Darling Ingredients Guides 2026 Combined Adjusted EBITDA To $2.2-$2.3 Billion, Blames Timing For Diamond Green Diesel Quarter
CEO Randall Stuewe says timing of renewable diesel sales held back the venture's third quarter and should help the fourth.
Darling Ingredients gave fiscal 2026 guidance of $2.2-$2.3 billion in Combined Adjusted EBITDA, an adjusted profit measure that adds its share of Diamond Green Diesel to its other operations. The figure came in a press release furnished with an 8-K filed Thursday, ahead of the company's full third-quarter results.
What the release says
Diamond Green Diesel (DGD) is a 50/50 joint venture with Valero Energy. Darling said the venture's third-quarter operating income was $347.8 million, against a $70.0 million loss a year earlier, according to the press release tables.
Darling's 50% share of DGD adjusted EBITDA was $204.2 million for the quarter, versus a $2.9 million loss a year earlier. For the first nine months of 2026 it was $744.6 million, versus $45.8 million.
DGD sold or shipped 314.9 million gallons of renewable fuels in the quarter and 936.1 million for the nine months. By Darling's own stand-alone calculation, adjusted EBITDA per gallon was $1.30 for the quarter and $1.59 for the nine months.
DGD's operating revenues were $2.39 billion in the quarter, versus $1.20 billion a year earlier. Valero, the venture's partner, reported roughly $350 million of operating income for its renewable diesel segment in the quarter.
Timing, and the fourth quarter
Chairman and CEO Randall C. Stuewe called it "a solid quarter." He said results were affected by "the timing of renewable diesel sales and certain commercial activities," and that Darling expects those differences "to benefit fourth-quarter results."
Stuewe also said the company has "strong momentum into fourth quarter" and expects it to continue into 2027. The company did not provide a reconciliation of the forward guidance to net income, saying some inputs cannot be reasonably predicted.
What to watch
Darling will release full third-quarter results after the market closes Wednesday, Oct. 28. A call follows at 9 a.m. Eastern on Thursday, Oct. 29.
Full third-quarter results on Oct. 28 will show whether the $2.2-$2.3 billion range holds against Darling's non-DGD operations.
