EarningsQ3 2026 Earnings Report
MX:DAR Q3 2026 EPS Results
Actual EPS$31.37
Consensus EPS$32.01
Beat/MissMissed by -$0.64
One Year Ago EPS$2.25
MX:DAR Q3 2026 Revenue Results
Actual Revenue$33.65B
Expected Revenue$33.71B
Beat/MissMissed by -$58.13M
YoY Revenue Growth+14.69%
Earnings Announcement Details
QuarterQ3 2026
Date10/28/2026
TimeAfter Close
Conference CallWednesday, October 28, 2026
MX:DAR Upcoming Earnings
Darling Ingredients's next earnings date is estimated for March 2, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:DAR Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Management reported substantial year-over-year growth in net income, sales, adjusted EBITDA, cash generation, debt reduction, and leverage improvement, reaffirmed $2.2 billion to $2.3 billion of full-year adjusted EBITDA guidance, and described strong momentum in Global Ingredients and improving DGD margin conditions. The principal challenges were temporary accounting and timing effects, a hydrogen-related production outage, tariff disruption, lower RIN values, and regulatory uncertainty, but management characterized these issues as temporary or manageable and maintained a confident outlook for the fourth quarter and 2027.Company Guidance
Strong Third-Quarter Earnings Growth
Third-quarter net income was $267 million, or $1.67 per GAAP diluted share, compared with $19 million, or $0.12 per share, in the third quarter of 2025. For the first nine months of 2026, net income was $789 million, or $4.91 per share, compared with $6 million, or $0.04 per share, a year ago.
Higher Revenue and Adjusted EBITDA
Third-quarter net sales increased to $1.8 billion from $1.6 billion in the third quarter of 2025, while first-nine-month sales were $5.1 billion versus $4.4 billion a year ago. Third-quarter combined adjusted EBITDA increased to $514 million from $245 million, and first-nine-month combined adjusted EBITDA exceeded $1.6 billion versus $690 million a year ago.
Substantial Debt Reduction and Improved Leverage
The company reduced net debt by approximately $420 million during the quarter, bringing its leverage ratio to approximately 1.7x at quarter-end compared with 2.9x at the end of last year. Management remains on track to reduce net debt to or below $3 billion by year-end and expects to be close to $2.5 billion by the first quarter.
Strong Cash Generation and Share Repurchases
Darling received approximately $170 million in cash from Diamond Green Diesel, including roughly $33 million in dividends and $138 million from production tax credit sales. The core business generated over $300 million in cash, and the company bought back approximately $76 million of shares during the quarter.
Global Ingredients Business Maintains Momentum
The Global Ingredients business generated approximately $310 million of adjusted EBITDA in the quarter. Raw material volumes were described as stable, demand for proteins remained strong, and management said the underlying commercial momentum remains strong into the fourth quarter and next year.
Feed Segment Margins and Protein Demand Remain Strong
The Feed segment delivered stable and solid margins, supported by operational improvements and commercial execution. Protein prices and demand remain strong, and management expects fat prices to strengthen in the fourth quarter. Core ingredients EBITDA finished at the high end of prior guidance at approximately $340 million.
Diamond Green Diesel Generated Significant Earnings and Cash
Darling's share of Diamond Green Diesel EBITDA was $204 million on 315 million gallons sold, with an average margin of approximately $1.30 per gallon, compared with negative $2.9 million in the third quarter of 2025. DGD is expected to produce approximately 325 million gallons in the fourth quarter.
Improving Fourth-Quarter DGD Margin Conditions
Management said third-quarter timing and hedging headwinds had reversed and that DGD was realizing margins much closer to stronger spot-market conditions. Fourth-quarter conditions include very strong replacement margins, a lower RIN as part of the price structure, and higher diesel futures prices, which management said reduce the likelihood of large hedge losses at quarter-end.
Full-Year EBITDA Guidance Reaffirmed
The company reaffirmed full-year 2026 combined adjusted EBITDA guidance of $2.2 billion to $2.3 billion. Management described the outlook as consistent with approximately $1.250 billion, plus or minus $10 million, from the core business and DGD operating in a range of $1.50 to $2 per gallon of capture on 1.2 billion gallons.
Food Segment Product and Collagen Growth
Strong China collagen sales partially offset Brazilian tariff-related shipment challenges. The Nextida portfolio continued to gain momentum through repeat and new orders, and the company expanded the portfolio with the launch of NxCogni, a collagen product designed to support mental clarity and cognitive resilience. Water-soluble collagen demand was described as growing at near double-digit rates.
SAF Sales Carry Higher Netback Margins
SAF sales have shifted more toward the U.S. market, where the voluntary SAF market continues to grow. Management said all SAF sales generate a higher netback margin for DGD than renewable diesel sales, with volumes relatively consistent but slightly growing.
Longer-Term Renewable Fuels Demand Support
Management said low-carbon fuel standard programs provide a safety net against a disappointing Set 3 rule and expects LCFS premiums to layer on top of a robust RVO. The company also expects strong RVO requirements to support global fat prices as biofuel producers run full in the fourth quarter and throughout next year.
Potential Future Capital Allocation Flexibility
Management said that once net debt reaches approximately $2.5 billion and the company is building cash on the balance sheet, cash could be distributed through additional share repurchases or a potential dividend. The company bought approximately $150 million of shares in the second and third quarters combined.
Planned Investment in Core Ingredients Growth
Management said cash generated by the business will be invested back into rendering and collagen, which are expected to become larger and generate more EBITDA over time. The company stated that most of the required cash investment in DGD has already been made, while additional SAF capability could potentially be added to existing capacity.
Tessenderlo Joint Venture Progress
The joint venture with Tessenderlo continues to progress through the regulatory process, with closing targeted for the first quarter of 2027.
Effective Tax Rate and Cash Tax Outlook
Third-quarter income tax expense was $76.8 million, producing a 22.3% effective tax rate, or 24.2% excluding the impact of production tax credits and discrete items. Management expects an approximately 25% effective tax rate for 2026 and approximately $35 million of cash taxes for the remainder of the year.
MX:DAR Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed