Research · Sep 3, 2026
[DAR] Darling Ingredients Thesis 2026: Rendering Cycle Drives DGD Renewable Diesel Capital Return
Darling Ingredients Inc. (NYSE: DAR) FY2025 revenue ~$5.50-5.80B (-3 to +1%) with adj. EPS ~$1.45-1.75 reflecting continued post-2024 ~$3.90-4.05B aggregate Feed Ingredients revenue (~71%+ aggregate revenue mix; selected primary US + Global rendering + Bakery Feeds + selected various aggregate Hydrolyzed Proteins + selected various aggregate Used Cooking Oil collection) + selected continued post-2024 ~$1.35-1.45B aggregate Food Ingredients revenue (~25% aggregate revenue mix; selected primary Rousselot gelatin + selected various aggregate Sobel + Peptan + Specialty) + selected continued post-2024 ~$240-310M aggregate Fuel Ingredients revenue (~4-5% aggregate revenue mix; selected primary Diamond Green Diesel (DGD) JV with Valero Energy 50/50 ownership) under continued President + CEO Randall Stuewe since 2003 (~22-year tenure as Darling Ingredients CEO). One of the largest US + global rendering + bioenergy + Food Ingredients companies. Founded 1882 as Darling & Company in Chicago Illinois (~143-year heritage); selected post-2010 Darling Ingredients NYSE re-listing; selected post-2014 Vion + Sonac acquisition; selected post-2020 DGD JV with Valero Energy 50/50 expansion; selected post-2022 Valley Proteins + Gelnex acquisition; selected post-2003 Randall Stuewe CEO appointment. Headquartered in Irving Texas; ~14,000+ employees globally with ~$5.50-5.80B revenue. Three primary business segments: Feed Ingredients (~71%+ ~$3.90-4.05B), Food Ingredients (~25% ~$1.35-1.45B), Fuel Ingredients (~4-5% ~$240-310M). Geographic mix: US ~50%+ + Europe + Latin America + Asia Pacific + selected various international ~50%. Rendering cycle (Feed Ingredients + Used Cooking Oil): ~$3.90-4.05B Feed Ingredients revenue; ~250+ aggregate global rendering facilities; ~15-18M tons aggregate annual rendering volume; ~$300-400/ton aggregate average rendering price. DGD Renewable Diesel JV (50/50 with Valero): ~$240-310M Fuel Ingredients revenue; ~$1.5-1.8B aggregate DGD pre-tax EBITDA; ~$750M-900M aggregate Darling share; ~1.2B+ aggregate annual gallon renewable diesel + SAF capacity. President + CEO Randall Stuewe since 2003 (~22-year tenure); CFO Brad Phillips. Capital return: ~$0 dividend (no dividend track post-2010 NYSE listing); ~$200-400M aggregate FY2024-2025 buyback program (~$100-200M aggregate FY2025); aggregate capital return ~$100-200M FY2025; net leverage ratio ~3.0-3.5x; non-investment grade Ba1/BB+ credit rating. FY2026 thesis: Rendering cycle + DGD Renewable Diesel JV + Food Ingredients + ~$100-200M aggregate annual buybacks + selected projected post-2026 deleveraging trajectory. Risks: JBS USA + Tyson Foods + Cargill rendering competition, Phillips 66 + Marathon Petroleum + Neste + REG renewable diesel competition, Used Cooking Oil pricing cycle, RINs + LCFS + Blender's Tax Credit → 45Z Production Tax Credit transition, sustained ~3.0-3.5x net leverage.