Darling Ingredients Inc. reported a net loss of $(26.2) million, or $(0.16) per diluted share, for the first quarter of 2025, a significant decline from net income of $81.2 million, or $0.50 per diluted share, in Q1 2024. Total net sales for the quarter were $1.38 billion, a slight decrease from $1.42 billion in the prior year period.
The net loss was primarily driven by lower earnings at the Diamond Green Diesel (DGD) joint venture, which sold 219.1 million gallons of renewable fuels at an average of $0.06 per gallon EBITDA. This performance was impacted by the transition from the Blenders Tax Credit to the Clean Fuels Production Credit, tariffs on imported feedstocks, and operational downtime.
Despite the challenges in the biofuel industry, Darling Ingredients' core business performed well, generating positive cash flow. The company reaffirmed its fiscal year 2025 guidance for Combined Adjusted EBITDA of $1.25 billion to $1.30 billion, with the core business expected to generate $950 million to $1 billion EBITDA.
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