UL Solutions (NYSE:ULS) Releases Quarterly Earnings Results, Beats Estimates By $0.08 EPS

UL Solutions (NYSE:ULS) posted its earnings results on Tuesday. The company reported $0.50 EPS for the quarter, beating analysts’ consensus estimates of $0.42 by $0.08, FiscalAI reports. The company had revenue of $758.00 million during the quarter, compared to analysts’ expectations of $748.50 million. UL Solutions had a net margin of 11.24% and a return on equity of 30.99%. During the same quarter in the prior year, the company posted $0.37 earnings per share. UL Solutions’s revenue for the quarter was up 7.5% compared to the same quarter last year.

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 Performance

Shares of UL Solutions stock traded down $5.66 on Thursday, reaching $99.23. 260,789 shares of the stock were exchanged, compared to its average volume of 922,097. UL Solutions has a twelve month low of $61.64 and a twelve month high of $107.54. The company has a quick ratio of 1.32, a current ratio of 1.16 and a debt-to-equity ratio of 0.27. The firm has a market capitalization of $19.95 billion, a price-to-earnings ratio of 58.04, a PEG ratio of 4.23 and a beta of 0.59. The business has a 50 day moving average price of $86.25 and a two-hundred day moving average price of $81.64.

UL Solutions Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 12th. Stockholders of record on Monday, March 2nd were paid a $0.145 dividend. The ex-dividend date was Monday, March 2nd. This is a positive change from UL Solutions’s previous quarterly dividend of $0.13. This represents a $0.58 annualized dividend and a dividend yield of 0.6%. UL Solutions’s dividend payout ratio (DPR) is 36.48%.

Wall Street Analyst Weigh In

ULS has been the subject of a number of recent analyst reports. Bank of America raised their price objective on UL Solutions to $86.00 and gave the stock a “buy” rating in a research report on Tuesday, February 17th. Robert W. Baird decreased their price target on UL Solutions from $97.00 to $96.00 and set an “outperform” rating for the company in a research note on Friday, February 20th. JPMorgan Chase & Co. boosted their price target on UL Solutions from $84.00 to $88.00 and gave the stock a “neutral” rating in a research note on Friday, February 20th. Weiss Ratings downgraded shares of UL Solutions from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, February 20th. Finally, Telsey Advisory Group set a $100.00 target price on shares of UL Solutions in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $97.68.

Insider Transactions at UL Solutions

In other UL Solutions news, CEO Jennifer F. Scanlon sold 12,500 shares of the company’s stock in a transaction on Friday, May 1st. The shares were sold at an average price of $91.57, for a total value of $1,144,625.00. Following the sale, the chief executive officer directly owned 188,274 shares of the company’s stock, valued at approximately $17,240,250.18. This 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 can be accessed through this link. 1.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Northwestern Mutual Wealth Management Co. increased its holdings 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 valued at $46,000 after purchasing an additional 614 shares in the last quarter. Rhumbline Advisers purchased a new position in UL Solutions in the first quarter valued at $49,000. CIBC Private Wealth Group LLC raised its position 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 worth $71,000 after acquiring an additional 479 shares during the period. PNC Financial Services Group Inc. boosted its stake in shares of UL Solutions by 60.1% during the 4th quarter. PNC Financial Services Group Inc. now owns 1,383 shares of the company’s stock worth $109,000 after acquiring an additional 519 shares in the last quarter. Finally, US Bancorp DE increased 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 in 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.