The company reported strong Q2 performance driven by higher fat and protein prices, biofuel demand, and margin expansion in collagen.
Darling Ingredients posted a sharp Q2 EBITDA increase, fueled by a rally in fat and protein markets and robust biofuel demand. The Feed Ingredients segment saw tighter fish meal supplies and improved gross margins, while Diamond Green Diesel captured $2.23 EBITDA per gallon despite volatility.
Management highlighted operational improvements, including contract optimization, which are expected to deliver $150 million to $300 million in additional EBITDA over three years. The Food segment is shifting toward higher-margin collagen, now generating 2.5x to 3x the margin of gelatin.
For Q3, the company projects Core Ingredients EBITDA between $325 million and $340 million, excluding one-time tariff recoveries. Net debt is expected to fall below $3 billion by year-end 2026.