UL Solutions Inc.

What they do

UL Solutions provides product safety, security and sustainability testing, inspection and certification services, plus related software and advisory offerings, to customers worldwide. It served more than 80,000 customers across over 110 countries in 2025, with over 350 third-party conformity assessment services and the ability to test against over 4,000 global standards. Revenue comes from Certification Testing, Ongoing Certification Services, Non-certification Testing and Other Services, and Software. Through 2025 the business was reported in Industrial, Consumer, and Software and Advisory segments; segment reporting was reorganized effective in the first quarter of 2026.

Revenue drivers

• Industrial — TIC services for industrial products in energy, industrial automation, engineered materials (plastics, wire and cable) and built environment; targets high cost-of-failure components where customers choose on technical expertise and service consistency.
• Consumer — Market acceptance and risk mitigation services for consumer electronics, medical devices, information technologies, appliances, HVAC, lighting, retail softlines and hardlines, new mobility, smart products and 5G.
• Software and Advisory — Software, data and advisory offerings that help customers manage complex regulatory requirements, supply chain transparency and sustainability; includes the Risk Compliance Software segment referenced in the Q2 2026 release.
• Service categories — The company reports revenue across Certification Testing, Ongoing Certification Services, Non-certification Testing and Other Services, and Software. Segment breakouts by dollar amount were not provided in the excerpts.

Recent performance

Second quarter 2026 revenue was $816 million, up 5.2% from $776 million, with organic growth of 6.6% led by Industrial and Consumer. Net income was $254 million versus $97 million, up 161.9%, and net income margin was 31.1% versus 12.5%, driven by a $191 million gain on the sale of the Employee Health and Safety software business plus higher revenue and operating leverage. Adjusted EBITDA rose 11.2% to $219 million, with margin up 140 basis points to 26.8%. Adjusted Diluted EPS was $0.59 versus $0.52, while GAAP diluted EPS was $1.21 versus $0.45. For the first six months of 2026, operating cash flow was $379 million versus $301 million.

Strategy

Management is pursuing mid-single digit constant currency organic revenue growth in 2026, inclusive of roughly a 1% revenue reduction from business exits under the Restructuring Plan. The company is making capital investments to meet demand and improve productivity, with capital expenditures of $138 million in the first half of 2026 versus $93 million a year earlier. It is funding growth while returning capital, paying a $0.145 per share dividend ($29 million) in Q2 2026. The company also divested its Employee Health and Safety software business and is restructuring and exiting certain businesses. The balance sheet was strengthened by $191 million of net repayments on the revolving credit facility during the quarter.

Risks

• Brand and reputation — The company states its success depends substantially on the value of its brand and reputation, and adverse publicity or reputational damage could reduce demand for its services or erode market share.
• Cybersecurity and data privacy — The company cites cybersecurity risks and evolving data privacy and protection laws, where violations could result in significant fines, operational restrictions or reputational harm.
• Artificial intelligence disruption — Technological advances in AI may disrupt the industries UL Solutions operates in and reduce demand for its services if it cannot keep pace with the changing environment.
• China operations and trade — The company operates in China, including through its UL-CCIC joint venture with China Certification & Inspection (Group) Co., Ltd., and cites risks from China's complex and rapidly evolving laws, U.S.-China relations, and tariffs or trade restrictions.

Outlook

For full-year 2026, the company's outlook includes mid-single digit constant currency organic revenue growth, inclusive of approximately 1% revenue reduction from business exits announced in the Restructuring Plan. Management also provided an Adjusted EBITDA outlook (the release text provided was cut off before the full figure). CEO Jennifer Scanlon said the company is monitoring its business and the macro environment and feels confident that its megatrend alignment and ability to meet customer needs for safe product innovation position it well for the second half of 2026.