Darling Ingredients Sees Boost from Trump's Biofuel Policy Despite Looming Uncertainties

Darling Ingredients' shares dropped 11% after the company's CEO said US renewable fuel policies will boost profits, but lingering uncertainties and a pending government decision on small refinery requests clouded the outlook. Darling lowered its full-year earnings guidance, but analysts emphasized the positive message for a more favorable 2026 environment once policy changes are in full effect.

Moody's Investors Service (MIS), a leading provider of credit ratings and financial data, reported strong second-quarter 2025 earnings, demonstrating resilience despite a challenging origination environment. The company's revenue grew 4% year over year to $1.9 billion, while the adjusted operating margin increased to 50.9%, up 130 basis points from the prior year [1].

Key highlights of Moody's Q2 2025 performance include:

- MIS Revenue: Revenue for MIS was $1 billion, down 1% excluding FX, but above the $1 billion threshold for the second consecutive quarter.
- MIS Adjusted Operating Margin: The adjusted operating margin for MIS was 64.2%, up 100 basis points from last year.
- Recurring Revenue Growth: Moody's Analytics (MA) saw 11% revenue growth, with recurring revenue up 12% and organic constant currency recurring revenue growth at 8%.
- Private Credit: Private credit revenue increased by 75%, accounting for nearly 25% of first-time mandates and a 50% rise in private credit-related deal volume year over year.
- GenAI Integration: Approximately 40% of products by ARR now include GenAI enablement, with the GenAI adopter cohort ARR approaching $200 million, growing at double the MA rate.
- Strategic Investments: Moody's expanded its role in multiple business lines through strategic investments and partnerships, including the acquisition of Cape Analytics and the SAP and Databricks partnerships.

CEO Rob Fauber commented, "75% growth in private credit revenues for the quarter," reflecting surging demand and broad-based adoption across multiple MIS franchises [1].

Looking ahead, Moody's has updated its full-year 2025 guidance. Full-year MIS revenue growth is now projected in the low to mid-single-digit percent range, with MIS adjusted operating margin expected at 61%-62% for the full year 2025. MA revenue and ARR guidance is affirmed at high single-digit percent growth for FY2025, with full-year margin at 32%-33% [1].

Moody's continues to focus on disciplined expense management, with annualized compensation expense declining 4% since the year-start and over $100 million in annualized savings already executed to offset wage and cost increases. The company expects a $30 million–$45 million sequential increase in Q3 operating expenses excluding restructuring charges, and approximately $100 million in incentive compensation per remaining quarter of 2025 [1].

References:

[1] https://www.aol.com/moodys-mco-q2-2025-earnings-150958247.html