Darling Ingredients' Q4 Earnings and Sales Surpass Estimates

Dar Ingredients, Inc. DAR reported fourth-quarter 2025 results, with both the top and the bottom lines beating the Zacks Consensus Estimate and increasing year over year.

DAR delivered quarterly earnings of 64 cents per share, which increased 1.6% from 63 cents reported in the year-ago period. The bottom line also beat the Zacks Consensus Estimate of 43 cents.

Darling Ingredients Inc. Price, Consensus and EPS Surprise

Darling Ingredients Inc. price-consensus-eps-surprise-chart | Darling Ingredients Inc. Quote

Net sales of $1,709.8 million rose 20.6% year over year and beat the Zacks Consensus Estimate of $1,534 million.

DAR’s Margin Performance

DAR’s gross profit increased 28.6% year over year to $429.2 million from $333.8 million in the prior year. Gross margin improved 160 basis points (bps) to 25.1% from 23.5% in the prior-year period.

DAR reported adjusted EBITDA growth of 16.1% year over year to $336.1 million. This includes DGD’s adjusted EBITDA of $57.9 million.

Darling Ingredients’ net income was $56.9 million, which declined 44.2% year over year.

DAR’s Segmental Performance

Feed Segment: Total net sales reached $1,128.1 million, surpassing the Zacks Consensus Estimate of $984 million. Segment adjusted EBITDA increased 28.9% to $193.4 million, and exceeded the consensus estimate of $165 million. Fourth-quarter performance was supported by forward fat sales and strong operational execution, which drove meaningful margin expansion. Sales, volumes and EBITDA also benefited from the presence of an extra fiscal week.

Food Segment: Net sales were $429.07 million, ahead of the Zacks Consensus Estimate of $384 million. Segment adjusted EBITDA rose 28.8% to $82.4 million, surpassing the consensus estimate of $72 million. Demand for collagen and gelatin remained strong, reinforcing a positive outlook for the segment. Volumes were also positively impacted by the 1 extra fiscal week.

Fuel Segment: Net sales totaled $152.6 million, slightly below the Zacks Consensus Estimate of $155 million, with PTC sales reaching $285 million for the year and expected to be monetized at similar levels as the market matures. Segment adjusted EBITDA rose 0.9% to $27.2 million, exceeding the Zacks Consensus Estimate of $23.5 million. Fourth-quarter DGD’s adjusted EBITDA was $57.9 million. DGD results reflected a $24 million unfavorable inventory valuation adjustment, while the non-DGD fuel business delivered stable performance.

DAR’s Financial Health Snapshot

The company reported cash and cash equivalents of $89 million and total debt of $3,937 million, resulting in net debt of $3,849 million as of Jan. 3, 2026. The preliminary leverage ratio was 2.90x, reflecting the company’s current capital structure and debt position.

What to Expect From DAR in the Future

In the fourth quarter, feed segment results benefited from forward fat sales. However, the company expects first-quarter 2026 performance to be modestly lower, with fat prices anticipated to improve as RVO clarity emerges. Fuel volumes in the first quarter of 2026 are estimated at approximately 260 million gallons, supporting continued segment activity and revenue visibility. Positive demand trends in the food segment underpin a constructive outlook for 2026.

DAR currently carries a Zacks Rank #3 (Hold). The stock has gained 44.3% in the past three months compared with the industry’s growth of 1.5%.

Stocks to Consider

The Simply Good Foods Company SMPL, a consumer-packaged food and beverage company, engages in the development, marketing, and sale of snacks and meal replacements, and other products in North America and internationally. SMPL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Simply Good Foods' current fiscal-year sales implies a decline of 0.3%, while the estimate for current fiscal-year earnings indicates growth of 1.6% from the year-ago reported figures. SMPL delivered a trailing four-quarter earnings surprise of 5.53%, on average.

Kimberly-Clark Corporation KMB, together with its subsidiaries, manufactures and markets personal care products in the United States. KMB currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Kimberly-Clark's current fiscal-year sales and earnings implies a decline of 2.1% and 6.2%, respectively, from the year-ago actuals. KMB delivered a trailing four-quarter earnings surprise of 18.9%, on average.

Medifast, Inc. MED operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. MED currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Medifast's current fiscal-year sales and earnings implies a decline of 36.7% and 156.5%, respectively, from the year-ago actuals. MED delivered a trailing four-quarter negative earnings surprise of 640%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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