UL Solutions Inc

Latest Results (19.05.2026):

UL Solutions Inc. — first quarter of 2026: The company reported a strong start to 2026 with revenue of $758 million (up 7.5% year-over-year; organic growth 5.7%), significant margin expansion and solid cash generation. Net income, adjusted results, EPS and Adjusted EBITDA all improved materially; management also announced portfolio moves (a large E&E acquisition and divestitures) and raised its full-year Adjusted EBITDA margin outlook.

Revenue

Revenue was $758M in Q1 2026, up 7.5% vs Q1 2025. Organic revenue growth was 5.7%, led by the Industrial segment.

Profitability

Net income was $97M (+36.6%) with a net income margin of 12.8% (up 270 bps). Adjusted Net Income was $107M (+33.8%). Diluted EPS was $0.45 (+36.4%); Adjusted diluted EPS was $0.50 (+35.1%).

Adjusted EBITDA and Margins

Adjusted EBITDA was $197M (+22.4%) and the Adjusted EBITDA margin expanded to 26.0% (up 320 bps), driven by higher revenue and operating leverage, notably in Industrial and Consumer segments.

Cash Flow and Capital Spending

Operating cash flow was $219M (Q1 2026) and Free Cash Flow was $150M. Capital expenditures were $69M (up from $51M a year ago). The company paid a Q1 dividend of $0.145 per share (~$29M).

Balance Sheet and Liquidity

Cash and cash equivalents at quarter end were $258M. Total debt was reported at approximately $360M (prior to unamortized issuance costs), reflecting $134M of net repayments on the revolving credit facility during the quarter.

Segment Performance

Industrial led growth: Industrial revenue $375M (+10.3%), Consumer $318M (+4.6%), Risk & Compliance Software $65M (+6.6%). Certification testing and ongoing certification services were notable revenue drivers.

Portfolio Management Actions

Post-quarter activity includes closing the sale of the Employee Health & Safety software business for ~ $202M (preliminary), announcing a definitive agreement to acquire Eurofins’ E&E business (enterprise value ~€575M, expected to close in Q4 2026), and entering an agreement to sell its ~28% stake in DQS for ~€105M (expected H2 2026).

Outlook

Full-year 2026 guidance: mid-single-digit constant-currency organic revenue growth (inclusive of ~1% revenue reduction from a Restructuring Plan), Adjusted EBITDA margin improvement to ~27.0%, an effective tax rate of ~26%, and capital expenditures of 7–8% of revenue. Management strengthened its full-year Adjusted EBITDA margin outlook following Q1 results.

Other Notes

Q1 2026 results reflect a segment reorganization (Advisory moved to Industrial, Software renamed Risk & Compliance Software). Management emphasized active portfolio management and disciplined cost/headcount control as drivers of margin expansion and cash generation.