GET DAILY SIGNALSDarling Ingredients (DAR) Posts Strong Q3 Results Driven by Ingredients and Renewable Fuels
Key Takeaways
- Net income attributable to Darling Ingredients reached $267.0 million, or $1.67 per diluted share, up from $19.4 million, or $0.12 per share, a year earlier.
- Total net sales rose 14.5% year over year to $1.79 billion, driven by strength in feed and food ingredients.
- Combined Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) more than doubled to $514.3 million, up from $244.9 million in the prior-year quarter.
- The company reduced net debt by roughly $420 million during the quarter, improving its leverage ratio to about 1.7x.
- Management reaffirmed full-year 2026 Combined Adjusted EBITDA guidance of $2.2 billion to $2.3 billion.
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Why These Results Matter in Context
Darling Ingredients converts animal by-products and used cooking oil into feed, food, and renewable fuel products on a global scale. Its performance matters because the business touches both the food supply chain and the renewable energy shift through its 50/50 joint venture, Diamond Green Diesel. The third quarter tested whether the multi-year turnaround, marked by deleveraging and better renewable diesel economics, could continue. After solid first- and second-quarter numbers, the focus was on whether ingredient margins and cash flow from the joint venture would hold amid commodity swings and policy shifts. The results gave a clear picture of both balance-sheet progress and operational trends.
Breaking Down the Quarter’s Numbers
For the third quarter ended October 3, 2026, Darling Ingredients posted net income attributable to the company of $267.0 million, or $1.67 per diluted share, versus $19.4 million, or $0.12 per share, in the year-ago period. That $1.67 per share beat the consensus estimate of $1.64. Total net sales reached $1.79 billion, a 14.5% increase from $1.56 billion a year earlier and roughly in line with expectations. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Combined Adjusted EBITDA rose to $514.3 million from $244.9 million a year ago. Global Ingredients Adjusted EBITDA climbed 25.1% to $310.1 million, while the company’s share of DGD Adjusted EBITDA moved to $204.2 million from a loss of $2.9 million. DGD sold 314.9 million gallons of renewable fuels at $1.30 per gallon of Adjusted EBITDA. The company received $171 million in cash from DGD, bought back $75.9 million of common stock, and kept its full-year 2026 Combined Adjusted EBITDA target of $2.2 billion to $2.3 billion intact.
Market Reaction and Investor Views
Shares of Darling Ingredients have risen roughly 55% year-to-date, showing confidence in the earnings recovery and debt reduction. The stock’s initial reaction to the release was measured, as investors balanced the bottom-line beat against some short-term noise at DGD, including a hydrogen outage, sustainable aviation fuel shipment timing, and hedging effects. Management described these as one-time items likely to reverse in the fourth quarter. Overall sentiment stays positive, supported by strong cash flow, a much-improved balance sheet, and reaffirmed guidance, even as commodity volatility and biofuel policy remain factors to watch.
Forward Outlook and Items to Follow
Management sees a steadier fourth-quarter environment, with wider replacement margins, a lower RIN price that reduces margin risk, and higher diesel futures that lower the chance of big hedge losses. Several timing issues from the third quarter are expected to turn around and support stronger results ahead. Investors will want to track DGD cash distributions, including production tax credit monetizations that have helped the deleveraging effort. The company reaffirmed its aim to bring net debt to $3 billion or below by year-end, and continued progress here will be telling. Global fat prices, protein demand, and the easing of tariff issues in Canadian and Brazilian markets will influence the core ingredients side. On policy, the company expects the EPA to finish supplemental rulings before the next phase of renewable fuel standards and remains optimistic about the coming cycle. Growth in the Nextida collagen portfolio and the planned Tessenderlo joint venture close in the first quarter of 2027 are additional points to monitor.
Using Tickeron’s AI Tools for Research
In my own work I occasionally turn to Tickeron’s AI Screener when I want to quickly filter names in the ingredients and renewable fuels space by fundamentals, technical patterns, and performance metrics. It helps surface comparable ideas and keep an eye on shifting conditions without spending hours on manual screens. The tool has become a regular part of how I cross-check peer data and monitor sector trends around names like DAR.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
DAR sees MACD Histogram just turned negative
DAR saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 19, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 45 instances where the indicator turned negative. In 37 of the 45 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 82%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 15, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DAR as a result. In 60 of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 75%.
The 10-day moving average for DAR crossed bearishly below the 50-day moving average on September 28, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 65%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DAR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 75%.
The Aroon Indicator for DAR entered a downward trend on October 27, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where DAR's RSI Indicator exited the oversold zone, 28 of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 82%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +2.73% 3-day Advance, the price is estimated to grow further. Considering data from situations where DAR advanced for three days, in 220 of 301 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
DAR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 54 (best 1 - 100 worst), indicating steady price growth. DAR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 64 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.668) is normal, around the industry mean (1.736). P/E Ratio (14.672) is within average values for comparable stocks, (6.461). Projected Growth (PEG Ratio) (1.220) is also within normal values, averaging (8.458). Dividend Yield (0.000) settles around the average of (0.056) among similar stocks. P/S Ratio (1.615) is also within normal values, averaging (4.925).
The Tickeron PE Growth Rating for this company is 95 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DAR’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
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General Information
a company which recycles and process meat by-products
Industry FoodMajorDiversified
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