The DGD turnaround is the primary catalyst — watch for Q2 DGD production guidance of ~320M gallons and further RVO-driven margin expansion. The leverage ratio ticked up to 3.17x due to DGD margin calls, which bears monitoring, but the core business is generating strong cash flow. The Q2 core EBITDA guidance of $260-275M implies continued momentum. Consider adding on any pullback given the 95% analyst buy rating and the clear inflection in earnings power.
Price Chart
Executive Summary
Darling Ingredients reported a massive earnings beat for Q1 2026, with GAAP diluted EPS of $0.83 versus consensus of $0.58, and total net sales of $1.55B versus $1.55B consensus. The inflection was driven by a dramatic turnaround at the Diamond Green Diesel (DGD) joint venture, where Darling's share of DGD Adjusted EBITDA surged to $151.2M from $6.0M a year ago, alongside strong core ingredients performance. Combined Adjusted EBITDA more than doubled to $406.8M, and the company guided Q2 core ingredients EBITDA to $260-275M, signaling sustained momentum.
Key Financial Metrics
Key Facts
- GAAP diluted EPS of $0.83 vs consensus $0.58, a 43.1% beat
- Total net sales of $1.55B, up 12.3% YoY from $1.38B
- Combined Adjusted EBITDA of $406.8M, up 107.8% YoY from $195.8M
- Darling's share of DGD Adjusted EBITDA surged to $151.2M from $6.0M YoY
- DGD sold 272.4M gallons at $1.11/gallon EBITDA vs $0.06/gallon a year ago
- Core ingredients business Adjusted EBITDA of $255.7M, up 34.8% YoY from $189.7M
- Q2 2026 core ingredients EBITDA guidance of $260-275M
- Leverage ratio increased to 3.17x from 2.90x at year-end 2025 due to debt-funded margin calls at DGD
- Monetized $45M in Production Tax Credits during Q1
Financial Impact
EPS beat consensus by $0.25 (43.1%), Combined EBITDA doubled to $406.8M, DGD EBITDA swing of +$145.2M YoY
Risk Factors
- Leverage ratio increased to 3.17x from 2.90x, driven by $190.1M in DGD margin calls
- DGD's favorable LCM adjustment of $48.4M is non-cash and may not recur
- Commodity price volatility in fats and renewable diesel margins could reverse the DGD recovery
- Regulatory risk: changes to RFS, LCFS, or Clean Fuels Production Credit could impact DGD economics
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000916540-26-000011 |
| Document: darlingingredients1q26ea.htm | 0000916540-26-000011 |
| Document: dar-20260430.htm | 0000916540-26-000011 |
| Document: 0000916540-26-000011-index-headers.html | 0000916540-26-000011 |
| Document: 0000916540-26-000011-index.html | 0000916540-26-000011 |
| Document: 0000916540-26-000011.txt | 0000916540-26-000011 |
| 8-K Data (Synthetic) | 0000916540-26-000011 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 18, 2026 6w ago | Insider Cluster | $68.34 $65.56 | ▼ −4.07% | ▼ −2.76% | $62.94 (−7.90%) |
Aug 14, 2026 7w ago | Insider Cluster | $67.67 $66.54 | ▲ +1.67% | ▼ −0.31% | $62.94 (+6.99%) |
Aug 14, 2026 7w ago | Insider Cluster | $67.67 $66.54 | ▼ −1.67% | ▲ +0.31% | $62.94 (−6.99%) |
Jul 30, 2026 9w ago | 8-K | $61.00 $61.39 | ▲ +0.64% | ▼ −3.33% | $62.94 (+3.18%) |
Jun 12, 2026 16w ago | Institutional Cluster | $56.99 $60.83 | ▲ +6.74% | ▲ +4.96% | $62.94 (+10.44%) |
Jun 11, 2026 16w ago | Institutional Cluster | $57.00 $60.19 | ▲ +5.60% | ▲ +3.71% | $62.94 (+10.42%) |
Apr 30, 2026 22w ago | 8-K | $64.23 $59.10 | ▼ −7.99% | ▼ −13.21% | $62.94 (−2.01%) |
Mar 19, 2026 28w ago | DEFA14A | $55.14 $59.08 | ▲ +7.15% | ▼ −2.17% | $62.94 (+14.15%) |
Feb 25, 2026 31w ago | 8-K | $52.95 $58.98 | ▲ +11.39% | ▲ +17.79% | $62.94 (+18.87%) |
US Market Status
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