The company has taken steps to sharpen its portfolio and focus on its core strengths. Recently, Darling signed a definitive agreement with Tessenderlo Group to form a global collagen and gelatin joint venture, with Darling holding an 85% stake, focusing on combining both companies' collagen and gelatin businesses to target a broader global customer base. Darling positions itself as a leader in circular economy practices, converting waste streams into high-value sustainable ingredients.
Cyborg Score Rationale
Q4 2025 delivered strong revenue growth with total net sales reaching $1,709.8 million (20.6% increase YoY) and gross margin improving to 25.1% from 23.5%. However, net income for 2025 plummeted 77.5% to $62.8 million with diluted EPS dropping to $0.39 from $1.73 in 2024. Strong operational execution in core business offset by renewable fuel segment headwinds.
Top Insights
Revenue strength continues but profit pressures persist, particularly in renewable diesel with unfavorable inventory adjustments impacting Q4 results.
Positive global demand trends across the business provide an encouraging outlook for 2026.
Strategic portfolio realignment resulted in $58.0 million restructuring charges primarily from Enviroflight and CTH natural casing businesses.
Darling was identified as stalking horse bidder for three high-quality rendering facilities from Potense Group in Brazil (the second-largest rendering company), offering important synergies with existing network.
Named Competitors
Bunge Global — Agricultural commodity and food ingredient processor
Archer Daniels Midland (ADM) — Diversified food and agricultural ingredient company
Soy Energy — Global animal nutrition and rendering services
Enviroflight — Insect-based protein and feed ingredient alternative (divested by DAR)
Recent Developments
(February 2026) Q4 2025 earnings reported with 20.6% revenue growth to $1.7B and $336.1M adjusted EBITDA; net income declined to $56.9M due to $58M restructuring charges
(January 2026) Joint venture announced with Tessenderlo Group for global collagen and gelatin business; Darling holding 85% stake with broad customer base focus
(January 2026) Strategic bidding for three Brazilian rendering facilities from Potense Group bankruptcy to expand South American operations and leverage synergies