- Darling Ingredients Inc. (DAR, Financial) reports a net loss of $26.2 million in Q1 2025, compared to a net income of $81.2 million in Q1 2024.
- The company achieved total net sales of $1.38 billion, a slight decline from $1.42 billion in the previous year.
- Darling anticipates generating approximately $950 million to $1 billion EBITDA for the fiscal year 2025.
Darling Ingredients Inc. (DAR) reported a net loss of $26.2 million, or $0.16 per diluted share, for the first quarter of 2025. This is a significant decline compared to the net income of $81.2 million, or $0.50 per diluted share, reported in the same period of the previous year. The loss was primarily attributed to lower earnings from Diamond Green Diesel (DGD), a joint venture impacted by the challenging biofuel industry environment.
The company's total net sales for Q1 2025 stood at $1.38 billion, slightly down from $1.42 billion in the first quarter of 2024. The decrease in sales was mainly due to lower finished product pricing. However, Darling Ingredients noted a strong performance in its core business segments, which has contributed to a stable cash flow in the volatile market.
Darling Ingredients received $129.5 million in cash dividends from DGD during the first quarter of 2025. Despite the challenges, the company repurchased approximately $35 million worth of its common stock and paid down $146.2 million in debt, reflecting its commitment to strengthening its balance sheet and enhancing shareholder value.
The company's Combined Adjusted EBITDA for Q1 2025 was $195.8 million, a decrease from $280.1 million in the first quarter of 2024. Looking ahead, Darling Ingredients reaffirms its guidance for a combined adjusted EBITDA of $1.25 to $1.30 billion for the fiscal year 2025, amid expectations of improving margins and a stable core business performance.
Randall C. Stuewe, Chairman and CEO, emphasized the company's resilience: "Darling Ingredients' core business performed well, resulting in overall positive cash flow and demonstrating stability in an otherwise volatile business environment."
