Despite Q4 earnings exceeding expectations, net profit declined year-over-year, causing Darling Ingredients' stock price to fall by 3.7%.

LootboxPhobia · 2026-02-12T00:27:39+00:00

Darling Ingredients Inc. reported slightly better-than-expected Q4 earnings, with earnings per share of $0.35, but the stock fell 3.7% due to $58 million in restructuring costs. Despite revenue and EBITDA growth, investors remain cautious about future performance, as net profit declined significantly.

LootboxPhobia

2026-02-12 00:27:39

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New York - Darling Ingredients Inc. (NYSE:DAR) stock price fell 3.7% despite the company reporting slightly better-than-expected fourth-quarter earnings, which included significant restructuring charges and raised concerns about future performance.

The sustainable food, feed, and fuel ingredients company reported adjusted fourth-quarter earnings of $0.35 per share, slightly above analysts’ expectations of $0.34. Revenue reached $1.71 billion, significantly higher than the consensus estimate of $1.54 billion, representing a 20.6% year-over-year increase (compared to $1.42 billion in the same period last year).

Despite the outperformance, investors appeared concerned about the company’s $58 million in restructuring and asset impairment charges, mainly related to its Enviroflight and CTH natural casings businesses. Net profit declined from $101.9 million in the same period last year to $56.9 million.

“Although fat prices are lower, our commitment to operational excellence drove a strong fourth quarter, delivering solid EBITDA growth and sequential gross margin improvement,” said Chairman and CEO Randall C. Stuewe. “While Diamond Green Diesel faced a challenging year, our top-tier operations lead the industry and deliver industry-leading results.”

The company’s consolidated adjusted EBITDA for the fourth quarter increased from $289.5 million last year to $336.1 million. For the full fiscal year, Darling reported total net sales of $6.1 billion, up from $5.7 billion in 2024, while net profit decreased from $278.9 million to $62.8 million.

The company’s Diamond Green Diesel joint venture sold 285.3 million gallons of renewable diesel in the fourth quarter, with an average EBITDA of $0.41 per gallon, but sold a total of 1.003 billion gallons for the year, with an EBITDA of only $0.21 per gallon, a significant decline.

Darling Ingredients reduced its leverage ratio to 2.90x and provided guidance for its core ingredients business in the first quarter of 2026, expecting adjusted EBITDA of approximately $240 million to $250 million.

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