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

UL Solutions (NYSE:ULS) issued its earnings results on Thursday. The company reported $0.53 earnings per share for the quarter, beating the consensus estimate of $0.46 by $0.07, FiscalAI reports. UL Solutions had a net margin of 10.61% and a return on equity of 31.62%. The firm had revenue of $789.00 million for the quarter, compared to analysts’ expectations of $782.37 million. During the same quarter last year, the company earned $0.49 earnings per share. The firm’s 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 Stock Performance

Shares of ULS opened at $80.10 on Friday. The company’s 50 day simple moving average is $76.06 and its 200-day simple moving average is $75.04. The firm has a market cap of $16.09 billion, a PE ratio of 50.37, a price-to-earnings-growth ratio of 4.59 and a beta of 1.11. 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 1.32, a quick ratio of 1.33 and a debt-to-equity ratio of 0.38.

UL Solutions Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Monday, March 2nd will be issued a $0.145 dividend. The ex-dividend date of this dividend is Monday, March 2nd. This is an increase from UL Solutions’s previous quarterly dividend of $0.13. This represents a $0.58 annualized dividend and a dividend yield of 0.7%. UL Solutions’s dividend payout ratio is currently 31.14%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. raised its holdings in shares of UL Solutions by 3,070.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 634 shares of the company’s stock valued at $46,000 after buying an additional 614 shares during the last quarter. Rhumbline Advisers purchased a new stake in UL Solutions during the 1st quarter valued at approximately $49,000. CIBC Private Wealth Group LLC lifted its position in UL Solutions by 112.7% during the 4th quarter. CIBC Private Wealth Group LLC now owns 904 shares of the company’s stock worth $71,000 after acquiring an additional 479 shares during the period. PNC Financial Services Group Inc. grew its stake in shares of UL Solutions by 60.1% in the 4th quarter. PNC Financial Services Group Inc. now owns 1,383 shares of the company’s stock valued at $109,000 after purchasing an additional 519 shares during the last quarter. Finally, US Bancorp DE grew its stake in shares of UL Solutions by 253.9% in the 3rd quarter. US Bancorp DE now owns 1,596 shares of the company’s stock valued at $113,000 after purchasing an additional 1,145 shares during the last quarter.

UL Solutions News Summary

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

• Positive Sentiment: Q4 results beat consensus: UL reported $0.53 EPS vs. $0.46 expected and revenue of $789M (vs. ~$782M), with revenue up ~6.8% YoY — a clear near‑term fundamental positive for the stock. MarketBeat Q4 release
• Positive Sentiment: Dividend increase: UL’s board raised the quarterly dividend to $0.145 (an ~11.5% hike), payable March 12 (ex‑dividend March 2), which supports the income profile and signals confidence in cash flow.
• Positive Sentiment: Analyst upgrade: Wells Fargo raised its price target to $102 and kept an overweight view, implying meaningful upside from current levels and signaling bullish analyst conviction. TickerReport on Wells Fargo note
• Neutral Sentiment: Analyst tweak with limited bullishness: JPMorgan nudged its target to $88 but retained a “neutral” rating, indicating only modest upside and mixed views on near‑term catalysts. Benzinga note
• Neutral Sentiment: Management commentary and details are now available (earnings call transcript and slide deck). Investors should scan the call for guidance and comments on lab investments and segment realignment that will shape future growth. Earnings call transcript
• Neutral Sentiment: Deep‑dive commentary highlights strategic investments: coverage notes the company is investing in labs and realigning segments to reshape long‑term growth — potentially positive long term but ambiguous near term. MSN deep dive
• Negative Sentiment: Market is pricing caution: despite the beat and dividend, shares fell — likely reflecting a combination of profit‑taking after recent gains, high valuation metrics (PE near the upper range), and investor concern about near‑term margin pressure from increased lab spending/realignment. Coverage comparing key metrics highlights areas investors are watching closely. Zacks analysis

Analyst Ratings Changes

Several research firms have recently issued reports on ULS. Wells Fargo & Company lifted their price objective on shares of UL Solutions from $97.00 to $102.00 and gave the stock an “overweight” rating in a research report on Friday. UBS Group lifted their price target on UL Solutions from $85.00 to $90.00 and gave the stock a “neutral” rating in a report on Friday. Robert W. Baird dropped their price objective on UL Solutions from $97.00 to $96.00 and set an “outperform” rating on the stock in a report on Friday. Zacks Research cut UL Solutions from a “strong-buy” rating to a “hold” rating in a research note on Thursday, January 29th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of UL Solutions in a research note on Monday, December 29th. Five investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $85.50.

About UL Solutions

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.