Darling Ingredients Q2 sales slightly miss estimates

Overview

• Animal-based ingredients producer's Q2 sales rose but slightly missed analyst expectations

• Q2 net income surged to $387.3 mln from $12.7 mln a year ago

• Company repurchased $73 mln in stock and reduced net debt by $223 mln in Q2

Outlook

• Company estimates Q3 2026 core ingredients Adjusted EBITDA at $325-340 mln

• Darling Ingredients expects to end 2026 with net debt at or below $3 bln

• Company says business fundamentals remain strong and expects continued earnings growth in 2026-2027

Result Drivers

• OPERATIONAL EXECUTION - Co said strong operational execution and margin management supported Q2 performance

• DGD CONTRIBUTIONS - Cash distributions and earnings from Diamond Green Diesel joint venture boosted results

Company press release: ID:nBw8lJw3va

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $78.00, about 33.1% above its July 29 closing price of $58.62

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

• July 29 - EPA weighs RFS deadline extension amid high renewable credit costs, sources say

• July 29 - Bunge posts Q2 earnings beat on strong crush margins, raises 2026 outlook

• July 29 - Pilgrims Pride Q2 sales fall on softer chicken demand

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.)