--- title: "Darling Ingredients | 8-K: FY2027 Q2 Revenue Beats Estimate at USD 1.724 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/294346802.md" datetime: "2026-07-30T10:42:37.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294346802.md) - [en](https://longbridge.com/en/news/294346802.md) - [zh-HK](https://longbridge.com/zh-HK/news/294346802.md) generator: "portal-rs" --- # Darling Ingredients | 8-K: FY2027 Q2 Revenue Beats Estimate at USD 1.724 B Revenue: As of FY2027 Q2, the actual value is USD 1.724 B, beating the estimate of USD 1.712 B. EPS: As of FY2027 Q2, the actual value is USD 2.41, beating the estimate of USD 1.281. EBIT: As of FY2027 Q2, the actual value is USD 555.24 M. #### Overall Financial Performance Darling Ingredients Inc. reported net income of $387.3 million for the second quarter of 2026, a significant increase compared to $12.7 million for the second quarter of 2025. For the six months ended July 4, 2026, net income was $521.6 million, up from a net loss of - $13.5 million for the same period in 2025. Net income attributable to Darling was $387,312 thousand for Q2 2026, versus $12,661 thousand for Q2 2025. For the six months ended July 4, 2026, net income attributable to Darling was $521,625 thousand, compared to - $13,499 thousand for the six months ended June 28, 2025. Total net sales reached $1.7 billion in Q2 2026, an increase from $1.5 billion in the prior year period. For the first six months of 2026, net sales were $3.3 billion, compared to $2.9 billion for the same period in 2025. Gross margin was $503.4 million in Q2 2026, a 45.5% increase from $345.9 million in Q2 2025. For YTD 2026, gross margin was $908.3 million, up 38.2% from $657.3 million in YTD 2025. Gross margin percentage was 29.2% in Q2 2026, compared to 23.3% in Q2 2025, and 27.7% for YTD 2026, up from 23.0% in YTD 2025. #### Combined Adjusted EBITDA Combined Adjusted EBITDA for the second quarter of 2026 was $741.7 million, up from $249.5 million for the same period in 2025. For the first six months ending July 4, 2026, combined adjusted EBITDA was $1.15 billion, compared to $445.3 million for the same period in 2025. #### Diamond Green Diesel (DGD) Contributions Darling Ingredients Inc. received $280.0 million in cash distributions from Diamond Green Diesel. For the three months ended June 30, 2026, DGD sold 348.8 million gallons of renewable fuels at an average of $2.23 per gallon EBITDA. For the first six months of 2026, DGD sold 621.2 million gallons at an average of $1.74 per gallon EBITDA. The company received approximately $211 million in dividends and approximately $69 million from Production Tax Credit sales from DGD. Total gallons produced by DGD were 355.9 million gallons in Q2 2026, up from 266.1 million gallons in Q2 2025. Total gallons sold/shipped by DGD were 348.8 million gallons in Q2 2026, up from 248.6 million gallons in Q2 2025. EBITDA per gallon sold/shipped by DGD was $2.23 in Q2 2026, up from $0.34 in Q2 2025. #### Debt and Liquidity Net debt was reduced by $223.0 million during the quarter. As of July 4, 2026, Darling Ingredients Inc. had $160.7 million in cash and cash equivalents and $1.3 billion available under its committed revolving credit agreement. Total debt outstanding was $3.9 billion, and the preliminary leverage ratio was 2.3X as of July 4, 2026. Cash and cash equivalents increased from $89 million as of January 3, 2026, to $161 million as of July 4, 2026. Net debt as of July 4, 2026, was $3,786 million, down from $3,848 million as of January 3, 2026. The preliminary leverage ratio improved from 2.9X as of January 3, 2026, to 2.3X as of July 4, 2026. #### Capital Expenditures and Strategic Transactions Capital expenditures were approximately $224.0 million year-to-date 2026. During the quarter, the company acquired three rendering facilities from the Patense Group in Brazil for approximately $122 million. Additionally, the company sold a majority of its non-core grease trap environmental services business for approximately $90.0 million. #### Common Stock Repurchases Darling Ingredients Inc. repurchased $73.0 million in common stock during the quarter. #### Segment Performance (Three Months Ended July 4, 2026 vs. June 28, 2025) ##### Feed Ingredients Segment - **Total net sales:** $1,149,490 thousand (2026) vs. $936,532 thousand (2025). Raw material processed was 3.1 million metric tons in Q2 2026, consistent with Q2 2025. - **Gross margin:** $319,977 thousand (2026) vs. $214,451 thousand (2025). - **Segment operating income:** $150,685 thousand (2026) vs. $39,900 thousand (2025). - **Segment Adjusted EBITDA:** $240,497 thousand (2026) vs. $135,902 thousand (2025). ##### Food Ingredients Segment - **Total net sales:** $408,514 thousand (2026) vs. $386,142 thousand (2025). Raw material processed was 331,000 metric tons in Q2 2026, up from 324,000 metric tons in Q2 2025. - **Gross margin:** $148,318 thousand (2026) vs. $103,909 thousand (2025). - **Segment operating income:** $74,912 thousand (2026) vs. $42,555 thousand (2025). - **Segment Adjusted EBITDA:** $108,480 thousand (2026) vs. $69,946 thousand (2025). ##### Fuel Ingredients Segment - **Total net sales:** $166,074 thousand (2026) vs. $158,844 thousand (2025). - **Gross margin:** $35,078 thousand (2026) vs. $27,557 thousand (2025). - **Segment operating income:** $366,770 thousand (2026) vs. $15,876 thousand (2025). - **Segment Adjusted EBITDA:** $25,969 thousand (2026) vs. $18,639 thousand (2025). ##### Corporate Segment - **Segment operating loss:** - $37,129 thousand (2026) vs. - $22,463 thousand (2025). - **Segment Adjusted EBITDA:** - $22,407 thousand (2026) vs. - $17,591 thousand (2025). #### Segment Performance (Six Months Ended July 4, 2026 vs. June 28, 2025) ##### Feed Ingredients Segment - **Total net sales:** $2,134,828 thousand (2026) vs. $1,832,815 thousand (2025). - **Gross margin:** $568,961 thousand (2026) vs. $396,719 thousand (2025). - **Segment operating income:** $228,495 thousand (2026) vs. $60,911 thousand (2025). - **Segment Adjusted EBITDA:** $409,228 thousand (2026) vs. $246,484 thousand (2025). ##### Food Ingredients Segment - **Total net sales:** $813,747 thousand (2026) vs. $735,382 thousand (2025). - **Gross margin:** $265,575 thousand (2026) vs. $206,368 thousand (2025). - **Segment operating income:** $125,745 thousand (2026) vs. $83,925 thousand (2025). - **Segment Adjusted EBITDA:** $189,258 thousand (2026) vs. $140,878 thousand (2025). ##### Fuel Ingredients Segment - **Total net sales:** $326,324 thousand (2026) vs. $293,915 thousand (2025). - **Gross margin:** $73,758 thousand (2026) vs. $54,181 thousand (2025). - **Segment operating income:** $493,945 thousand (2026) vs. - $5,045 thousand (2025). - **Segment Adjusted EBITDA:** $54,713 thousand (2026) vs. $36,830 thousand (2025). ##### Corporate Segment - **Segment operating loss:** - $66,176 thousand (2026) vs. - $35,523 thousand (2025). - **Segment Adjusted EBITDA:** - $45,009 thousand (2026) vs. - $27,563 thousand (2025). #### Outlook Darling Ingredients Inc. anticipates ending fiscal year 2026 with net debt at or below $3 billion and a bank leverage ratio below 2X. For the third quarter of 2026, the company estimates its core ingredients business Adjusted EBITDA to be approximately $325-340 million. Management expressed confidence in the balance of 2026 and the outlook for 2027, citing strong business fundamentals and positioning for continued earnings growth and cash generation. ### Related Stocks - [DAR.US](https://longbridge.com/en/quote/DAR.US.md) ## Related News & Research - [Darling Ingredients (DAR) Could Be 16% Undervalued Following Analyst Upgrades](https://longbridge.com/en/news/296691413.md) - [Advisors Preferred LLC Makes New Investment in Darling Ingredients Inc. $DAR](https://longbridge.com/en/news/296580346.md) - [Darling Ingredients EVP Chief Strategy Officer Sandra Dudley disposes of common shares worth $666,180.54](https://longbridge.com/en/news/296266160.md) - [Darling Ingredients Insiders Sold Shares Worth Over $1.1M](https://longbridge.com/en/news/295982069.md) - [Tessenderlo HY26 adjusted EBITDA rises 8.2% to EUR 176.8 million; returns to profit of EUR 65.9 million](https://longbridge.com/en/news/297131619.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**