Darling Ingredients Inc

Darling Ingredients Inc (DAR) was a bottom contributor in the second quarter after being a top contributor during the first, up nearly 65% through March 31. DAR is the largest publicly traded company turning edible by-products into sustainable products and a leading producer of renewable energy. The modest decline in the share price in Q2 largely reflected the pending resolution(s) of the Iran military conflict, which brought nonrenewable fuel prices down meaningfully. That said, the DAR volume picture for the year is not impacted meaningfully by exogenous factors like the price of oil and is rather determined by the minimum volume requirements from the RVO and the growth of DAR's other business lines. We remain optimistic on DAR's business prospects and believe shares remain underpriced relative to both the near-term and long-term earnings power of the company.

Darling Ingredients Inc (DAR) is the largest publicly traded company turning edible by-products into sustainable products and a leading producer of renewable energy. The company's fundamentally improved earnings trajectory, driven by robust EPA mandates on renewable fuel volumes, remains intact. Despite a modest decline in share price due to external factors like the Iran military conflict affecting nonrenewable fuel prices, DAR's volume picture is primarily determined by minimum volume requirements from the RVO and growth in other business lines. We remain optimistic on DAR's business prospects and believe shares remain underpriced relative to both the near-term and long-term earnings power of the company.

Darling Ingredients Inc is the global leader in rendering animal byproducts and used cooking oil into fats and proteins for various end uses, including animal feed and renewable diesel through a joint venture with Valero called Diamond Green Diesel (DGD). The company reported stronger than expected first quarter 2026 results, driven by better performance in the core Feed and Food segments, as well as stronger margins at DGD. With finalized government mandates supporting margins and higher Feed prices, Darling is well-positioned for significantly improved profitability, especially as end markets benefit from higher prices due to recent geopolitical conflicts.

Darling Ingredients Inc (DAR) was a bottom contributor in the Small Cap strategy during the second quarter after being a top contributor during the first, up nearly 65% through March 31. DAR is the largest publicly traded company turning edible by-products into sustainable products and a leading producer of renewable energy. The business is performing well, and the fundamentally improved earnings trajectory following the robust EPA mandates on renewable fuel volumes remains intact. We remain optimistic on DAR's business prospects and believe shares remain underpriced relative to both the near-term and long-term earnings power of the company.

Darling Ingredients Inc (DAR) was a top contributor in the Small Cap strategy in the first quarter. DAR is the largest publicly traded company turning edible by-products into sustainable products and a leading producer of renewable energy. We anticipated a favorable regulatory environment, particularly around renewable fuels in the Diamond Green Diesel Joint Venture (DGD), to benefit DAR in 2026. Favorable EPA mandates on renewable fuel volumes were published in late March, which will benefit DGD’s earnings growth for the next couple of years. Outside of the Fuel category, DAR is positioned to generate strong growth in earnings across both of its Feed and Food segments.

Darling Ingredients Inc. is the global leader in rendering animal byproducts and used cooking oil into fats and proteins for various end uses, including animal feed and renewable diesel. The company reported better than expected fourth quarter 2025 results, driven by strong pricing and demand in the feed and food ingredients segments. Increased energy prices have also benefitted the renewable diesel segment, particularly through its joint venture with Valero, Diamond Green Diesel. The announcement of increased mandatory minimums for renewable fuels by the White House and EPA is expected to drive strong demand and higher margins through the rest of 2026.

Darling Ingredients Inc (DAR) is the largest publicly traded company turning edible by-products into sustainable products and a leading producer of renewable energy. We anticipate a favorable regulatory environment, particularly around renewable fuels in the Diamond Green Diesel Joint Venture (DGD), to benefit DAR in 2026. Favorable EPA mandates on renewable fuel volumes published in late March will enhance DGD’s earnings growth for the next couple of years. DAR is positioned to generate strong growth in earnings across both its Feed and Food segments, and improved regulatory clarity on fuel tax credits could further boost its renewable fuel earnings.

Darling Ingredients contributed to performance in the first quarter, as the stock continued to show momentum ahead of the finalization of the Environmental Protection Agency’s Renewable Volume Obligation (RVO), which came in the final days of March. The RVO was ahead of expectations and bodes well for continued improvement in renewable diesel margins for Darling’s joint-venture Diamond Green Diesel.

Darling Ingredients (DAR) was a top contributor in the Small Cap strategy in the fourth quarter. The company is the largest publicly traded entity turning edible by-products and food waste into sustainable products and a leading producer of renewable energy. Despite facing significant headwinds, we believe the stock is at or near a bottom, with several fundamental and regulatory changes expected to support higher top and bottom-line results in 2026. The vertically integrated supply chain and low-cost position have proven resilient, and operational improvements along with an upgraded asset base are anticipated to boost profitability and cash flow as the cycle turns.

Darling Ingredients (DAR) was a top contributor in the SMID Cap strategy in the fourth quarter. The company is the largest publicly traded entity turning edible by-products and food waste into sustainable products and is a leading producer of renewable energy. Despite facing significant headwinds, we believe the stock is at or near a bottom, with several fundamental and regulatory changes expected to support an inflection in top line and bottom-line results in 2026. The vertically integrated supply chain and low-cost position have proven resilient, and operational improvements along with an upgraded asset base are anticipated to boost profitability and cash flow.