DAR · Darling Ingredients Inc.

Darling Ingredients delivered strong Q1 2026 results with net income of $134.3 million and diluted EPS of $0.83, a dramatic turnaround from the Q1 2025 net loss of $26.2 million. Total net sales rose 12.3% to $1.55 billion, driven by increases across all segments: Feed Ingredients sales up to $985.3 million, Food Ingredients to $405.2 million, and Fuel Ingredients to $160.3 million. Gross margin expanded significantly to 26.1% from 22.6%, reflecting improved pricing, product mix, and operational execution as noted by CEO Randall C. Stuewe, who highlighted 'disciplined risk management and market execution' creating an 'inflection point' in earning power. Combined Adjusted EBITDA more than doubled to $406.8 million, with standout Fuel segment performance including Darling's 50% share of DGD's $151.2 million Adjusted EBITDA after selling 272.4 million gallons of renewable fuels at $1.11 per gallon EBITDA, aided by a $48.4 million favorable LCM adjustment. Feed and Food segments also advanced, with Adjusted EBITDA of $168.7 million and $80.8 million respectively. Balance sheet remains solid with $116 million cash, $1.1 billion revolver availability, and 3.17x leverage despite $4.1 billion debt. Liquidity boosted by $45 million PTC monetization supports deleveraging. Capex of $94.8 million aligns with full-year estimate of $400 million. Guidance focuses on core ingredients business (ex-DGD) at $260-275 million Adjusted EBITDA for Q2, signaling confidence amid volatile renewable fuel markets. Conference call scheduled for April 30, 2026, at 9 a.m. ET with slides in Exhibit 99.2.