UL Solutions (NYSE:ULS) Releases Earnings Results, Hits Estimates

UL Solutions (NYSE:ULS) announced its quarterly earnings data on Tuesday. The company reported $0.62 earnings per share for the quarter, hitting the consensus estimate of $0.62, FiscalAI reports. The business had revenue of $823.00 million for the quarter, compared to analyst estimates of $815.72 million. UL Solutions had a net margin of 16.02% and a return on equity of 28.81%. The company’s revenue was up 5.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.56 EPS.

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

• Strong third-quarter results: Organic revenue growth accelerated to 7%, Adjusted EBITDA rose 8.3%, and margin expanded 90 basis points to a record 28.6%. Free cash flow increased 23.7% year over year to $481 million on a trailing 12-month basis.
• Industrial and consumer delivered broad-based growth and record margins, with organic revenue growth of 8.4% and 5.9%, respectively. Certification testing revenue increased nearly 11%, supported by demand tied to AI data centers, electrification, energy, automation, and connected technologies.
• Management raised its full-year 2026 outlook to approximately 6.5% constant-currency organic revenue growth and approximately 27.0% Adjusted EBITDA margin. The company cited resilient demand, productivity gains, pricing, and better-than-expected retention following planned business exits.
• UL Solutions completed the Eurofins electrical and electronics acquisition and expects approximately $50 million of fourth-quarter revenue from it, with back-office integration targeted for completion in 2027 and most go-to-market and laboratory-utilization synergies by the end of 2028. The company also sold its DQS stake for approximately $117 million, reducing debt to $689 million after the transactions.
• Risk and compliance software revenue declined 17.2% and Adjusted EBITDA margin fell to 18.9%, primarily because of the divestiture of the EHS software business and negative operating leverage. Management expects improvement, but fourth-quarter transaction and integration costs are now expected to be higher than previously anticipated, at approximately $18 million to $21 million.

UL Solutions Stock Down 1.7%

NYSE:ULS traded down $1.35 during trading hours on Wednesday, hitting $79.05. The stock had a trading volume of 331,731 shares, compared to its average volume of 938,399. The company has a current ratio of 1.42, a quick ratio of 1.42 and a debt-to-equity ratio of 0.19. UL Solutions has a 1-year low of $63.17 and a 1-year high of $107.54. The business has a 50 day simple moving average of $70.82 and a two-hundred day simple moving average of $82.48. The company has a market cap of $15.96 billion, a PE ratio of 31.99, a price-to-earnings-growth ratio of 3.11 and a beta of 0.62.

UL Solutions Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 31st were given a $0.1450 dividend. The ex-dividend date of this dividend was Monday, August 31st. This represents a $0.58 annualized dividend and a yield of 0.7%. UL Solutions’s dividend payout ratio (DPR) is 23.48%.

Analysts Set New Price Targets

A number of research firms recently issued reports on ULS. Weiss Ratings downgraded shares of UL Solutions from a “buy (b)” rating to a “buy (b-)” rating in a report on Monday, September 21st. UBS Group upped their price target on shares of UL Solutions from $96.00 to $97.00 and gave the stock a “buy” rating in a research report on Monday, October 12th. Robert W. Baird cut their price target on shares of UL Solutions from $95.00 to $85.00 and set an “outperform” rating on the stock in a research note on Thursday, September 24th. Citigroup decreased their price target on shares of UL Solutions from $106.40 to $82.80 and set a “neutral” rating on the stock in a report on Wednesday, August 5th. Finally, Wall Street Zen cut shares of UL Solutions from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Seven analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $95.98.

Insider Activity at UL Solutions

In other news, CEO Jennifer Scanlon sold 12,500 shares of the business’s stock in a transaction on Thursday, October 8th. The shares were sold at an average price of $70.08, for a total transaction of $876,000.00. Following the transaction, the chief executive officer directly owned 126,724 shares of the company’s stock, valued at approximately $8,880,817.92. The trade was a 8.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 1.20% of the company’s stock.

Key Headlines Impacting UL Solutions

Here are the key news stories impacting UL Solutions this week:

• Positive Sentiment: Q3 revenue was $823 million, up 5.1% year over year and ahead of the roughly $816 million consensus. Adjusted earnings were $0.62 per share, compared with $0.56 a year ago, meeting the consensus cited in the company’s results coverage and topping Zacks’ $0.61 estimate. Article: UL Solutions Inc. Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Coverage highlights strength in certification and testing demand, margin expansion, and strategic investment plans. Reports also say the company raised guidance, providing a favorable signal about its outlook. Article: ULS Q3 Deep Dive
• Neutral Sentiment: Some coverage frames the results and a forthcoming strategic deal as potential catalysts, while noting investors may weigh the growth opportunity against the stock’s valuation. Article: UL Solutions Q3 2026
• Negative Sentiment: Valuation is a counterweight to the strong quarter: one analysis estimates ULS trades about 13% above fair value. That may limit further upside or encourage profit-taking after the recent rally, helping explain the share-price weakness despite the earnings news. Article: UL Solutions Stock Could Be 13% Over Fair Value

UL Solutions Company Profile

UL Solutions Inc (NYSE: ULS) is a global applied safety science company that provides testing, inspection, certification, and advisory services. The company helps manufacturers, retailers, regulators, and other organizations evaluate the safety, security, performance, quality, and sustainability of products, facilities, and systems.

Its services cover a broad range of industries, including consumer products, industrial equipment, energy, mobility, information technology, and the built environment.