Darling Ingredients Q4 revenue beats expectations

Darling Ingredients

11/02/2026 21:53

Overview

Animal by-products processor's Q4 revenue rose, beating analyst expectations

Net income for Q4 decreased due to restructuring and asset impairment charges

Company monetized $255 mln of Production Tax Credit sales, enhancing cash generation

Outlook

Darling Ingredients estimates Q1 2026 core ingredients adjusted EBITDA at $240-$250 mln

Company anticipates EPA's Renewable Volume Obligation to support fat prices

Darling Ingredients expects modest impact on core ingredients performance due to market pricing

Result Drivers

RESTRUCTURING IMPACT - Darling Ingredients' Q4 net income was affected by $58 mln in restructuring and asset impairment charges related to Enviroflight and CTH natural casing businesses

OPERATIONAL EXCELLENCE - Despite lower fat prices, operational excellence drove EBITDA growth and gross margin improvement, according to CEO Randall C. Stuewe

TAX CREDIT MONETIZATION - Monetization of $255 mln of Production Tax Credit sales enhanced cash generation, aiding deleveraging efforts

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$1.71 bln
$1.54 bln (11 Analysts)
Q4 EPS
$0.35


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the food processing peer group is "buy"

Wall Street's median 12-month price target for Darling Ingredients Inc is $48.50, about 2.3% below its February 11 closing price of $49.62

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBw533y4Ba

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)