UL Solutions (NYSE:ULS) Posts Quarterly Earnings Results, Meets Estimates

UL Solutions (NYSE:ULS) posted its earnings results on Tuesday. The company reported $0.62 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.62, FiscalAI reports. UL Solutions had a net margin of 16.07% and a return on equity of 26.65%. The company had revenue of $823.00 million during the quarter, compared to the consensus estimate of $815.72 million. During the same period in the previous year, the firm posted $0.56 earnings per share. The firm’s quarterly revenue was up 5.1% on a year-over-year basis.

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 Performance

NYSE ULS traded down $3.15 on Thursday, reaching $76.58. The stock had a trading volume of 562,346 shares, compared to its average volume of 941,825. The stock has a market cap of $15.46 billion, a P/E ratio of 30.52, a price-to-earnings-growth ratio of 3.33 and a beta of 0.62. UL Solutions has a 12-month low of $63.17 and a 12-month high of $107.54. The business’s 50-day moving average price is $70.93 and its 200 day moving average price is $82.50. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.42 and a current ratio of 2.09.

UL Solutions Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 31st were issued a $0.1450 dividend. This represents a $0.58 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Monday, August 31st. UL Solutions’s payout ratio is presently 23.48%.

More UL Solutions News

Here are the key news stories impacting UL Solutions this week:

• Positive Sentiment: UL Solutions reported third-quarter revenue of $823 million, up 5.1% year over year and ahead of estimates. EPS of $0.62 matched consensus, while coverage cited margin expansion, strong certification demand and raised guidance. Q3 results and guidance
• Positive Sentiment: Wells Fargo raised its price target to $105 and maintained an Overweight rating, pointing to meaningful upside in its view. Wells Fargo analyst rating
• Neutral Sentiment: Citigroup cut its target to $81.40 from $82.80 and kept a Neutral rating, indicating a more restrained outlook than Wells Fargo’s. Citigroup analyst rating
• Negative Sentiment: CEO Jennifer Scanlon sold 12,500 shares for about $938,000, reducing her holdings by 9.86%. The filing did not state a reason for the sale, but insider selling can weigh on investor sentiment. CEO share sale
• Negative Sentiment: A valuation analysis suggested ULS may trade above fair value, potentially limiting enthusiasm despite its solid quarterly performance. Valuation analysis

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on ULS. Robert W. Baird dropped their price target on shares of UL Solutions from $95.00 to $85.00 and set an “outperform” rating on the stock in a research note on Thursday, September 24th. Citigroup dropped their target price on shares of UL Solutions from $82.80 to $81.40 and set a “neutral” rating on the stock in a research report on Wednesday. Wall Street Zen cut shares of UL Solutions from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Wells Fargo & Company upped their price target on shares of UL Solutions from $104.00 to $105.00 and gave the stock an “overweight” rating in a research report on Wednesday. Finally, Weiss Ratings lowered shares of UL Solutions from a “buy (b)” rating to a “buy (b-)” rating in a research note on Monday, September 21st. Seven research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $95.84.

Insider Activity at UL Solutions

In other news, CEO Jennifer Scanlon sold 12,500 shares of UL Solutions stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $75.03, for a total value of $937,875.00. Following the transaction, the chief executive officer directly owned 114,224 shares of the company’s stock, valued at $8,570,226.72. The trade was a 9.86% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Over the last 90 days, insiders have sold 37,500 shares of company stock valued at $2,734,625. Insiders own 1.20% of the company’s stock.

UL Solutions Company Profile

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.