UL Solutions (NYSE:ULS) Posts Quarterly Earnings Results

UL Solutions (NYSE:ULS) announced its earnings results on Thursday. The company reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.46 by $0.07, FiscalAI reports. The business had revenue of $789.00 million during the quarter, compared to analyst estimates of $782.37 million. UL Solutions had a net margin of 11.29% and a return on equity of 34.49%. UL Solutions’s revenue for the quarter was up 6.8% on a year-over-year basis. During the same period in the previous year, the business posted $0.49 earnings per share.

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 Trading Up 13.2%

ULS stock traded up $9.44 on Thursday, hitting $80.69. 1,225,289 shares of the company were exchanged, compared to its average volume of 1,142,417. The business’s fifty day moving average is $75.93 and its two-hundred day moving average is $74.93. The stock has a market capitalization of $16.21 billion, a price-to-earnings ratio of 48.37 and a beta of 1.11. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.33 and a quick ratio of 1.33. UL Solutions has a twelve month low of $49.34 and a twelve month high of $91.95.

Institutional Investors Weigh In On UL Solutions

Several large investors have recently made changes to their positions in the business. Northwestern Mutual Wealth Management Co. lifted its position in 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 acquiring an additional 614 shares in the last quarter. Rhumbline Advisers bought a new position in shares of UL Solutions in the 1st quarter worth about $49,000. CIBC Private Wealth Group LLC grew its holdings in shares of UL Solutions by 112.7% during the fourth quarter. CIBC Private Wealth Group LLC now owns 904 shares of the company’s stock valued at $71,000 after purchasing an additional 479 shares during the last quarter. PNC Financial Services Group Inc. boosted its position in 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 purchasing an additional 519 shares during the period. Finally, Public Employees Retirement System of Ohio bought a new position in UL Solutions during the 4th quarter worth $115,000.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Weiss Ratings reissued a “buy (b)” rating on shares of UL Solutions in a report on Monday, December 29th. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $84.00 price target (up from $70.00) on shares of UL Solutions in a research note on Wednesday, November 5th. UBS Group reduced their price target on UL Solutions from $96.00 to $85.00 and set a “neutral” rating for the company in a research report on Tuesday, January 20th. The Goldman Sachs Group raised their price objective on UL Solutions from $69.00 to $79.00 and gave the company a “neutral” rating in a report on Wednesday, November 5th. Finally, Wells Fargo & Company boosted their price target on shares of UL Solutions from $77.00 to $97.00 and gave the company an “overweight” rating in a research note on Wednesday, November 5th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $83.88.

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.