DARLING INGREDIENTS INC.

Three Months Ended October 3, 2026 Compared to Three Months Ended September 27, 2025

Operating Performance Metrics

Operating performance metrics which management routinely monitors as an indicator of operating performance include:

•Finished product commodity prices

•Segment results

•Foreign currency exchange

•Corporate activities

•Non-U.S. GAAP measures

These indicators and their importance are discussed below.

Finished Product Commodity Prices

Prices for finished product commodities that the Company produces in the Feed Ingredients segment are reported each business day on the Jacobsen Index (the “Jacobsen”), an established North American trading exchange price publisher. The Jacobsen reports industry sales from the prior day's activity by product. Included on the Jacobsen are reported prices for finished products such as protein (primarily meat and bone meal (“MBM”), poultry meal (“PM”) and feather meal (“FM”)), hides, fats (primarily bleachable fancy tallow (“BFT”) and yellow grease (“YG”)) and corn, which is a substitute commodity for the Company’s bakery by-product (“BBP”), as well as a range of other branded and value-added products, which are products of the Company’s Feed Ingredients segment. In the United States and South America, the Company regularly monitors the Jacobsen for MBM, PM, FM, BFT, YG and corn because it provides a daily indication of the Company’s U.S. and Brazilian revenue performance against business plan benchmarks. In Europe and South America, the Company regularly monitors Thomson Reuters (“Reuters”) to track the competing commodities palm oil and soy meal.

Although the Jacobsen and Reuters provide useful metrics of performance, the Company’s finished products are commodities that compete with other commodities such as corn, soybean oil, palm oil complex, soybean meal and heating oil on nutritional and functional values. Therefore, actual pricing for the Company’s finished products, as well as competing products, can be quite volatile. In addition, neither the Jacobsen nor Reuters provides forward or future period pricing for the Company’s commodities. The Jacobsen and Reuters prices quoted below are for delivery of the finished product at a specified location. Although the Company’s prices generally move in concert with reported Jacobsen and Reuters prices, the Company’s actual sales prices for its finished products may vary significantly from the Jacobsen and Reuters because of production and delivery timing differences and because the Company’s finished products are delivered to multiple locations in different geographic regions which utilize alternative price indexes. In addition, certain of the Company’s premium branded finished products may sell at prices that may be higher than the closest product on the related Jacobsen or Reuters index. During the third quarter of fiscal 2026, the Company’s actual sales prices by product trended with the disclosed Jacobsen and Reuters prices.

Average Jacobsen and Reuters prices (at the specified delivery point) for the third quarter of fiscal 2026, compared to average Jacobsen and Reuters prices for the third quarter of fiscal 2025 are as follows:

The following table shows the average Jacobsen and Reuters prices for the third quarter of fiscal 2026, compared to average Jacobsen and Reuters prices for the second quarter of fiscal 2026:

Segment Results

Segment operating income for the three months ended October 3, 2026 was $333.3 million, which reflects an increase of $261.6 million or 364.9% as compared to the three months ended September 27, 2025.

(2) Selling, general and administrative expenses include payroll related costs including incentive pay and stock compensation, insurance related costs, professional fees, IT related costs, travel costs and other costs.

(2) Selling, general and administrative expenses include payroll related costs including incentive pay and stock compensation, insurance related costs, professional fees, IT related costs, travel costs and other costs.

Feed Ingredients Segment

Raw material volume. In the three months ended October 3, 2026, the raw material processed by the Company’s Feed Ingredients segment totaled approximately 3.19 million metric tons. Compared to the three months ended September 27, 2025, the raw material volume processed in the Feed Ingredients segment increased approximately 1.0%.

Sales. Total net sales increased in the Feed Ingredients segment primarily due to the following (in millions of dollars):

Margins. In the Feed Ingredients segment for the three months ended October 3, 2026, the gross margin percentage increased to 27.7% as compared to 24.3% for the comparable period of fiscal 2025. The increase was primarily due to increases in fat and protein prices, improved quality and consistency, and increased sales into higher-margin end markets.

Segment operating income. Feed Ingredients operating income for the three months ended October 3, 2026 was $150.8 million, an increase of $60.4 million or 66.8% as compared to the three months ended September 27, 2025. The increase was primarily due to increases in fat and protein prices leading to an increased gross margin that more than offset an increase in selling, general and administrative expenses and higher depreciation and amortization expense as compared to the same period of fiscal 2025.

Food Ingredients Segment

Raw material volume. In the three months ended October 3, 2026, the raw material processed by the Company’s Food Ingredients segment totaled approximately 316,000 metric tons. Compared to the three months ended September 27, 2025, the raw material volume processed in the Food Ingredients segment increased approximately 0.6%.

Sales. Total net sales increased in the Food Ingredients segment primarily due to increases in collagen demand leading to increases in sales volumes.

Margins. In the Food Ingredients segment for the three months ended October 3, 2026, the gross margin percentage decreased to 26.5% as compared to 27.5% for the comparable period of fiscal 2025 due to increased raw material costs and the ongoing impact of tariffs.

Segment operating income. Food Ingredients operating income was $44.8 million for the three months ended October 3, 2026, an increase of $3.0 million or 7.2% as compared to the three months ended September 27, 2025. The increase in operating income was primarily due to an increase in sales volumes due to increased market demand during the three months ended October 3, 2026 that more than offset increased operating expenses and selling, general and administrative expenses as compared to the same period of fiscal 2025.

Fuel Ingredients Segment

Raw material volume. In the three months ended October 3, 2026, the raw material processed by the Company’s Fuel Ingredients segment totaled approximately 371,000 metric tons. Compared to the three months ended September 27, 2025, the raw material volume processed in the Fuel Ingredients segment increased approximately 5.7%.

Sales. Total net sales increased in the Fuel Ingredients segment primarily due to higher energy prices.

Margins. In the Fuel Ingredients segment for the three months ended October 3, 2026, the gross margin percentage decreased to 19.8% as compared to 21.0% for the comparable period of fiscal 2025. The decrease was primarily due to increased raw material costs.

Segment operating income. Fuel Ingredients operating income (inclusive of the equity contribution from the DGD Joint Venture) for the three months ended October 3, 2026 was $180.3 million, an increase of $210.8 million or 691.1% as compared to the same period in fiscal 2025. The increase in operating income was due to a combination of factors, including an increase in production and sales volumes recognized at the DGD Joint Venture, increases in Renewable Identification Numbers (RINs) values in connection with the EPA finalizing the rulemaking process for renewable volume obligations for 2026-27 and an increase in diesel prices which resulted in higher sales prices and margins for the DGD Joint Venture as compared to the same period in fiscal 2025.

Foreign Currency Exchange

During the third quarter of fiscal 2026, the euro and Canadian dollar weakened against the U.S. dollar and the Brazilian real strengthened against the U.S. dollar as compared to the same period in fiscal 2025. Using actual results for the three months ended October 3, 2026 and using the prior year's average currency rate for the three months ended September 27, 2025, foreign currency translation would have resulted in an increase in operating income of approximately $2.9 million. The average rates for the three months ended October 3, 2026 were €1.00:$1.15, R$1.00:$0.19 and C$1.00:$0.71 as compared to the average rates for the three months ended September 27, 2025 of €1.00:$1.17, R$1.00:$0.18 and C$1.00:$0.73, respectively.

Corporate Activities

Selling, General and Administrative Expenses. Selling, general and administrative expenses were approximately $35.2 million during the three months ended October 3, 2026, compared to approximately $22.3 million during the three months ended September 27, 2025, an increase of $12.9 million. The increase was primarily due to an increase in the Company's incentive based compensation expense.

Acquisition and Integration Costs. Acquisition and integration costs were approximately $5.8 million during the three months ended October 3, 2026 as compared to $6.2 million for the same period in fiscal 2025. The costs in the third quarter of fiscal 2026 primarily related to the Company’s proposed joint venture with Tessenderlo Group NV and the acquisition of UPI Bovinos NewCo (the “Bovinos Acquisition”) compared to the costs related to the proposed joint venture with Tessenderlo Group NV and other acquisitions in the same period in fiscal 2025.

Depreciation and Amortization. Depreciation and amortization charges were approximately $1.7 million for the three months ended October 3, 2026 as compared to $1.5 million for the three months ended September 27, 2025.

Interest Expense. Interest expense was $51.5 million during the three months ended October 3, 2026, compared to $56.9 million during the three months ended September 27, 2025, a decrease of $5.4 million. The decrease in interest expense was primarily due to lower revolver and term A facility balances from paydowns resulting in lower interest expense in the current quarter as compared to interest expense in the same period in fiscal 2025.

Foreign Currency Gain. Foreign currency gains were $0.5 million for the three months ended October 3, 2026 compared to $1.1 million for the three months ended September 27, 2025. The change was due primarily to lower revaluation gains on non-functional currency assets and liabilities as compared to the same period of fiscal 2025.

Gain on sale of businesses. Gain on sale of businesses is due to the net gain associated from the sale of a substantial portion of our U.S. grease trap environmental services business and the sale of our natural casings business as compared to a small gain in the same period of fiscal 2025.

Other expense, net. Other expense was $3.0 million in the three months ended October 3, 2026, compared to $1.0 million for the three months ended September 27, 2025. The increase in other expense was primarily due to settlement losses incurred from our pension plans that more than offset an increase in interest income as compared to fiscal 2025.

Equity in Net Income in Investment of Other Unconsolidated Subsidiaries. The change in this line item is not significant and primarily represents the Company’s pro rata share of the net income from its foreign unconsolidated subsidiaries.

Income Taxes. The Company recorded income tax expense of $76.8 million for the three months ended October 3, 2026, compared to an income tax benefit of $1.2 million recorded in the three months ended September 27, 2025, an increase in tax expense of $78.0 million, which was primarily due to an increase in pre-tax income. The effective tax rates for the three months ended October 3, 2026 and September 27, 2025 was 22.3% and (6.3)%, respectively. The effective tax rate for the three months ended October 3, 2026 differed slightly from the federal statutory rate of 21% due primarily to biofuel tax incentives, the relative mix of earnings among jurisdictions with different tax rates (including foreign withholding taxes and state income taxes) and certain losses that provided no tax benefit. The effective tax rate for the three months ended September 27, 2025 differed from the federal statutory rate of 21% due primarily to biofuel tax incentives, the relative mix of earnings among jurisdictions with different tax rates (including foreign withholding taxes and state income taxes) and certain losses that provided no tax benefit. The Company’s effective tax rate excluding the impact of the biofuel tax incentives and discrete items was 24.2% for the three months ended October 3, 2026, compared to 43.6% for the three months ended September 27, 2025.

Non-U.S. GAAP Measures

Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Since EBITDA (generally, net income plus interest expense, taxes, depreciation and amortization) is not calculated identically by all companies, the presentation in this report may not be comparable to EBITDA or Adjusted EBITDA presentations disclosed by other companies. Adjusted EBITDA is calculated below and represents for any relevant period, net income/(loss) plus depreciation and amortization, restructuring and asset impairment charges, acquisition and integration costs, change in fair value of contingent consideration, foreign currency loss/(gain), net income attributable to non-controlling interests, interest expense, income tax expense, loss on early retirement of debt, gain on sale of businesses, other (income)/expense and equity in net (income)/loss of unconsolidated subsidiaries. Management believes that Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of financing, income taxes, non-cash and certain other items that may vary for different companies for reasons unrelated to overall operating performance and also believes this information is useful to investors.

The Company’s management uses Adjusted EBITDA as a measure to evaluate performance and for other discretionary purposes. In addition to the foregoing, management also uses or will use Adjusted EBITDA to measure compliance with certain financial covenants under the Company’s Senior Secured Credit Facilities, 6% Notes, 5.25% Notes and 4.5% Notes that were outstanding at October 3, 2026. However, the amounts shown below for Adjusted EBITDA differ from the amounts calculated under similarly titled definitions in the Company’s Senior Secured Credit Facilities, 6% Notes, 5.25% Notes and 4.5% Notes, as those definitions permit further adjustments to reflect certain other nonrecurring costs, non-cash charges and cash dividends from the DGD Joint Venture.

Pro forma Adjusted EBITDA to Foreign Currency is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Management believes Pro forma Adjusted EBITDA to Foreign Currency is useful in evaluating the Company’s operating performance on a constant currency basis and also believes this information is useful to investors.

DGD Adjusted EBITDA is not reflected in the Adjusted EBITDA or the Pro forma Adjusted EBITDA to Foreign Currency. DGD Adjusted EBITDA is not a recognized accounting measure under GAAP; it should not be considered as an alternative to net income/(loss) or equity in net income/(loss) of Diamond Green Diesel, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity and is not intended to be a presentation in accordance with GAAP. The Company calculates DGD Adjusted EBITDA by taking DGD’s net income/(loss) plus income tax expense/(benefit), interest and debt expense, net, and DGD’s depreciation, amortization and accretion expense less other income. Management believes that DGD Adjusted EBITDA is useful in evaluating the Company’s operating performance because the calculation of DGD Adjusted EBITDA generally eliminates non-cash and certain other items at DGD unrelated to overall operating performance and also believes this information is useful to investors. The Company calculates Darling’s Share of DGD Adjusted EBITDA by taking DGD Adjusted EBITDA, net of discount and broker fees, and then multiplying by 50% to get Darling’s Share of DGD’s Adjusted EBITDA.

Combined Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company’s operating performance. Combined Adjusted EBITDA consists of Adjusted EBITDA plus DGD Adjusted EBITDA (Darling’s share). Management believes that Combined Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of financing, income taxes, non-cash and certain other items that may vary for different companies for reasons unrelated to overall operating performance and also believes this information is useful to investors.

Reconciliation of Net Income to (Non-GAAP) Adjusted EBITDA to (Non-GAAP) Pro Forma Adjusted EBITDA to Foreign Currency and to (Non-GAAP) Combined Adjusted EBITDA

Third Quarter 2026 as compared to Third Quarter 2025

(1) The average rates for the three months ended October 3, 2026 were €1.00:$1.15 R$1.00:$0.19 and C$1.00:$0.71 as compared to the average rates for the three months ended September 27, 2025 of €1.00:$1.17, R$1.00:$0.18 and C$1.00:$0.73, respectively.

Nine Months Ended October 3, 2026 Compared to Nine Months Ended September 27, 2025

Operating Performance Metrics

Operating performance metrics which management routinely monitors as an indicator of operating performance include:

•Finished product commodity prices

•Segment results

•Foreign currency exchange

•Corporate activities

•Non-U.S. GAAP measures

These indicators and their importance are discussed below.

Finished Product Commodity Prices

During the first nine months of fiscal 2026, the Company’s actual sales prices by product trended with the disclosed Jacobsen and Reuters prices.

Average Jacobsen and Reuters prices (at the specified delivery point) for the first nine months of fiscal 2026, compared to average Jacobsen and Reuters prices for the first nine months of fiscal 2025 are as follows:

Segment Results

Segment operating income for the nine months ended October 3, 2026 was $1,115.3 million, which reflects an increase of $939.3 million or 533.7% as compared to the nine months ended September 27, 2025.

(2) Selling, general and administrative expenses include payroll related costs including incentive pay and stock compensation, insurance related costs, professional fees, IT related costs, travel costs and other costs.

(2) Selling, general and administrative expenses include payroll related costs including incentive pay and stock compensation, insurance related costs, professional fees, IT related costs, travel costs and other costs.

Feed Ingredients Segment

Raw material volume. In the nine months ended October 3, 2026, the raw material processed by the Company’s Feed Ingredients segment totaled approximately 9.38 million metric tons. Compared to the nine months ended September 27, 2025, the raw material volume processed in the Feed Ingredients segment increased approximately 0.6%.

Sales. Total net sales increased in the Feed Ingredients segment primarily due to the following (in millions of dollars):

Margins. In the Feed Ingredients segment for the nine months ended October 3, 2026, the gross margin percentage increased to 27.0% as compared to 22.6% for the comparable period of fiscal 2025. The increase was primarily due to increases in fat and protein prices, improved quality and consistency, and increased sales into higher-margin end markets.

Segment operating income. Feed Ingredients operating income for the nine months ended October 3, 2026 was $379.3 million, an increase of $228.0 million or 150.7% as compared to the nine months ended September 27, 2025. The increase was primarily due to increases in fat and protein prices leading to an increased gross margin, favorable currency exchange rates and the reduction of a contingent consideration expense that was recorded in the same period of fiscal 2025 that more than offset an increase in selling, general and administrative expenses and higher depreciation and amortization expense as compared to the same period of fiscal 2025.

Food Ingredients Segment

Raw material volume. In the nine months ended October 3, 2026, the raw material processed by the Company’s Food Ingredients segment totaled approximately 979,000 metric tons. Compared to the nine months ended September 27, 2025, the raw material volume processed in the Food Ingredients segment increased approximately 1.1%.

Sales. Total net sales increased in the Food Ingredients segment primarily due to increases in collagen demand leading to increases in sales volumes.

Margins. In the Food Ingredients segment for the nine months ended October 3, 2026, the gross margin percentage increased to 30.6% as compared to 27.9% for the comparable period of fiscal 2025. The increase was primarily due to the recognition of $18.5 million of net tariff recoveries recorded during the second quarter of fiscal 2026 and hedging gains on sales.

Segment operating income. Food Ingredients operating income was $170.5 million for the nine months ended October 3, 2026, an increase of $44.8 million or 35.6% as compared to the nine months ended September 27, 2025. The increase in operating income was primarily due to an increase in sales volumes due to increased market demand and the recognition of approximately $18.5 million of net tariff recoveries recorded in the second quarter of fiscal 2026 and hedging gains on sales that more than offset an increase in selling, general and administrative expenses as compared to the same period of fiscal 2025.

Fuel Ingredients Segment

Raw material volume. In the nine months ended October 3, 2026, the raw material processed by the Company’s Fuel Ingredients segment totaled approximately 1.11 million metric tons. Compared to the nine months ended September 27, 2025, the raw material volume processed in the Fuel Ingredients segment increased approximately 4.3%.

Sales. Total net sales increased in the Fuel Ingredients segment primarily due to higher energy prices.

Margins. In the Fuel Ingredients segment for the nine months ended October 3, 2026, the gross margin percentage increased to 21.6% as compared to 19.3% for the comparable period of fiscal 2025. The increase was primarily due to higher finished product sales prices.

Segment operating income. Fuel Ingredients operating income/(loss) (inclusive of the equity contribution from the DGD Joint Venture) for the nine months ended October 3, 2026 was $674.3 million, an increase of $709.8 million or 1,999.4% as compared to the same period in fiscal 2025. The increase in operating income was due to a combination of factors, including an increase in production and sales volumes and production tax credits recognized at the DGD Joint Venture, increases in RINs values in connection with the EPA finalizing the rulemaking process for renewable volume obligations for 2026-27 and an increase in diesel prices which resulted in higher sales prices and margins for the DGD Joint Venture as compared to the same period in fiscal 2025.

Foreign Currency Exchange

During the first nine months of fiscal 2026, the euro, the Brazilian real and the Canadian dollar strengthened against the U.S. dollar as compared to the same period in fiscal 2025. Using actual results for the nine months ended October 3, 2026 and using the prior year's average currency rate for the nine months ended September 27, 2025, foreign currency translation would result in a decrease in operating income of approximately $15.6 million. The average rates for the nine months ended October 3, 2026 were €1.00:$1.16, R$1.00:$0.19 and C$1.00:$0.72 as compared to the average rates for the nine months ended September 27, 2025 of €1.00:$1.12, R$1.00:$0.18 and C$1.00:$0.71, respectively.

Corporate Activities

Selling, General and Administrative Expenses. Selling, general and administrative expenses were approximately $80.2 million during the nine months ended October 3, 2026, compared to approximately $49.9 million during the nine months ended September 27, 2025, an increase of $30.3 million. The increase was primarily due to an increase in the Company's incentive based compensation expense.

Acquisition and Integration Costs. Acquisition and integration costs were approximately $24.0 million during the nine months ended October 3, 2026 as compared to $11.1 million for the same period in fiscal 2025. The increased costs in the first nine months of fiscal 2026 primarily relate to the Company’s proposed joint venture with Tessenderlo Group NV and the Bovinos Acquisition.

Depreciation and Amortization. Depreciation and amortization charges were approximately $4.7 million for the nine months ended October 3, 2026 as compared to $4.5 million for the nine months ended September 27, 2025.

Interest Expense. Interest expense was $161.1 million during the nine months ended October 3, 2026, compared to $166.8 million during the nine months ended September 27, 2025, a decrease of $5.7 million. The decrease in interest expense was primarily due to a reduction of interest on term loan balances due to a reduction of those balances that more than offset higher interest associated with the 4.5% Notes and revolver borrowings as compared to the same period in fiscal 2025.

Foreign Currency Gain. Foreign currency gains were $3.8 million for the nine months ended October 3, 2026 compared to a gain of $1.1 million for the nine months ended September 27, 2025. The change was due primarily to higher gains from the revaluation of non-functional currency assets and liabilities as compared to the same period of fiscal 2025.

Gain on sale of businesses. Gain on sale of businesses is due to the net gain associated from the sale of a substantial portion of our U.S. grease trap environmental services business and the sale of our natural casings business as compared to a small gain in the same period of fiscal 2025.

Other expense, net. Other expense was $7.9 million in the nine months ended October 3, 2026, compared to $4.2 million for the nine months ended September 27, 2025. The increase in other expense was primarily due to reduction of interest income that more than offset a decrease in settlement losses incurred from our pension plans as compared to fiscal 2025.

Equity in Net Income in Investment of Other Unconsolidated Subsidiaries. The change in this line item is not significant and primarily represents the Company’s pro rata share of the net income from its foreign unconsolidated subsidiaries.

Income Taxes. The Company recorded income tax expense of $226.1 million for the nine months ended October 3, 2026, compared to an income tax expense of $1.7 million recorded in the nine months ended September 27, 2025, an increase in tax expense of $224.4 million, which was primarily due to an increase in pre-tax income. The effective tax rates for the nine months ended October 3, 2026 and September 27, 2025 was 22.1% and 12.6%, respectively. The effective tax rate for the nine months ended October 3, 2026 differed slightly from the federal statutory rate of 21% due primarily to biofuel tax incentives, the relative mix of earnings among jurisdictions with different tax rates (including foreign withholding taxes and state income taxes) and certain losses that provided no tax benefit. The effective tax rate for the nine months ended September 27, 2025 differed from the federal statutory rate of 21% due primarily to biofuel tax incentives, the relative mix of earnings among jurisdictions with different tax rates (including foreign withholding taxes and state income taxes) and certain losses that provided no tax benefit. The Company’s effective tax rate excluding the impact of the biofuel tax incentives and discrete items was 26.9% for the nine months ended October 3, 2026, compared to 66.8% for the nine months ended September 27, 2025.

Non-U.S. GAAP Measures

For discussion of the reasons the Company’s management believes the following Non-GAAP financial measures provide useful information to investors and the purposes for which the Company’s management uses such measures, see “Results of Operation - Three Months Ended October 3, 2026 Compared to the Three Months Ended September 27, 2025 - Non-U.S. GAAP Measures.”

Reconciliation of Net Income to (Non-GAAP) Adjusted EBITDA to (Non-GAAP) Pro Forma Adjusted EBITDA to Foreign Currency and to (Non-GAAP) Combined Adjusted EBITDA

First Nine Months of Fiscal 2026 as compared to First Nine Months of Fiscal 2025

(1) The average rates for the nine months ended October 3, 2026 were €1.00:$1.16, R$1.00:$0.19 and C$1.00:$0.72 as compared to the average rates for the nine months ended September 27, 2025 of €1.00:$1.12, R$1.00:$0.18 and C$1.00:$0.71, respectively.