Darling Ingredients Inc.’s DAR food segment is increasingly benefiting from the global shift toward preventive health and functional nutrition, particularly through rising demand for collagen-based products. In the first quarter of fiscal 2026, the Food Ingredients segment generated $405.2 million in sales, up 16% from $349.2 million a year earlier, while segment adjusted EBITDA increased to $80.8 million from $70.9 million. Management attributed part of the improvement to stronger collagen and gelatin demand across Europe and Asia.
The company said collagen and gelatin sales improved year over year due to expanding applications in food, nutrition and health products. Darling Ingredients also noted that its Rousselot business continues to see favorable collagen and gelatin margins globally. The trend aligns with broader consumer demand for high-protein, wellness-focused products targeting healthy aging, mobility and active lifestyles.
A key growth initiative is Nextida, Darling Ingredients’ glucose-control ingredient aimed at metabolic health. Management said the product is currently awaiting U.S. patent approvals tied to production processes and its use as a dietary supplement ingredient designed to help lower blood glucose levels. The company positioned the product as a non-pharmaceutical alternative benefiting from rising interest in “food as medicine.”
The strategy could expand Darling Ingredients’ presence beyond commodity ingredients into higher-value specialty nutrition categories. As consumers increasingly seek functional foods with measurable health benefits, the company’s collagen portfolio and specialty ingredient pipeline are becoming more important growth drivers within its food business.
What Do the Latest Metrics Say About Darling Ingredients?
Darling Ingredients, which competes with Tyson Foods Inc. TSN and Ingredion Inc. INGR, has seen its shares rally 82.8% in the past year against the industry’s 27.6% decline. Shares of Tyson Foods have risen 17.4%, while Ingredion has declined 26.7% during the same period.
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From a valuation standpoint, Darling Ingredients’ forward 12-month price-to-earnings ratio stands at 13x, slightly lower than the industry’s 13.4x. The company is trading at a discount to Tyson Foods (with a forward 12-month P/E ratio of 14.75x) while trading at a premium to Ingredion (9.16x).
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The Zacks Consensus Estimate for Darling Ingredients’ current fiscal-year sales and earnings per share implies year-over-year growth of 12.3% and 588.2%, respectively.
Darling Ingredients currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).