Darling Ingredients (DAR) stock plummeted 5.97% in pre-market trading on Thursday following the release of its second-quarter 2025 financial results, which fell significantly short of analyst expectations. The company, which specializes in sustainable food, feed, and fuel ingredients, reported earnings that disappointed investors and raised concerns about its near-term profitability.

The Q2 report revealed earnings per share (EPS) of $0.08, a stark 78.72% miss compared to the analyst consensus estimate of $0.38. This figure also represents an 83.67% decrease from the $0.49 per share reported in the same period last year. Darling Ingredients' net income for the quarter came in at just $12.7 million, a dramatic drop from the $78.9 million recorded in Q2 2024. While quarterly sales reached $1.481 billion, showing a modest 1.79% year-over-year increase, they still fell short of the expected $1.491 billion.

The company attributed the significant decline in earnings primarily to lower performance at its Diamond Green Diesel joint venture. Despite the disappointing results, Darling Ingredients maintained a positive outlook, highlighting the launch of Nextida, a new joint venture aimed at advancing its global collagen business in health and wellness markets. The company also noted that recent regulatory announcements for biofuels are expected to create a favorable environment for its renewables business. However, investors seem to be focusing on the immediate earnings miss, leading to the sharp stock price decline as the market reassesses the company's short-term growth prospects.