What is the market's earnings forecast for Darling Ingredients next quarter?

What does Darling Ingredients do and what are its main business segments?

Did Darling Ingredients beat or miss consensus estimates last quarter?

What factors drove the changes in Darling Ingredients's revenue and profit?

What is Darling Ingredients's gross profit margin?

What were the key takeaways from Darling Ingredients’s earnings call?

What guidance did Darling Ingredients's management provide for the next earnings period?

What is the revenue and EPS growth rate for Darling Ingredients year over year?

- **Core Business Strength**: Feed segment EBITDA up 31% YoY to $174 million, driven by global fat and protein demand.
- **DGD Challenges**: Q3 DGD EBITDA negative $3 million due to $38 million LIFO/LCM losses, but Q4 margins improving with higher RINs.
- **Policy Impact**: EPA expected to finalize 2026-2027 RVO by end-2025, with 50% SRE reallocation potentially boosting U.S. biofuel demand.
- **Debt Reduction**: Targeting $3.5 billion debt by year-end, with $200 million+ PTC sales in Q4 and 2.5x leverage target.
- **2026 Outlook**: Optimism around SAF sales, core ingredients momentum, and potential RIN price recovery post-policy clarity.

**【CEO Summary Section】**
- Highlighted core ingredients business strength with EBITDA of $248 million, driven by global demand for fats and proteins, particularly in Brazil, Canada, and Europe.
- Noted challenges in the renewables segment, with DGD reporting negative $3 million EBITDA due to higher feedstock costs, lower RINs, and LCFS pricing.
- Emphasized confidence in long-term growth despite short-term policy delays, including the impact of U.S. biofuel policies on DGD's margins.

**【CFO Financial Commentary】**
- Total net sales of $1.6 billion, up 14% YoY, with gross margin improving to 24.7% from 22.1%.
- Feed segment EBITDA of $174 million (vs. $132 million YoY), driven by higher fat and protein prices.
- Food segment EBITDA of $72 million (vs. $57 million YoY), supported by strong raw material sourcing.
- DGD challenges included $38 million in LIFO and LCM losses, and a 30-day turnaround at DGD3 reducing production.
- Total debt of $4.01 billion, with plans to reduce leverage to 2.5x through core business cash flow and PTC monetization.

**【Q&A Key Highlights】**
- **Policy Clarity**: CFO expects EPA to finalize RVO for 2026-2027 by end-2025, with potential 50% SRE reallocation impacting feedstock demand.
- **DGD Margins**: Q4 DGD margins improved due to higher RINs and reduced LCM impacts, but 2026 outlook hinges on policy resolution.
- **Debt Reduction**: Company aims to reduce debt to $3.5 billion by year-end, with $200 million+ PTC sales expected in Q4.
- **Feedstock Mix**: DGD remains reliant on Darling's UCO and yellow grease, with limited soybean oil usage due to PTC and tariff dynamics.
- **SAF Sales**: SAF production at full capacity, with contracts already secured for 2026, offsetting European import tariffs.


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