Strong Core Ingredients Business Performance
The core ingredients business reported its strongest performance in 1.5 years, driven by robust global demand and exceptional execution across all operations. Combined adjusted EBITDA for the third quarter was $245 million, with the Global Ingredients business contributing $248 million.
Improvement in Feed Segment
The Feed segment's EBITDA improved to $174 million from $132 million a year ago. Total sales were $1 billion compared to $928 million last year, with gross margins relative to sales improving to 24.3% from 21.5%.
Increase in Food Segment Performance
The Food segment's EBITDA increased to $72 million from $57 million in the third quarter of 2024, with total sales rising to $381 million from $357 million, and gross margins improving to 27.5% of sales from 23.9%.
Positive Outlook on Production Tax Credits (PTC)
The company expects to generate around $300 million in PTCs in 2025, with demand for these credits being robust as potential buyers become more familiar with the details. Darling agreed to the sale of $125 million in PTCs during the third quarter and anticipates additional sales in the fourth quarter.