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# Darling Ingredients Earns $267.0 Million In Third Quarter As Diamond Green Diesel Flips To Profit
- URL: https://www.bullished.co/darling-ingredients-earns-267-0-million-in-third-quarter-as-diamond-green-diesel-flips-to-64133235/
- Published: 2026-10-28T20:51:06.000Z
- Updated: 2026-10-28T20:51:06.000Z
- Description: The company cut net debt by about $420 million, bought back $75.9 million of stock and reaffirmed its $2.2 billion to $2.3 billion full-year outlook.
- Author: Matteo Parrino
- Tags: Earnings, DAR, Industry: Consumer Staples

[Darling Ingredients](https://www.bullished.co/tag/dar/), which turns animal by-products, used cooking oil and bakery leftovers into ingredients and fuel feedstocks, reported third-quarter net income of [$267.0 million, or $1.67 a diluted share](https://www.sec.gov/Archives/edgar/data/0000916540/000091654026000027/exh991-pressreleaseq32026.htm?ref=bullished.co), up from $19.4 million, or $0.12, a year earlier. The swing came mostly from its Diamond Green Diesel venture, which went from a loss to a profit, the company said Wednesday.

## A $211 million swing at the diesel venture

Darling's equity income from Diamond Green Diesel, its renewable diesel joint venture with Valero Energy, was $165.6 million, against a $45.8 million loss in the third quarter of 2025\. Darling's 50% share of the venture's adjusted EBITDA was $204.2 million, versus a negative $2.9 million a year ago.

Combined Adjusted EBITDA, the company's adjusted operating-profit measure that includes the venture's share, was [$514.3 million](https://finance.yahoo.com/markets/stocks/articles/darling-ingredients-inc-reports-third-203500205.html?ref=bullished.co), up from $244.9 million. Net sales rose to $1.8 billion from $1.6 billion.

The core segments also grew. Feed Ingredients adjusted EBITDA reached $247.7 million from $174.0 million, and Food Ingredients edged up to $73.8 million from $71.6 million, according to the [earnings presentation](https://www.sec.gov/Archives/edgar/data/0000916540/000091654026000027/dar3q2026earnings.htm?ref=bullished.co). For the first nine months, net income was $788.6 million, against $5.9 million a year earlier.

The venture sold or shipped [314.9 million gallons](https://finance.yahoo.com/markets/stocks/articles/darling-ingredients-inc-reports-third-203500205.html?ref=bullished.co) of renewable fuels in the quarter, at adjusted EBITDA of $1.30 a gallon.

## Cash in, debt down, shares bought

Darling received $171.0 million from the venture, made up of $33.4 million in dividends and $137.6 million from production tax credit sales. Net debt fell by about $420 million to $3.4 billion on Oct. 3, with total debt at $3.5 billion and $1.7 billion available on its revolving credit line.

The company repurchased $75.9 million of its stock in the quarter, bringing buybacks through the third quarter to $149.4 million. Its preliminary bank-covenant leverage ratio was 1.7X.

Chairman and CEO Randall C. Stuewe said the core business delivered "another quarter of exceptional performance."

## Guidance holds at $2.2 billion to $2.3 billion

Darling reaffirmed 2026 Combined Adjusted EBITDA guidance of $2.2 billion to $2.3 billion. It expects to finish the year with net debt at or below $3.0 billion and leverage below 1.5X, and puts 2026 capital spending at about $450.0 million.

For the fourth quarter, the presentation estimates diesel venture production of about 325 million gallons. It says third-quarter results were held back by the timing of a sustainable aviation fuel shipment and a short hydrogen outage, effects expected to reverse.

Darling holds its earnings call Thursday at 9 a.m. Eastern.

The Thursday call is the first chance to hear management explain how the venture's margins hold into the fourth quarter.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — DARLING INGREDIENTS INC. (DAR)](https://www.sec.gov/Archives/edgar/data/0000916540/000091654026000027/dar-20261028.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit exh991-pressreleaseq32026.htm — DARLING INGREDIENTS INC. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000916540/000091654026000027/exh991-pressreleaseq32026.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit dar3q2026earnings.htm — DARLING INGREDIENTS INC. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000916540/000091654026000027/dar3q2026earnings.htm?ref=bullished.co) — SEC EDGAR
- [Darling Ingredients Inc. Reports Third Quarter 2026 Results](https://finance.yahoo.com/markets/stocks/articles/darling-ingredients-inc-reports-third-203500205.html?ref=bullished.co) — Yahoo Finance

### More on Darling Ingredients

- [Darling Ingredients Guides 2026 Combined Adjusted EBITDA To $2.2-$2.3 Billion, Blames Timing For Diamond Green Diesel Quarter](https://www.bullished.co/darling-ingredients-guides-2026-combined-adjusted-ebitda-to-2-2-2-3-billion-blames-timing-163fe459/)

[All Darling Ingredients (DAR) coverage →](https://www.bullished.co/tag/dar/)