Darling Ingredients Inc. Reports Fourth Quarter and Fiscal Year 2025 Results

Key Terms

combined adjusted EBITDA financial

Combined adjusted EBITDA is a measure of operating profit that adds together EBITDA (earnings before interest, taxes, depreciation and amortization) for multiple business units or merged entities and then strips out one-time or unusual items to show recurring cash-generating performance. Investors use it like checking a car’s engine performance without accessories or temporary fixes: it helps compare underlying operations, assess debt capacity and value a business without short-term noise.

production tax credit financial

A production tax credit is a government benefit that pays producers a fixed amount for each unit they make or sell — for example a set payment per megawatt-hour of electricity or per barrel of a commodity. It matters to investors because it directly raises a project’s cash flow and lowers the effective cost of production, much like a per‑unit coupon, which can change profitability, valuation and the attractiveness of financing or new investment.

renewable diesel technical

Renewable diesel is a liquid fuel made from plant oils, animal fats, or other biological feedstocks that is processed into a chemically similar form to petroleum diesel so it can be used in existing engines, pipelines and fuel stations. Investors care because it often sells at a premium, benefits from government incentives or carbon-credit programs, and can change demand for traditional refining capacity and feedstock markets, affecting company revenues and margins.

ebitda financial

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

Fourth Quarter Highlights

• Net income of $56.9 million, or $0.35 per GAAP diluted share, compared to $101.9 million for fourth quarter 2024, or $0.63 per GAAP diluted share
• Total net sales were $1.7 billion, compared to $1.42 billion for fourth quarter 2024
• Combined Adjusted EBITDA was $336.1 million, compared to $289.5 million for fourth quarter 2024

Fiscal Year Highlights

• Net income of $62.8 million, or $0.39 per GAAP diluted share, compared to $278.9 million for fiscal year 2024, or $1.73 per GAAP diluted share
• Total net sales were $6.1 billion, compared to $5.7 billion for fiscal year 2024
• Combined Adjusted EBITDA was $1.03 billion, compared to $1.08 billion for fiscal year 2024
• The company monetized $255 of the $285 million of Production Tax Credit sales, enhancing cash generation
• Bank leverage ratio declined to 2.90X, demonstrating a commitment to deleveraging

IRVING, Texas--(BUSINESS WIRE)-- Darling Ingredients Inc. (NYSE: DAR) today reported net income of $56.9 million, or $0.35 per diluted share for the fourth quarter of 2025, compared to net income of $101.9 million, or $0.63 per diluted share, for the fourth quarter of 2024. The company strategically realigned its portfolio of businesses in the quarter, resulting in restructuring and asset impairment charges of $58.0 million primarily related to its Enviroflight and CTH natural casing businesses. The company also reported total net sales of $1.7 billion for the fourth quarter of 2025, compared with total net sales of $1.4 billion for the same period a year ago.

“Our commitment to operational excellence drove a strong fourth quarter, delivering solid EBITDA growth and sequential gross margin improvement, despite lower fat prices. While Diamond Green Diesel (DGD) had a challenging year, our best-in-class operations led the industry and produced industry-leading results,” said Randall C. Stuewe, Chairman and Chief Executive Officer. “We have taken the steps to sharpen our portfolio and focus on our core strengths, and are well positioned to build on this momentum in 2026.”

For the fiscal year ended Jan. 3, 2026, Darling Ingredients reported total net sales of $6.1 billion, compared to total net sales of $5.7 billion for the same period in 2024. Net income for fiscal year 2025 was $62.8 million, or $0.39 per diluted share, as compared to net income of $278.9 million, or $1.73 per diluted share, for fiscal year 2024.

For the three months ended Dec. 31, 2025, Diamond Green Diesel (DGD) sold 285.3 million gallons of renewable diesel at an average of $0.41 per gallon EBITDA. For the twelve months ended, Dec. 31, 2025, DGD sold 1.003 billion gallons at an average of $0.21 per gallon EBITDA.

Combined Adjusted EBITDA for the fourth quarter of 2025 was $336.1 million, compared to $289.5 million for the same period in 2024. For fiscal year 2025, Combined Adjusted EBITDA totaled $1.03 billion, as compared to $1.08 billion for the same period in 2024.

The company enhanced its liquidity by monetizing $255 million of the $285 million in Production Tax Credit (PTC) sales during fiscal year 2025, improving cash generation for continued deleveraging in 2026.

As of Jan. 3, 2026, Darling Ingredients had $88.7 million in cash and cash equivalents, and $1.32 billion available under its committed revolving credit agreement. Total debt outstanding as of Jan. 3, 2026, was $3.94 billion. The preliminary leverage ratio as measured by the company’s bank covenant was 2.90X as of Jan. 3, 2026. Capital expenditures were $156.4 million for the fourth quarter 2025 and $380.5 million for the year.

“The additional week in our fiscal year, combined with a favorable lag in fat pricing, supported higher volumes and sales in the fourth quarter,” said Stuewe. “While current market pricing will modestly impact our core ingredients performance in the first quarter, we anticipate the EPA’s upcoming Renewable Volume Obligation will provide a constructive backdrop for fat prices once finalized.”

As previously announced, Darling Ingredients will provide financial guidance exclusively for its core ingredients business (all segments excluding DGD). For first quarter 2026, the company estimates core ingredients business adjusted EBITDA to be approximately $240-$250 million.

Darling Ingredients Inc. and Subsidiaries Consolidated Operating Results For the Three and Twelve Months Ended January 3, 2026 and December 28, 2024 (in thousands, except per share data)
	Three Months Ended												Twelve Months Ended
	(unaudited)				(unaudited)				$ Change				(unaudited)								$ Change
	January 3,				December 28,				Favorable				January 3,				December 28,				Favorable
	2026				2024				(Unfavorable)				2026				2024				(Unfavorable)
Net sales to third parties	$	1,363,671			$	1,194,900			$	168,771			$	4,938,147			$	4,746,292			$	191,855
Net sales to related party - Diamond Green Diesel		346,128				222,793				123,335				1,197,730				968,883				228,847
Total net sales		1,709,799				1,417,693				292,106				6,135,877				5,715,175				420,702
Costs and expenses:
Cost of sales and operating expenses (excludes depreciation and amortization, shown separately below)		1,280,618				1,083,931				(196,687	)			4,662,419				4,437,337				(225,082	)
Gain on sale of assets		(979	)			(4,056	)			(3,077	)			(340	)			(4,157	)			(3,817	)
Selling, general and administrative expenses		151,939				107,514				(44,425	)			551,158				492,105				(59,053	)
Restructuring and asset impairment charges		57,960				5,794				(52,166	)			57,960				5,794				(52,166	)
Acquisition and integration costs		4,869				2,440				(2,429	)			15,942				7,842				(8,100	)
Change in fair value of contingent consideration		—				(4,491	)			(4,491	)			18,024				(46,706	)			(64,730	)
Depreciation and amortization		139,543				128,158				(11,385	)			508,504				503,825				(4,679	)
Total costs and expenses		1,633,950				1,319,290				(314,660	)			5,813,667				5,396,040				(417,627	)
Equity in net income/(loss) of Diamond Green Diesel		21,597				24,036				(2,439	)			(48,770	)			149,082				(197,852	)
Operating income		97,446				122,439				(24,993	)			273,440				468,217				(194,777	)
Other expense:
Interest expense		(55,514	)			(54,911	)			(603	)			(222,279	)			(253,858	)			31,579
Loss on early retirement of debt		—				—				—				(2,978	)			—				(2,978	)
Foreign currency loss		(1,402	)			(1,669	)			267				(384	)			(1,154	)			770
Other income, net		2,999				9,486				(6,487	)			468				22,309				(21,841	)
Total other expense		(53,917	)			(47,094	)			(6,823	)			(225,173	)			(232,703	)			7,530
Equity in net income of other unconsolidated subsidiaries		4,328				2,885				1,443				12,759				11,994				765
Income from operations before income taxes		47,857				78,230				(30,373	)			61,026				247,508				(186,482	)
Income tax benefit		(11,022	)			(25,547	)			(14,525	)			(9,359	)			(38,337	)			(28,978	)
Net income		58,879				103,777				(44,898	)			70,385				285,845				(215,460	)
Net income attributable to noncontrolling interests		(1,939	)			(1,869	)			(70	)			(7,581	)			(6,965	)			(616	)
Net income attributable to Darling	$	56,940			$	101,908			$	(44,968	)		$	62,804			$	278,880			$	(216,076	)
Basic income per share:	$	0.36			$	0.64			$	(0.28	)		$	0.40			$	1.75			$	(1.35	)
Diluted income per share:	$	0.35			$	0.63			$	(0.28	)		$	0.39			$	1.73			$	(1.34	)
Number of diluted common shares:		160,414				161,071								160,157				161,418

Segment Financial Tables (in thousands)
	Feed Ingredients			Food Ingredients			Fuel Ingredients			Corporate			Total
Three Months Ended January 3, 2026 (unaudited)
Total net sales	$	1,128,158		$	429,074		$	152,567		$	—		$	1,709,799
Cost of sales and operating expenses		850,841			312,213			117,564			—			1,280,618
Gross margin		277,317			116,861			35,003			—			429,181
Gain on sale of assets		(196	)		(651	)		(132	)		—			(979	)
Selling, general and administrative expenses		84,139			35,100			7,970			24,730			151,939
Restructuring and asset impairment charges		32,120			25,840			—			—			57,960
Acquisition and integration costs		—			—			—			4,869			4,869
Depreciation and amortization		97,363			30,506			9,874			1,800			139,543
Equity in net income of Diamond Green Diesel		—			—			21,597			—			21,597
Segment operating income/(loss)	$	63,891		$	26,066		$	38,888		$	(31,399	)	$	97,446
Equity in net income of other unconsolidated subsidiaries		4,328			—			—			—			4,328
Segment income/(loss)		68,219			26,066			38,888			(31,399	)		101,774
Segment Adjusted EBITDA (Non-GAAP)	$	193,374		$	82,412		$	27,165		$	(24,730	)	$	278,221
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP)		—			—			57,917			—			57,917
Combined Adjusted EBITDA (Non-GAAP)	$	193,374		$	82,412		$	85,082		$	(24,730	)	$	336,138
Reconciliation of Net Income/(Loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA:
Net income/(loss) attributable to Darling	$	68,219		$	26,066		$	38,888		$	(76,233	)	$	56,940
Net income attributable to noncontrolling interests		—			—			—			1,939			1,939
Income tax benefit		—			—			—			(11,022	)		(11,022	)
Interest expense		—			—			—			55,514			55,514
Foreign currency loss		—			—			—			1,402			1,402
Other income, net		—			—			—			(2,999	)		(2,999	)
Segment income/(loss)	$	68,219		$	26,066		$	38,888		$	(31,399	)	$	101,774
Restructuring and asset impairment charges		32,120			25,840			—			—			57,960
Acquisition and integration costs		—			—			—			4,869			4,869
Depreciation and amortization		97,363			30,506			9,874			1,800			139,543
Equity in net income of Diamond Green Diesel		—			—			(21,597	)		—			(21,597	)
Equity in net income of other unconsolidated subsidiaries		(4,328	)		—			—			—			(4,328	)
Segment Adjusted EBITDA (Non-GAAP)	$	193,374		$	82,412		$	27,165		$	(24,730	)	$	278,221
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) *		—			—			57,917			—			57,917
Combined Adjusted EBITDA (Non-GAAP)	$	193,374		$	82,412		$	85,082		$	(24,730	)	$	336,138
*See reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Income

	Feed Ingredients			Food Ingredients			Fuel Ingredients			Corporate			Total
Three Months Ended December 28, 2024 (unaudited)
Total net sales	$	924,157		$	361,686		$	131,850		$	—		$	1,417,693
Cost of sales and operating expenses		714,843			268,582			100,506			—			1,083,931
Gross margin		209,314			93,104			31,344			—			333,762
Gain on sale of assets		(1,210	)		(1,550	)		(1,296	)		—			(4,056	)
Selling, general and administrative expenses		60,497			30,665			7,459			8,893			107,514
Restructuring and asset impairment charges		3,671			2,123			—			—			5,794
Acquisition and integration costs		—			—			—			2,440			2,440
Change in fair value of contingent consideration		(4,491	)		—			—			—			(4,491	)
Depreciation and amortization		90,648			26,119			9,189			2,202			128,158
Equity in net income of Diamond Green Diesel		—			—			24,036			—			24,036
Segment operating income/(loss)	$	60,199		$	35,747		$	40,028		$	(13,535	)	$	122,439
Equity in net income of other unconsolidated subsidiaries		2,885			—			—			—			2,885
Segment income/(loss)	$	63,084		$	35,747		$	40,028		$	(13,535	)	$	125,324
Segment Adjusted EBITDA (Non-GAAP)	$	150,027		$	63,989		$	25,181		$	(8,893	)	$	230,304
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP)		—			—			59,159			—			59,159
Combined Adjusted EBITDA (Non-GAAP)	$	150,027		$	63,989		$	84,340		$	(8,893	)	$	289,463
Reconciliation of Net Income/(Loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA:
Net income/(loss) attributable to Darling	$	63,084		$	35,747		$	40,028		$	(36,951	)	$	101,908
Net income attributable to noncontrolling interests		—			—			—			1,869			1,869
Income tax benefit		—			—			—			(25,547	)		(25,547	)
Interest expense		—			—			—			54,911			54,911
Foreign currency loss		—			—			—			1,669			1,669
Other income, net		—			—			—			(9,486	)		(9,486	)
Segment income/(loss)	$	63,084		$	35,747		$	40,028		$	(13,535	)	$	125,324
Restructuring and asset impairment charges		3,671			2,123			—			—			5,794
Acquisition and integration costs		—			—			—			2,440			2,440
Change in fair value of contingent consideration		(4,491	)		—			—			—			(4,491	)
Depreciation and amortization		90,648			26,119			9,189			2,202			128,158
Equity in net income of Diamond Green Diesel		—			—			(24,036	)		—			(24,036	)
Equity in net income of other unconsolidated subsidiaries		(2,885	)		—			—			—			(2,885	)
Segment Adjusted EBITDA (Non-GAAP)	$	150,027		$	63,989		$	25,181		$	(8,893	)	$	230,304
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) *		—			—			59,159			—			59,159
Combined Adjusted EBITDA (Non-GAAP)	$	150,027		$	63,989		$	84,340		$	(8,893	)	$	289,463
*See reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Income

	Feed Ingredients			Food Ingredients			Fuel Ingredients			Corporate			Total
Twelve Months Ended January 3, 2026 (unaudited)
Total net sales	$	3,990,088		$	1,545,030		$	600,759		$	—		$	6,135,877
Cost of sales and operating expenses		3,066,243			1,116,978			479,198			—			4,662,419
Gross margin		923,845			428,052			121,561			—			1,473,458
Loss/(Gain) on sale of assets		879			(685	)		(534	)		—			(340	)
Selling, general and administrative expenses		309,112			133,809			33,615			74,622			551,158
Restructuring and asset impairment charges		32,120			25,840			—			—			57,960
Acquisition and integration costs		—			—			—			15,942			15,942
Change in fair value of contingent consideration		18,024			—			—			—			18,024
Depreciation and amortization		348,502			117,298			36,355			6,349			508,504
Equity in net loss of Diamond Green Diesel		—			—			(48,770	)		—			(48,770	)
Segment operating income/(loss)	$	215,208		$	151,790		$	3,355		$	(96,913	)	$	273,440
Equity in net income of other unconsolidated subsidiaries		12,759			—			—			—			12,759
Segment income/(loss)	$	227,967		$	151,790		$	3,355		$	(96,913	)	$	286,199
Segment Adjusted EBITDA (Non-GAAP)	$	613,854		$	294,928		$	88,480		$	(74,622	)	$	922,640
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP)		—			—			103,716			—			103,716
Combined Adjusted EBITDA (Non-GAAP)	$	613,854		$	294,928		$	192,196		$	(74,622	)	$	1,026,356
Reconciliation of Net Income/(Loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA:
Net income/(loss) attributable to Darling	$	227,967		$	151,790		$	3,355		$	(320,308	)	$	62,804
Net income attributable to noncontrolling interests		—			—			—			7,581			7,581
Income tax benefit		—			—			—			(9,359	)		(9,359	)
Loss on early retirement of debt		—			—			—			2,978			2,978
Interest expense		—			—			—			222,279			222,279
Foreign currency loss		—			—			—			384			384
Other income, net		—			—			—			(468	)		(468	)
Segment income/(loss)	$	227,967		$	151,790		$	3,355		$	(96,913	)	$	286,199
Restructuring and asset impairment charges		32,120			25,840			—			—			57,960
Acquisition and integration costs		—			—			—			15,942			15,942
Change in fair value of contingent consideration		18,024			—			—			—			18,024
Depreciation and amortization		348,502			117,298			36,355			6,349			508,504
Equity in net loss of Diamond Green Diesel		—			—			48,770			—			48,770
Equity in net income of other unconsolidated subsidiaries		(12,759	)		—			—			—			(12,759	)
Segment Adjusted EBITDA (Non-GAAP)	$	613,854		$	294,928		$	88,480		$	(74,622	)	$	922,640
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) *		—			—			103,716			—			103,716
Combined Adjusted EBITDA (Non-GAAP)	$	613,854		$	294,928		$	192,196		$	(74,622	)	$	1,026,356
*See reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Income

	Feed Ingredients			Food Ingredients			Fuel Ingredients			Corporate			Total
Twelve Months Ended December 28, 2024
Total net sales	$	3,675,609		$	1,489,101		$	550,465		$	—		$	5,715,175
Cost of sales and operating expenses		2,886,125			1,115,348			435,864			—			4,437,337
Gross margin		789,484			373,753			114,601			—			1,277,838
Gain on sale of assets		(669	)		(1,758	)		(1,730	)		—			(4,157	)
Selling, general and administrative expenses		279,095			119,604			32,370			61,036			492,105
Restructuring and asset impairment charges		3,671			2,123			—			—			5,794
Acquisition and integration costs		—			—			—			7,842			7,842
Change in fair value of contingent consideration		(46,706	)		—			—			—			(46,706	)
Depreciation and amortization		350,141			109,102			35,876			8,706			503,825
Equity in net income of Diamond Green Diesel		—			—			149,082			—			149,082
Segment operating income/(loss)	$	203,952		$	144,682		$	197,167		$	(77,584	)	$	468,217
Equity in net income of other unconsolidated subsidiaries		11,994			—			—			—			11,994
Segment income/(loss)	$	215,946		$	144,682		$	197,167		$	(77,584	)	$	480,211
Segment Adjusted EBITDA (Non-GAAP)	$	511,058		$	255,907		$	83,961		$	(61,036	)	$	789,890
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP)		—			—			289,945			—			289,945
Combined Adjusted EBITDA (Non-GAAP)	$	511,058		$	255,907		$	373,906		$	(61,036	)	$	1,079,835
Reconciliation of Net Income/(Loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA:
Net income/(loss) attributable to Darling	$	215,946		$	144,682		$	197,167		$	(278,915	)	$	278,880
Net income attributable to noncontrolling interests		—			—			—			6,965			6,965
Income tax benefit		—			—			—			(38,337	)		(38,337	)
Interest expense		—			—			—			253,858			253,858
Foreign currency loss		—			—			—			1,154			1,154
Other income, net		—			—			—			(22,309	)		(22,309	)
Segment income/(loss)	$	215,946		$	144,682		$	197,167		$	(77,584	)	$	480,211
Restructuring and asset impairment charges		3,671			2,123			—			—			5,794
Acquisition and integration costs		—			—			—			7,842			7,842
Change in fair value of contingent consideration		(46,706	)		—			—			—			(46,706	)
Depreciation and amortization		350,141			109,102			35,876			8,706			503,825
Equity in net income of Diamond Green Diesel		—			—			(149,082	)		—			(149,082	)
Equity in net income of other unconsolidated subsidiaries		(11,994	)		—			—			—			(11,994	)
Segment Adjusted EBITDA (Non-GAAP)	$	511,058		$	255,907		$	83,961		$	(61,036	)	$	789,890
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) *		—			—			289,945			—			289,945
Combined Adjusted EBITDA (Non-GAAP)	$	511,058		$	255,907		$	373,906		$	(61,036	)	$	1,079,835
*See reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Income

Darling Ingredients Inc. and Subsidiaries Balance Sheet Disclosures As of January 3, 2026 and December 28, 2024 (in thousands)
	(unaudited)
	January 3,			December 28,
	2026			2024
Cash and cash equivalents	$	88,671		$	75,973
Property, plant and equipment, net		2,796,139			2,713,669
Current portion of long-term debt		75,217			133,020
Long-term debt, net of current portion		3,862,243			3,908,978
Other Financial Data
As of January 3, 2026
	(unaudited)
	January 3,
	2026
Revolver availability	$	1,324,496
Capital expenditures - YTD	$	380,477
Preliminary Leverage Ratio	2.90X

Diamond Green Diesel Joint Venture Consolidated Statements of Income For the Three and Twelve Months Ended December 31, 2025 and December 31, 2024 (in thousands)
	Three Months Ended												Twelve Months Ended
	(unaudited)				(unaudited)				$ Change				(unaudited)								$ Change
	December 31,				December 31,				Favorable				December 31,				December 31,				Favorable
	2025				2024				(Unfavorable)				2025				2024				(Unfavorable)
Revenues:
Operating revenues	$	1,395,358			$	1,245,722			$	149,636			$	4,596,830			$	5,065,592			$	(468,762	)
Expenses:
Total costs and expenses excluding lower of cost or market inventory valuation adjustment and depreciation, amortization and accretion expense		1,243,285				1,009,285				(234,000	)			4,500,398				4,309,768				(190,630	)
Lower of cost or market (LCM) inventory valuation adjustment		24,353				118,120				93,767				(140,085	)			175,934				316,019
Depreciation, amortization and accretion expense		62,488				69,489				7,001				266,887				264,992				(1,895	)
Total costs and expenses		1,330,126				1,196,894				(133,232	)			4,627,200				4,750,694				123,494
Operating income/(loss)		65,232				48,828				16,404				(30,370	)			314,898				(345,268	)
Other income		1,817				7,778				(5,961	)			9,321				22,114				(12,793	)
Interest and debt expense, net		(12,268	)			(8,301	)			(3,967	)			(46,340	)			(38,673	)			(7,667	)
Income/(loss) before income tax expense		54,781				48,305				6,476				(67,389	)			298,339				(365,728	)
Income tax expense/(benefit)		(299	)			233				532				1,066				175				(891	)
Net income/(loss)	$	55,080			$	48,072			$	7,008			$	(68,455	)		$	298,164			$	(366,619	)
Reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA:
Net income/(loss)	$	55,080			$	48,072							$	(68,455	)		$	298,164
Income tax expense/(benefit)		(299	)			233								1,066				175
Interest and debt expense, net		12,268				8,301								46,340				38,673
Other income		(1,817	)			(7,778	)							(9,321	)			(22,114	)
Operating income/(loss)		65,232				48,828								(30,370	)			314,898
Depreciation, amortization and accretion expense		62,488				69,489								266,887				264,992
DGD Adjusted EBITDA (Non-GAAP)		127,720				118,317								236,517				579,890
Less: Discount and Broker Fees		(11,887	)			—								(29,086	)			—
DGD Adjusted EBITDA (Non-GAAP) after Discount and Broker Fees		115,833				118,317								207,431				579,890
Darling's Share 50%		50	%			50	%							50	%			50	%
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP)	$	57,917			$	59,159							$	103,716			$	289,945

Diamond Green Diesel Joint Venture Condensed Consolidated Balance Sheets December 31, 2025 and December 31, 2024 (in thousands)
	December 31,			December 31,
	2025			2024
	(unaudited)
Assets:
Cash	$	195,765		$	353,446
Total other current assets		1,199,194			1,137,821
Property, plant and equipment, net		3,702,254			3,868,943
Other assets		139,765			100,307
Total assets	$	5,236,978		$	5,460,517
Liabilities and members' equity:
Revolver	$	—		$	—
Total other current portion of long term debt		29,487			29,809
Total other current liabilities		332,256			319,688
Total long term debt		677,671			707,158
Total other long term liabilities		17,748			17,195
Total members' equity		4,179,816			4,386,667
Total liabilities and members' equity	$	5,236,978		$	5,460,517

Reconciliation of Net Income to (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro forma Adjusted EBITDA to Foreign Currency For the Three and Twelve Months Ended January 3, 2026 and December 28, 2024 (in thousands)
	Three Months Ended									Twelve Months Ended
Adjusted EBITDA	January 3					December 28,				January 3					December 28,
(U.S. dollars in thousands)	2026					2024				2026					2024
	(unaudited)					(unaudited)				(unaudited)
Net income attributable to Darling		56,940					101,908				62,804					278,880
Depreciation and amortization		139,543					128,158				508,504					503,825
Interest expense		55,514					54,911				222,279					253,858
Income tax benefit		(11,022	)				(25,547	)			(9,359	)				(38,337	)
Restructuring and asset impairment charges		57,960					5,794				57,960					5,794
Acquisition and integration costs		4,869					2,440				15,942					7,842
Change in fair value of contingent consideration		—					(4,491	)			18,024					(46,706	)
Foreign currency loss		1,402					1,669				384					1,154
Other income, net		(2,999	)				(9,486	)			(468	)				(22,309	)
Loss on early retirement of debt		—					—				2,978					—
Equity in net (income)/loss of Diamond Green Diesel		(21,597	)				(24,036	)			48,770					(149,082	)
Equity in net income of other unconsolidated subsidiaries		(4,328	)				(2,885	)			(12,759	)				(11,994	)
Net income attributable to noncontrolling interests		1,939					1,869				7,581					6,965
Adjusted EBITDA (Non-GAAP)	$	278,221				$	230,304			$	922,640				$	789,890
Foreign currency exchange impact		(11,594	)	(1	)		—				(20,420	)	(2	)		—
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP)	$	266,627				$	230,304			$	902,220				$	789,890
DGD Adjusted EBITDA (Darling's share) (Non-GAAP)*	$	57,917				$	59,159			$	103,716				$	289,945
Combined Adjusted EBITDA (Non-GAAP)	$	336,138				$	289,463			$	1,026,356				$	1,079,835
*See reconciliation of DGD Net Income to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Income
(1) The average rates for the three months ended January 3, 2026 were €1.00:$1.16, R$1.00:$0.19 and C$1.00:$0.72 as compared to the average rates for the three months ended December 28, 2024 of €1.00:$1.07, R$1.00:$0.17 and C$1.00:$0.72, respectively.
(2) The average rates for the twelve months ended January 3, 2026 of €1.00:$1.13, R$1.00:$0.18 and C$1.00:$0.72 as compared to the average rates for the twelve months ended December 28, 2024 of €1.00:USD$1.08, R$1.00:$0.19 and C$1.00:$0.73, respectively.

About Darling Ingredients

A pioneer in circularity, Darling Ingredients Inc. (NYSE: DAR) takes material from the animal agriculture and food industries, and transforms them into valuable ingredients that nourish people, feed animals and crops, and fuel the world with renewable energy. The company operates over 260 facilities in more than 15 countries and processes about 15% of the world’s animal agricultural by-products, produces about 30% of the world’s collagen (both gelatin and hydrolyzed collagen), and is one of the largest producers of renewable energy. To learn more, visit darlingii.com. Follow us on LinkedIn.

Darling Ingredients will host a conference call on Feb. 12, 2026, at 9 a.m. Eastern Time (8 a.m. Central Time) to discuss fourth quarter and fiscal year 2025 financial results and provide an update on company operations.

To access the call as a listener, please register for the audio-only webcast.

To join the call as a participant to ask a question, please register in advance to receive a confirmation email with the dial-in number and PIN for immediate access on Feb. 12 or call 646-844-6383 (United States) or 833-470-1428 (international) using access code 476355.

A replay of the call will be available online via the webcast registration link two hours after the call ends. A transcript will be posted at darlingii.com/investors within 24 hours.

Use of Non-GAAP Financial Measures:

Segment Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income/(loss), as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income (loss), but rather as a measure of the segment’s operating performance. Segment Adjusted EBITDA consists of net income/(loss) plus depreciation and amortization, restructuring and asset impairment charges, acquisition and integration costs, change in fair value of contingent consideration, foreign currency loss/(gain), net income/(loss) attributable to noncontrolling interests, interest expense, income tax provision, other income/(expense), equity in net (income)/loss of unconsolidated subsidiaries and equity in net (income)/loss of Diamond Green Diesel. Management believes that Segment Adjusted EBITDA is useful in evaluating the segment’s operating performance because the calculation of Segment Adjusted EBITDA generally eliminates non-cash and certain other items for reasons unrelated to overall operating performance and also believes this information is useful to investors.

Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Since EBITDA (generally, net income plus interest expense, taxes, depreciation and amortization) is not calculated identically by all companies, the presentation in this report may not be comparable to EBITDA or Adjusted EBITDA presentations disclosed by other companies. Adjusted EBITDA is calculated above and represents for any relevant period, net income/(loss) plus depreciation and amortization, restructuring and asset impairment charges, acquisition and integration costs, change in fair value of contingent consideration, foreign currency loss/(gain), net income/(loss) attributable to non-controlling interests, interest expense, income tax provision, other income/(expense) and equity in net (income)/loss of unconsolidated subsidiaries. Management believes that Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of financing, income taxes, non-cash and certain other items that may vary for different companies for reasons unrelated to overall operating performance and also believes this information is useful to investors.

The Company’s management uses Adjusted EBITDA as a measure to evaluate performance and for other discretionary purposes. In addition to the foregoing, management also uses or will use Adjusted EBITDA to measure compliance with certain financial covenants under the Company’s Senior Secured Credit Facilities, 6% Notes, 5.25% Notes and 4.5% Notes that were outstanding at January 3, 2026. However, the amounts shown above for Adjusted EBITDA differ from the amounts calculated under similarly titled definitions in the Company’s Senior Secured Credit Facilities, 6% Notes, 5.25% Notes and 4.5% Notes, as those definitions permit further adjustments to reflect certain other nonrecurring costs, non-cash charges and cash dividends from the DGD Joint Venture. Additionally, the Company evaluates the impact of foreign exchange on operating cash flow, which is defined as segment operating income (loss) plus depreciation and amortization.

Pro forma Adjusted EBITDA to Foreign Currency is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Management believes Pro forma Adjusted EBITDA to Foreign Currency is useful in evaluating the Company’s operating performance on a constant currency basis and also believes this information is useful to investors.

Combined Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company’s operating performance. Combined Adjusted EBITDA consists of Adjusted EBITDA plus DGD Adjusted EBITDA (Darling’s Share). When Combined Adjusted EBITDA is presented by segment, Combined Adjusted EBITDA consists of Segment Adjusted EBITDA plus DGD Adjusted EBITDA (Darling’s Share). Management believes that Combined Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Combined Adjusted EBITDA generally eliminates the effects of financing, income taxes, non-cash and certain other items that may vary for different companies for reasons unrelated to overall operating performance and also believes this information is useful to investors.

Information reconciling forward-looking Combined Adjusted EBITDA to net income is unavailable to the Company without unreasonable effort. The Company is not able to provide reconciliations of Combined Adjusted EBITDA to net income because certain items required for such reconciliations are outside of the Company’s control and/or cannot be reasonably predicted, such as the impact of volatile commodity prices on the Company’s operations, impact of foreign currency exchange fluctuations, depreciation and amortization and the provision for income taxes. Preparation of such reconciliations for Darling Ingredients Inc. and the Company’s joint venture, Diamond Green Diesel, would require a forward-looking balance sheet, statement of operations and statement of cash flows, prepared in accordance with GAAP for each entity, and such forward-looking financial statements are unavailable to the Company without unreasonable effort. The Company provides guidance for its Combined Adjusted EBITDA outlook that it believes will be achieved; however, it cannot accurately predict all the components of the Combined Adjusted EBITDA calculation.

DGD Adjusted EBITDA is not reflected in the Adjusted EBITDA or the Pro forma Adjusted EBITDA to Foreign Currency. DGD Adjusted EBITDA is not a recognized accounting measure under GAAP; it should not be considered as an alternative to net income/(loss) or equity in net income/(loss) of Diamond Green Diesel, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity and is not intended to be a presentation in accordance with GAAP. The Company calculates DGD Adjusted EBITDA by taking DGD’s net income/(loss) plus income tax expense/(benefit), interest and debt expense, net, and DGD’s depreciation, amortization and accretion expense less other income. Management believes that DGD Adjusted EBITDA is useful in evaluating the Company’s operating performance because the calculation of DGD Adjusted EBITDA generally eliminates non-cash and certain other items at DGD unrelated to overall operating performance and also believes this information is useful to investors. The Company calculates Darling’s Share of DGD Adjusted EBITDA by taking DGD Adjusted EBITDA and then multiplying by 50% to get Darling’s Share of DGD’s Adjusted EBITDA.

Adjusted EBITDA per gallon is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income or equity in income of Diamond Green Diesel, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity and is not intended to be a presentation in accordance with GAAP. Adjusted EBITDA per gallon is presented here not as an alternative to net income or equity in income of Diamond Green Diesel, but rather as a measure of Diamond Green Diesel's operating performance. Since Adjusted EBITDA per gallon (generally, net income plus interest expense, taxes, depreciation and amortization divided by total gallons sold) is not calculated identically by all companies, this presentation may not be comparable to Adjusted EBITDA per gallon presentations disclosed by other companies. Management believes that Adjusted EBITDA per gallon is useful in evaluating Diamond Green Diesel's operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA per gallon generally eliminates the effects of financing, income taxes and non-cash and certain other items presented on a per gallon basis that may vary for different companies for reasons unrelated to overall operating performance.

Cautionary Statements Regarding Forward-Looking Information:

This media release includes “forward-looking” statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. Statements that are not statements of historical facts are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “estimate,” “guidance,” “outlook,” “project,” “planned,” “contemplate,” “potential,” “possible,” “proposed,” “intend,” “believe,” “anticipate,” “expect,” “may,” “will,” “would,” “should,” “could,” and similar expressions are intended to identify forward-looking statements. All statements other than statements of historical facts included in this release are forward-looking statements. Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. The Company cautions readers that any such forward-looking statements it makes are not guarantees of future performance and that actual results may differ materially from anticipated results or expectations expressed in its forward-looking statements as a result of a variety of factors, including many that are beyond the Company's control.

Important factors that could cause actual results to differ materially from the Company’s expectations include: existing and unknown future limitations on the ability of the Company's direct and indirect subsidiaries to make their cash flow available to the Company for payments on the Company's indebtedness or other purposes; reduced demands or prices for biofuels, biogases or renewable electricity; global demands for grain and oilseed commodities, which have exhibited volatility, and can impact the cost of feed for cattle, hogs and poultry, thus affecting available rendering feedstock and selling prices for the Company’s products; reductions in raw material volumes available to the Company due to weak margins in the meat production industry as a result of higher feed costs, reduced consumer demand, reduced volume due to government regulations affecting animal production or other factors, reduced volume from food service establishments, or otherwise; reduced demand for animal feed; reduced finished product prices, including a decline in fat, used cooking oil, protein or collagen (including, without limitation, collagen peptides and gelatin) finished product prices; changes to government policies around the world relating to renewable fuels and greenhouse gas (“GHG”) emissions that adversely affect prices, margins or markets (including for the DGD Joint Venture), including programs like renewable fuel standards, low carbon fuel standards, renewable fuel mandates and tax credits for biofuels, or loss or diminishment of tax credits due to failure to satisfy any eligibility requirements, including, without limitation, in relation to the blenders tax credit or the Clean Fuels Production Credit (“CFPC”); climate related adverse results, including with respect to the Company’s climate goals, targets or commitments; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives or products which do not meet specifications, contract requirements or regulatory standards; the occurrence of 2009 H1N1 flu (initially known as “Swine Flu”), highly pathogenic strains of avian influenza (collectively known as “Bird Flu”), severe acute respiratory syndrome (“SARS”), bovine spongiform encephalopathy (or “BSE”), porcine epidemic diarrhea (“PED”) or other diseases associated with animal origin in the U.S. or elsewhere, such as the outbreak of African Swine Fever in China and elsewhere; the occurrence of pandemics, epidemics or disease outbreaks, such as the COVID-19 outbreak; unanticipated costs and/or reductions in raw material volumes related to the Company’s compliance with the existing or unforeseen new U.S. or foreign (including, without limitation, China) regulations (including new or modified animal feed, Bird Flu, SARS, PED, BSE or ASF or similar or unanticipated regulations) affecting the industries in which the Company operates or its value added products; risks associated with the DGD Joint Venture, including possible unanticipated operating disruptions and/or a decline in margins on the products produced by the DGD Joint Venture; risks and uncertainties relating to international sales and operations, including imposition of tariffs, quotas, trade barriers and other trade protections by the U.S. or foreign countries; tax changes, such as global minimum tax measures, or issues related to administration, guidance and/or regulations associated with biofuel policies, including CFPC, and risks associated with the qualification and sale of such credits; difficulties or a significant disruption (including, without limitation, due to cyber-attack) in the Company’s information systems, networks or the confidentiality, availability or integrity of our data or failure to implement new systems and software successfully; risks relating to possible third-party claims of intellectual property infringement; increased contributions to the Company’s pension and benefit plans, including multiemployer and employer-sponsored defined benefit pension plans as required by legislation, regulation or other applicable U.S. or foreign law or resulting from a U.S. mass withdrawal event; bad debt write-offs; loss of or failure to obtain necessary permits and registrations; the potential for future terrorist attacks, responses to terrorist attacks and other acts of war or hostility, including the ongoing conflicts in the Middle East, Africa, North Korea and Ukraine; uncertainty regarding any administration changes in the U.S. or elsewhere around the world, including, without limitation, impacts to trade, tariffs and/or policies impacting the Company (such as biofuel policies and mandates); and/or unfavorable export or import markets. These factors, coupled with volatile prices for natural gas and diesel fuel, inflation rates, climate conditions, currency exchange fluctuations, general performance of the U.S. and global economies, disturbances in world financial, credit, commodities and stock markets, and any decline in consumer confidence and discretionary spending, including the inability of consumers and companies to obtain credit due to lack of liquidity in the financial markets, among others, could cause actual results to vary materially from the forward-looking statements included in this report or negatively impact the Company’s results of operations. Among other things, future profitability may be affected by the Company’s ability to grow its business, which faces competition from companies that may have substantially greater resources than the Company. The Company’s announced share repurchase program may be suspended or discontinued at any time and purchases of shares under the program are subject to market conditions and other factors, which are likely to change from time to time. For more detailed discussion of these factors and other risks and uncertainties regarding the Company, its business and the industries in which it operates, see the Company’s filings with the SEC, including the Risk Factors discussion in Item 1A of Part I of the Company's Annual Report on Form 10-K for the fiscal year ended December 28, 2024. The Company cautions readers that all forward-looking statements speak only as of the date made, and the Company undertakes no obligation to update any forward-looking statements, whether as a result of changes in circumstances, new events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260210031325/en/

Investors:

Suann Guthrie

Senior VP, Investor Relations and Global Affairs

(469) 214-8202; suann.guthrie@darlingii.com

Media:

Jillian Fleming

Director, Global Communications

(972) 541-7115; jillian.fleming@darlingii.com

Source: Darling Ingredients Inc.