The DGD recovery is now fully confirmed with $2.23/gal EBITDA vs $0.34/gal last year, and the company is aggressively deleveraging and returning capital. The Q3 core guidance of $325-340M implies continued strong momentum. Traders should watch for potential upward revisions to FY2026 estimates and monitor DGD margin sustainability as RVO-driven demand supports the biofuel cycle.
Price Chart
Executive Summary
Darling Ingredients reported a massive Q2 2026 earnings beat with GAAP diluted EPS of $2.41, crushing the $1.46 consensus by 65%, on revenue of $1.72B (in-line with $1.72B consensus). The blowout was driven by a surge in Diamond Green Diesel (DGD) profitability, which contributed $389M in Darling's share of Adjusted EBITDA vs $43M a year ago, as DGD sold 349M gallons at $2.23/gal EBITDA. The company also generated $280M in cash distributions from DGD, reduced net debt by $223M, repurchased $73M in stock, and guided Q3 core ingredients EBITDA to $325-340M, while targeting FY2026 net debt at or below $3B and leverage below 2x. This is a transformative quarter that validates the DGD recovery thesis and strong core business momentum.
Key Financial Metrics
Key Facts
- GAAP diluted EPS of $2.41 vs consensus $1.46 (+65% beat)
- Total net sales of $1.72B vs $1.48B YoY (+16.4%)
- Combined Adjusted EBITDA of $741.7M vs $249.5M YoY (+197%)
- DGD sold 348.8M gallons at $2.23/gal EBITDA vs $0.34/gal a year ago
- Received $280M in cash distributions from DGD ($211M dividends + $69M PTC sales)
- Reduced net debt by $223M to $3.79B; leverage ratio improved to 2.3x from 2.9x
- Repurchased $73M in common stock during the quarter
- Q3 2026 core ingredients EBITDA guidance of $325-340M
- Targeting FY2026 net debt at or below $3B and bank leverage below 2x
Financial Impact
EPS beat of $0.95 (+65%) on $1.72B revenue; Combined EBITDA surged $492M YoY to $742M
Risk Factors
- DGD margins could normalize if RIN values decline or feedstock costs rise
- Core ingredients EBITDA guidance of $325-340M is modest relative to Q2's $353M, suggesting potential seasonal or margin headwinds
- Acquisition integration costs ($13.2M) and restructuring charges ($3.9M) remain elevated
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000916540-26-000019 |
| Document: dar2q2026earnings.htm | 0000916540-26-000019 |
| Document: dar-20260730.htm | 0000916540-26-000019 |
| Document: 0000916540-26-000019-index-headers.html | 0000916540-26-000019 |
| Document: 0000916540-26-000019-index.html | 0000916540-26-000019 |
| Document: 0000916540-26-000019.txt | 0000916540-26-000019 |
| 8-K Data (Synthetic) | 0000916540-26-000019 |
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%) |
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