UL Solutions (NYSE:ULS) Issues Earnings Results

Key Points

• UL Solutions beat Q1 estimates with $0.50 EPS vs $0.42 and revenue of $758M (+7.5% YoY; organic +5.7%), with adjusted EBITDA up ~22% and adjusted diluted EPS up ~31.5%, prompting management to raise full‑year profitability targets to about 27.0% adjusted EBITDA margin and reaffirm mid‑single‑digit organic revenue growth.
• The company announced a definitive agreement to acquire Eurofins Electrical & Electronics (including the MET mark), expected to add roughly $200M of standalone revenue in 2026 and be accretive to adjusted diluted EPS in the first full year after close (target Q4 2026), supported by strong cash generation (TTM cash from ops $665M, FCF $450M) and a Moody’s upgrade to Baa2.
• Shares jumped about 11.3% to $100.31 on the results, and UL raised its quarterly dividend to $0.145 (annualized $0.58, ~0.6% yield).

UL Solutions (NYSE:ULS - Get Free Report) released its quarterly earnings data on Tuesday. The company reported $0.50 EPS for the quarter, beating the consensus estimate of $0.42 by $0.08, FiscalAI reports. UL Solutions had a return on equity of 31.62% and a net margin of 10.61%.The firm had revenue of $758.00 million during the quarter, compared to the consensus estimate of $748.50 million. During the same quarter in the previous year, the company posted $0.37 earnings per share. The company's quarterly revenue was up 7.5% on a year-over-year basis.

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

• Strong Q1 financial outperformance with consolidated revenue up 7.5% (organic 5.7%), adjusted EBITDA up ~22% and adjusted diluted EPS up ~31.5%, driven by higher utilization, expense discipline and restructuring benefits.
• Management raised full‑year profitability targets — now targeting about 27.0% adjusted EBITDA margin and reaffirming mid‑single‑digit consolidated organic revenue growth based on durable structural demand drivers.
• Announced definitive agreement to acquire Eurofins Electrical & Electronics (including the MET mark), expected to contribute roughly $200M standalone revenue in 2026 and be accretive to adjusted diluted EPS in the first full year after close (target Q4 2026).
• Strong cash generation and balance sheet optionality — trailing‑12‑month cash from operations of $665M, free cash flow of $450M, and a Moody’s upgrade to Baa2, enabling M&A financing via portfolio actions, cash and credit capacity.
• Portfolio actions (EHS software divestiture and exits of non‑strategic, lower‑profit lines) reduced near‑term consumer organic growth by about 1% and will alter segment comparability going forward.

UL Solutions Stock Up 11.3%

ULS traded up $10.21 during mid-day trading on Tuesday, reaching $100.31. 210,493 shares of the stock were exchanged, compared to its average volume of 907,883. UL Solutions has a 1 year low of $60.00 and a 1 year high of $101.99. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.32 and a current ratio of 1.32. The stock has a market capitalization of $20.17 billion, a PE ratio of 63.08, a price-to-earnings-growth ratio of 3.70 and a beta of 0.59. The company has a 50 day moving average price of $85.22 and a two-hundred day moving average price of $81.24.

UL Solutions Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, March 12th. Investors of record on Monday, March 2nd were given a $0.145 dividend. This represents a $0.58 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Monday, March 2nd. This is an increase from UL Solutions's previous quarterly dividend of $0.13. UL Solutions's payout ratio is currently 36.48%.

Analysts Set New Price Targets

ULS has been the topic of a number of recent research reports. UBS Group increased their target price on UL Solutions from $85.00 to $90.00 and gave the stock a "neutral" rating in a report on Friday, February 20th. Bank of America upped their price objective on shares of UL Solutions to $86.00 and gave the stock a "buy" rating in a report on Tuesday, February 17th. JPMorgan Chase & Co. lifted their price objective on shares of UL Solutions from $84.00 to $88.00 and gave the company a "neutral" rating in a report on Friday, February 20th. Robert W. Baird decreased their target price on shares of UL Solutions from $97.00 to $96.00 and set an "outperform" rating for the company in a research report on Friday, February 20th. Finally, Zacks Research upgraded shares of UL Solutions from a "hold" rating to a "strong-buy" rating in a report on Tuesday, April 14th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $88.42.

Insider Activity at UL Solutions

In related news, CEO Jennifer F. Scanlon sold 12,500 shares of the firm's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $91.57, for a total transaction of $1,144,625.00. Following the transaction, the chief executive officer directly owned 188,274 shares of the company's stock, valued at $17,240,250.18. This trade represents a 6.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On UL Solutions

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. lifted its position in shares of UL Solutions by 3,070.0% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 634 shares of the company's stock worth $46,000 after buying an additional 614 shares in the last quarter. Rhumbline Advisers purchased a new position in shares of UL Solutions in the 1st quarter worth approximately $49,000. CIBC Private Wealth Group LLC grew its holdings in shares of UL Solutions by 112.7% in the fourth quarter. CIBC Private Wealth Group LLC now owns 904 shares of the company's stock valued at $71,000 after acquiring an additional 479 shares in the last quarter. PNC Financial Services Group Inc. grew its holdings in shares of UL Solutions by 60.1% in the fourth quarter. PNC Financial Services Group Inc. now owns 1,383 shares of the company's stock valued at $109,000 after acquiring an additional 519 shares in the last quarter. Finally, US Bancorp DE increased its position in shares of UL Solutions by 253.9% during the third quarter. US Bancorp DE now owns 1,596 shares of the company's stock valued at $113,000 after acquiring an additional 1,145 shares during the last quarter.

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.

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