UL Solutions (NYSE:ULS) Issues Earnings Results, Beats Estimates By $0.03 EPS

UL Solutions (NYSE:ULS) issued its earnings results on Tuesday. The company reported $0.59 earnings per share for the quarter, topping the consensus estimate of $0.56 by $0.03, FiscalAI reports. The firm had revenue of $816.00 million for the quarter, compared to analyst estimates of $813.62 million. UL Solutions had a return on equity of 30.99% and a net margin of 11.24%.The firm’s revenue for the quarter was up 5.2% on a year-over-year basis. During the same period last year, the company earned $0.52 earnings per share.

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 Price Performance

Shares of UL Solutions stock traded down $7.95 during trading on Tuesday, hitting $83.10. The stock had a trading volume of 223,077 shares, compared to its average volume of 927,823. The business has a fifty day moving average of $93.38 and a two-hundred day moving average of $87.33. UL Solutions has a fifty-two week low of $61.64 and a fifty-two week high of $107.54. The firm has a market cap of $16.75 billion, a P/E ratio of 48.53, a PEG ratio of 3.52 and a beta of 0.71. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.16 and a quick ratio of 1.16.

UL Solutions Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 8th. Stockholders of record on Friday, May 29th were issued a $0.145 dividend. The ex-dividend date was Friday, May 29th. This represents a $0.58 annualized dividend and a dividend yield of 0.7%. UL Solutions’s dividend payout ratio is 33.92%.

Insider Transactions at UL Solutions

In other news, CAO Karen K. Pepping sold 725 shares of the firm’s stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $97.74, for a total transaction of $70,861.50. Following the completion of the transaction, the chief accounting officer owned 8,082 shares in the company, valued at approximately $789,934.68. This trade represents a 8.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Friedrich Hecker sold 4,000 shares of UL Solutions stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $102.04, for a total transaction of $408,160.00. Following the completion of the transaction, the director directly owned 13,180 shares in the company, valued at $1,344,887.20. This represents a 23.28% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 53,205 shares of company stock valued at $5,315,675 in the last quarter. 1.20% of the stock is owned by company insiders.

Institutional Trading of UL Solutions

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. boosted its holdings in UL Solutions by 3,070.0% during the second 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 bought a new position in shares of UL Solutions in the first quarter valued at $49,000. CIBC Private Wealth Group LLC lifted its position in shares of UL Solutions by 112.7% during the 4th 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 during the last quarter. PNC Financial Services Group Inc. lifted its position 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 valued at $109,000 after acquiring an additional 519 shares during the last quarter. Finally, US Bancorp DE boosted its stake in shares of UL Solutions by 253.9% during the 3rd quarter. US Bancorp DE now owns 1,596 shares of the company’s stock worth $113,000 after acquiring an additional 1,145 shares in the last quarter.

Analysts Set New Price Targets

Several equities analysts have recently commented on ULS shares. BNP Paribas Exane assumed coverage on shares of UL Solutions in a research report on Monday, April 20th. They set a “neutral” rating and a $95.00 price target for the company. Wall Street Zen lowered shares of UL Solutions from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. UBS Group upgraded shares of UL Solutions from a “neutral” rating to a “buy” rating and set a $110.00 target price for the company in a research report on Tuesday, July 14th. JPMorgan Chase & Co. raised their price target on shares of UL Solutions from $88.00 to $108.00 and gave the company a “neutral” rating in a research note on Thursday, May 7th. Finally, Citigroup boosted their price objective on UL Solutions from $87.80 to $106.40 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. Six investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $101.54.

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.