Darling Ingredients Posts Adjusted EPS of $1.67 and Revenue of $1.79 Billion

Key Facts

Darling Ingredients reported quarterly results on October 28, posting adjusted earnings per share of $1.67 and revenue of $1.79 billion in the third quarter of 2026. Earnings per share came in below analysts’ estimate of $1.83, while revenue matched the estimate of $1.79 billion, according to data cited by Investing.com. The company reported net income attributable to it of $267.0 million, or $1.67 per diluted share, compared with $19.4 million and $0.12 per share a year earlier. The year-over-year comparison reflects a sharp increase in net income and earnings per share during the period. The company also recorded an increase in net sales, while adjusted profit measures and net income do not necessarily align; its release reported net income and diluted earnings per share on an accounting basis.

Net sales totaled $1.791 billion in the third quarter, up from $1.564 billion in the same period of 2025, according to the results statement published through Nasdaq. Sales to third parties accounted for $1.359 billion of total net sales. In a sign of improved operating performance, consolidated adjusted EBITDA reached $514.3 million, compared with $244.9 million a year earlier. This strong growth in adjusted operating earnings puts the quarter’s result in a broader context than the earnings-per-share figure alone. CEO Randall C. Stuewe said, "Our core businesses delivered another quarter of exceptional performance, demonstrating their resilience and generating strong cash flows."

The Diamond Green Diesel joint venture was one source of performance and cash flow during the quarter. The venture sold or shipped 314.9 million gallons of renewable fuel, and adjusted EBITDA per gallon was $1.30 in the three months ended September 30, 2026. Darling received $33.4 million in distributions from the venture, in addition to $137.6 million from the sale of excise tax credits. These figures show the venture’s contribution to cash received by the company, alongside its adjusted operating earnings. The quarterly results link the performance of the renewable fuels business with financial resources that could support the debt reduction targeted by management.

Darling reaffirmed its 2026 fiscal-year guidance for consolidated adjusted EBITDA of $2.2 billion to $2.3 billion. It also forecast ending the year with net debt of $3.0 billion or less and a leverage ratio below 1.5 times. These targets place the debt-reduction path alongside the operating earnings forecast, after the CEO cited strong cash flow in the quarterly results. Net debt and the leverage ratio give investors two measures for tracking the company’s progress toward its stated targets as year-end approaches. The available information in the statement did not specify a more precise date for a subsequent review of the guidance.

In trading, Darling shares fell about 0.9% after the results were announced, according to a report published after the market close. The move came despite higher revenue than a year earlier and a sharp increase in consolidated adjusted EBITDA, while adjusted earnings per share came in below analysts’ estimate. The stock’s post-announcement performance balances indicators of operating growth against the gap from the earnings-per-share estimate. The company is maintaining its consolidated adjusted EBITDA guidance of $2.2 billion to $2.3 billion for fiscal 2026, while targeting net debt of no more than $3.0 billion and leverage below 1.5 times at year-end.