Darling Ingredients — Q3 2026 Earnings Summary

Financial Performance:

• Net income attributable to Darling was $267.0 million ($1.67 per diluted share) for Q3 2026, compared to $19.4 million ($0.12 per diluted share) in Q3 2025.
• Total net sales were $1.8 billion for Q3 2026, up from $1.6 billion in Q3 2025.
• Combined Adjusted EBITDA was $514.3 million for Q3 2026, compared to $244.9 million in Q3 2025.
• For the nine months ended October 3, 2026, net income attributable to Darling was $788.6 million ($4.91 per diluted share), compared to $5.9 million ($0.04 per diluted share) in the prior year period.
• Net sales for the first nine months of 2026 were $5.1 billion, compared to $4.4 billion in the same period in 2025.
• Combined Adjusted EBITDA for the first nine months of 2026 was approximately $1.7 billion, compared to $690.2 million in the prior year period.
• As of October 3, 2026, cash and cash equivalents were $121.7 million.
• Total debt outstanding was $3.5 billion as of October 3, 2026, with a preliminary leverage ratio of 1.7X.
• The company received $171.0 million in cash distributions from Diamond Green Diesel (DGD) in the third quarter, consisting of approximately $33.4 million in dividends and $137.6 million from Production Tax Credit sales.
• Capital expenditures were approximately $343.5 million year-to-date 2026.

Guidance and Future Outlook:

• Darling Ingredients reaffirms fiscal year 2026 Combined Adjusted EBITDA guidance of $2.2 billion to $2.3 billion.
• The company anticipates ending fiscal year 2026 with net debt at or below $3.0 billion and a leverage ratio below 1.5X.
• Capital expenditures are estimated to be approximately $450.0 million for the full fiscal year 2026.
• Management expressed confidence in the company's momentum heading into 2027, citing a strong balance sheet and cash-generating power.

Business Segments and Product Lines:

• Diamond Green Diesel (DGD): Sold/shipped 314.9 million gallons of renewable fuels in Q3 2026 and 936.1 million gallons for the nine months ended September 30, 2026.
• DGD Adjusted EBITDA per gallon was $1.30 for the three months ended September 30, 2026, and $1.59 for the nine months ended September 30, 2026.
• Feed Ingredients Segment: Generated $1.2 billion in net sales and $247.7 million in Segment Adjusted EBITDA for Q3 2026.
• Food Ingredients Segment: Generated $415.8 million in net sales and $73.8 million in Segment Adjusted EBITDA for Q3 2026.
• Fuel Ingredients Segment: Generated $168.6 million in net sales and $227.9 million in Combined Adjusted EBITDA (including DGD share) for Q3 2026.
• Corporate expenses and other adjustments resulted in a negative Segment Adjusted EBITDA of $35.2 million for Q3 2026.

Market and Competitive Landscape:

• The company processes approximately 15% of the world's animal agricultural by-products.
• Darling Ingredients produces approximately 30% of the world's collagen (gelatin and hydrolyzed collagen).
• The company operates over 260 facilities in more than 15 countries.

Risks and Challenges:

• Risks include volatility in commodity prices, raw material volumes, and finished product prices (fat, used cooking oil, protein, collagen).
• Potential impacts from government policies regarding renewable fuels, greenhouse gas emissions, and tax credits (e.g., blenders tax credit, Clean Fuels Production Credit).
• Exposure to animal diseases (e.g., Bird Flu, African Swine Fever) and pandemics that could affect raw material availability.
• Risks associated with the DGD Joint Venture, including operating disruptions and margin declines.
• International operations face risks from tariffs, trade barriers, and currency exchange fluctuations.

Management Commentary and Tone:

• Randall C. Stuewe, Chairman and CEO, stated the core business delivered "another quarter of exceptional performance," demonstrating resilience and strong cash flow generation.
• Management highlighted that financial strength, bolstered by substantial cash from DGD, enabled a $420 million reduction in net debt and capital returns to shareholders.
• The tone was confident, with management describing the outlook as having "undeniable momentum" as the company positions itself for a successful 2027.

Other Key Points:

• The company reduced net debt by approximately $420 million during the quarter.
• Darling Ingredients repurchased $75.9 million in common stock during the third quarter, bringing total repurchases for the quarter to $149.4 million.
• The company has $1.7 billion available under its committed revolving credit agreement as of October 3, 2026.
• A conference call to discuss results was scheduled for October 29, 2026, at 9 a.m. Eastern Time.