BBH Select Mid Cap ETF on Darling Ingredients Inc.
Thesis
Darling is the global leader in rendering animal byproducts and used cooking oil into fats and proteins for feed, specialty health products, and renewable diesel. First-quarter 2026 results were stronger than expected, with better performance in the core Feed and Food businesses and improved margins at the Diamond Green Diesel joint venture. The fund believes finalized government mandates provide long-awaited policy certainty that should support both DGD margins and higher Feed prices. It expects the benefit of these developments to become more visible beginning in the second quarter of 2026.
“Darling is extremely well-positioned for significantly improved profitability.”
Key risks
- Lower oil prices can pressure renewable-diesel economics.
- Profitability is sensitive to government mandates affecting renewable fuels and feed markets.