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

UL Solutions (NYSE:ULS) released its quarterly earnings data 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 business had revenue of $816.00 million for the quarter, compared to analyst estimates of $813.62 million. UL Solutions had a net margin of 11.24% and a return on equity of 30.99%. UL Solutions’s quarterly revenue was up 5.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.52 EPS.

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 Up 2.0%

Shares of UL Solutions stock traded up $1.57 on Wednesday, hitting $79.91. The company had a trading volume of 283,804 shares, compared to its average volume of 950,824. The stock has a 50-day moving average of $92.95 and a 200-day moving average of $87.34. 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 has a twelve month low of $61.64 and a twelve month high of $107.54. The firm has a market capitalization of $16.11 billion, a P/E ratio of 46.73, a P/E/G ratio of 3.50 and a beta of 0.71.

UL Solutions Announces Dividend

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

Wall Street Analysts Forecast Growth

Several research firms have weighed in on ULS. Wells Fargo & Company increased their target price on shares of UL Solutions from $102.00 to $120.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. JPMorgan Chase & Co. boosted their price target on shares of UL Solutions from $88.00 to $108.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. Robert W. Baird set a $95.00 price objective on shares of UL Solutions in a research report on Wednesday. The Goldman Sachs Group reiterated a “neutral” rating on shares of UL Solutions in a report on Wednesday, May 6th. Finally, Wall Street Zen cut UL Solutions from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Six equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, UL Solutions presently has a consensus rating of “Moderate Buy” and a consensus target price of $101.44.

Insider Buying and Selling at UL Solutions

In related news, Director Friedrich Hecker sold 4,000 shares of the business’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $102.04, for a total value of $408,160.00. Following the sale, the director directly owned 13,180 shares of the company’s stock, valued at approximately $1,344,887.20. The trade was a 23.28% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Jennifer F. Scanlon sold 12,500 shares of the company’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $99.22, for a total transaction of $1,240,250.00. Following the completion of the transaction, the chief executive officer directly owned 164,224 shares of the company’s stock, valued at approximately $16,294,305.28. The trade was a 7.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 53,205 shares of company stock valued at $5,315,675 over the last quarter. 1.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of ULS. Northwestern Mutual Wealth Management Co. lifted its stake in UL Solutions by 3,070.0% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 634 shares of the company’s stock valued at $46,000 after acquiring an additional 614 shares in the last quarter. Rhumbline Advisers bought a new position in shares of UL Solutions during the 1st quarter worth approximately $49,000. CIBC Private Wealth Group LLC grew its stake 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 worth $71,000 after acquiring an additional 479 shares in the last quarter. PNC Financial Services Group Inc. raised 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 purchasing an additional 519 shares during the last quarter. Finally, Public Employees Retirement System of Ohio acquired a new stake in shares of UL Solutions in the fourth quarter valued at approximately $115,000.

About UL Solutions

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.