Darling Ingredients Inc (DAR)

Post the ongoing build in global crush capacity (U.S. most pronounced), biofuel policy and crush margins have become inextricably linked. Edible oil demand growth is relatively meager, while global livestock production expansion currently materially lags…

DAR posted solid 4Q results last week, ahead of HJR estimates, which were recently revised lower. The beat was largely driven by the Feed segment, while DGD disappointed reflecting an LCM adjustment (previously announced by…

If Trump’s threat to impose sweeping 25% tariffs on imports from Canada and Mexico February 1 comes to fruition, it would potentially be hugely impactful to our coverage and a discussion is justified. It bears…

Our agribusiness coverage has been roiled by a combination of global biofuel policy shifts/uncertainty, growing global soy surplus/tighter corn supply, ongoing trade shifts, and the long anticipated fallout from aggressive capacity expansion. These have resulted…

The imminent changeover in Administrations is of greater import for our coverage universe than many other sectors as it portends material changes on multiple fronts, including regulatory policy (food and biofuels) and tariffs. Many of…

In an early September WSJ Op-Ed, Robert F. Kennedy Jr. (RFK) laid out prospective policy ideas that warrant examination given his nomination to lead the Department of Health and Human Services (HHS) – his nomination…

DAR’s Q3 results disappointed materially relative to both HJR and consensus estimates. The Food segment and DGD drove the shortfall, reflecting weaker-than-expected pricing in the former. Regarding the DGD shortfall, we are not clear on…

Very elevated uncertainty is the overwhelming theme headed into Q3 earnings, whether that be related to biofuels policy (see our Ag Brief published yesterday), the Election or protein production. Below (cont’d pg 2) we offer…

Global, particularly domestic, biofuel markets are transitioning between two starkly different environments. U.S./European product/credit prices have been pressured by a weaker energy complex and excess credit inventories. Feedstock values have been stickier (much stronger yr/yr…

2024 has been a banner year for highlighting the risks associated with businesses leveraged to government regulation/programs, even supportive ones. Despite the prospect of materially higher mandated demand in 2025, U.S. RD/BD margins have been…