Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<div><ul><li>The liquid renewable fuels sector has entered 2H26 in the strongest position it has occupied in years. </li><li>Margins across renewable diesel (RD), biodiesel, sustainable aviation fuel (SAF), and low-carbon ethanol are running near multi-year highs, balance sheets are healthier, and carbon credit revenue is maturing into a durable earnings stream that stands apart from physical fuel.</li><li>In this report, we walk through the five most resounding themes from companies’ interim results and recent WTR events, illustrated with company-level evidence and near-term catalysts with our thoughts on what we’re watching in the coming weeks for investors to follow.</li></ul></div>

The liquid renewable fuels sector has entered 2H26 in the strongest position it has occupied in years. Margins across renewable diesel (RD), biodiesel, sustainable aviation fuel (SAF), and low-carbon ethanol are running near multi-year highs, balance sheets are healthier, and carbon credit revenue is maturing into a durable earnings stream that stands apart from physical fuel.In this report, we walk through the five most resounding themes from companies’ interim results and recent WTR events, illustrated with company-level evidence and near-term catalysts with our thoughts on what we’re watching in the coming weeks for investors to follow.

WTR Circular Carbon Focus Report : Five Key Themes Driving Liquid Renewable Fuels

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Darling Ingredients Inc. reported its financial results for the fourth quarter and fiscal year 2025, reflecting a year marked by challenges including changes in renewables public policy and volatility in global trade tariffs.</li><li>Despite these headwinds, the company demonstrated improvements in several key financial metrics and operational performance.</li><li>For the quarter, combined adjusted EBITDA increased to $336.1 million from $289 million in the same period the prior year, driven largely by growth in the Global Ingredients segment, which posted $278.2 million in EBITDA.</li></ul>

Darling Ingredients Inc. reported its financial results for the fourth quarter and fiscal year 2025, reflecting a year marked by challenges including changes in renewables public policy and volatility in global trade tariffs.Despite these headwinds, the company demonstrated improvements in several key financial metrics and operational performance.For the quarter, combined adjusted EBITDA increased to $336.1 million from $289 million in the same period the prior year, driven largely by growth in the Global Ingredients segment, which posted $278.2 million in EBITDA.

Darling Ingredients Is Expanding Globally In Biofuels—Why Demand From Europe And Canada Matters!

<div><ul><li>Darling Ingredients, Inc. (NYSE: DAR) is a global leader in sustainable solutions, transforming animal by-products, used cooking oil, and food waste into ingredients for food, feed, and fuel. </li><li>The company’s Diamond Green Diesel (DGD) JV with Valero (VLO) is the largest renewable fuels producer in the US, with 1.2 billion gallons of renewable diesel (RD) and sustainable aviation fuel (SAF) capacity.</li><li>DAR results beat expectations, with 4Q25 Combined Adjusted EBITDA of $336 million ($279 million FactSet consensus). By business segment: Feed EBITDA $193 million ($169 million consensus), Food EBITDA $82 million ($72 million consensus), and Fuel EBITDA $85 million (including DGD) ($45.5 million consensus).</li></ul></div>

Darling Ingredients, Inc. (NYSE: DAR) is a global leader in sustainable solutions, transforming animal by-products, used cooking oil, and food waste into ingredients for food, feed, and fuel. The company’s Diamond Green Diesel (DGD) JV with Valero (VLO) is the largest renewable fuels producer in the US, with 1.2 billion gallons of renewable diesel (RD) and sustainable aviation fuel (SAF) capacity.DAR results beat expectations, with 4Q25 Combined Adjusted EBITDA of $336 million ($279 million FactSet consensus). By business segment: Feed EBITDA $193 million ($169 million consensus), Food EBITDA $82 million ($72 million consensus), and Fuel EBITDA $85 million (including DGD) ($45.5 million consensus).

DAR: 4Q25 a Beat Across Feed, Food, and Fuel; Constructive 2026 Outlook

<ul><li>Darling Ingredients has announced a definitive agreement to merge its Rousselot collagen and gelatin business with Tessenderlo Group’s PB Leiner unit, forming a new joint venture expected to close in 2026.</li><li>This deal—structured with no upfront cash or investment—will see Darling holding an 85% stake and Tessenderlo the remaining 15%.</li><li>The combined entity will command approximately $1.5 billion in annual revenue and boast a 200,000 metric ton capacity across 22 facilities worldwide.</li></ul>

Darling Ingredients has announced a definitive agreement to merge its Rousselot collagen and gelatin business with Tessenderlo Group’s PB Leiner unit, forming a new joint venture expected to close in 2026.This deal—structured with no upfront cash or investment—will see Darling holding an 85% stake and Tessenderlo the remaining 15%.The combined entity will command approximately $1.5 billion in annual revenue and boast a 200,000 metric ton capacity across 22 facilities worldwide.

Darling Ingredients Ditches Diesel Drama for Collagen Control—Smart Move?

<ul><li>Darling Ingredients Inc. recently shared its third-quarter results for 2025, presenting a mixed picture of its financial and operational performance.</li><li>The company's Global Ingredients business showed resilience with solid demand driving its strongest performance in over 18 months.</li><li>The core ingredients segment, consisting of Feed, Food, and the Global Ingredients division, exhibited improved year-over-year performance, but operational challenges in the renewables sector, especially in the Diamond Green Diesel (DGD) joint venture, weighed down the overall picture.</li></ul>

Darling Ingredients Inc. recently shared its third-quarter results for 2025, presenting a mixed picture of its financial and operational performance.The company's Global Ingredients business showed resilience with solid demand driving its strongest performance in over 18 months.The core ingredients segment, consisting of Feed, Food, and the Global Ingredients division, exhibited improved year-over-year performance, but operational challenges in the renewables sector, especially in the Diamond Green Diesel (DGD) joint venture, weighed down the overall picture.

Darling Ingredients: Is a Tightening RIN Market About to Rewrite the Company’s Future?

United States

Darling Ingredients Inc. collects and recycles animal processing by-products and used restaurant cooking oil.  The Company also provides grease trap collection services to restaurants.  Darling processes such raw materials into finished products such as tallow, meat and bone meal, and yellow grease for sale in the United States and overseas.

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Darling Ingredients (DAR US)

WTR Circular Carbon Focus Report : Five Key Themes Driving Liquid Renewable Fuels

Margins across renewable diesel (RD), biodiesel, sustainable aviation fuel (SAF), and low-carbon ethanol are running near multi-year highs, balance...

Water Tower Research

Darling Ingredients Is Expanding Globally In Biofuels—Why Demand From Europe And Canada Matters!

Darling Ingredients Inc. reported its financial results for the fourth quarter and fiscal year 2025, reflecting a year marked by challenges...

Baptista Research

DAR: 4Q25 a Beat Across Feed, Food, and Fuel; Constructive 2026 Outlook

Darling Ingredients, Inc. (NYSE: DAR) is a global leader in sustainable solutions, transforming animal by-products, used cooking oil, and food...

Water Tower Research

Darling Ingredients Ditches Diesel Drama for Collagen Control—Smart Move?

Darling Ingredients has announced a definitive agreement to merge its Rousselot collagen and gelatin business with Tessenderlo Group’s PB Leiner...

Baptista Research

Darling Ingredients: Is a Tightening RIN Market About to Rewrite the Company’s Future?

Darling Ingredients Inc. recently shared its third-quarter results for 2025, presenting a mixed picture of its financial and operational...

Baptista Research

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