SouthernSun Gained from Darling Ingredients’ (DAR) Business Stabilization

1 day ago 2

Soumya Eswaran

Mon, March 2, 2026 astatine 10:16 AM CST 4 min read

SouthernSun Asset Management, LLC, an concern absorption firm, released its “SouthernSun Small Cap Strategy” fourth-quarter 2025 capitalist letter. A transcript of the missive tin be downloaded here. During the quarter, the Small Cap Composite returned -2.45% connected a gross ground (-2.64% net) compared to 2.19% for the Russell 2000 Index and 3.26% instrumentality for the Russell 2000 Value Index. The Composite returned 6.21% connected a gross ground (5.40% net) implicit the trailing 12 months compared to 12.81% and 12.59% for the indexes, respectively. The missive highlighted the economical lessons learned during the lipid terms illness of 2014-15. Initially seen arsenic a affirmative improvement for the planetary economy, the diminution successful lipid prices aboriginal revealed underlying weaknesses, starring to broader economical impacts beyond the vigor sector. The writer compares this to the existent concern with artificial quality (AI), cautioning that portion AI is present a cardinal facet of economical readying and decision-making, its associated risks indispensable beryllium cautiously analyzed. As the marketplace approaches 2026, the concern scenery is shaped by assorted scenarios, including valuation compression and overcapacity successful AI infrastructure, alternatively than inevitable outcomes. SouthernSun Asset Management maintains a disciplined, humble attack focused connected intrinsic worth and is optimistic astir the aboriginal but remains alert of humanities lessons. In addition, delight cheque the Strategy’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, SouthernSun Small Cap Strategy highlighted Darling Ingredients Inc. (NYSE:DAR) arsenic 1 of its starring contributors. Darling Ingredients Inc. (NYSE:DAR) is simply a starring institution successful processing and selling earthy ingredients from carnal by products and nutrient discarded that operates done Feed Ingredients, Food Ingredients, and Fuel Ingredients segments. On February 27, 2026, Darling Ingredients Inc. (NYSE:DAR) banal closed astatine $53.16 per share. One-month instrumentality of Darling Ingredients Inc. (NYSE:DAR) was 12.27%, and its shares gained 54.45% implicit the past 52 weeks. Darling Ingredients Inc. (NYSE:DAR) has a marketplace capitalization of $8.409 billion.

SouthernSun Small Cap Strategy stated the pursuing regarding Darling Ingredients Inc. (NYSE:DAR) successful its 4th fourth 2025 capitalist letter:

"Darling Ingredients Inc. (NYSE:DAR) was a apical contributor successful the Small Cap strategy successful the 4th quarter. DAR is the largest publically traded institution turning edible by-products and nutrient discarded into sustainable products and a starring shaper of renewable energy. Darling has faced important headwinds implicit the past mates of years, and the banal traded wrong a reasonably choky scope of $30-40 implicit the past 12 months. This downturn is, successful our opinion, astatine oregon adjacent a bottom. We spot respective cardinal and regulatory changes supporting our presumption that apical enactment and bottom-line results volition inflect higher successful 2026. Recent announcements from Washington and from the institution are supportive of our view. The basal Food and Feed businesses are providing enactment for the struggling Fuel concern – a earthy hedge we person agelong discussed. In addition, the company’s vertically integrated proviso concatenation and low-cost presumption person proven resilient successful the look of specified headwinds. We expect results for 4q25 to beryllium challenged and judge this world is accounted for successful today’s stock price. As the rhythm turns, the operational improvements made implicit the past mates of years unneurotic with an upgraded plus basal will, successful our opinion, supply a boost to operating profitability and discretionary currency flow. While frustrated with the show implicit the past mates of years, we were pleased to spot stabilization successful the concern and the banal terms successful caller quarters and judge immoderate meaningful alleviation is connected the horizon."

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