Darling Ingredients Q3 profit surges

Overview

• US animal by-products processor's Q3 net sales rose yr/yr, net income increased sharply

• Combined adjusted EBITDA for Q3 more than doubled from prior year

• Company reduced net debt by $420 mln and repurchased $75.9 mln in stock

Outlook

• Company reaffirms 2026 Combined Adjusted EBITDA guidance of $2.2-$2.3 bln

• Capital expenditures estimated at $450 mln for fiscal year 2026

Result Drivers

• DIAMOND GREEN DIESEL - Co attributed strong cash flow and earnings to substantial cash distributions and higher equity income from Diamond Green Diesel joint venture

• CORE BUSINESS PERFORMANCE - Co said its core business delivered "exceptional performance" in Q3, supporting higher net sales and cash flow

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy"

• Wall Street's median 12-month price target for Darling Ingredients Inc. is $80.00, about 43.7% above its October 27 closing price of $55.67

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Oct 28 - Wilmar's quarterly profit drops, tough operating environment to persist

• Oct 27 - WH Group's nine-month revenue rises 0.6%, profit drops 12.9%

• Oct 26 - Steelmaker Gerdau's profit rises 40% in Q3 on strong North America operations

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)