Darling Ingredients Inc. Reports First Quarter 2025 Results
First Quarter 2025
-
Net loss of
$(26.2) million $(0.16) -
Total net sales of
$1.38 billion -
Combined Adjusted EBITDA of
$195.8 million -
Received
$129.5 million -
Repurchased
$35 million -
Paid down
$146.2 million
“Despite the broader challenges faced by the biofuel industry during the first quarter of 2025, Darling Ingredients' core business performed well, resulting in overall positive cash flow and demonstrating stability in an otherwise volatile business environment,” said Randall C. Stuewe, Chairman and Chief Executive Officer. “While the biofuel environment continues to adjust, margins have started to improve. The positive narrative surrounding renewable fuels public policy is encouraging, which is also driving strong market demand for domestic fats. We expect our core business to continue to perform well, generating cash and allowing us to continue to de-lever the balance sheet and opportunistically repurchase shares.”
DGD sold 219.1 million gallons of renewable fuels for the first quarter of 2025 at an average of
Combined Adjusted EBITDA for the first quarter of 2025 was
The company repurchased approximately 1 million shares of its common stock during the first quarter of 2025 for approximately
As of March 29, 2025, Darling Ingredients had
“Darling Ingredients carries great momentum, driven by our strong core business,” Stuewe said. “We are confident in our ability to navigate challenges and capitalize on opportunities, ensuring continued growth and success.”
Given the increasing demand for waste fats and rising prices, the company anticipates the core business will generate approximately
Darling Ingredients Inc. and Subsidiaries |
|||||||||||
Consolidated Statements of Operations |
|||||||||||
For the Three Months Ended March 29, 2025 and March 30, 2024 |
|||||||||||
(in thousands, except per share data, unaudited) |
|||||||||||
|
|
||||||||||
|
Three Months Ended |
||||||||||
|
|
|
$ Change |
||||||||
|
March 29, |
|
March 30, |
|
Favorable |
||||||
|
2025 |
|
2024 |
|
(Unfavorable) |
||||||
Net sales to third parties |
$ |
1,162,642 |
|
|
$ |
1,173,562 |
|
|
$ |
(10,920 |
) |
Net sales to related party - Diamond Green Diesel |
|
217,952 |
|
|
|
246,737 |
|
|
|
(28,785 |
) |
Total net sales |
|
1,380,594 |
|
|
|
1,420,299 |
|
|
|
(39,705 |
) |
Costs and expenses: |
|
|
|
|
|
||||||
Cost of sales and operating expenses (excludes depreciation and amortization, shown separately below) |
|
1,069,243 |
|
|
|
1,116,666 |
|
|
|
47,423 |
|
(Gain)/loss on sale of assets |
|
62 |
|
|
|
(574 |
) |
|
|
(636 |
) |
Selling, general and administrative expenses |
|
121,556 |
|
|
|
139,143 |
|
|
|
17,587 |
|
Acquisition and integration costs |
|
1,534 |
|
|
|
4,054 |
|
|
|
2,520 |
|
Change in fair value of contingent consideration |
|
5,441 |
|
|
|
(25,249 |
) |
|
|
(30,690 |
) |
Depreciation and amortization |
|
123,835 |
|
|
|
127,509 |
|
|
|
3,674 |
|
Total costs and expenses |
|
1,321,671 |
|
|
|
1,361,549 |
|
|
|
39,878 |
|
Equity in net income/(loss) of Diamond Green Diesel |
|
(30,523 |
) |
|
|
78,419 |
|
|
|
(108,942 |
) |
Operating income |
|
28,400 |
|
|
|
137,169 |
|
|
|
(108,769 |
) |
Other expense: |
|
|
|
|
|
||||||
Interest expense |
|
(57,967 |
) |
|
|
(62,876 |
) |
|
|
4,909 |
|
Foreign currency gain/(loss) |
|
(1,362 |
) |
|
|
236 |
|
|
|
(1,598 |
) |
Other income, net |
|
3,333 |
|
|
|
8,656 |
|
|
|
(5,323 |
) |
Total other expense |
|
(55,996 |
) |
|
|
(53,984 |
) |
|
|
(2,012 |
) |
Equity in net income of other unconsolidated subsidiaries |
|
2,628 |
|
|
|
2,310 |
|
|
|
318 |
|
Income/(loss) from operations before income taxes |
|
(24,968 |
) |
|
|
85,495 |
|
|
|
(110,463 |
) |
Income tax expense/(benefit) |
|
(1,154 |
) |
|
|
3,907 |
|
|
|
5,061 |
|
Net income/(loss) |
|
(23,814 |
) |
|
|
81,588 |
|
|
|
(105,402 |
) |
Net income attributable to noncontrolling interests |
|
(2,346 |
) |
|
|
(431 |
) |
|
|
(1,915 |
) |
Net income/(loss) attributable to Darling |
$ |
(26,160 |
) |
|
$ |
81,157 |
|
|
$ |
(107,317 |
) |
|
|
|
|
|
|
||||||
Basic income/(loss) per share: |
$ |
(0.16 |
) |
|
$ |
0.51 |
|
|
$ |
(0.67 |
) |
Diluted income/(loss) per share: |
$ |
(0.16 |
) |
|
$ |
0.50 |
|
|
$ |
(0.66 |
) |
|
|
|
|
|
|
||||||
Number of diluted common shares: |
|
158,677 |
|
|
|
161,905 |
|
|
|
||
Segment Financial Tables (in thousands, unaudited)
Feed
|
Food
|
Fuel
|
Corporate |
Total |
|||||||||
Three Months Ended March 29, 2025 |
|
|
|
|
|
||||||||
Total net sales |
$ |
896,283 |
$ |
349,240 |
$ |
135,071 |
|
$ |
— |
|
$ |
1,380,594 |
|
Cost of sales and operating expenses |
|
714,015 |
|
246,781 |
|
108,447 |
|
|
— |
|
|
1,069,243 |
|
Gross margin |
|
182,268 |
|
102,459 |
|
26,624 |
|
|
— |
|
|
311,351 |
|
|
|
|
|
|
|
||||||||
Loss (gain) on sale of assets |
|
115 |
|
55 |
|
(108 |
) |
|
— |
|
|
62 |
|
Selling, general and administrative expenses |
|
71,571 |
|
31,472 |
|
8,541 |
|
|
9,972 |
|
|
121,556 |
|
Acquisition and integration costs |
|
— |
|
— |
|
— |
|
|
1,534 |
|
|
1,534 |
|
Change in fair value of contingent consideration |
|
5,441 |
|
— |
|
— |
|
|
— |
|
|
5,441 |
|
Depreciation and amortization |
|
84,130 |
|
29,562 |
|
8,589 |
|
|
1,554 |
|
|
123,835 |
|
Equity in net loss of Diamond Green Diesel |
|
— |
|
— |
|
(30,523 |
) |
|
— |
|
|
(30,523 |
) |
Segment operating income/(loss) |
$ |
21,011 |
$ |
41,370 |
$ |
(20,921 |
) |
$ |
(13,060 |
) |
$ |
28,400 |
|
Equity in net income of other unconsolidated subsidiaries |
|
2,628 |
|
— |
|
— |
|
|
— |
|
|
2,628 |
|
Segment income/(loss) |
$ |
23,639 |
$ |
41,370 |
$ |
(20,921 |
) |
$ |
(13,060 |
) |
$ |
31,028 |
|
|
|
|
|
|
|
||||||||
Segment Adjusted EBITDA (Non-GAAP) |
$ |
110,582 |
$ |
70,932 |
$ |
18,191 |
|
$ |
(9,972 |
) |
$ |
189,733 |
|
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) |
|
— |
|
— |
|
6,035 |
|
|
— |
|
|
6,035 |
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
110,582 |
$ |
70,932 |
$ |
24,226 |
|
$ |
(9,972 |
) |
$ |
195,768 |
|
|
|
|
|
|
|
||||||||
Reconciliation of Net Income/(Loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA: |
|||||||||||||
Net income/(loss) attributable to Darling |
$ |
23,639 |
$ |
41,370 |
$ |
(20,921 |
) |
$ |
(70,248 |
) |
$ |
(26,160 |
) |
Net income attributable to noncontrolling interests |
|
|
|
|
2,346 |
|
|
2,346 |
|
||||
Income tax benefit |
|
|
|
|
(1,154 |
) |
|
(1,154 |
) |
||||
Interest expense |
|
|
|
|
57,967 |
|
|
57,967 |
|
||||
Foreign currency loss |
|
|
|
|
1,362 |
|
|
1,362 |
|
||||
Other income, net |
|
|
|
|
(3,333 |
) |
|
(3,333 |
) |
||||
Segment income/(loss) |
$ |
23,639 |
$ |
41,370 |
$ |
(20,921 |
) |
$ |
(13,060 |
) |
$ |
31,028 |
|
Acquisition and integration costs |
|
— |
|
— |
|
— |
|
|
1,534 |
|
|
1,534 |
|
Change in fair value of contingent consideration |
|
5,441 |
|
— |
|
— |
|
|
— |
|
|
5,441 |
|
Depreciation and amortization |
|
84,130 |
|
29,562 |
|
8,589 |
|
|
1,554 |
|
|
123,835 |
|
Equity in net loss of Diamond Green Diesel |
|
— |
|
— |
|
30,523 |
|
|
— |
|
|
30,523 |
|
Equity in net income of other unconsolidated subsidiaries |
|
(2,628) |
|
— |
|
— |
|
|
— |
|
|
(2,628 |
) |
Segment Adjusted EBITDA (Non-GAAP) |
$ |
110,582 |
$ |
70,932 |
$ |
18,191 |
|
$ |
(9,972 |
) |
$ |
189,733 |
|
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) * |
|
— |
|
— |
|
6,035 |
|
|
— |
|
|
6,035 |
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
110,582 |
$ |
70,932 |
$ |
24,226 |
|
$ |
(9,972 |
) |
$ |
195,768 |
|
|
|
|
|
|
|
||||||||
*See reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Operations |
|||||||||||||
|
Feed
|
Food
|
Fuel
|
Corporate |
Total |
|||||||||
Three Months Ended March 30, 2024 |
|
|
|
|
|
|||||||||
Total net sales |
$ |
889,848 |
|
$ |
391,282 |
$ |
139,169 |
|
$ |
— |
|
$ |
1,420,299 |
|
Cost of sales and operating expenses |
|
705,769 |
|
|
298,145 |
|
112,752 |
|
|
— |
|
|
1,116,666 |
|
Gross margin |
|
184,079 |
|
|
93,137 |
|
26,417 |
|
|
— |
|
|
303,633 |
|
|
|
|
|
|
|
|||||||||
Loss/(gain) on sale of assets |
|
132 |
|
|
(294) |
|
(412 |
) |
|
— |
|
|
(574 |
) |
Selling, general and administrative expenses |
|
77,138 |
|
|
31,744 |
|
8,745 |
|
|
21,516 |
|
|
139,143 |
|
Acquisition and integration costs |
|
— |
|
|
— |
|
— |
|
|
4,054 |
|
|
4,054 |
|
Change in fair value of contingent consideration |
|
(25,249 |
) |
|
— |
|
— |
|
|
— |
|
|
(25,249 |
) |
Depreciation and amortization |
|
87,569 |
|
|
28,868 |
|
8,667 |
|
|
2,405 |
|
|
127,509 |
|
Equity in net income of Diamond Green Diesel |
|
— |
|
|
— |
|
78,419 |
|
|
— |
|
|
78,419 |
|
Segment operating income/(loss) |
$ |
44,489 |
|
$ |
32,819 |
$ |
87,836 |
|
$ |
(27,975 |
) |
$ |
137,169 |
|
Equity in net income of other unconsolidated subsidiaries |
|
2,310 |
|
|
— |
|
— |
|
|
— |
|
|
2,310 |
|
Segment income/(loss) |
$ |
46,799 |
|
$ |
32,819 |
$ |
87,836 |
|
$ |
(27,975 |
) |
$ |
139,479 |
|
|
|
|
|
|
|
|||||||||
Segment Adjusted EBITDA (Non-GAAP) |
$ |
106,809 |
|
$ |
61,687 |
$ |
18,084 |
|
$ |
(21,516 |
) |
$ |
165,064 |
|
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) |
|
— |
|
|
— |
|
115,061 |
|
|
— |
|
|
115,061 |
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
106,809 |
|
$ |
61,687 |
$ |
133,145 |
|
$ |
(21,516 |
) |
$ |
280,125 |
|
|
|
|
|
|
|
|||||||||
Reconciliation of Net Income/(Loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA: |
||||||||||||||
Net income/(loss) attributable to Darling |
$ |
46,799 |
|
$ |
32,819 |
$ |
87,836 |
|
$ |
(86,297 |
) |
$ |
81,157 |
|
Net income attributable to noncontrolling interests |
|
|
|
|
431 |
|
|
431 |
|
|||||
Income tax expense |
|
|
|
|
3,907 |
|
|
3,907 |
|
|||||
Interest expense |
|
|
|
|
62,876 |
|
|
62,876 |
|
|||||
Foreign currency gain |
|
|
|
|
(236 |
) |
|
(236 |
) |
|||||
Other income, net |
|
|
|
|
(8,656 |
) |
|
(8,656 |
) |
|||||
Segment income/(loss) |
$ |
46,799 |
|
$ |
32,819 |
$ |
87,836 |
|
$ |
(27,975 |
) |
$ |
139,479 |
|
Acquisition and integration costs |
|
— |
|
|
— |
|
— |
|
|
4,054 |
|
|
4,054 |
|
Change in fair value of contingent consideration |
|
(25,249 |
) |
|
— |
|
— |
|
|
— |
|
|
(25,249 |
) |
Depreciation and amortization |
|
87,569 |
|
|
28,868 |
|
8,667 |
|
|
2,405 |
|
|
127,509 |
|
Equity in net income of Diamond Green Diesel |
|
— |
|
|
— |
|
(78,419 |
) |
|
— |
|
|
(78,419 |
) |
Equity in net income of other unconsolidated subsidiaries |
|
(2,310 |
) |
|
— |
|
— |
|
|
— |
|
|
(2,310 |
) |
Segment Adjusted EBITDA (Non-GAAP) |
$ |
106,809 |
|
$ |
61,687 |
$ |
18,084 |
|
$ |
(21,516 |
) |
$ |
165,064 |
|
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) * |
|
— |
|
|
— |
|
115,061 |
|
|
— |
|
|
115,061 |
|
Combined Adjusted EBITDA (Non-GAAP) |
$ |
106,809 |
|
$ |
61,687 |
$ |
133,145 |
|
$ |
(21,516 |
) |
$ |
280,125 |
|
|
|
|
|
|
|
|||||||||
*See reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Operations |
||||||||||||||
Darling Ingredients Inc. and Subsidiaries |
|||||
Balance Sheet Disclosures |
|||||
As of March 29, 2025 and December 28, 2024 |
|||||
(in thousands) |
|||||
|
|
||||
|
(unaudited) |
|
|
||
|
March 29, |
|
December 28, |
||
|
2025 |
|
2024 |
||
Cash and cash equivalents |
$ |
81,471 |
|
$ |
75,973 |
Property, plant and equipment, net |
$ |
2,739,079 |
|
$ |
2,713,669 |
Current portion of long-term debt |
$ |
116,629 |
|
$ |
133,020 |
Long-term debt, net of current portion |
$ |
3,804,873 |
|
$ |
3,908,978 |
|
|
|
|
||
|
|
|
|
||
Other Financial Data |
|||||
As of March 29, 2025 |
|||||
|
(unaudited) |
|
|
||
|
March 29, |
|
|
||
|
2025 |
|
|
||
Revolver availability |
$ |
1,271,711 |
|
|
|
Capital expenditures - YTD |
$ |
62,979 |
|
|
|
Projected Leverage Ratio |
3.33x |
|
|
||
Diamond Green Diesel Joint Venture |
||||||||||||
Consolidated Statements of Operations |
||||||||||||
For the Three Months Ended March 31, 2025 and March 31, 2024 |
||||||||||||
(in thousands, unaudited) |
||||||||||||
|
|
|
||||||||||
|
|
Three Months Ended |
||||||||||
|
|
|
|
$ Change |
||||||||
|
|
March 31, |
|
March 31, |
|
Favorable |
||||||
|
|
2025 |
|
2024 |
|
(Unfavorable) |
||||||
Revenues: |
|
|
|
|
|
|
||||||
Operating revenues |
|
$ |
899,909 |
|
|
$ |
1,411,115 |
|
|
$ |
(511,206 |
) |
Expenses: |
|
|
|
|
|
|
||||||
Total costs and expenses less lower of cost or market inventory valuation adjustment and depreciation, amortization and accretion expense |
|
|
977,106 |
|
|
|
1,159,356 |
|
|
|
182,250 |
|
Lower of cost or market (LCM) inventory valuation adjustment |
|
|
(91,004 |
) |
|
|
21,638 |
|
|
|
112,642 |
|
Depreciation, amortization and accretion expense |
|
|
67,472 |
|
|
|
65,290 |
|
|
|
(2,182 |
) |
Total costs and expenses |
|
|
953,574 |
|
|
|
1,246,284 |
|
|
|
292,710 |
|
Operating income/(loss) |
|
|
(53,665 |
) |
|
|
164,831 |
|
|
|
(218,496 |
) |
Other income |
|
|
3,702 |
|
|
|
3,220 |
|
|
|
482 |
|
Interest and debt expense, net |
|
|
(9,306 |
) |
|
|
(11,242 |
) |
|
|
1,936 |
|
Income/(loss) before income tax expense |
|
|
(59,269 |
) |
|
|
156,809 |
|
|
|
(216,078 |
) |
Income tax expense/(benefit) |
|
$ |
39 |
|
|
$ |
(29 |
) |
|
|
(68 |
) |
Net income/(loss) |
|
$ |
(59,308 |
) |
|
$ |
156,838 |
|
|
$ |
(216,146 |
) |
Reconciliation of DGD Net Income/(Loss) to (Non-GAAP) DGD Adjusted EBITDA: |
||||||||
Net income/(loss) |
|
$ |
(59,308 |
) |
|
$ |
156,838 |
|
Income tax expense/(benefit) |
|
|
39 |
|
|
|
(29 |
) |
Interest and debt expense, net |
|
|
9,306 |
|
|
|
11,242 |
|
Other income |
|
|
(3,702 |
) |
|
|
(3,220 |
) |
Operating income/(loss) |
|
|
(53,665 |
) |
|
|
164,831 |
|
Depreciation, amortization and accretion expense |
|
|
67,472 |
|
|
|
65,290 |
|
DGD Adjusted EBITDA (Non-GAAP) |
|
|
13,807 |
|
|
|
230,121 |
|
Less: Discount and Broker Fees |
|
|
(1,738 |
) |
|
|
— |
|
DGD Adjusted EBITDA (Non-GAAP) after Discount and Broker Fees |
|
|
12,069 |
|
|
|
230,121 |
|
Darling's Share |
|
|
50 |
% |
|
|
50 |
% |
DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) |
|
$ |
6,035 |
|
|
$ |
115,061 |
|
|
|
|
|
|
||||
Diamond Green Diesel Joint Venture |
|||||
Consolidated Balance Sheets |
|||||
March 31, 2025 and December 31, 2024 |
|||||
(in thousands) |
|||||
|
March 31, |
|
December 31, |
||
|
2025 |
|
2024 |
||
|
(unaudited) |
|
|
||
Assets: |
|
|
|
||
Cash |
$ |
152,440 |
|
$ |
353,446 |
Total other current assets |
|
1,038,381 |
|
|
1,137,821 |
Property, plant and equipment, net |
|
3,847,613 |
|
|
3,868,943 |
Other assets |
|
115,915 |
|
|
100,307 |
Total assets |
$ |
5,154,349 |
|
$ |
5,460,517 |
|
|
|
|
||
Liabilities and members' equity: |
|
|
|
||
Revolver |
$ |
— |
|
$ |
— |
Total other current portion of long term debt |
|
30,150 |
|
|
29,809 |
Total other current liabilities |
|
336,404 |
|
|
319,688 |
Total long term debt |
|
699,491 |
|
|
707,158 |
Total other long term liabilities |
|
17,095 |
|
|
17,195 |
Total members' equity |
|
4,071,209 |
|
|
4,386,667 |
Total liabilities and members' equity |
$ |
5,154,349 |
|
$ |
5,460,517 |
Reconciliation of Net Income/(Loss) to (Non-GAAP) Adjusted EBITDA to (Non-GAAP) Pro Forma |
|||||||||
Adjusted EBITDA to Foreign Currency and to (Non-GAAP) Combined Adjusted EBITDA |
|||||||||
For the Three Months Ended March 29, 2025 and March 30, 2024 |
|||||||||
(in thousands, unaudited) |
|||||||||
|
|
Three Months Ended |
|||||||
|
|
|
|||||||
Adjusted EBITDA |
|
March 29, |
|
March 30, |
|||||
( |
|
2025 |
|
2024 |
|||||
|
|
|
|
|
|||||
Net income/(loss) attributable to Darling |
|
$ |
(26,160 |
) |
|
$ |
81,157 |
|
|
Depreciation and amortization |
|
|
123,835 |
|
|
|
127,509 |
|
|
Interest expense |
|
|
57,967 |
|
|
|
62,876 |
|
|
Income tax expense/(benefit) |
|
|
(1,154 |
) |
|
|
3,907 |
|
|
Acquisition and integration costs |
|
|
1,534 |
|
|
|
4,054 |
|
|
Change in fair value of contingent consideration |
|
|
5,441 |
|
|
|
(25,249 |
) |
|
Foreign currency loss/(gain) |
|
|
1,362 |
|
|
|
(236 |
) |
|
Other income, net |
|
|
(3,333 |
) |
|
|
(8,656 |
) |
|
Equity in net (income)/loss of Diamond Green Diesel |
|
|
30,523 |
|
|
|
(78,419 |
) |
|
Equity in net income of other unconsolidated subsidiaries |
|
|
(2,628 |
) |
|
|
(2,310 |
) |
|
Net income attributable to noncontrolling interests |
|
|
2,346 |
|
|
|
431 |
|
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
189,733 |
|
|
$ |
165,064 |
|
|
Foreign currency exchange impact |
|
|
4,815 |
|
(1 |
) |
|
— |
|
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP) |
|
$ |
194,548 |
|
|
$ |
165,064 |
|
|
DGD Joint Venture Adjusted EBITDA (Darling's share) (Non-GAAP) |
|
$ |
6,035 |
|
|
$ |
115,061 |
|
|
Combined Adjusted EBITDA (Non-GAAP) |
|
$ |
195,768 |
|
|
$ |
280,125 |
|
|
|
|
|
|
|
|||||
(1) The average rates for the three months ended March 29, 2025 were |
|||||||||
About Darling Ingredients
A pioneer in circularity, Darling Ingredients Inc. (NYSE: DAR) takes material from the animal agriculture and food industries, and transforms them into valuable ingredients that nourish people, feed animals and crops, and fuel the world with renewable energy. The company operates over 260 facilities in more than 15 countries and processes about
Darling Ingredients will host a conference call at 9 a.m. Eastern Time (8 a.m. Central Time) on April 24, 2025, to discuss first quarter 2025 financial results. A presentation accompanying supplemental financial data will also be available at darlingii.com/investors.
To access the call as a listener, please register for the audio-only webcast.
To join the call as a participant to ask a question, please register in advance to receive a confirmation email with the dial-in number and PIN for immediate access on April 24 or call 833-470-1428 (
A replay of the call will be available online via the webcast registration link two hours after the call ends. A transcript will be posted at darlingii.com/investors within 24 hours.
Use of Non-GAAP Financial Measures:
Segment Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income/(loss), as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income (loss), but rather as a measure of the segment’s operating performance. Segment Adjusted EBITDA consists of net income/(loss) plus depreciation and amortization, restructuring and asset impairment charges, acquisition and integration costs, change in fair value of contingent consideration, foreign currency loss/(gain), net income/(loss) attributable to noncontrolling interests, interest expense, income tax provision, other income/(expense), equity in net (income)/loss of unconsolidated subsidiaries and equity in net (income)/loss of Diamond Green Diesel. Management believes that Segment Adjusted EBITDA is useful in evaluating the segment’s operating performance because the calculation of Segment Adjusted EBITDA generally eliminates non-cash and certain other items for reasons unrelated to overall operating performance and also believes this information is useful to investors.
Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Since EBITDA (generally, net income plus interest expense, taxes, depreciation and amortization) is not calculated identically by all companies, the presentation in this report may not be comparable to EBITDA or Adjusted EBITDA presentations disclosed by other companies. Adjusted EBITDA is calculated above and represents for any relevant period, net income/(loss) plus depreciation and amortization, restructuring and asset impairment charges, acquisition and integration costs, change in fair value of contingent consideration, foreign currency loss/(gain), net income/(loss) attributable to non-controlling interests, interest expense, income tax provision, other income/(expense) and equity in net (income)/loss of unconsolidated subsidiaries. Management believes that Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of financing, income taxes, non-cash and certain other items that may vary for different companies for reasons unrelated to overall operating performance and also believes this information is useful to investors.
The Company’s management uses Adjusted EBITDA as a measure to evaluate performance and for other discretionary purposes. In addition to the foregoing, management also uses or will use Adjusted EBITDA to measure compliance with certain financial covenants under the Company’s Senior Secured Credit Facilities,
Pro forma Adjusted EBITDA to Foreign Currency is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Management believes Pro forma Adjusted EBITDA to Foreign Currency is useful in evaluating the Company’s operating performance on a constant currency basis and also believes this information is useful to investors.
Combined Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company’s operating performance. Combined Adjusted EBITDA consists of Adjusted EBITDA plus DGD Adjusted EBITDA (Darling’s Share). When Combined Adjusted EBITDA is presented by segment, Combined Adjusted EBITDA consists of Segment Adjusted EBITDA plus DGD Adjusted EBITDA (Darling’s Share). Management believes that Combined Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Combined Adjusted EBITDA generally eliminates the effects of financing, income taxes, non-cash and certain other items that may vary for different companies for reasons unrelated to overall operating performance and also believes this information is useful to investors.
Information reconciling forward-looking Combined Adjusted EBITDA to net income is unavailable to the Company without unreasonable effort. The Company is not able to provide reconciliations of Combined Adjusted EBITDA to net income because certain items required for such reconciliations are outside of the Company’s control and/or cannot be reasonably predicted, such as the impact of volatile commodity prices on the Company’s operations, impact of foreign currency exchange fluctuations, depreciation and amortization and the provision for income taxes. Preparation of such reconciliations for Darling Ingredients Inc. and the Company’s joint venture, Diamond Green Diesel, would require a forward-looking balance sheet, statement of operations and statement of cash flows, prepared in accordance with GAAP for each entity, and such forward-looking financial statements are unavailable to the Company without unreasonable effort. The Company provides guidance for its Combined Adjusted EBITDA outlook that it believes will be achieved; however, it cannot accurately predict all the components of the Combined Adjusted EBITDA calculation.
DGD Adjusted EBITDA is not reflected in the Adjusted EBITDA or the Pro forma Adjusted EBITDA to Foreign Currency. DGD Adjusted EBITDA is not a recognized accounting measure under GAAP; it should not be considered as an alternative to net income/(loss) or equity in net income/(loss) of Diamond Green Diesel, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity and is not intended to be a presentation in accordance with GAAP. The Company calculates DGD Adjusted EBITDA by taking DGD’s net income/(loss) plus income tax expense/(benefit), interest and debt expense, net, and DGD’s depreciation, amortization and accretion expense less other income. Management believes that DGD Adjusted EBITDA is useful in evaluating the Company’s operating performance because the calculation of DGD Adjusted EBITDA generally eliminates non-cash and certain other items at DGD unrelated to overall operating performance and also believes this information is useful to investors. The Company calculates Darling’s Share of DGD Adjusted EBITDA by taking DGD Adjusted EBITDA and then multiplying by
EBITDA per gallon is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income or equity in income of Diamond Green Diesel, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity and is not intended to be a presentation in accordance with GAAP. EBITDA per gallon is presented here not as an alternative to net income or equity in income of Diamond Green Diesel, but rather as a measure of Diamond Green Diesel's operating performance. Since EBITDA per gallon (generally, net income plus interest expense, taxes, depreciation and amortization divided by total gallons sold) is not calculated identically by all companies, this presentation may not be comparable to EBITDA per gallon presentations disclosed by other companies. Management believes that EBITDA per gallon is useful in evaluating Diamond Green Diesel's operating performance compared to that of other companies in its industry because the calculation of EBITDA per gallon generally eliminates the effects of financing, income taxes and certain non-cash and other items presented on a per gallon basis that may vary for different companies for reasons unrelated to overall operating performance.
Cautionary Statements Regarding Forward-Looking Information:
This media release includes “forward-looking” statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. Statements that are not statements of historical facts are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “estimate,” “guidance,” “outlook,” “project,” “planned,” “contemplate,” “potential,” “possible,” “proposed,” “intend,” “believe,” “anticipate,” “expect,” “may,” “will,” “would,” “should,” “could,” and similar expressions are intended to identify forward-looking statements. All statements other than statements of historical facts included in this release are forward-looking statements. Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. The Company cautions readers that any such forward-looking statements it makes are not guarantees of future performance and that actual results may differ materially from anticipated results or expectations expressed in its forward-looking statements as a result of a variety of factors, including many that are beyond the Company's control.
Important factors that could cause actual results to differ materially from the Company’s expectations include: existing and unknown future limitations on the ability of the Company's direct and indirect subsidiaries to make their cash flow available to the Company for payments on the Company's indebtedness or other purposes; reduced demands or prices for biofuels, biogases or renewable electricity; global demands for grain and oilseed commodities, which have exhibited volatility, and can impact the cost of feed for cattle, hogs and poultry, thus affecting available rendering feedstock and selling prices for the Company’s products; reductions in raw material volumes available to the Company due to weak margins in the meat production industry as a result of higher feed costs, reduced consumer demand, reduced volume due to government regulations affecting animal production or other factors, reduced volume from food service establishments, or otherwise; reduced demand for animal feed; reduced finished product prices, including a decline in fat, used cooking oil, protein or collagen (including, without limitation, collagen peptides and gelatin) finished product prices; changes to government policies around the world relating to renewable fuels and greenhouse gas (“GHG”) emissions that adversely affect prices, margins or markets (including for the DGD Joint Venture), including programs like renewable fuel standards, low carbon fuel standards (“LCFS”), renewable fuel mandates and tax credits for biofuels, or loss or diminishment of tax credits due to failure to satisfy any eligibility requirements, including, without limitation, in relation to the blender tax credit or the Clean Fuels Production Credit (“CFPC”); climate related adverse results, including with respect to the Company’s climate goals, targets or commitments; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives or products which do not meet specifications, contract requirements or regulatory standards; the occurrence of 2009 H1N1 flu (initially known as “Swine Flu”), highly pathogenic strains of avian influenza (collectively known as “Bird Flu”), severe acute respiratory syndrome (“SARS”), bovine spongiform encephalopathy (or “BSE”), porcine epidemic diarrhea (“PED”) or other diseases associated with animal origin in the
View source version on businesswire.com: https://www.businesswire.com/news/home/20250424104784/en/
Darling Ingredients Contacts
Investors:
Suann Guthrie
Senior VP, Investor Relations, Sustainability & Communications
(469) 214-8202; suann.guthrie@darlingii.com
Media:
Jillian Fleming
Director, Global Communications
(972) 541-7115; jillian.fleming@darlingii.com
Source: Darling Ingredients Inc.
