How Investors May Respond To Darling Ingredients (DAR) Collagen JV And Expanded Clean Fuel Tax Credit Sales

• In December 2025, Darling Ingredients announced a definitive agreement with Tessenderlo Group to combine their Rousselot and PB Leiner collagen and gelatin businesses into a new joint company with about US$1.50 billion in annual revenue and 200,000 metric tons of capacity across 22 global facilities, while also expanding 2025 sales of renewable fuel production tax credits from its Diamond Green Diesel joint venture to US$235 million.
• This combination of a large-scale, no-cash-required collagen venture and accelerated monetization of clean fuel tax credits underscores how Darling Ingredients is using partnerships and policy incentives to broaden earnings sources across both health-focused ingredients and low-carbon fuels.
• We will now examine how the expanded tax credit monetization through Diamond Green Diesel may influence Darling Ingredients' longer-term investment narrative.

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Darling Ingredients Investment Narrative Recap

To own Darling Ingredients, you have to believe in its ability to turn animal byproducts into higher value health ingredients and low carbon fuels while managing policy and margin volatility in renewable diesel. The new collagen joint venture and larger 2025 tax credit sales help broaden earnings sources, but they do not remove the near term risk that weak renewable fuel utilization and policy uncertainty could still weigh on profitability.

The most relevant recent development here is the US$235 million of 2025 tax credit sales from the Diamond Green Diesel joint venture, which converts renewable fuel incentives into cash. This supports the short term catalyst of margin recovery in renewable fuels, but it also highlights how dependent part of the story is on clean fuel policies, RINs and related regulatory decisions.

Yet behind the collagen growth story, investors should be aware that renewable fuel margins still hinge on...

Read the full narrative on Darling Ingredients (it's free!)

Darling Ingredients’ narrative projects $6.5 billion revenue and $673.1 million earnings by 2028.

Uncover how Darling Ingredients' forecasts yield a $47.00 fair value, a 35% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community span about US$47 to US$77.93 per share, showing how far apart individual views can be. Against that backdrop, the reliance on supportive renewable fuel policies and credit markets for Diamond Green Diesel adds an extra layer of uncertainty to how Darling’s future earnings may develop, so it is worth weighing several perspectives before forming a view.

Explore 2 other fair value estimates on Darling Ingredients - why the stock might be worth over 2x more than the current price!

Build Your Own Darling Ingredients Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Darling Ingredients research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Darling Ingredients research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Darling Ingredients' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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