Darling Ingredients二季度EBITDA同比近三倍增长，DGD可再生柴油利润大幅修复

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Introduction & Market Context
Darling Ingredients Inc. (NYSE:DAR) presented its second quarter 2026 financial results on July 30, revealing one of the strongest quarters in company history as combined adjusted EBITDA nearly tripled year-over-year to $742 million. The presentation highlighted a dramatic turnaround in renewable diesel profitability following regulatory clarity, alongside robust demand for fats and proteins across its core ingredients business.
The company’s stock traded at $60.79 following the presentation, up 3.69% and near the upper end of its 52-week range of $29.15 to $66.02, reflecting investor confidence in the earnings recovery despite revenue coming in below initial expectations.
Quarterly Performance Highlights
As shown in the following financial highlights summary, Darling delivered exceptional results across multiple metrics in the second quarter of 2026.
The company reported combined adjusted EBITDA of $742 million for Q2 2026, representing a 197% increase from $250 million in the prior-year period. Core ingredients contributed $353 million while Diamond Green Diesel (DGD), the company’s renewable diesel joint venture, generated $389 million in adjusted EBITDA—a dramatic recovery from just $43 million a year earlier.
Net income surged to $387 million compared to $13 million in Q2 2025, translating to diluted earnings per share of $2.41 versus $0.08 in the prior year. The company received $280 million in cash distributions from DGD during the quarter, including $211 million in dividends and $69 million from production tax credit sales.
The following detailed financial data illustrates the year-over-year improvements across key metrics and the strengthening balance sheet position.
Total net sales increased 16.4% to $1.7 billion, while gross margin expanded to 29.2% from 23.3% a year earlier. The company reduced net debt by $223 million during the quarter, bringing its leverage ratio down to 2.3x from 2.9x at the end of fiscal 2025. Additionally, Darling repurchased $73 million of stock during the quarter.
Combined EBITDA Trends and Segment Mix
The quarterly progression of combined adjusted EBITDA demonstrates the company’s dramatic earnings recovery, particularly in the most recent quarter.
The stacked bar chart reveals that Q2 2026 represented a significant inflection point, with total combined adjusted EBITDA reaching $742 million—the highest quarterly figure in the presented time series. The fuel segment now represents 54.3% of total combined adjusted EBITDA, with feed contributing 31.5% and food 14.2%.
Feed Segment Performance
The feed segment delivered strong results as commodity markets strengthened throughout the quarter, with detailed performance metrics shown below.
Feed segment adjusted EBITDA reached $240 million in Q2 2026, up 77% from $136 million in the prior-year period. Management attributed the performance to fat prices that "rallied and held firm due to strong demand from the biofuels sector" and protein values that remained strong, supported by increased U.S. poultry production and low global fish meal supply.
The segment processed 3.1 million metric tons of raw material during the quarter, consistent with the prior year, while total net sales increased to $1.15 billion from $937 million. Gross margin expanded significantly to $320 million from $214 million year-over-year.
During the quarter, Darling closed on the acquisition of three rendering facilities from the Patense Group in Brazil for approximately $122 million. Post-quarter, on July 22, 2026, the company sold a majority of its non-core grease trap environmental services business for approximately $90 million.
Strategic Initiatives for Feed Segment Growth
Management outlined multiple pathways to enhance feed segment profitability over the coming years, with the following illustration showing potential value creation.
The presentation highlighted that rendering and used cooking oil processing contribute approximately 95% of feed segment adjusted EBITDA. Management identified a potential $150-300 million improvement in adjusted EBITDA and implied net cash through enhanced operational efficiency, commercial optimization, improved market conditions, price risk management, and contract management.
The company noted that many regions are operating at capacity, providing pricing power as old contracts reprice to reflect the 67% increase in PPI industrial construction costs from 2019 to 2026.
Food Segment Performance and Evolution
The food segment continued its strategic transformation toward higher-margin collagen products, as detailed in the following performance summary.
Food segment adjusted EBITDA increased to $108 million in Q2 2026 from $70 million in the prior year. Sales improved year-over-year to $409 million, driven by growing global collagen demand across the U.S., Europe, and Asia, with broader applications in food, nutrition, and health products.
Q2 results included approximately $18 million in IEEPA tariff recovery, net of expected customer refunds. The company signed a definitive agreement to sell its CTH casings business, with closing anticipated by the end of fiscal 2026. The regulatory process continues for a proposed joint venture with Tessenderlo Group NV.
The strategic shift in the food segment’s product mix is illustrated in the following evolution chart.
The presentation showed that while collagen represented 30% of volume mix in 2025, it contributed 48% of adjusted EBITDA—demonstrating its higher margin profile. By 2030, management estimates collagen will represent 50% of EBITDA and targeted ingredients will contribute an additional 15%, up from zero in 2025. This shift represents a fundamental improvement in earnings quality, as collagen and gelatin together represent 80% of food segment adjusted EBITDA.
Fuel Segment and Diamond Green Diesel Performance
The fuel segment, anchored by the Diamond Green Diesel joint venture with Valero Energy, delivered exceptional results following regulatory clarity on renewable fuel obligations.
DGD produced approximately 356 million gallons during Q2 2026, with renewable diesel margins significantly increasing after the Renewable Volume Obligation (RVO) was finalized on April 1. The segment’s combined adjusted EBITDA reached $415 million, up from just $61 million in the prior-year period.
Equity in net income from DGD totaled $350 million compared to $6 million a year earlier. Q2 results included a favorable IEEPA tariff recovery of approximately $50.5 million at the entity level, or approximately $25 million attributed to Darling’s share. Management estimated Q3 production at approximately 335 million gallons.
The following performance metrics and pricing data provide critical context for understanding the fuel segment’s profitability drivers.
DGD achieved adjusted EBITDA per gallon sold of $2.23 in Q2 2026, a dramatic improvement from $0.34 in the prior-year period. Total gallons produced increased to 356 million from 266 million, while gallons sold reached 349 million compared to 249 million a year earlier.
The chart illustrates the significant recovery in D4 RIN prices, which climbed from lows below $0.50 in early 2024 to nearly $2.50 per RIN by Q2 2026. Yellow grease prices in Illinois also showed an upward trend, supporting both the feed segment’s fat pricing and DGD’s feedstock economics.
Regulatory Environment and Market Dynamics
The presentation provided detailed analysis of the renewable fuel regulatory landscape and its impact on market dynamics.
Management’s analysis of the 2026-2027 Renewable Volume Obligation showed that the RVO "is working as intended, increasing domestic feedstock demand and renewable fuel production." The company noted that RINs need to remain supportive to incentivize production and fulfill the RVO, despite improved margins.
Key takeaways included expectations for increased imported volumes as supply chains take longer to arrive, and confidence that the current RVO appears appropriately sized given continued production increases, imports, small refinery exemptions, and historical deficit carryforwards.
The following chart tracks historical pricing trends for critical environmental credit markets.
California LCFS carbon credit prices showed recovery to the $60-70 per metric ton range by mid-2026 after dipping below $50 in late 2023. Both D4 biomass-based diesel RINs and D6 ethanol RINs demonstrated sharp increases through 2026, reaching nearly $2.50 per RIN—a critical factor supporting renewable diesel profitability.
Forward-Looking Statements and Guidance
For the third quarter of 2026, management projected core ingredients adjusted EBITDA between $325 million and $340 million, implying underlying performance broadly in line with the strong second quarter when excluding the approximately $18 million of net IEEPA tariff recovery.
Diamond Green Diesel is expected to produce approximately 335 million gallons in Q3, with management indicating that renewable diesel margins remain attractive and the business is well-positioned to benefit from a tight RIN market and strong demand for low-carbon fuels.
For full-year 2026, Darling expects net debt to end the year "very close to or below $3 billion" with leverage falling "well below 2.0x." The company raised full-year maintenance capital spending guidance to $450 million from $400 million, reflecting debottlenecking projects, efficiency upgrades, and catch-up investment after a period of restrained spending.
Management also highlighted an additional $150 million to $300 million of adjusted EBITDA opportunity over the next three years from the core ingredients business through collagen growth, targeted health ingredients, and continued expansion in Brazil, Paraguay, and China.
Chairman and CEO Randall Stuewe stated, "As the second quarter progressed, finished product markets strengthened considerably, fat and protein prices rallied, and several trade-related developments created a more favorable operating environment than we anticipated."
CFO Bob Day emphasized the balance sheet progress, noting, "Our leverage ratio improved to approximately 2.3 times at quarter end, compared to 2.9 times at the end of last year. We believe our net debt will be very close to or below $3 billion by the end of 2026, and our leverage ratio well below two times."
The presentation demonstrated Darling’s successful navigation of a challenging 2024-2025 period in renewable diesel markets, positioning the company for sustained profitability as regulatory frameworks stabilize and demand for sustainable ingredients continues to grow across its diversified business segments.
Full presentation:
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