: |
||||||||||||||||
|
Net income/(loss) |
|
$ |
16,334 |
|
|
$ |
88,394 |
|
|
$ |
(42,974 |
) |
|
$ |
245,232 |
|
|
Income tax expense/(benefit) |
|
|
1,105 |
|
|
|
— |
|
|
|
1,144 |
|
|
|
(29 |
) |
|
Interest and debt expense, net |
|
|
12,844 |
|
|
|
9,037 |
|
|
|
22,150 |
|
|
|
20,279 |
|
|
Other income |
|
|
(2,181 |
) |
|
|
(6,058 |
) |
|
|
(5,883 |
) |
|
|
(9,278 |
) |
|
Operating income/(loss) |
|
|
28,102 |
|
|
|
91,373 |
|
|
|
(25,563 |
) |
|
|
256,204 |
|
|
Depreciation, amortization and accretion expense |
|
|
61,529 |
|
|
|
61,910 |
|
|
|
129,001 |
|
|
|
127,200 |
|
|
DGD Adjusted EBITDA (Non-GAAP) |
|
|
89,631 |
|
|
|
153,283 |
|
|
|
103,438 |
|
|
|
383,404 |
|
|
Less: Discount and Broker Fees |
|
|
(4,335 |
) |
|
|
— |
|
|
|
(6,073 |
) |
|
|
— |
|
|
DGD Adjusted EBITDA (Non-GAAP) after Discount and Broker Fees |
|
|
85,296 |
|
|
|
153,283 |
|
|
|
97,365 |
|
|
|
383,404 |
|
|
Darling’s Share 50% |
|
|
50 |
% |
|
|
50 |
% |
|
|
50 |
% |
|
|
50 |
% |
|
DGD Adjusted EBITDA (Darling’s Share) (Non-GAAP) |
|
$ |
42,648 |
|
|
$ |
76,642 |
|
|
$ |
48,683 |
|
|
$ |
191,702 |
|
|
Diamond Green Diesel Joint Venture Consolidated Balance Sheets June 30, 2025 and December 31, 2024 (in thousands) |
|||||
|
|
June 30, |
|
December 31, |
||
|
|
2025 |
|
2024 |
||
|
|
(unaudited) |
|
|
||
|
Assets: |
|
|
|
||
|
Cash |
$ |
163,846 |
|
$ |
353,446 |
|
Total other current assets |
|
1,106,712 |
|
|
1,137,821 |
|
Property, plant and equipment, net |
|
3,798,391 |
|
|
3,868,943 |
|
Other assets |
|
315,491 |
|
|
100,307 |
|
Total assets |
$ |
5,384,440 |
|
$ |
5,460,517 |
|
|
|
|
|
||
|
Liabilities and members’ equity: |
|
|
|
||
|
Revolver |
$ |
100,000 |
|
$ |
— |
|
Total other current portion of long term debt |
|
30,496 |
|
|
29,809 |
|
Total other current liabilities |
|
265,023 |
|
|
319,688 |
|
Total long term debt |
|
691,736 |
|
|
707,158 |
|
Total other long term liabilities |
|
18,078 |
|
|
17,195 |
|
Total members’ equity |
|
4,279,107 |
|
|
4,386,667 |
|
Total liabilities and members’ equity |
$ |
5,384,440 |
|
$ |
5,460,517 |
|
Reconciliation of Net Income/(Loss) to (Non-GAAP) Adjusted EBITDA to (Non-GAAP) Pro Forma Adjusted EBITDA to Foreign Currency and to (Non-GAAP) Combined Adjusted EBITDA For the Three and Six Months Ended June 28, 2025 and June 29, 2024 (in thousands, unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
|
|
|
|
|||||||||||||
|
Adjusted EBITDA |
June 28, |
|
June 29, |
|
June 28, |
|
June 29, |
|||||||||
|
(U.S. dollars in thousands) |
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income/(loss) attributable to Darling |
$ |
12,661 |
|
|
$ |
78,866 |
|
|
$ |
(13,499 |
) |
|
$ |
160,023 |
|
|
|
Depreciation and amortization |
|
121,062 |
|
|
|
124,605 |
|
|
|
244,897 |
|
|
|
252,114 |
|
|
|
Interest expense |
|
51,873 |
|
|
|
69,225 |
|
|
|
109,840 |
|
|
|
132,101 |
|
|
|
Loss on early retirement of debt |
|
2,978 |
|
|
|
— |
|
|
|
2,978 |
|
|
|
— |
|
|
|
Income tax expense |
|
4,065 |
|
|
|
774 |
|
|
|
2,911 |
|
|
|
4,681 |
|
|
|
Acquisition and integration costs |
|
3,383 |
|
|
|
1,130 |
|
|
|
4,917 |
|
|
|
5,184 |
|
|
|
Change in fair value of contingent consideration |
|
12,583 |
|
|
|
(33,122 |
) |
|
|
18,024 |
|
|
|
(58,371 |
) |
|
|
Foreign currency loss/(gain) |
|
(1,313 |
) |
|
|
(413 |
) |
|
|
49 |
|
|
|
(649 |
) |
|
|
Other income/(expense), net |
|
6,526 |
|
|
|
568 |
|
|
|
3,193 |
|
|
|
(8,088 |
) |
|
|
Equity in net (income)/loss of Diamond Green Diesel |
|
(6,000 |
) |
|
|
(44,197 |
) |
|
|
24,523 |
|
|
|
(122,616 |
) |
|
|
Equity in net income of other unconsolidated subsidiaries |
|
(2,526 |
) |
|
|
(3,017 |
) |
|
|
(5,154 |
) |
|
|
(5,327 |
) |
|
|
Net income attributable to noncontrolling interests |
|
1,604 |
|
|
|
2,499 |
|
|
|
3,950 |
|
|
|
2,930 |
|
|
|
Adjusted EBITDA (Non-GAAP) |
$ |
206,896 |
|
|
$ |
196,918 |
|
|
$ |
396,629 |
|
|
$ |
361,982 |
|
|
|
Foreign currency exchange impact |
|
(6,081 |
) |
(1) |
|
— |
|
|
|
(1,266 |
) |
(2) |
|
— |
|
|
|
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP) |
$ |
200,815 |
|
|
$ |
196,918 |
|
|
$ |
395,363 |
|
|
$ |
361,982 |
|
|
|
DGD Joint Venture Adjusted EBITDA (Darling’s share) (Non-GAAP) |
$ |
42,648 |
|
|
$ |
76,642 |
|
|
$ |
48,683 |
|
|
$ |
191,702 |
|
|
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
249,544 |
|
|
$ |
273,560 |
|
|
$ |
445,312 |
|
|
$ |
553,684 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
(1) The average rates for the three months ended June 28, 2025 were €1.00:$1.13, R$1.00:$0.18 and C$1.00:$0.72 as compared to the average rates for the three months ended June 29, 2024 of €1.00:$1.08, R$1.00:$0.19 and C$1.00:$0.73, respectively. |
||||||||||||||||
|
(2) The average rates for the six months ended June 28, 2025 were €1.00:$1.09, R$1.00:$0.17 and C$1.00:$0.71 as compared to the average rates for the six months ended June 29, 2024 of €1.00:$1.08, R$1.00:$0.20 and C$1.00:$0.74, respectively. |
||||||||||||||||
About Darling Ingredients
A pioneer in circularity, Darling Ingredients Inc. (NYSE: DAR) takes material from the animal agriculture and food industries, and transforms them into valuable ingredients that nourish people, feed animals and crops, and fuel the world with renewable energy. The company operates over 260 facilities in more than 15 countries and processes about 15% of the world’s animal agricultural by-products, produces about 30% of the world’s collagen (both gelatin and hydrolyzed collagen), and is one of the largest producers of renewable energy. To learn more, visit darlingii.com. Follow us on LinkedIn.
Darling Ingredients will host a conference call at 9 a.m. Eastern Time (8 a.
Contacts
Darling Ingredients Contacts
Investors:
Suann Guthrie
Senior VP, Investor Relations, Sustainability & Communications
(469) 214-8202; suann.guthrie@darlingii.com
Media:
Jillian Fleming
Director, Global Communications
(972) 541-7115; jillian.fleming@darlingii.com
