Darling Ingredients reported a Q4 adjusted EBITDA of $336.1 million, with core ingredients EBITDA rising to $278 million. The company closed fiscal 2025 with $1.7 billion in net sales and a consolidated gross margin of 25.1%. Full-year core ingredients adjusted EBITDA totaled $922 million, up from $790 million in 2024.

Diamond Green Diesel (DGD) delivered its strongest quarter with Q4 EBITDA of $57.9 million. Darling’s net debt fell to $3.8 billion, with covenant leverage improving to 2.9x. The company is pursuing portfolio rationalization, a potential Brazil acquisition, and aims to continue debt reduction.

Darling’s CEO highlighted progress in reducing leverage, portfolio rationalization, and operational execution. The company’s feed ingredients segment saw fourth-quarter EBITDA increase to $193 million, with sales rising to $1.13 billion. In the food segment, Q4 sales were $429 million, with EBITDA increasing to $82 million.

Management discussed collagen and gelatin demand rebounding and progress with a joint venture. Diamond Green Diesel had a strong quarter, with $57.9 million in EBITDA. Darling’s net debt was approximately $3.8 billion, down from $4.0 billion in fiscal 2024.

Darling aims for DGD production of about 260 million gallons in Q1 with improved margins. Core ingredients adjusted EBITDA is estimated to be in the range of $240-250 million. The company is focused on paying down debt and evaluating potential asset sales.

Darling participated in an auction to acquire three rendering assets in Brazil. The acquisition cost is expected to be around $120 million. The company’s core operations include Feed Ingredients & Services, Food & Nutrition, Fuel Ingredients & Services, and Specialty Ingredients.

Read more at Yahoo Finance: Darling Ingredients Q4 Earnings Call Highlights