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Dec 31, 2025
Darling Q4 2025 Earnings Report
Darling Ingredients Inc. reported its financial results for the fourth quarter and fiscal year ended January 3, 2026.
Key Takeaways
Darling Ingredients Inc. delivered a strong fourth quarter in 2025, with solid EBITDA growth and sequential gross margin improvement, despite lower fat prices. The company strategically realigned its portfolio, resulting in restructuring and asset impairment charges, and enhanced its liquidity by monetizing Production Tax Credits.
Net income for Q4 2025 was $56.9 million, or $0.35 per GAAP diluted share, compared to $101.9 million, or $0.63 per GAAP diluted share, in Q4 2024.
Total net sales for Q4 2025 reached $1.7 billion, an increase from $1.42 billion in Q4 2024.
Combined Adjusted EBITDA for Q4 2025 was $336.1 million, up from $289.5 million in Q4 2024.
The company monetized $255 million of Production Tax Credit sales during fiscal year 2025, improving cash generation and reducing bank leverage ratio to 2.90X.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the first quarter of 2026, Darling Ingredients estimates its core ingredients business adjusted EBITDA to be approximately $240-$250 million. The company anticipates a constructive backdrop for fat prices once the EPA's Renewable Volume Obligation is finalized.
Positive Outlook
- Anticipates a constructive backdrop for fat prices once the EPA's Renewable Volume Obligation is finalized.
- Well positioned to build on momentum in 2026.
- Favorable lag in fat pricing supported higher volumes and sales in Q4 2025.
- Operational excellence drove strong Q4 performance.
- Sharpened portfolio and focus on core strengths.
Challenges Ahead
- Current market pricing will modestly impact core ingredients performance in Q1 2026.
- DGD had a challenging year in 2025.
- Restructuring and asset impairment charges of $58.0 million in Q4 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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