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UL Solutions Inc.
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$14.2B
Market Cap
49.3
P/E
3.13
PEG
25.0%
ROCE
31.0%
ROE
0.53
D/E
18.1%
OPM
-32.4%
% from 52W High
33
α RS
🔍 ULS is showing a multi-screen setup because it matches 8 of 39 tracked screener presets and an ECS of 54.9 last quarter. The main caution: the Strong Profitability preset's Backtest win rate is only 43.7%. Net: Mixed signal stack, not a recommendation. ? Conviction ECS Backtest
Sources
Conviction 8/39 · ECS 54.9 · Backtest win rate 43.7%
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📈 Price History
Ratio Health
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About

UL Solutions Inc., together with its subsidiaries, provides testing, inspection and certification services and related software and advisory services worldwide. It operates through three segments: Industrial, Consumer, and Software and Advisory. The Industrial segment provides testing, inspection, and certification services across various end markets, including energy, industrial automation, engineered materials, and built environment, as well as stakeholders, such as manufacturers, building and asset owners, end users, and regulators. The Consumer segment offers safety certification testing, ongoing certification, global market access, testing for connectivity, performance and quality, and critical systems advisory and training services, as well as product market acceptance and risk mitigation services for customers in the consumer products end markets comprising consumer electronics, medical devices, information technologies, appliances, HVAC, lighting, and retail, as well as consumer applications, such as new mobility, smart products, and 5G. The Software and Advisory segment provide software and technical advisory services that enable customers to manage regulatory requirements, deliver supply chain transparency, and operationalize sustainability. It offers ULTRUS, a software that helps customers meet regulatory, supply chain, and sustainability challenges. UL Solutions Inc. was formerly known as UL Inc. and changed its name to UL Solutions Inc. in December 2021. The company was founded in 1894 and is headquartered in Northbrook, Illinois. UL Solutions Inc. operates as a subsidiary of ULSE Inc.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$816M
+5.2% YoY
Operating Income
$150M
+7.9% YoY
Operating Margin
18.4%
+0.5pp YoY
Net Income
$254M
+161.9% YoY
What Went Right
  • Record Q2 revenue of $816M with 6.6% organic growth
  • Adjusted EBITDA margin expanded 140 bps to 26.8%, with consumer up 310 bps
  • Trailing-twelve-month free cash flow up 19.8% to $436M
What to Watch
  • Restructuring and business exits will reduce full-year organic revenue by ~1%
  • Performance-based incentive compensation rose $13M YoY, pressuring SG&A
  • Risk & Compliance revenue fell 17.5% due to EHS divestiture; advisory business faces headwinds
Management Guidance
  • Full-year 2026: mid-single digit constant currency organic revenue growth, including ~1% drag from business exits
  • Adjusted EBITDA margin improving to approximately 27.0%
  • Effective tax rate of ~26% and capex of ~8.5% of revenue
  • Eurofins E&E acquisition expected to close in Q4 2026; DQS sale in H2 2026
Investor Lens
The thesis is stronger after this call: UL Solutions delivered record revenue and significant margin expansion, with organic growth of 6.6% and adjusted EBITDA up 11.2%, while free cash flow generation improved 19.8%. Management reaffirmed full-year guidance, signaling confidence in the durability of its megatrend-driven demand. However, the step-up in incentive compensation and the drag from portfolio exits will require careful monitoring, as will the integration of Eurofins E&E. Overall, the call reinforces the company's ability to grow profitably despite geopolitical and cyclical headwinds.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Record Q2 with 6.6% organic growth and 140 bps margin expansion
Revenue
Revenue rose 5.2% to $816M, with organic growth of 6.6% led by industrial (7.2% organic) and consumer (6.2% organic). Risk & Compliance declined 17.5% due to the EHS divestiture, but grew 4.8% organically.
Profitability
Net income surged 161.9% to $254M, boosted by the EHS divestiture gain. Adjusted net income rose 17.3% to $129M and adjusted diluted EPS increased 13.5% to $0.59.
Margins
Adjusted EBITDA margin expanded 140 bps to 26.8%, with consumer leading (up 310 bps to 21.3%). Operating margin improved 50 bps to approximately 18.4%, helped by cost of revenue leverage and restructuring benefits.
Balance Sheet
Ended the quarter with $434M cash and $303M total debt; free cash flow for the six months was $241M, up from $208M. CapEx for H1 was $138M, with full-year capex expected at ~8.5% of revenue.
Key Risks
Management cited higher performance-based compensation costs, the ~1% revenue drag from restructuring-related exits, and continued geopolitical uncertainty. Analysts also probed potential softness in consumer electronics due to memory costs and slower advisory demand in solar/wind.
Outlook
Full-year guidance was reaffirmed: mid-single digit constant currency organic revenue growth, adjusted EBITDA margin of ~27%, tax rate ~26%, and capex ~8.5% of revenue. Eurofins E&E acquisition remains on track to close in Q4 2026.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-04
Record quarterly revenue and double-digit adjusted EBITDA growth were driven by strong industrial and consumer segments, margin expansion, and ongoing restructuring benefits. Guidance for 2026 is reaffirmed, with continued investment in lab capacity and portfolio optimization.
Q1 2026 Q1 2026 2026-05-05
Q1 2026 saw robust revenue and margin growth across all segments, driven by operational efficiency, restructuring, and strong demand in core markets. Guidance for full-year adjusted EBITDA margin was raised, and strategic M&A and divestitures are sharpening portfolio focus.
Q4 2025 Q4 2025 2026-02-19
Record 2025 results exceeded guidance with 6.4% revenue growth and 20.7% Adjusted EBITDA growth, driven by strong performance across all segments and strategic investments. 2026 outlook calls for mid-single digit organic growth, margin expansion, and continued capital discipline.
Q3 2025 Q3 2025 2025-11-04
Q3 2025 saw record revenue and profitability, with all segments and geographies contributing to growth. Full-year guidance was raised, a restructuring was announced to streamline operations, and new investments in AI safety and fire science were launched.
Q2 2025 Q2 2025 2025-08-05
Record Q2 revenue and margin expansion were driven by growth across all segments and robust demand, with strong free cash flow supporting investments and debt reduction. The outlook for 2025 remains positive, with mid single-digit organic growth and continued focus on megatrends and strategic capital allocation.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

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This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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