Darling Ingredients Inc (DAR)

Total domestic meat supply conditions have begun to ease in recent weeks despite tighter beef conditions. That largely reflects expanded chicken production, but is compounded by continued yr/yr deterioration in total net exports (exports less…

New World Screwworm (NWS) has garnered significant media attention over the past weeks, particularly following the second closure of US-Mexico livestock crossings in early July. The lack of live cattle entering the US has exacerbated…

DAR’s Q2 results were modestly shy of our/consensus projections; it reduced full-year guidance ($1.05B-$1.1B from $1.25-$1.3B) to a level largely in line with expectations. However, the shares have since traded off nearly 15%. There have…

We are reducing our Q2, 2025 and 2026 estimates for DAR driven by weaker-than-expected DGD margins, as well as less robust assumptions for the Food business. Core Feed should show nice improvement from Q1 given…

The recent RVO proposal laid out far more bullish targets than we had anticipated, and also put forward potential modifications to RIN values for imported fuels/feedstocks. That, combined with potential changes to 45Z rules, results…

Brazil’s farmers have long benefited from both the ability to produce 2-3 crops per year and relatively low land conversion costs. Technological improvements have fostered higher yields that have improved its cost profile further (BZ…

Darling posted Q1 results materially below both HJR and consensus estimates, despite the bar moving progressively lower into the reporting period. The miss was driven by Feed and DGD ($0.06 vs HJR $0.30/gal). Despite the…

DAR is the most exposed name in our coverage to biofuel policy, as the vast majority of its earnings are derived from the sale of feedstocks or RD/SAF. Consequently, its Q1 results were negatively impacted…

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…