Are Darling Ingredients' (DAR) Core Ingredient Gains Offsetting Renewables Headwinds for Investors?

• Darling Ingredients Inc. recently reported third-quarter 2025 results, revealing sales of US$1,563.97 million and net income of US$19.36 million, with both figures higher than the same period last year.
• The company’s core ingredients business posted its strongest performance in 18 months, helping to counterbalance challenges in the renewables segment from increased feedstock costs and weaker pricing.
• We'll explore how the robust performance of Darling Ingredients' core ingredients segment influences its broader investment narrative and future outlook.

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Darling Ingredients Investment Narrative Recap

To be a shareholder in Darling Ingredients, you need to believe that its diversification and operational execution can consistently offset cycles in renewables. The latest earnings report provided a welcome rebound in the core ingredients segment, but ongoing softness in renewables and persistent feedstock cost pressures mean the most important catalyst remains improvement in renewable fuel margins, while the biggest risk continues to be margin instability in that segment. This news does not materially change the short-term picture, but it reinforces those themes.

Of the company's recent announcements, the June 2025 refinancing of €750 million in unsecured senior notes stands out as most relevant to this news, as it directly supports Darling’s ongoing operational flexibility during periods of segment volatility. The access to committed capital could become essential if volatile feedstock costs and compressed renewable margins persist, potentially making the difference between balance sheet stability and strained growth.

In contrast, investors should be aware of the potential for higher procurement costs to squeeze future margins if feedstock price inflation continues to outpace product sales growth...

Read the full narrative on Darling Ingredients (it's free!)

Darling Ingredients is expected to reach $6.5 billion in revenue and $673.1 million in earnings by 2028. This outlook requires a 4.3% annual revenue growth rate and a $567.7 million increase in earnings from the current level of $105.4 million.

Uncover how Darling Ingredients' forecasts yield a $46.17 fair value, a 33% upside to its current price.

Exploring Other Perspectives

Fair value estimates from two Simply Wall St Community members span a wide US$46.17 to US$63.40 range. While many see catalyst potential in regulatory clarity and rising biofuel mandates, others point to ongoing margin weakness as a critical concern that could influence the company’s forward progress. Explore more community viewpoints to broaden your perspective.

Explore 2 other fair value estimates on Darling Ingredients - why the stock might be worth just $46.17!

Build Your Own Darling Ingredients Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Darling Ingredients research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Darling Ingredients research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Darling Ingredients' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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