Darling Ingredients Reports 16.4% Revenue Growth to $1.724 Billion in Latest Quarter

Darling Ingredients Inc. reported significant financial growth in its latest quarterly results, with total net sales reaching $1.724 billion for the three months ended July 4, 2026, a 16.4% increase from $1.482 billion in the same period last year. The company’s net income attributable to shareholders surged to $387.3 million, or $2.44 per share, compared to $12.7 million, or $0.08 per share, in the prior year. For the first half of fiscal 2026, total net sales amounted to $3.275 billion, up from $2.862 billion in the previous year, while net income for the period was $521.6 million, a stark contrast to a loss of $13.5 million in the same timeframe last year.

The company attributed its strong performance to increased sales across all segments, particularly in the Feed Ingredients and Fuel Ingredients divisions. The Feed Ingredients segment saw net sales rise to $1.149 billion, driven by higher prices for fats and proteins, while the Fuel Ingredients segment benefited from increased production and favorable market conditions, contributing $166.1 million in sales. The Food Ingredients segment also performed well, with sales reaching $408.5 million, bolstered by rising demand for collagen products.

Strategically, Darling Ingredients made notable acquisitions, including the purchase of UPI Bovinos NewCo, which added three rendering plants in Brazil for approximately $122.2 million. The company also entered into a joint venture with Tessenderlo Group NV, aimed at enhancing its collagen and gelatin business. These moves are expected to strengthen Darling's market position and expand its operational capabilities. Additionally, the company reported a significant increase in equity income from its joint venture with Diamond Green Diesel, which contributed $350 million in the latest quarter, compared to just $6 million in the prior year.

Operationally, Darling Ingredients processed approximately 3.08 million metric tons of raw materials in the latest quarter, maintaining consistent volume levels compared to the previous year. The company’s gross margin improved to 29.2%, up from 23.3% in the same quarter last year, reflecting better pricing and operational efficiencies. The company’s workforce also expanded, with an increase in employee headcount to support its growing operations.

Looking ahead, Darling Ingredients expressed optimism about its growth trajectory, citing favorable market conditions and ongoing demand for sustainable ingredients. The company plans to continue investing in its operations and expanding its product offerings, particularly in renewable fuels and bioenergy, as it navigates the evolving regulatory landscape and market dynamics. The company remains committed to leveraging its strategic acquisitions and partnerships to enhance its competitive edge in the industry.