Darling Ingredients

At the Barclays conference, Darling Ingredients presented a roadmap to convert growth into cash returns: the target is net debt below $3 billion and bank leverage under 2.0x by the end of 2026. Management views renewable diesel margins as sustainable in the near term thanks to strong RVO mandates and limited imports, expects $4–6 billion of free cash flow between 2026 and 2030, and is considering dividends or buybacks after debt reduction. At the same time, Darling is advancing its higher‑margin specialty ingredient and peptide business (Nextida) and sees long‑term growth potential there, supported by clinical trials and product development. » More on de.investing.com

BBH Select Mid Cap highlighted Darling Ingredients as a top holding but noted it was a quarterly detractor, falling 11.7% after the fund trimmed its position. Darling reported stronger-than-expected Q1 2026 results driven by Feed and Food segments and improved margins at Diamond Green Diesel (DGD). Finalized government mandates and higher feed prices, plus geopolitical-driven commodity moves, are expected to boost DGD margins and overall profitability in Q2. Shares have risen sharply over 12 months, reflecting market reaction to policy and operational developments. » More on finance.yahoo.com

Moody’s has affirmed Darling Ingredients’ Ba1 Corporate Family Rating and upgraded the outlook from negative to stable. Several issuer and debt ratings, as well as the SGL-2 liquidity rating, were also affirmed. The outlook upgrade reflects improved earnings and credit metrics due to higher fat prices, increased volumes and prices in the renewable diesel market, and debt reduction; adjusted leverage fell to 2.0x and adjusted EBITDA rose 75% to about USD 1.6 billion. Moody’s expects leverage to fall further below 2.0x and forecasts roughly USD 1 billion of free cash flow over the next 12 months, but notes uncertainties in the long-term backdrop for renewable diesel and tax credits. » More on de.investing.com