•
Mar 29

Darling Q1 2025 Earnings Report

Darling Ingredients reported a net loss and lower revenue due to reduced performance at Diamond Green Diesel and softer pricing.

Key Takeaways

Darling Ingredients posted a net loss for Q1 2025, driven by significantly weaker results at its Diamond Green Diesel joint venture and lower finished product pricing. Despite these challenges, the company maintained positive cash flow, repurchased shares, and reduced debt.

Total Revenue
$1.38B
Previous year: $1.42B
-2.8%
EPS
-$0.16
Previous year: $0.5
-132.0%
Combined Adjusted EBITDA
$196M
Previous year: $280M
-30.1%
DGD Cash Dividends
$130M
Debt Repayment
$146M
Gross Profit
$183M
Previous year: $176M
+3.8%
Cash and Equivalents
$81.5M
Previous year: $145M
-44.0%
Free Cash Flow
$186M
Total Assets
$10B
Previous year: $10.9B
-8.3%

Darling

Darling

Darling Revenue by Segment

Forward Guidance

Darling reaffirmed its fiscal 2025 Combined Adjusted EBITDA guidance, expecting recovery in biofuel margins and continued strength in core operations.

Positive Outlook

  • Core business expected to generate $950M–$1B in EBITDA
  • Margins in renewable fuels are showing early signs of improvement
  • Public policy tailwinds in renewable energy markets
  • Strong demand for domestic fats supports pricing
  • Focus on deleveraging and shareholder returns continues

Challenges Ahead

  • Diamond Green Diesel operations still under pressure
  • Q1 performance heavily impacted by volatile biofuel market
  • Finished product pricing remains subdued
  • Lower year-over-year Adjusted EBITDA
  • Continued risk from global economic uncertainty and regulatory shifts

Revenue & Expenses

Visualization of income flow from segment revenue to net income