UL Solutions (NYSE:ULS) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

UL Solutions (NYSE:ULS) issued its earnings results on Tuesday. The company reported $0.59 EPS for the quarter, beating analysts’ consensus estimates of $0.56 by $0.03, FiscalAI reports. UL Solutions had a return on equity of 28.81% and a net margin of 16.02%.The business had revenue of $816.00 million during the quarter, compared to analyst estimates of $813.62 million. During the same period in the previous year, the company posted $0.52 EPS. The firm’s revenue was up 5.2% compared to the same quarter last year.

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

• Strong second-quarter execution: Revenue rose 5.2% to $816 million, organic growth was 6.6%, and adjusted EBITDA increased 11.2% to a record $219 million. Adjusted EBITDA margin expanded 140 basis points to 26.8%, while adjusted EPS rose 13.5% to $0.59.
• Industrial and consumer demand remained healthy, supported by electrification, energy infrastructure, automation, AI data centers and product innovation. Consumer adjusted EBITDA increased 24.2% with a 310-basis-point margin improvement, while industrial organic revenue grew 7.2%.
• Management reaffirmed its 2026 outlook for mid-single-digit organic revenue growth and approximately 27% adjusted EBITDA margin, despite an expected roughly 1% revenue drag from restructuring-related business exits. The Eurofins Electrical & Electronics acquisition remains expected to close in the fourth quarter, and the DQS stake sale is on track for the second half.
• The Risk and Compliance segment’s revenue fell 17.5% because of the EHS software divestiture, while performance-based compensation, professional fees and expected acquisition-related integration costs are pressuring expenses. Capital expenditures were also raised to approximately 8.5% of revenue for 2026, although management characterized the spending as growth-oriented laboratory investment.

UL Solutions Stock Performance

Shares of NYSE:ULS traded down $1.93 during midday trading on Thursday, reaching $77.12. The company had a trading volume of 345,195 shares, compared to its average volume of 956,984. The stock has a market cap of $15.55 billion, a P/E ratio of 31.10, a P/E/G ratio of 3.01 and a beta of 0.71. The company’s 50 day moving average price is $92.51 and its 200 day moving average price is $87.36. The company has a current ratio of 1.42, a quick ratio of 1.16 and a debt-to-equity ratio of 0.19. UL Solutions has a 52-week low of $61.64 and a 52-week high of $107.54.

UL Solutions Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, June 8th. Investors of record on Friday, May 29th were issued a $0.145 dividend. This represents a $0.58 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, May 29th. UL Solutions’s payout ratio is 23.48%.

UL Solutions News Roundup

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

• Positive Sentiment: UL Solutions delivered a better-than-expected second quarter: adjusted EPS was $0.59 versus the $0.56 consensus, while revenue of $816 million exceeded estimates of $813.62 million. Revenue rose 5.2% year over year, and management highlighted 6.6% organic growth and 140 basis points of margin expansion. UL Solutions Q2 Results and Outlook
• Positive Sentiment: Management indicated a path toward an approximately 27% adjusted EBITDA margin in 2026. The planned Eurofins E&E acquisition could provide an additional growth engine, and the company’s relatively manageable leverage supports the strategic rationale. UL Solutions Margin and Capital Spending Outlook
• Neutral Sentiment: UBS and Wells Fargo maintained positive ratings—“buy” and “overweight”—but reduced their price targets to $96 and $104, respectively, from $110 and $120. The cuts suggest analysts still see upside but have moderated expectations following the earnings release. UBS Price Target Update Wells Fargo Price Target Update
• Negative Sentiment: Investors remain concerned that higher stock-based compensation and capital expenditures—expected at roughly 8.5% of revenue—could pressure free cash flow despite strong operating growth. UL Solutions Free Cash Flow Analysis
• Negative Sentiment: CEO Jennifer Scanlon sold 12,500 shares for approximately $1.15 million, reducing her direct ownership by 7.61%. Although she retains a substantial stake, the transaction may weigh modestly on sentiment. UL Solutions CEO Stock Sale

Insider Buying and Selling

In related news, CAO Karen K. Pepping sold 725 shares of the business’s stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $97.74, for a total value of $70,861.50. Following the sale, the chief accounting officer directly owned 8,082 shares in the company, valued at approximately $789,934.68. The trade was a 8.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Alberto Uggetti sold 6,100 shares of the company’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $100.00, for a total transaction of $610,000.00. Following the sale, the executive vice president directly owned 10,307 shares in the company, valued at approximately $1,030,700. This trade represents a 37.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 57,705 shares of company stock worth $5,634,995 in the last three months. Insiders own 1.20% of the company’s stock.

Institutional Trading of UL Solutions

Several hedge funds and other institutional investors have recently modified their holdings of ULS. Royal Bank of Canada boosted its holdings in UL Solutions by 119.5% in the 1st quarter. Royal Bank of Canada now owns 143,431 shares of the company’s stock worth $8,090,000 after buying an additional 78,081 shares during the period. Goldman Sachs Group Inc. raised 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 valued at $25,953,000 after acquiring an additional 234,913 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of UL Solutions by 11.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 123,771 shares of the company’s stock worth $6,981,000 after acquiring an additional 13,205 shares in the last quarter. Rhumbline Advisers bought a new position in shares of UL Solutions in the first quarter worth $49,000. Finally, Creative Planning bought a new position in shares of UL Solutions in the second quarter worth $208,000.

Wall Street Analyst Weigh In

A number of brokerages have commented on ULS. Wells Fargo & Company reduced their price objective on UL Solutions from $120.00 to $104.00 and set an “overweight” rating for the company in a research note on Wednesday. Robert W. Baird set a $95.00 target price on UL Solutions in a report on Wednesday. UBS Group reduced their price target on shares of UL Solutions from $110.00 to $96.00 and set a “buy” rating for the company in a research report on Wednesday. Raymond James Financial restated an “outperform” rating and set a $115.00 price target on shares of UL Solutions in a research note on Wednesday, May 6th. Finally, Weiss Ratings raised shares of UL Solutions from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, May 8th. Six research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, UL Solutions presently has a consensus rating of “Moderate Buy” and a consensus price target of $96.78.

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.