Darling Ingredients Highlights Sequential Earnings Recovery in DGD Joint Venture—Adjusted EBITDA per Gallon Shows Significant Fourth-Quarter Upswing
Fourth-Quarter Results Point to Sequential Strength for Darling Ingredients
Darling Ingredients (NYSE: DAR) reported that its Diamond Green Diesel (DGD) joint venture delivered a strong sequential performance in the final quarter of 2025, marking a notable shift after a challenging year. According to its partner’s latest consolidated results, DGD generated $92 million in operating income for Q4, despite carrying a $24 million unfavorable inventory valuation adjustment. This directly contributed to Darling’s share of DGD’s Adjusted EBITDA reaching $58 million in the quarter, equating to $0.41 per gallon of renewable fuel shipped.
Yearly Overview: Challenges Persist but Core Metrics Signal Improving Operations
For the twelve months ending December 31, 2025, DGD’s net loss totaled $68 million, reflective of ongoing headwinds in pricing and valuation adjustments. Yet, on the operational side, DGD shipped 1.003 billion gallons for the year and Darling’s share of Adjusted EBITDA was $104 million, or $0.21 per gallon. Significantly, the fourth-quarter performance represented an over 95% jump in Adjusted EBITDA per gallon versus the full-year average—indicating operational improvements and beneficial pricing dynamics late in the year.
| Period | DGD Net Income / (Loss) ($M) | Gallons Shipped (M) | Darling's Share of DGD Adj. EBITDA ($M) | Adj. EBITDA per Gallon ($) |
|---|---|---|---|---|
| Q4 2025 | 55.08 | 285.30 | 58.00 | 0.41 |
| Full Year 2025 | (68.46) | 1,003.00 | 104.00 | 0.21 |
Management Expects Ongoing Momentum; Upcoming Earnings Call Set
Randall C. Stuewe, CEO, noted both the DGD joint venture and the core ingredients business improved sequentially in Q4, outpacing earlier outlooks and setting up for a more constructive 2026. The company plans to release its full Q4 and FY2025 earnings after market close on February 11, 2026, with a conference call scheduled for 9 a.m. ET on February 12.
Key Takeaway for Investors: Operational Improvement and Lower Costs Support a Brighter Outlook
The sharp jump in quarterly Adjusted EBITDA per gallon, even as annual metrics remain subdued, provides an early signal of improving cost structures and a possible turnaround in the renewable diesel market environment. With Q4 Adjusted EBITDA per gallon nearly doubling the annual average, investors will be watching for confirmation of these trends in management’s upcoming detailed earnings commentary. The company’s ability to sell over a billion gallons of renewable fuel despite the net loss underscores the scale and underlying demand resilience in DGD’s business model.
Looking Ahead: Details on Upcoming Earnings Call
Earnings Release: February 11, 2026 (after market close)
Conference Call: February 12, 2026, at 9 a.m. Eastern Time
Registrations for audio and Q&A lines via darlingii.com/investors.
Replay and transcript will be available within 24 hours after the event.
For those tracking renewable energy and ingredient markets, Darling’s upcoming commentary on margin expansion, Section 45Z tax credits, and demand dynamics will be key areas to watch.
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