Ben Mayhew's questions to DARLING INGREDIENTS (DAR) leadership • Q3 2025
Question
Ben Mayhew asked for an outlook on the food segment for the next few months, following commentary about weakness exiting Q3 and into Q4. He also inquired about the expected timeline of triggers that should propel California LCFS credit values higher, given their general stability at weak levels.
Answer
Randall Stuewe (CEO) explained that tariff volatility caused customer delays in Q3, particularly for hydrolyzed collagen peptides, but expects a stronger Q4. He noted continued rebound in the hydrolyzed collagen business and growing repeat orders for NexTIDA products. Robert Day (CFO) attributed weak LCFS values to a delay in GHG reduction obligation implementation, which built up a large credit bank. He expects the supply and demand to balance and LCFS credit premiums to see steady increases sometime in 2026.