Darling Ingredients Inc. reported fourth‑quarter 2025 results with net sales of $1.71 billion, up 20.6% from $1.35 billion a year earlier, and net income of $56.9 million, or $0.35 per diluted share, compared with $101.9 million, or $0.63 per diluted share, in the same period a year earlier. The company’s full‑year 2025 net sales totaled $6.13 billion, up 7.0% from $5.71 billion a year earlier, while full‑year net income fell to $62.8 million, or $0.39 per diluted share.
The revenue growth was driven primarily by the core ingredients business, which continued to expand as demand for feed, food, and fuel ingredients remained strong. The company’s restructuring and asset impairment charge of $58.0 million, largely related to its Enviroflight and CTH natural casing businesses, weighed heavily on earnings and contributed to the decline in net income. Diamond Green Diesel (DGD) sold 1.003 billion gallons of renewable diesel at an average EBITDA of $0.21 per gallon, but its contribution to earnings was negative due to policy headwinds and lower LCFS credit prices.
Management highlighted that the company’s focus on operational excellence helped sustain EBITDA growth and sequential gross margin improvement, even as lower fat prices pressured margins. "Our commitment to operational excellence drove a strong fourth quarter, delivering solid EBITDA growth and sequential gross margin improvement, despite lower fat prices. While Diamond Green Diesel had a challenging year, our best‑in‑class operations led the industry and produced industry‑leading results," said CEO Randall C. Stuewe. He added, "Both DGD and our core ingredients business performance strengthened sequentially in the fourth quarter. We anticipate ending the year with solid improvement over our prior outlook and will provide expanded commentary in our upcoming earnings materials."
For the first quarter of 2026, Darling Ingredients will provide guidance only for its core ingredients business, estimating adjusted EBITDA of approximately $240–$250 million. The selective guidance reflects management’s intent to focus on the segments that drive long‑term profitability and to avoid the volatility associated with the DGD joint venture. The guidance signals confidence in the core ingredients market while acknowledging the challenges faced by the renewable diesel segment.
Investors reacted to the earnings release with a focus on the $58 million restructuring charge and the negative contribution from DGD, which tempered enthusiasm for the strong revenue beat. The market’s attention to these headwinds underscores the importance of the company’s strategic realignment and its impact on short‑term profitability.
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