Darling Ingredients Inc. Reports Fourth Quarter and Fiscal Year 2024 Results

IRVING, Texas--(BUSINESS WIRE)--Darling Ingredients Inc. (NYSE: DAR) today reported net income of $101.9 million, or $0.63 per diluted share for the fourth quarter of 2024, compared to net income of $84.5 million, or $0.52 per diluted share, for the fourth quarter of 2023. The company continued its focus on operational excellence, which resulted in gross margin improvement in fourth quarter 2024, compared to third quarter 2024, despite lower fat prices. The company also reported total net sales of $1.4 billion for the fourth quarter of 2024, compared with total net sales of $1.6 billion for the same period a year ago, reflecting lower finished product pricing. “Darling Ingredients delivered its strongest quarter of the year, and delivered some notable milestones,” said Randall C. Stuewe, Chairman and Chief Executive Officer. “We started up one of the world’s largest sustainable aviation fuel (SAF) units in Port Arthur, Texas, which is now debt free, and the joint venture delivered meaningful dividends throughout the year. We integrated several acquisitions around the world that position the company well for future growth adapting to global market dynamics.” For fiscal year ended Dec. 28, 2024, Darling Ingredients reported net sales of $5.7 billion, compared to net sales of $6.8 billion for the same period in 2023. Net income for fiscal year 2024 was $278.9 million, or $1.73 per diluted share, as compared to net income of $647.7 million, or $3.99 per diluted share, for fiscal year 2023. DGD sold 293.8 million gallons of renewable diesel for the fourth quarter 2024 at an average of $0.40 per gallon EBITDA. Darling Ingredients received $68.6 million in cash dividends from DGD during the fourth quarter of 2024. For full year 2024, DGD sold 1.25 billion gallons at an average of $0.46 per gallon EBITDA. Combined Adjusted EBITDA for the fourth quarter of 2024 was $289.5 million, compared to $350.9 million for the same period in 2023. For fiscal year 2024, Combined Adjusted EBITDA totaled $1.08 billion, as compared to $1.61 billion for the same period in 2023. As of Dec. 28, 2024, Darling Ingredients had $76.0 million in cash and cash equivalents, and $1.16 billion available under its committed revolving credit agreement. Total debt outstanding as of Dec. 28, 2024, was $4.0 billion. The preliminary leverage ratio as measured by the company’s bank covenant was 3.93X as of Dec. 28, 2024. Capital expenditures were $73.3 million for the fourth quarter 2024, and $332.5 million for the year. “Global raw material volumes remain robust and stronger fat prices in the first quarter of 2025 should provide lift as pending tariffs and the Clean Fuel Production Credit provide greater certainty to the value of domestic feedstocks,” Stuewe said. “Currently, we expect 2025 to be stronger than 2024, gaining momentum throughout the year as DGD turnarounds are completed and SAF sales command a larger percentage of our mix.” Given fourth quarter 2024 run rates and only one period into the new year, the company is providing guidance of $1.25 to $1.30 billion Combined Adjusted EBITDA and will provide updates as the year progresses. Darling Ingredients Inc. and Subsidiaries Consolidated Operating Results For the Three and Twelve Months Ended December 28, 2024 and December 30, 2023 (in thousands, except per share data) Three Months Ended Twelve Months Ended (unaudited) (unaudited) $ Change (unaudited) $ Change December 28, December 30, Favorable December 28, December 30, Favorable 2024 2023 (Unfavorable) 2024 2023 (Unfavorable) Net sales to third parties $ 1,194,900 $ 1,226,490 $ (31,590 ) $ 4,746,292 $ 5,460,259 $ (713,967 ) Net sales to related party - Diamond Green Diesel 222,793 387,593 (164,800 ) 968,883 1,327,821 (358,938 ) Total net sales 1,417,693 1,614,083 (196,390 ) 5,715,175 6,788,080 (1,072,905 ) Costs and expenses: Cost of sales and operating expenses (excludes depreciation and amortization, shown separately below) 1,083,931 1,177,652 93,721 4,437,337 5,143,060 705,723 Gain on sale of assets (4,056 ) (8,282 ) (4,226 ) (4,157 ) (7,421 ) (3,264 ) Selling, general and administrative expenses 107,514 132,620 25,106 492,105 542,534 50,429 Restructuring and asset impairment charges 5,794 13,133 7,339 5,794 18,553 12,759 Acquisition and integration costs 2,440 1,726 (714 ) 7,842 13,884 6,042 Change in fair value of contingent consideration (4,491 ) 5,167 9,658 (46,706 ) (7,891 ) 38,815 Depreciation and amortization 128,158 137,929 9,771 503,825 502,015 (1,810 ) Total costs and expenses 1,319,290 1,459,945 140,655 5,396,040 6,204,734 808,694 Equity in net income of Diamond Green Diesel 24,036 4,690 19,346 149,082 366,380 (217,298 ) Operating income 122,439 158,828 (36,389 ) 468,217 949,726 (481,509 ) Other expense: Interest expense (54,911 ) (68,453 ) 13,542 (253,858 ) (259,223 ) 5,365 Foreign currency gain/(loss) (1,669 ) (206 ) (1,463 ) (1,154 ) 8,133 (9,287 ) Other income, net 9,486 2,825 6,661 22,309 16,310 5,999 Total other expense (47,094 ) (65,834 ) 18,740 (232,703 ) (234,780 ) 2,077 Equity in net income of other unconsolidated subsidiaries 2,885 1,508 1,377 11,994 5,011 6,983 Income from operations before income taxes 78,230 94,502 (16,272 ) 247,508 719,957 (472,449 ) Income tax expense/(benefit) (25,547 ) 7,246 32,793 (38,337 ) 59,568 97,905 Net income 103,777 87,256 16,521 285,845 660,389 (374,544 ) Net income attributable to noncontrolling interests (1,869 ) (2,740 ) 871 (6,965 ) (12,663 ) 5,698 Net income attributable to Darling $ 101,908 $ 84,516 $ 17,392 $ 278,880 $ 647,726 $ (368,846 ) Basic income per share: $ 0.64 $ 0.53 $ 0.11 $ 1.75 $ 4.05 $ (2.30 ) Diluted income per share: $ 0.63 $ 0.52 $ 0.11 $ 1.73 $ 3.99 $ (2.26 ) Number of diluted common shares: 161,071 161,935 161,418 162,387 Segment Financial Tables (in thousands) Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended December 28, 2024 (unaudited) Total net sales $ 924,157 $ 361,686 $ 131,850 $ — $ 1,417,693 Cost of sales and operating expenses 714,843 268,582 100,506 — 1,083,931 Gross margin 209,314 93,104 31,344 — 333,762 Gain on sale of assets (1,210 ) (1,550 ) (1,296 ) — (4,056 ) Selling, general and administrative expenses 60,497 30,665 7,459 8,893 107,514 Restructuring and asset impairment charges 3,671 2,123 — — 5,794 Acquisition and integration costs — — — 2,440 2,440 Change in fair value of contingent consideration (4,491 ) — — — (4,491 ) Depreciation and amortization 90,648 26,119 9,189 2,202 128,158 Equity in net income of Diamond Green Diesel — — 24,036 — 24,036 Segment operating income/(loss) $ 60,199 $ 35,747 $ 40,028 $ (13,535 ) $ 122,439 Equity in net income of other unconsolidated subsidiaries 2,885 — — — 2,885 Segment income/(loss) 63,084 35,747 40,028 (13,535 ) 125,324 Segment Adjusted EBITDA (Non-GAAP) $ 150,027 $ 63,989 $ 25,181 $ (8,893 ) $ 230,304 DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) — — 59,159 — 59,159 Combined Adjusted EBITDA (Non-GAAP) $ 150,027 $ 63,989 $ 84,340 $ (8,893 ) $ 289,463 Reconciliation of Net Income/(loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA: Net income attributable to Darling $ 63,084 $ 35,747 $ 40,028 $ (36,951 ) $ 101,908 Net income attributable to noncontrolling interests 1,869 1,869 Income tax benefit (25,547 ) (25,547 ) Interest expense 54,911 54,911 Foreign currency loss 1,669 1,669 Other income, net (9,486 ) (9,486 ) Segment income/(loss) $ 63,084 $ 35,747 $ 40,028 $ (13,535 ) $ 125,324 Restructuring and asset impairment charges 3,671 2,123 — — 5,794 Acquisition and integration costs — — — 2,440 2,440 Change in fair value of contingent consideration (4,491 ) — — — (4,491 ) Depreciation and amortization 90,648 26,119 9,189 2,202 128,158 Equity in net income of Diamond Green Diesel — — (24,036 ) — (24,036 ) Equity in net income of other unconsolidated subsidiaries (2,885 ) — — — (2,885 ) Segment Adjusted EBITDA (Non-GAAP) $ 150,027 $ 63,989 $ 25,181 $ (8,893 ) $ 230,304 DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) * 59,159 59,159 Combined Adjusted EBITDA (Non-GAAP) $ 150,027 $ 63,989 $ 84,340 $ (8,893 ) $ 289,463 *See reconciliation of DGD Net Income to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Income Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended December 30, 2023 (unaudited) Total net sales $ 1,045,642 $ 423,836 $ 144,605 $ — $ 1,614,083 Cost of sales and operating expenses 755,062 311,163 111,427 — 1,177,652 Gross margin 290,580 112,673 33,178 — 436,431 Loss (gain) on sale of assets 1 (8,243 ) (40 ) — (8,282 ) Selling, general and administrative expenses 77,281 30,195 6,714 18,430 132,620 Restructuring and asset impairment charges 3,934 9,199 — — 13,133 Acquisition and integration costs — — — 1,726 1,726 Change in fair value of contingent consideration 5,167 — — — 5,167 Depreciation and amortization 98,400 26,655 8,480 4,394 137,929 Equity in net income of Diamond Green Diesel — — 4,690 — 4,690 Segment operating income/(loss) $ 105,797 $ 54,867 $ 22,714 $ (24,550 ) $ 158,828 Equity in net income of other unconsolidated subsidiaries 1,508 — — — 1,508 Segment income/(loss) $ 107,305 $ 54,867 $ 22,714 $ (24,550 ) $ 160,336 Segment Adjusted EBITDA (Non-GAAP) $ 213,298 $ 90,721 $ 26,504 $ (18,430 ) $ 312,093 DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) — — 38,816 — 38,816 Combined Adjusted EBITDA (Non-GAAP) $ 213,298 $ 90,721 $ 65,320 $ (18,430 ) $ 350,909 Reconciliation of Net Income/(loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA: Net income attributable to Darling $ 107,305 $ 54,867 $ 22,714 $ (100,370 ) $ 84,516 Net income attributable to noncontrolling interests 2,740 2,740 Income tax expense 7,246 7,246 Interest expense 68,453 68,453 Foreign currency loss 206 206 Other income, net (2,825 ) (2,825 ) Segment income/(loss) $ 107,305 $ 54,867 $ 22,714 $ (24,550 ) $ 160,336 Restructuring and asset impairment charges 3,934 9,199 — — 13,133 Acquisition and integration costs — — — 1,726 1,726 Change in fair value of contingent consideration 5,167 — — — 5,167 Depreciation and amortization 98,400 26,655 8,480 4,394 137,929 Equity in net income of Diamond Green Diesel — — (4,690 ) — (4,690 ) Equity in net income of other unconsolidated subsidiaries (1,508 ) — — — (1,508 ) Segment Adjusted EBITDA (Non-GAAP) $ 213,298 $ 90,721 $ 26,504 $ (18,430 ) $ 312,093 DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) * 38,816 38,816 Combined Adjusted EBITDA (Non-GAAP) $ 213,298 $ 90,721 $ 65,320 $ (18,430 ) $ 350,909 *See reconciliation of DGD Net Income to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Income Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Twelve Months Ended December 28, 2024 (unaudited) Total net sales $ 3,675,609 $ 1,489,101 $ 550,465 $ — $ 5,715,175 Cost of sales and operating expenses 2,886,125 1,115,348 435,864 — 4,437,337 Gross margin 789,484 373,753 114,601 — 1,277,838 Gain on sale of assets (669 ) (1,758 ) (1,730 ) — (4,157 ) Selling, general and administrative expenses 279,095 119,604 32,370 61,036 492,105 Restructuring and asset impairment charges 3,671 2,123 — — 5,794 Acquisition and integration costs — — — 7,842 7,842 Change in fair value of contingent consideration (46,706 ) — — — (46,706 ) Depreciation and amortization 350,141 109,102 35,876 8,706 503,825 Equity in net income of Diamond Green Diesel — — 149,082 — 149,082 Segment operating income/(loss) $ 203,952 $ 144,682 $ 197,167 $ (77,584 ) $ 468,217 Equity in net income of other unconsolidated subsidiaries 11,994 — — — 11,994 Segment income/(loss) $ 215,946 $ 144,682 $ 197,167 $ (77,584 ) $ 480,211 Segment Adjusted EBITDA (Non-GAAP) $ 511,058 $ 255,907 $ 83,961 $ (61,036 ) $ 789,890 DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) — — 289,945 — 289,945 Combined Adjusted EBITDA (Non-GAAP) $ 511,058 $ 255,907 $ 373,906 $ (61,036 ) $ 1,079,835 Reconciliation of Net Income/(loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA: Net income attributable to Darling $ 215,946 $ 144,682 $ 197,167 $ (278,915 ) $ 278,880 Net income attributable to noncontrolling interests 6,965 6,965 Income tax benefit (38,337 ) (38,337 ) Interest expense 253,858 253,858 Foreign currency loss 1,154 1,154 Other income, net (22,309 ) (22,309 ) Segment income/(loss) $ 215,946 $ 144,682 $ 197,167 $ (77,584 ) $ 480,211 Restructuring and asset impairment charges 3,671 2,123 — — 5,794 Acquisition and integration costs — — — 7,842 7,842 Change in fair value of contingent consideration (46,706 ) — — — (46,706 ) Depreciation and amortization 350,141 109,102 35,876 8,706 503,825 Equity in net income of Diamond Green Diesel — — (149,082 ) — (149,082 ) Equity in net income of other unconsolidated subsidiaries (11,994 ) — — — (11,994 ) Segment Adjusted EBITDA (Non-GAAP) $ 511,058 $ 255,907 $ 83,961 $ (61,036 ) $ 789,890 DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) * 289,945 289,945 Combined Adjusted EBITDA (Non-GAAP) $ 511,058 $ 255,907 $ 373,906 $ (61,036 ) $ 1,079,835 *See reconciliation of DGD Net Income to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Income Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Twelve Months Ended December 30, 2023 Total net sales $ 4,472,592 $ 1,752,065 $ 563,423 $ — $ 6,788,080 Cost of sales and operating expenses 3,385,859 1,310,581 446,620 — 5,143,060 Gross margin 1,086,733 441,484 116,803 — 1,645,020 Loss (gain) on sale of assets 814 (8,144 ) (91 ) — (7,421 ) Selling, general and administrative expenses 310,363 128,464 23,543 80,164 542,534 Restructuring and asset impairment charges 4,026 14,527 — — 18,553 Acquisition and integration costs — — — 13,884 13,884 Change in fair value of contingent consideration (7,891 ) — — — (7,891 ) Depreciation and amortization 360,249 94,991 34,466 12,309 502,015 Equity in net income of Diamond Green Diesel — — 366,380 — 366,380 Segment operating income/(loss) $ 419,172 $ 211,646 $ 425,265 $ (106,357 ) $ 949,726 Equity in net income of other unconsolidated subsidiaries 5,011 — — — 5,011 Segment income/(loss) $ 424,183 $ 211,646 $ 425,265 $ (106,357 ) $ 954,737 Segment Adjusted EBITDA (Non-GAAP) $ 775,556 $ 321,164 $ 93,351 $ (80,164 ) $ 1,109,907 DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) 501,987 501,987 Combined Adjusted EBITDA (Non-GAAP) $ 775,556 $ 321,164 $ 595,338 $ (80,164 ) $ 1,611,894 Reconciliation of Net Income/(loss) to (Non-GAAP) Segment Adjusted EBITDA and (Non-GAAP) Combined Adjusted EBITDA: Net income attributable to Darling $ 424,183 $ 211,646 $ 425,265 $ (413,368 ) $ 647,726 Net income attributable to noncontrolling interests 12,663 12,663 Income tax expense 59,568 59,568 Interest expense 259,223 259,223 Foreign currency gain (8,133 ) (8,133 ) Other income, net (16,310 ) (16,310 ) Segment income/(loss) $ 424,183 $ 211,646 $ 425,265 $ (106,357 ) $ 954,737 Restructuring and asset impairment charges 4,026 14,527 — — 18,553 Acquisition and integration costs — — — 13,884 13,884 Change in fair value of contingent consideration (7,891 ) — — — (7,891 ) Depreciation and amortization 360,249 94,991 34,466 12,309 502,015 Equity in net income of Diamond Green Diesel — — (366,380 ) — (366,380 ) Equity in net income of other unconsolidated subsidiaries (5,011 ) — — — (5,011 ) Segment Adjusted EBITDA (Non-GAAP) $ 775,556 $ 321,164 $ 93,351 $ (80,164 ) $ 1,109,907 DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) * 501,987 501,987 Combined Adjusted EBITDA (Non-GAAP) $ 775,556 $ 321,164 $ 595,338 $ (80,164 ) $ 1,611,894 *See reconciliation of DGD Net Income to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Income Darling Ingredients Inc. and Subsidiaries Balance Sheet Disclosures As of December 28, 2024 and December 30, 2023 (in thousands) (unaudited) December 28, December 30, 2024 2023 Cash and cash equivalents $ 75,973 $ 126,502 Property, plant and equipment, net 2,713,669 2,935,185 Current portion of long-term debt 133,020 60,703 Long-term debt, net of current portion 3,908,978 4,366,370 Other Financial Data As of December 28, 2024 (unaudited) December 28, 2024 Revolver availability $ 1,159,611 Capital expenditures - YTD $ 332,465 Preliminary Leverage Ratio 3.93x Diamond Green Diesel Joint Venture Consolidated Statements of Income For the Three and Twelve Months Ended December 31, 2024 and December 31, 2023 (in thousands) Three Months Ended Twelve Months Ended (unaudited) (unaudited) $ Change (unaudited) $ Change December 31, December 31, Favorable December 31, December 31, Favorable 2024 2023 (Unfavorable) 2024 2023 (Unfavorable) Revenues: Operating revenues $ 1,245,722 $ 1,633,795 $ (388,073 ) $ 5,065,592 $ 6,990,622 $ (1,925,030 ) Expenses: Total costs and expenses less lower of cost or market inventory valuation adjustment and depreciation, amortization and accretion expense 1,009,285 1,495,293 486,008 4,309,768 5,925,778 1,616,010 Lower of cost or market (LCM) inventory valuation adjustment 118,120 60,871 (57,249 ) 175,934 60,871 (115,063 ) Depreciation, amortization and accretion expense 69,489 58,881 (10,608 ) 264,992 230,921 (34,071 ) Total costs and expenses 1,196,894 1,615,045 418,151 4,750,694 6,217,570 1,466,876 Operating income 48,828 18,750 30,078 314,898 773,052 (458,154 ) Other income 7,778 3,454 4,324 22,114 10,317 11,797 Interest and debt expense, net (8,301 ) (12,072 ) 3,771 (38,673 ) (49,857 ) 11,184 Income before income tax expense 48,305 10,132 38,173 298,339 733,512 (435,173 ) Income tax expense 233 752 519 175 752 577 Net income $ 48,072 $ 9,380 $ 38,692 $ 298,164 $ 732,760 $ (434,596 ) Reconciliation of DGD Net Income to (Non-GAAP) DGD Adjusted EBITDA: Net income $ 48,072 $ 9,380 $ 298,164 $ 732,760 Income tax expense 233 752 175 752 Interest and debt expense, net 8,301 12,072 38,673 49,857 Other income (7,778 ) (3,454 ) (22,114 ) (10,317 ) Operating income 48,828 18,750 314,898 773,052 Depreciation, amortization and accretion expense 69,489 58,881 264,992 230,921 DGD Adjusted EBITDA (Non-GAAP) 118,317 77,631 579,890 1,003,973 Darling's Share 50% 50 % 50 % 50 % 50 % DGD Adjusted EBITDA (Darling's Share) (Non-GAAP) $ 59,159 $ 38,816 $ 289,945 $ 501,987 Diamond Green Diesel Joint Venture Condensed Consolidated Balance Sheets December 31, 2024 and December 31, 2023 (in thousands) December 31, December 31, 2024 2023 (unaudited) Assets: Cash $ 353,446 $ 236,794 Total other current assets 1,137,821 1,640,636 Property, plant and equipment, net 3,868,943 3,838,800 Other assets 100,307 89,697 Total assets $ 5,460,517 $ 5,805,927 Liabilities and members' equity: Revolver $ — $ 250,000 Total other current portion of long term debt 29,809 28,639 Total other current liabilities 319,688 417,918 Total long term debt 707,158 737,097 Total other long term liabilities 17,195 16,996 Total members' equity 4,386,667 4,355,277 Total liabilities and members' equity $ 5,460,517 $ 5,805,927 Reconciliation of Net Income to (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro forma Adjusted EBITDA to Foreign Currency For the Three and Twelve Months Ended December 28, 2024 and December 30, 2023 (in thousands) Three Months Ended Twelve Months Ended Adjusted EBITDA December 28, December 30, December 28, December 30, (U.S. dollars in thousands) 2024 2023 2024 2023 (unaudited) (unaudited) (unaudited) Net income attributable to Darling 101,908 84,516 278,880 647,726 Depreciation and amortization 128,158 137,929 503,825 502,015 Interest expense 54,911 68,453 253,858 259,223 Income tax expense (benefit) (25,547 ) 7,246 (38,337 ) 59,568 Restructuring and asset impairment charges 5,794 13,133 5,794 18,553 Acquisition and integration costs 2,440 1,726 7,842 13,884 Change in fair value of contingent consideration (4,491 ) 5,167 (46,706 ) (7,891 ) Foreign currency loss/(gain) 1,669 206 1,154 (8,133 ) Other income, net (9,486 ) (2,825 ) (22,309 ) (16,310 ) Equity in net income of Diamond Green Diesel (24,036 ) (4,690 ) (149,082 ) (366,380 ) Equity in net income of other unconsolidated subsidiaries (2,885 ) (1,508 ) (11,994 ) (5,011 ) Net income attributable to noncontrolling interests 1,869 2,740 6,965 12,663 Adjusted EBITDA (Non-GAAP) $ 230,304 $ 312,093 $ 789,890 $ 1,109,907 Foreign currency exchange impact 1,410 (1 ) — 1,334 (2 ) — Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP) $ 231,714 $ 312,093 $ 791,224 $ 1,109,907 DGD Adjusted EBITDA (Darling's share) (Non-GAAP)* $ 59,159 $ 38,816 $ 289,945 $ 501,987 Combined Adjusted EBITDA (Non-GAAP) $ 289,463 $ 350,909 $ 1,079,835 $ 1,611,894 *See reconciliation of DGD Net Income to (Non-GAAP) DGD Adjusted EBITDA below the DGD Consolidated Statements of Income (1) The average rates for the three months ended December 28, 2024 were €1.00:$1.07, R$1.00:$0.17 and C$1.00:$0.72 as compared to the average rates for the three months ended December 30, 2023 of €1.00:$1.07, R$1.00:$0.20 and C$1.00:$0.73, respectively. (2) The average rates for the twelve months ended December 28, 2024 were €1.00:$1.08, R$1.00:$0.19 and C$1.00:$0.73 as compared to the average rates for the twelve months ended December 30, 2023 of €1.00:$1.08, R$1.00:$0.20 and C$1.00:$0.74, respectively. About Darling Ingredients A pioneer in circularity, Darling Ingredients Inc. (NYSE: DAR) takes material from the animal agriculture and food industries, and transforms them into valuable ingredients that nourish people, feed animals and crops, and fuel the world with renewable energy. The company operates over 260 facilities in more than 15 countries and processes about 15% of the world’s animal agricultural by-products, produces about 30% of the world’s collagen (both gelatin and hydrolyzed collagen), and is one of the largest producers of renewable energy. To learn more, visit darlingii.com. Follow us on LinkedIn. Darling Ingredients will host a conference call at 9 a.m. Eastern Time (8 a.m. Central Time) on Feb. 6, 2025, to discuss fourth quarter and fiscal year 2024 financial results, which will be released earlier that day. At this time, the company will provide additional details regarding its 2025 outlook. A presentation accompanying supplemental financial data will also be available at darlingii.com/investors. To access the call as a listener, please register for the audio-only webcast. To join the call as a participant to ask a question, please register in advance to receive a confirmation email with the dial-in number and PIN for immediate access on Feb. 6, or call 833-470-1428 (United States) or 404-975-4839 (international) using access code 054278. A replay of the call will be available online via the webcast registration link two hours after the call ends. A transcript will be posted at darlingii.com/investors within 24 hours. Use of Non-GAAP Financial Measures: Segment Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income/(loss), as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income (loss), but rather as a measure of the segment’s operating performance. Segment Adjusted EBITDA consists of net income/(loss) plus depreciation and amortization, restructuring and asset impairment charges, acquisition and integration costs, change in fair value of contingent consideration, foreign currency loss/(gain), net income/(loss) attributable to noncontrolling interests, interest expense, income tax provision, other income/(expense), equity in net (income)/loss of unconsolidated subsidiaries and equity in net (income)/loss of Diamond Green Diesel. Management believes that Segment Adjusted EBITDA is useful in evaluating the segment’s operating performance because the calculation of Segment Adjusted EBITDA generally eliminates non-cash and certain other items for reasons unrelated to overall operating performance and also believes this information is useful to investors. Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Since EBITDA (generally, net income plus interest expense, taxes, depreciation and amortization) is not calculated identically by all companies, the presentation in this report may not be comparable to EBITDA or Adjusted EBITDA presentations disclosed by other companies. Adjusted EBITDA is calculated above and represents for any relevant period, net income/(loss) plus depreciation and amortization, restructuring and asset impairment charges, acquisition and integration costs, change in fair value of contingent consideration, foreign currency loss/(gain), net income/(loss) attributable to non-controlling interests, interest expense, income tax provision, other income/(expense) and equity in net (income)/loss of unconsolidated subsidiaries. Management believes that Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of financing, income taxes, non-cash and certain other items that may vary for different companies for reasons unrelated to overall operating performance and also believes this information is useful to investors. The Company’s management uses Adjusted EBITDA as a measure to evaluate performance and for other discretionary purposes. In addition to the foregoing, management also uses or will use Adjusted EBITDA to measure compliance with certain financial covenants under the Company’s Senior Secured Credit Facilities, 6% Notes, 5.25% Notes and 3.625% Notes that were outstanding at December 28, 2024. However, the amounts shown above for Adjusted EBITDA differ from the amounts calculated under similarly titled definitions in the Company’s Senior Secured Credit Facilities, 6% Notes, 5.25% Notes and 3.625% Notes, as those definitions permit further adjustments to reflect certain other nonrecurring costs, non-cash charges and cash dividends from the DGD Joint Venture. Additionally, the Company evaluates the impact of foreign exchange on operating cash flow, which is defined as segment operating income (loss) plus depreciation and amortization. Pro forma Adjusted EBITDA to Foreign Currency is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Management believes Pro forma Adjusted EBITDA to Foreign Currency is useful in evaluating the Company’s operating performance on a constant currency basis and also believes this information is useful to investors. Combined Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company’s operating performance. Combined Adjusted EBITDA consists of Adjusted EBITDA plus DGD Adjusted EBITDA (Darling’s Share). When Combined Adjusted EBITDA is presented by segment, Combined Adjusted EBITDA consists of Segment Adjusted EBITDA plus DGD Adjusted EBITDA (Darling’s Share). Management believes that Combined Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Combined Adjusted EBITDA generally eliminates the effects of financing, income taxes, non-cash and certain other items that may vary for different companies for reasons unrelated to overall operating performance and also believes this information is useful to investors. Information reconciling forward-looking Combined Adjusted EBITDA to net income is unavailable to the Company without unreasonable effort. The Company is not able to provide reconciliations of Combined Adjusted EBITDA to net income because certain items required for such reconciliations are outside of the Company’s control and/or cannot be reasonably predicted, such as the impact of volatile commodity prices on the Company’s operations, impact of foreign currency exchange fluctuations, depreciation and amortization and the provision for income taxes. Preparation of such reconciliations for Darling Ingredients Inc. and the Company’s joint venture, Diamond Green Diesel, would require a forward-looking balance sheet, statement of operations and statement of cash flows, prepared in accordance with GAAP for each entity, and such forward-looking financial statements are unavailable to the Company without unreasonable effort. The Company provides guidance for its Combined Adjusted EBITDA outlook that it believes will be achieved; however, it cannot accurately predict all the components of the Combined Adjusted EBITDA calculation. DGD Adjusted EBITDA is not reflected in the Adjusted EBITDA or the Pro forma Adjusted EBITDA to Foreign Currency. DGD Adjusted EBITDA is not a recognized accounting measure under GAAP; it should not be considered as an alternative to net income/(loss) or equity in net income/(loss) of Diamond Green Diesel, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity and is not intended to be a presentation in accordance with GAAP. The Company calculates DGD Adjusted EBITDA by taking DGD’s net income/(loss) plus income tax expense/(benefit), interest and debt expense, net, and DGD’s depreciation, amortization and accretion expense less other income. Management believes that DGD Adjusted EBITDA is useful in evaluating the Company’s operating performance because the calculation of DGD Adjusted EBITDA generally eliminates non-cash and certain other items at DGD unrelated to overall operating performance and also believes this information is useful to investors. The Company calculates Darling’s Share of DGD Adjusted EBITDA by taking DGD Adjusted EBITDA and then multiplying by 50% to get Darling’s Share of DGD’s Adjusted EBITDA. EBITDA per gallon is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income or equity in income of Diamond Green Diesel, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity and is not intended to be a presentation in accordance with GAAP. EBITDA per gallon is presented here not as an alternative to net income or equity in income of Diamond Green Diesel, but rather as a measure of Diamond Green Diesel's operating performance. Since EBITDA per gallon (generally, net income plus interest expense, taxes, depreciation and amortization divided by total gallons sold) is not calculated identically by all companies, this presentation may not be comparable to EBITDA per gallon presentations disclosed by other companies. Management believes that EBITDA per gallon is useful in evaluating Diamond Green Diesel's operating performance compared to that of other companies in its industry because the calculation of EBITDA per gallon generally eliminates the effects of financing, income taxes and certain non-cash and other items presented on a per gallon basis that may vary for different companies for reasons unrelated to overall operating performance. Cautionary Statements Regarding Forward-Looking Information: This media release includes “forward-looking” statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. Statements that are not statements of historical facts are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “estimate,” “guidance,” “outlook,” “project,” “planned,” “contemplate,” “potential,” “possible,” “proposed,” “intend,” “believe,” “anticipate,” “expect,” “may,” “will,” “would,” “should,” “could,” and similar expressions are intended to identify forward-looking statements. All statements other than statements of historical facts included in this release are forward-looking statements. Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. The Company cautions readers that any such forward-looking statements it makes are not guarantees of future performance and that actual results may differ materially from anticipated results or expectations expressed in its forward-looking statements as a result of a variety of factors, including many that are beyond the Company's control. Important factors that could cause actual results to differ materially from the Company’s expectations include: existing and unknown future limitations on the ability of the Company's direct and indirect subsidiaries to make their cash flow available to the Company for payments on the Company's indebtedness or other purposes; reduced demands or prices for biofuels, biogases or renewable electricity; global demands for grain and oilseed commodities, which have exhibited volatility, and can impact the cost of feed for cattle, hogs and poultry, thus affecting available rendering feedstock and selling prices for the Company’s products; reductions in raw material volumes available to the Company due to weak margins in the meat production industry as a result of higher feed costs, reduced consumer demand, reduced volume due to government regulations affecting animal production or other factors, reduced volume from food service establishments, or otherwise; reduced demand for animal feed; reduced finished product prices, including a decline in fat, used cooking oil, protein or collagen (including, without limitation, collagen peptides and gelatin) finished product prices; changes to government policies around the world relating to renewable fuels and greenhouse gas (“GHG”) emissions that adversely affect prices, margins or markets (including for the DGD Joint Venture), including programs like renewable fuel standards, low carbon fuel standards (“LCFS”), renewable fuel mandates and tax credits for biofuels, or loss or diminishment of tax credits due to failure to satisfy any eligibility requirements, including, without limitation, in relation to the blender tax credit or the Clean Fuels Production Credit (“CFPC”); climate related adverse results, including with respect to the Company’s climate goals, targets or commitments; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives or products which do not meet specifications, contract requirements or regulatory standards; the occurrence of 2009 H1N1 flu (initially known as “Swine Flu”), highly pathogenic strains of avian influenza (collectively known as “Bird Flu”), severe acute respiratory syndrome (“SARS”), bovine spongiform encephalopathy (or “BSE”), porcine epidemic diarrhea (“PED”) or other diseases associated with animal origin in the U.S. or elsewhere, such as the outbreak of African Swine Fever in China and elsewhere; the occurrence of pandemics, epidemics or disease outbreaks, such as the COVID-19 outbreak; unanticipated costs and/or reductions in raw material volumes related to the Company’s compliance with the existing or unforeseen new U.S. or foreign (including, without limitation, China) regulations (including new or modified animal feed, Bird Flu, SARS, PED, BSE or ASF or similar or unanticipated regulations) affecting the industries in which the Company operates or its value added products; risks associated with the DGD Joint Venture, including possible unanticipated operating disruptions, a decline in margins on the products produced by the DGD Joint Venture and issues relating to the announced SAF upgrade project (including, without limitation, operational, mechanical, product quality, market based or other such issues); risks and uncertainties relating to international sales and operations, including imposition of tariffs, quotas, trade barriers and other trade protections by foreign countries; tax changes, such as global minimum tax measures, or issues related to administration, guidance and/or regulations associated with biofuel policies, including CFPC, and risks associated with the qualification and sale of such credits; difficulties or a significant disruption (including, without limitation, due to cyber-attack) in the Company’s information systems, networks or the confidentiality, availability or integrity of our data or failure to implement new systems and software successfully; risks relating to possible third-party claims of intellectual property infringement; increased contributions to the Company’s pension and benefit plans, including multiemployer and employer-sponsored defined benefit pension plans as required by legislation, regulation or other applicable U.S. or foreign law or resulting from a U.S. mass withdrawal event; bad debt write-offs; loss of or failure to obtain necessary permits and registrations; continued or escalated conflict in the Middle East, North Korea, Ukraine or elsewhere, including the Russia-Ukraine war and the Israeli-Palestinian conflict and other associated or emerging conflicts in the Middle East; uncertainty regarding the exit of the U.K. from the European Union; uncertainty regarding any administration changes in the U.S. or elsewhere around the world, including, without limitation, impacts to trade, tariffs and/or policies impacting the Company (such as biofuel policies and mandates); and/or unfavorable export or import markets. These factors, coupled with volatile prices for natural gas and diesel fuel, inflation rates, climate conditions, currency exchange fluctuations, general performance of the U.S. and global economies, disturbances in world financial, credit, commodities and stock markets, and any decline in consumer confidence and discretionary spending, including the inability of consumers and companies to obtain credit due to lack of liquidity in the financial markets, among others, could cause actual results to vary materially from the forward-looking statements included in this report or negatively impact the Company’s results of operations. Among other things, future profitability may be affected by the Company’s ability to grow its business, which faces competition from companies that may have substantially greater resources than the Company. The Company’s announced share repurchase program may be suspended or discontinued at any time and purchases of shares under the program are subject to market conditions and other factors, which are likely to change from time to time. For more detailed discussion of these factors and other risks and uncertainties regarding the Company, its business and the industries in which it operates, see the Company’s filings with the SEC, including the Risk Factors discussion in Item 1A of Part I of the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2023. The Company cautions readers that all forward-looking statements speak only as of the date made, and the Company undertakes no obligation to update any forward-looking statements, whether as a result of changes in circumstances, new events or otherwise.

Darling Ingredients Inc. Reports Fourth Quarter and Fiscal Year 2024 Results

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