What Darling Ingredients Inc. told the SEC could break it.

Renewable-fuel government incentives were material to Darling's fiscal 2025 results; the OBBBA extended the Clean Fuel Production Credit through 2029 but cut the maximum SAF credit to $1.00/gallon from 2026 and restricts eligibility to feedstocks grown in the U.S., Mexico or Canada — changes that could materially affect the renewable-diesel economics central to Darling/DGD.

“The OBBBA extended the CFPC for two years through 2029 and, beginning in 2026, reduces the maximum credit rate for SAF to $1.00/gallon (adjusted for inflation each calendar year) and specifies that transportation fuels must be derived from feedstocks produced or grown in the U.S., Mexico or Canada to be eligible.”

Darling is a potentially responsible party for contamination at the Lower Passaic River (Diamond Alkali Superfund Site) as alleged successor to The Standard Tallow Corporation; the EPA's 2016 Record of Decision selected a remedy for the lower 8.3 miles estimated at $1.38 billion (allocation among numerous PRPs unresolved).

“In March 2016, the Company received another letter from the EPA notifying the Company that it had issued a Record of Decision (the “ROD”) selecting a remedy for the lower 8.3 miles of the Lower Passaic River area at an estimated cost of $1.38 billion.”

Darling's raw-material supply is regionally concentrated — its 10 largest suppliers account for 29-45% of material processed by region, with a single supplier representing as much as 15% in China and South America, and certain facilities are highly dependent on one or a few suppliers.

“Certain of the Company's geographic regions' facilities are highly dependent on one or a few suppliers. During the 2025 fiscal year, the Company's 10 largest raw materials suppliers in North America accounted for approximately 39% of the total raw material processed by the Company in North America, with one single supplier accounting for approximately 9% of the total raw material processed in North America. In Europe, the Company's 10 largest raw material suppliers accounted for approximately 29% of the total raw material processed by the Company in Europe, with one single supplier accounting for approximately 7% of the total raw material processed in Europe. In China, the Company's 10 largest raw material suppliers accounted for approximately 34% of the total raw material processed by the Company in China, with one single supplier accounting for approximately 15% of the total raw material processed in China. In South America, the Company's 10 largest raw material suppliers accounted for approximately 45% of the total raw material processed by the Company in South America, with one single supplier accounting for approximately 15% of the total raw material processed in South America.”