Darling Ingredients Inc. Reports Lower 2025 Earnings

By Chris Stiles • Thursday, February 12 13:11 • Permanent Link

Darling Ingredients Inc. has reported its financial results for the fourth quarter and fiscal year 2025. In the fourth quarter of 2025, the company's net income was $56.9 million, or $0.35 per GAAP diluted share, compared to $101.9 million, or $0.63 per GAAP diluted share, for the same period in 2024. Total net sales for the fourth quarter of 2025 were $1.7 billion, compared to $1.42 billion for the fourth quarter of 2024. Combined adjusted EBITDA was $336.1 million, up from $289.5 million in the fourth quarter of 2024.

For the full fiscal year 2025, Darling reported net income of $62.8 million, or $0.39 per GAAP diluted share, compared to $278.9 million for fiscal year 2024, or $1.73 per GAAP diluted share. Total net sales for the fiscal year 2025 were $6.1 billion, compared to $5.7 billion for fiscal year 2024. Combined adjusted EBITDA for fiscal year 2025 was $1.03 billion, down from $1.08 billion for fiscal year 2024.

The company also highlighted its strategic realignment of businesses, resulting in restructuring and asset impairment charges of $58.0 million primarily related to its EnviroFlight and CTH Natural Casing businesses. In addition, Darling Ingredients enhanced its liquidity by monetizing $255 million of the $285 million in production tax credit sales during fiscal year 2025.

The company's bank leverage ratio declined to 2.90x, demonstrating a commitment to deleveraging. Darling Ingredients had $88.7 million in cash and cash equivalents as of January 3, 2026, and $1.32 billion available under its committed revolving credit agreement. Total debt outstanding as of January 3, 2026, was $3.94 billion.

Darling Ingredients also provided financial guidance for its core ingredients business, estimating core ingredients business adjusted EBITDA to be approximately $240-$250 million for the first quarter of 2026.

In terms of specific segment performance, the feed ingredients, food ingredients, and fuel ingredients segments contributed to the company's total net sales, gross margins, and operating income. Notably, the fuel ingredients segment reported an operating loss of $96.9 million for the twelve months ended January 3, 2026.

Following these announcements, the company's shares moved -2.13%, and are now trading at a price of $39.57. For the full picture, make sure to review DARLING INGREDIENTS INC.'s 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.