Food processor Darling Ingredients's Q2 net income falls

Darling Ingredients

24/07/2025 11:51

Overview

Darling Q2 net sales of $1,481 mln

Net income for Q2 declines due to lower earnings at Diamond Green Diesel

Co forms Nextida, a new collagen and gelatin joint venture

Outlook

Company anticipates improvement in Q3 led by strengthening fat prices

Darling Ingredients adjusts 2025 Combined Adjusted EBITDA outlook to $1.05-$1.10 bln

Company cites uncertainty from small refinery exemptions affecting 2025 outlook

Global tariffs present supply chain disruptions, company remains flexible

Result Drivers

DGD PERFORMANCE - Lower earnings at Diamond Green Diesel impacted net income, with 248.6 mln gallons sold at $0.36 per gallon EBITDA

MARKET DYNAMICS - Co cites improving market dynamics and supportive biofuel regulations as positive factors for renewables business

NEXTIDA LAUNCH - Formation of Nextida joint venture aims to expand collagen business in health and wellness markets

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
$1.48 bln
$1.48 bln (9 Analysts)
Q2 EPS
$0.08
Q2 Net Income
$12.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "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 $47.00, about 21.6% above its July 23 closing price of $36.86

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw58xVpna

(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.)