Darling Ingredients (DAR) Q1 2026 earnings summary

Executive summary

• Achieved net income of $134.3 million ($0.83 per diluted share) in Q1 2026, reversing a net loss of $26.2 million ($-0.16 per share) in Q1 2025.

• Total net sales rose to $1.6 billion, up from $1.4 billion year-over-year, with strong margin expansion and improved earnings power.

• Combined Adjusted EBITDA more than doubled to $406.8 million from $195.8 million year-over-year.

• Focused on operational excellence, disciplined capital allocation, and meaningful debt reduction amid volatile commodity markets.

• Monetized $45 million in Production Tax Credit sales, enhancing liquidity.

Financial highlights

• Gross margin improved to $404.9 million (26.1%), up from $311.4 million (22.6%) year-over-year.

• Operating income surged to $226.8 million from $28.4 million year-over-year.

• Cash and cash equivalents at $116 million; total debt at $4.1 billion as of April 4, 2026.

• Preliminary leverage ratio at 3.17x, up from 2.9x at year-end 2025.

• Capital expenditures for Q1 2026 were $94.8 million.

Outlook and guidance

• Q2 2026 core ingredients business Adjusted EBITDA expected at $260–275 million.

• Expect continued EBITDA growth and margin expansion, with DGD projected to deliver stronger results in Q2 and Q3.

• Effective tax rate for 2026 expected around 25%, with $60 million in cash taxes for the remainder of the year.

• Improving fat and fuel prices anticipated to support Q2 segment outlook.

• FY 2026 capital expenditures estimated at $400 million.