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

UL Solutions (NYSE:ULS) issued its quarterly 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. UL Solutions had a net margin of 11.24% and a return on equity of 30.99%. The company had revenue of $816.00 million for the quarter, compared to the consensus estimate of $813.62 million. During the same quarter in the prior year, the company earned $0.52 EPS. UL Solutions’s quarterly revenue was up 5.2% on a year-over-year basis.

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

ULS traded down $9.64 during trading on Tuesday, hitting $81.41. The company’s stock had a trading volume of 731,463 shares, compared to its average volume of 929,823. The firm has a market capitalization of $16.41 billion, a price-to-earnings ratio of 47.63, a P/E/G ratio of 3.52 and a beta of 0.71. UL Solutions has a twelve month low of $61.64 and a twelve month high of $107.54. The business’s fifty day simple moving average is $93.38 and its 200 day simple moving average is $87.33. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.27.

UL Solutions Dividend Announcement

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

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Wall Street Zen lowered shares of UL Solutions from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Zacks Research downgraded UL Solutions from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. Citigroup raised their target price on UL Solutions from $87.80 to $106.40 and gave the stock a “neutral” rating in a report on Thursday, May 7th. Wells Fargo & Company upped their price objective on UL Solutions from $102.00 to $120.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Finally, Raymond James Financial reaffirmed an “outperform” rating and set a $115.00 price objective on shares of UL Solutions in a research note on Wednesday, May 6th. Six analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, UL Solutions currently has a consensus rating of “Moderate Buy” and an average target price of $101.54.

Insider Buying and Selling at UL Solutions

In other news, CAO Karen K. Pepping sold 725 shares of the stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $97.74, for a total transaction of $70,861.50. Following the transaction, the chief accounting officer owned 8,082 shares in the company, valued at $789,934.68. This trade represents a 8.23% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Friedrich Hecker sold 4,000 shares of UL Solutions stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $102.04, for a total transaction of $408,160.00. Following the completion of the sale, 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. Over the last quarter, insiders sold 53,205 shares of company stock worth $5,315,675. 1.20% of the stock is currently owned by corporate insiders.

Institutional Trading of UL Solutions

A number of institutional investors and hedge funds have recently modified their holdings of the stock. 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 buying an additional 614 shares in the last quarter. Rhumbline Advisers acquired a new position in shares of UL Solutions during the first quarter valued at approximately $49,000. CIBC Private Wealth Group LLC lifted its holdings in UL Solutions by 112.7% in the 4th 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 in the last quarter. PNC Financial Services Group Inc. lifted its stake 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 worth $109,000 after buying an additional 519 shares in the last quarter. Finally, Public Employees Retirement System of Ohio acquired a new position in shares of UL Solutions during the 4th quarter worth 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.