Darling Ingredients Reports $1.56 Billion in Q3 Sales, 10% Year-Over-Year Increase

Darling Ingredients Inc. reported a total net sales of $1.56 billion for the third quarter of fiscal 2025, marking a 10% increase from $1.42 billion in the same period last year. The company's net income attributable to shareholders rose to $19.36 million, or $0.12 per diluted share, compared to $16.95 million, or $0.11 per diluted share, in the prior year. For the nine months ending September 27, 2025, total net sales reached $4.43 billion, a slight increase from $4.30 billion in the previous year, while net income attributable to Darling decreased significantly to $5.86 million from $176.97 million.

The company experienced notable changes in its operational performance, particularly in its Feed Ingredients segment, which saw a substantial increase in operating income to $90.4 million, up from $30.5 million a year earlier. This improvement was attributed to higher fat prices and a lack of contingent consideration expenses. Conversely, the Fuel Ingredients segment reported an operating loss of $30.5 million, a significant decline from a profit of $157.1 million in the same quarter last year, primarily due to regulatory changes affecting the renewable fuel industry and lower sales volumes from the DGD Joint Venture.

Darling Ingredients has been active in strategic developments, including the proposed joint venture with Tessenderlo Group NV to combine their collagen and gelatin businesses, which is expected to enhance their market position. The company also completed the acquisition of the Miropasz Group in early 2024, further expanding its Feed Ingredients segment. Additionally, Darling's investment in the DGD Joint Venture, which converts animal fats and used cooking oil into renewable fuels, remains a critical component of its operations, contributing to both revenue and operational challenges.

Operationally, the company processed approximately 3.16 million metric tons of raw materials in the third quarter, a 1.9% increase from the previous year. The Feed Ingredients segment's gross margin improved to 24.3%, while the Food Ingredients segment also saw a rise in gross margin to 27.5%. However, the Fuel Ingredients segment's gross margin decreased to 21.0%. The company reported a working capital of $492.7 million as of September 27, 2025, with a working capital ratio of 1.49, indicating a solid liquidity position.

Looking ahead, Darling Ingredients anticipates continued challenges due to fluctuating commodity prices, regulatory changes, and global economic conditions. The company remains focused on leveraging its operational efficiencies and strategic investments to navigate these uncertainties while maintaining its commitment to sustainability and growth in the renewable energy sector.