Darling Ingredients Inc. (DAR) SEC Filings & Earnings Calls

DGD results impacted by timing of sales and commercial activities; Q4 expected to benefit but uncertainty remains.

“results were impacted by the timing of renewable diesel sales and certain commercial activities, we expect those timing differences to benefit fourth-quarter results.” · word for word

Guidance is for Combined Adjusted EBITDA, a non-GAAP measure; actual results may differ due to various factors.

“Cautionary Statements Regarding Forward-Looking Information...” · word for word

Dependence on Government Energy Policies

“Sales prices for the principal products that DGD sells are typically influenced by the demand and pricing of renewable diesel, which is dependent on governmental energy policies and programs and impacted by the value of RINs and LCFS credits stemming from certain such governmental energy policies and programs.” · word for word

Multiemployer Pension Plan Withdrawal Liability

“Based on the most currently available information, the Company has determined that, if a withdrawal were to occur, withdrawal liabilities for two of the U.S. plans in which the Company currently participates could be material to the Company.” · word for word

Share repurchase program may be modified, suspended, or discontinued at any time, subject to market conditions.

“Repurchase authorization may be modified, suspended, or discontinued at any time.” · word for word

Dependence on DGD joint venture for significant portion of earnings; regulatory changes could impact.

“DGD contributed $350M equity income; $280M cash distributions.”

Leverage still elevated at 2.3x; target below 2x by year-end.

“Preliminary leverage ratio 2.3X; expects net debt at or below $3B by year-end.”

Commodity price volatility

“Although the costs of raw materials for the Feed Ingredients segment are generally based upon actual or anticipated finished goods selling prices, rapid and material changes in finished goods prices, including competing agricultural-based alternative ingredients, generally have an immediate, and often times, material impact on the Company’s gross margin and ” · word for word

Dependence on DGD Joint Venture

“The DGD Joint Venture currently operates two renewable diesel plants... In 2025, DGD was Darling’s largest finished product customer in terms of total net sales, with Darling recording sales of approximately $1.2 billion to DGD or 20% of total net sales.” · word for word

Policy and regulatory risk for biofuels

“Changes to government policies around the world relating to renewable fuels and GHG emissions that adversely affect prices, margins or markets (including for the DGD Joint Venture), including programs like renewable fuel standards, LCFS, renewable fuel mandates and tax credits for biofuels or loss or diminishment of tax credits due to failure to satisfy any ” · word for word

Foreign exchange risk

“Using actual results for the three months ended April 4, 2026 and using the prior year's average currency rate for the three months ended March 29, 2025, foreign currency translation would result in a decrease in operating income of approximately $14.4 million.” · word for word

High leverage ratio of 3.17x and total debt of $4.1B remain elevated, though improving.

“Total debt outstanding as of April 4, 2026, was $4.1 billion. The preliminary leverage ratio as measured by the company’s bank covenant was 3.17X.” · word for word

Commodity Price Deflation Risk

“deflationary cycles within the global commodity markets or regulatory uncertainty around energy policies and programs can have a significant impact on the price of our common stock, as it did in 2025.” · word for word

Biofuel Policy Dependency

“margins for the renewable diesel and SAF produced by DGD are dependent on governmental energy policies and programs which impact the demand for and price of such products.” · word for word

CEO Succession Risk

“The Board believes that one of its primary responsibilities is to oversee the development and retention of senior talent and to ensure that an appropriate succession plan is in place for our CEO and other members of senior management.” · word for word

Goodwill impairment risk

“As of January 3, 2026, the Company had approximately $2.5 billion of goodwill.” · word for word

Currency fluctuation impact on debt

“Using the euro based debt outstanding at January 3, 2026 and comparing the closing balance sheet rates at January 3, 2026 to those at December 28, 2024, the U.S. dollar debt balances of euro based debt increased by $117.4 million” · word for word

Regulatory compliance costs

“Compliance with CSRD, CSDDD, California’s SB 261 and SB 253, and other proposed or adopted legislative and regulatory requirements related to sustainability issues may require expenditures that could materially adversely affect our business, results of operations and financial condition.” · word for word

DGD profitability decline and restructuring charges

“DGD EBITDA per gallon dropped to $0.21 for FY2025; $58M restructuring charges.”

Significant deterioration in renewable diesel JV profitability due to lower margins and inventory adjustments.

“DGD FY2025 net loss of $68M vs $298M profit; operating loss of $30M vs $315M profit; Darling's share of Adjusted EBITDA fell 64%.”

Dependence on Section 45Z Production Tax Credits for JV profitability.

“Darling's share of DGD Adjusted EBITDA includes discounts recorded on the sale and prospective sale of Section 45Z Production Tax Credits.” · word for word

Regulatory approvals required; transaction expected to close in 2026.

“Pending regulatory approvals, the transaction is expected to close in 2026.” · word for word

Integration and synergy realization risks.

“Over time, the integration of the two companies provides significant opportunities to realize synergies and develop the Nextida portfolio of products.” · word for word

Key executive retirement with extended transition; potential loss of institutional knowledge

“John F. Sterling, EVP, General Counsel and Secretary, retiring after long tenure; advisory role until Mar 31, 2027”

Biofuel policy dependency

“Sales prices for the principal products that DGD sells are typically influenced by the demand and pricing of renewable diesel, which is dependent on governmental energy policies and programs and impacted by the value of RINs and LCFS credits.” · word for word

Commodity price volatility

“Any decline in these prices has the potential to adversely impact the Company’s liquidity.” · word for word

Multiemployer pension withdrawal liability

“As of September 27, 2025, the Company has an aggregate accrued liability of approximately $4.1 million representing the present value of scheduled withdrawal liability payments on the multiemployer plans that have given notice of withdrawal.” · word for word