10-Q · May 8, 2026
Darling Ingredients Inc. reported a strong Q1 2026 with significant improvements in revenue and earnings performance. Revenue of $1.55 billion represented a year-over-year increase of $170.2 million, while diluted EPS…
Earnings analysis · 10-Q
DAR earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Darling delivered a substantially stronger second quarter, with revenue of $1.724 billion, gross margin of 29.2%, operating margin of approximately 32.2%, and diluted EPS of $2.41. Results benefited from higher Feed…
Read full summary
Darling delivered a substantially stronger second quarter, with revenue of $1.724 billion, gross margin of 29.2%, operating margin of approximately 32.2%, and diluted EPS of $2.41. Results benefited from higher Feed product prices, Food Ingredients tariff recoveries, and especially DGD-driven Fuel Ingredients earnings. Operating cash flow and working capital improved, although earnings concentration in DGD, policy-sensitive renewable-fuel markets, tariffs, and substantial debt remain material risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.41
- Gross margin
- 29.2%
- Operating margin
- 32.2%
What stood out
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Revenue and EPS accelerated sharply
Second-quarter revenue was $1.724 billion, up 15.4% from $1.482 billion in the prior-year quarter and up approximately 11.2% from $1.55 billion in Q1 2026. Diluted EPS was $2.41 versus $0.08 year over year and $0.83 in Q1 2026.
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Broad margin expansion
Consolidated gross margin increased to 29.2% from 23.3% year over year, while operating income increased to $555.2 million from $75.9 million, implying an operating margin of approximately 32.2% versus 5.1%.
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Feed Ingredients benefited from pricing
Feed Ingredients revenue rose to $1,149.5 million from $936.5 million, driven by a $209.6 million increase from finished-product prices. Segment operating income increased 277.7% to $150.7 million.
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DGD drove Fuel Ingredients earnings
Fuel Ingredients operating income increased to $366.8 million from $15.9 million. Management cited higher production volumes, DGD production tax credits, higher RIN values following the 2026-27 EPA rulemaking, and higher diesel prices.
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Operating cash flow strengthened
Net cash from operating activities increased to $686.5 million for the first six months from $394.8 million, while capital expenditures were $223.6 million versus $133.9 million. Calculated six-month cash flow after reported capex was approximately $462.9 million.
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Liquidity position improved
Working capital increased to $634.3 million from $518.7 million at January 3, 2026, and unrestricted cash increased to $160.7 million from $88.7 million. Revolver availability remained substantial at $1,308.0 million.
What to watch
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Tariff recoveries may not recur
The company recognized $18.5 million of net tariff recoveries in Food Ingredients, but stated that new U.S. tariffs and potential retaliation could affect consolidated results. The filing notes that tariff duration, exemptions, refunds, and lower-cost alternative inputs remain uncertain.
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High dependence on DGD and policy
Fuel Ingredients operating income included $350.0 million of DGD equity income, and DGD represented approximately 20% of six-month revenue, or $662.1 million. Renewable-fuel policy, RIN and LCFS values, production tax credits, and DGD operating performance therefore create significant earnings concentration risk.
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Leverage and 2027 maturity risk
Debt outstanding included $1.0 billion of 6% Notes, $500.0 million of 5.25% Notes, $857.7 million of euro-denominated 4.5% Notes, $891.0 million under the Term A facility, and $615.8 million of revolver borrowings. The company also stated that it has not decided whether to refinance or repay the $500.0 million 5.25% Notes at their 2027 maturity.
Management's outlook
No explicit revenue, EPS, or EBITDA guidance was provided in the 10-Q. Management expects approximately $226 million of additional capital expenditures during the remainder of fiscal 2026 and believes operating cash flow, unrestricted cash, and revolver availability will cover needs through the next twelve months.
Earlier filings 4
10-K · March 3, 2026
Darling reports FY2025 revenue of $6,135,877 thousand (up from $5,715,175 thousand in FY2024) while net income attributable to Darling was $62.8 million, reflecting thin net margins. The company emphasizes scale in…
10-Q · August 6, 2025
Darling reported Q2 net sales of $1,481,518,000 and diluted EPS of $0.08 for the three months ended June 28, 2025. Revenue rose modestly versus the prior-year quarter (+$26.226M) and the prior quarter (+$101.6M), but…
10-Q · November 6, 2024
Darling reported Q3 total net sales of $1,421,891 (in thousands), down from $1,625,204 in the prior-year quarter, with operating income falling to $60,107 (in thousands) and diluted EPS of $0.11 vs $0.77 a year earlier.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.