UL Solutions (NYSE:ULS) Issues Quarterly Earnings Results

UL Solutions (NYSE:ULS) issued its quarterly earnings results on Tuesday. The company reported $0.62 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.62, FiscalAI reports. The firm had revenue of $823.00 million for the quarter, compared to analyst estimates of $815.72 million. UL Solutions had a return on equity of 28.81% and a net margin of 16.02%. The company’s revenue was up 5.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.56 earnings per share.

Here are the key takeaways from UL Solutions’ conference call:

• Strong third-quarter results: Organic revenue growth accelerated to 7%, Adjusted EBITDA rose 8.3%, and margin expanded 90 basis points to a record 28.6%. Free cash flow increased 23.7% year over year to $481 million on a trailing 12-month basis.
• Industrial and consumer delivered broad-based growth and record margins, with organic revenue growth of 8.4% and 5.9%, respectively. Certification testing revenue increased nearly 11%, supported by demand tied to AI data centers, electrification, energy, automation, and connected technologies.
• Management raised its full-year 2026 outlook to approximately 6.5% constant-currency organic revenue growth and approximately 27.0% Adjusted EBITDA margin. The company cited resilient demand, productivity gains, pricing, and better-than-expected retention following planned business exits.
• UL Solutions completed the Eurofins electrical and electronics acquisition and expects approximately $50 million of fourth-quarter revenue from it, with back-office integration targeted for completion in 2027 and most go-to-market and laboratory-utilization synergies by the end of 2028. The company also sold its DQS stake for approximately $117 million, reducing debt to $689 million after the transactions.
• Risk and compliance software revenue declined 17.2% and Adjusted EBITDA margin fell to 18.9%, primarily because of the divestiture of the EHS software business and negative operating leverage. Management expects improvement, but fourth-quarter transaction and integration costs are now expected to be higher than previously anticipated, at approximately $18 million to $21 million.

UL Solutions Stock Up 6.9%

NYSE ULS traded up $5.22 during mid-day trading on Tuesday, hitting $80.36. The company’s stock had a trading volume of 110,632 shares, compared to its average volume of 934,385. The firm has a market capitalization of $16.22 billion, a price-to-earnings ratio of 32.53, a PEG ratio of 3.00 and a beta of 0.72. The company’s 50 day simple moving average is $70.69 and its 200 day simple moving average is $82.46. The company has a current ratio of 1.42, a quick ratio of 1.42 and a debt-to-equity ratio of 0.19. UL Solutions has a twelve month low of $63.17 and a twelve month high of $107.54.

UL Solutions Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Monday, August 31st were given a $0.1450 dividend. The ex-dividend date of this dividend was Monday, August 31st. This represents a $0.58 annualized dividend and a yield of 0.7%. UL Solutions’s dividend payout ratio (DPR) is presently 23.48%.

Insiders Place Their Bets

In other UL Solutions news, CEO Jennifer Scanlon sold 12,500 shares of the firm’s stock in a transaction on Thursday, October 8th. The shares were sold at an average price of $70.08, for a total value of $876,000.00. Following the transaction, the chief executive officer directly owned 126,724 shares of the company’s stock, valued at approximately $8,880,817.92. This trade represents a 8.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 1.20% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts have recently commented on ULS shares. The Goldman Sachs Group set a $86.00 price objective on shares of UL Solutions in a research report on Wednesday, August 5th. William Blair restated an “outperform” rating on shares of UL Solutions in a report on Monday, September 21st. Wells Fargo & Company decreased their price target on shares of UL Solutions from $120.00 to $104.00 and set an “overweight” rating for the company in a research note on Wednesday, August 5th. Robert W. Baird decreased their price target on shares of UL Solutions from $95.00 to $85.00 and set an “outperform” rating for the company in a research note on Thursday, September 24th. Finally, Zacks Research lowered shares of UL Solutions from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Seven analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, UL Solutions has a consensus rating of “Moderate Buy” and a consensus target price of $95.88.

About UL Solutions

UL Solutions Inc (NYSE: ULS) is a global applied safety science company that provides testing, inspection, certification, and advisory services. The company helps manufacturers, retailers, regulators, and other organizations evaluate the safety, security, performance, quality, and sustainability of products, facilities, and systems.

Its services cover a broad range of industries, including consumer products, industrial equipment, energy, mobility, information technology, and the built environment.