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Darling Ingredients Q3 profit surges

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$1.67


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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