UL Solutions (NYSE:ULS) Releases Quarterly Earnings Results, Beats Expectations By $0.07 EPS

UL Solutions (NYSE:ULS) posted its earnings results on Thursday. The company reported $0.53 EPS for the quarter, beating analysts’ consensus estimates of $0.46 by $0.07, FiscalAI reports. UL Solutions had a return on equity of 34.49% and a net margin of 11.29%.The firm had revenue of $789.00 million during the quarter, compared to the consensus estimate of $782.37 million. During the same period in the prior year, the company earned $0.49 EPS. The company’s quarterly revenue was up 6.8% compared to the same quarter last year.

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

• UL Solutions reported a record 2025 with revenues of nearly $3.1 billion (organic +6.2%) and a 20.7% increase in Adjusted EBITDA, driving a 300-basis-point expansion to a 25.9% adjusted EBITDA margin.
• The company guided to mid-single-digit organic revenue growth for 2026 and raised its Adjusted EBITDA margin target to 26.5%–27%, with CapEx expected at roughly 7%–8% of revenue.
• Management is investing heavily in strategic lab capacity and services—new/expanded facilities for battery, EMC, HVAC, motor and IoT testing, plus a Global Fire Science Center of Excellence—and launched battery-related certifications, ECOLOGO industrial certification, and AI-enabled Ultras software updates to capture megatrend-driven demand.
• Strong cash generation (≈$600M operating cash, $403M free cash flow in 2025) funded $253M of debt repayment, an 11.5% dividend increase, and supports the planned ~$210M sale of the EHS software unit to further strengthen the balance sheet and enable reinvestment or M&A.
• The company recorded $37M of Q4 restructuring charges (total plan $42–47M) and realigned segments—moving ~$139M of advisory revenue into Industrial and divesting an ~$56M EHS software business—which will change near-term revenue mix and is expected to complete through mid-2026/early-2027.

UL Solutions Trading Up 14.1%

Shares of NYSE ULS traded up $10.05 during midday trading on Thursday, hitting $81.30. The company’s stock had a trading volume of 1,287,579 shares, compared to its average volume of 1,144,077. UL Solutions has a 12-month low of $49.34 and a 12-month high of $91.95. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.45. The firm has a market cap of $16.33 billion, a P/E ratio of 48.72 and a beta of 1.11. The business’s 50 day moving average is $75.93 and its two-hundred day moving average is $74.93.

Hedge Funds Weigh In On UL Solutions

A number of hedge funds have recently added to or reduced their stakes in the stock. Royal Bank of Canada raised its stake in shares of UL Solutions by 119.5% during the first quarter. Royal Bank of Canada now owns 143,431 shares of the company’s stock valued at $8,090,000 after acquiring an additional 78,081 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in UL Solutions by 104.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 460,160 shares of the company’s stock worth $25,953,000 after purchasing an additional 234,913 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in UL Solutions by 11.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 123,771 shares of the company’s stock valued at $6,981,000 after purchasing an additional 13,205 shares in the last quarter. Rhumbline Advisers bought a new stake in UL Solutions during the 1st quarter valued at $49,000. Finally, Creative Planning purchased a new stake in shares of UL Solutions in the 2nd quarter worth $208,000.

Analyst Ratings Changes

ULS has been the subject of several research reports. UBS Group lowered their price objective on shares of UL Solutions from $96.00 to $85.00 and set a “neutral” rating for the company in a research report on Tuesday, January 20th. Wells Fargo & Company increased their price target on shares of UL Solutions from $77.00 to $97.00 and gave the company an “overweight” rating in a report on Wednesday, November 5th. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $84.00 price target (up previously from $70.00) on shares of UL Solutions in a research report on Wednesday, November 5th. Bank of America assumed coverage on UL Solutions in a research note on Tuesday. They set a “buy” rating and a $86.00 price objective on the stock. Finally, The Goldman Sachs Group upped their price objective on UL Solutions from $69.00 to $79.00 and gave the company a “neutral” rating in a research report on Wednesday, November 5th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, UL Solutions has a consensus rating of “Moderate Buy” and an average target price of $83.88.

UL Solutions Company Profile

UL Solutions (NYSE: ULS) is a global safety science company that provides testing, inspection, certification, advisory and digital solutions designed to help organizations manage risk, ensure regulatory compliance and drive innovation. With roots dating back to 1894 when it was founded as Underwriters’ Electrical Bureau, the company rebranded as UL Solutions following its initial public offering in 2022. Headquartered in Northbrook, Illinois, UL Solutions operates independently to serve a broad range of industries with an emphasis on product safety, performance and sustainability.

The company’s core services include standards development, product testing and certification for sectors such as building products, consumer electronics, automotive, life sciences, energy and industrial equipment.