Darling Ingredients Inc. (NYSE: DAR) stock surged 5.41% in pre-market trading on THURSDAY, following the company's fourth quarter and full year 2024 earnings release that topped analysts' expectations and an upbeat outlook for 2025.

For the three months ended December 28, 2024, Darling reported net income of $101.9 million, or $0.63 per diluted share, compared to $84.5 million, or $0.52 per diluted share in Q4 2023. Revenue declined 12.2% year-over-year to $1.42 billion, missing estimates, due to lower finished product pricing.

However, the company reported strong profitability driven by its Diamond Green Diesel (DGD) joint venture. Darling's share of DGD Adjusted EBITDA was $59.2 million in Q4. For the full year, Darling received $179.8 million in cash dividends from DGD.

Combined Adjusted EBITDA, a key profitability metric for Darling, was $289.5 million in Q4 2024, down from $350.9 million a year ago, but better than expected. For full year 2024, Combined Adjusted EBITDA totaled $1.08 billion versus $1.61 billion in 2023.

Looking ahead, Darling expects stronger performance in 2025 driven by improving conditions in its core rendering business and continued momentum at DGD. The company provided guidance for fiscal 2025 Combined Adjusted EBITDA in the range of $1.25 billion to $1.30 billion.