Darling Ingredients earns $266.986 million in third quarter
Key Facts
Darling Ingredients reported net income attributable to the company of $266.986 million in the third quarter of 2026, compared with $19.363 million in the same period last year, according to its earnings release published on October 28. Diluted earnings per share under U.S. accounting standards were $1.67, versus $0.12 a year earlier. The company recorded net sales of $1.791 billion, up from $1.564 billion in the third quarter of 2025. Investing.com’s coverage said revenue of $1.79 billion met consensus expectations, while adjusted earnings per share of $1.67 came in below analysts’ estimate of $1.83. The coverage said the stock fell 0.9% after the results, while EL7 data showed it closed at $55.46 on October 28, compared with $55.67 the previous day.
Year over year, consolidated adjusted operating income rose to $514.3 million in the quarter, from $244.9 million in the same period of 2025. In the first nine months of 2026, this income reached about $1.7 billion, compared with $690.2 million in the same period last year. These figures reflect an expansion in adjusted operating income alongside sales growth, while the comparison of earnings per share remained tied to the difference in measurement basis between the reported accounting figure and the adjusted estimates cited in the coverage. The company attributed part of its strong cash flows to contributions from its Diamond Green Diesel joint venture. Chief Executive Randall C. Stuewe said, "This financial strength, bolstered by significant funds from Diamond Green Diesel, enabled us to reduce net debt by $420 million and return capital to our shareholders."
Diamond Green Diesel shipped 314.9 million gallons of renewable fuel in the quarter ended September 30, and standalone adjusted operating income per gallon was $1.30. Darling received about $33.4 million in distributions from the venture during the quarter. It also received about $137.6 million from the sale of related production tax credit balances. The company said funds received from the venture helped strengthen its financial position, alongside the reduction in net debt and return of capital to shareholders. These cash flows, together with operating results, provide context for the increase in consolidated adjusted income during the quarter and the first nine months of the year.
The company repurchased $75.9 million of common stock during the third quarter. Its total share repurchases since the start of the year through the end of the quarter reached $149.4 million. On October 3, Darling had $121.7 million in cash and equivalents, with $1.7 billion available under its revolving credit facility. Total debt outstanding on that date was $3.5 billion, while the initial leverage ratio under the bank covenant was 1.7 times. These figures place debt reduction and repurchases alongside available liquidity and the debt level recorded at quarter-end.
Darling maintained its fiscal 2026 outlook, targeting net debt of $3.0 billion or less at year-end and a leverage ratio below 1.5 times. It also reiterated its forecast for consolidated adjusted operating income of between $2.2 billion and $2.3 billion for the fiscal year. Annual capital expenditures were estimated at about $450 million. These targets follow an initial leverage ratio of 1.7 times on October 3, according to the release. The debt and leverage trajectory, together with the estimated income range and capital spending, sets out the company’s stated financial framework for the rest of the year.