DAR

Darling Ingredients is the global leader in rendering and repurposing animal by-products and used cooking oil, operating over 260 locations across five continents, with a large renewable-diesel arm (the Diamond Green Diesel joint venture). The core feed-ingredients model is a stable, hard-to-replicate collection/processing network, but the consolidated earnings have been hit hard by the renewable-fuels cycle. FY2026 net income fell 77.5% to $62.8M and EPS to $0.39, with operating income down 41.6% to $273M — the signature of compressed renewable-diesel and RIN/credit margins on top of soft fat-and-oil pricing.

Encouragingly, the operating business held up better than the bottom line suggests: gross profit actually rose 15.3% to $1.47B and operating cash flow grew 26.3% to $1.06B against $380M of capex, so cash generation remains robust even in a down year. The balance sheet is manageable at 1.16x liabilities/equity, but the 10-K details a substantial debt stack — $1.0B of 6% notes, $500M of 5.25% notes, ~$881M of euro 4.5% notes, a $900M term A facility and $601M drawn on the revolver — most at floating SOFR/EURIBOR-plus rates, so interest cost and FX (the euro debt rose ~$117M on translation) are live sensitivities.