UL Solutions Inc
NYSE:ULS
UL Solutions Inc
In the bustling world of safety science, UL Solutions Inc. stands as a beacon of trust and reliability, deeply woven into the fabric of modern commerce and industry. Originally birthed at the dawn of electrical innovation, UL Solutions has grown from its roots in electrical safety certification to become a global authority on safety and performance. As industries evolve, the company has expanded its scope, providing rigorous third-party testing, certification, and regulatory compliance to a wide array of sectors, such as consumer electronics, industrial equipment, and renewable energy. Behind this growth lies a meticulous process where UL's experts scrutinize products, systems, and processes to ensure they meet stringent safety standards, thus safeguarding manufacturers, retailers, and consumers alike.
In the mechanics of UL Solutions' business model, revenue is primarily driven by its comprehensive suite of services that cater to both legacy and emerging industries. The company leverages its vast knowledge and expertise to offer evaluation, inspection, auditing, and advisory services. These services are integral for businesses aiming to maintain regulatory compliance, achieve sustainability goals, or enter new markets. Beyond this, UL Solutions increasingly focuses on innovation, helping clients adopt new technologies and navigate the complexities of digital transformation, all while maintaining an unwavering commitment to the principles of safety and integrity that define its legacy. Through this intricate web of services, UL Solutions not only fosters safer environments but also secures a steady flow of revenue by cementing its role as an essential partner in global industrial ecosystems.
In the bustling world of safety science, UL Solutions Inc. stands as a beacon of trust and reliability, deeply woven into the fabric of modern commerce and industry. Originally birthed at the dawn of electrical innovation, UL Solutions has grown from its roots in electrical safety certification to become a global authority on safety and performance. As industries evolve, the company has expanded its scope, providing rigorous third-party testing, certification, and regulatory compliance to a wide array of sectors, such as consumer electronics, industrial equipment, and renewable energy. Behind this growth lies a meticulous process where UL's experts scrutinize products, systems, and processes to ensure they meet stringent safety standards, thus safeguarding manufacturers, retailers, and consumers alike.
In the mechanics of UL Solutions' business model, revenue is primarily driven by its comprehensive suite of services that cater to both legacy and emerging industries. The company leverages its vast knowledge and expertise to offer evaluation, inspection, auditing, and advisory services. These services are integral for businesses aiming to maintain regulatory compliance, achieve sustainability goals, or enter new markets. Beyond this, UL Solutions increasingly focuses on innovation, helping clients adopt new technologies and navigate the complexities of digital transformation, all while maintaining an unwavering commitment to the principles of safety and integrity that define its legacy. Through this intricate web of services, UL Solutions not only fosters safer environments but also secures a steady flow of revenue by cementing its role as an essential partner in global industrial ecosystems.
Revenue Growth: UL Solutions delivered third quarter consolidated revenue of $783 million, up 7.1% year-over-year and 6.3% organically, with all business segments contributing.
Margin Expansion: Adjusted EBITDA grew 18.6% to $217 million, with EBITDA margin up 270 basis points to 27.7%, the highest since going public.
Guidance Raised: The company raised its 2025 outlook, now expecting full-year organic revenue growth of 5.5% to 6.0%, and improved adjusted EBITDA margin guidance to around 25%.
Restructuring Announced: UL Solutions will restructure operations, exiting nonstrategic service lines (~1% of 2025 revenue), and reduce workforce by 3.5%, targeting $25–30 million in annual operating income improvement by 2027.
Strong Cash Flow: Year-to-date free cash flow reached $317 million, up 47% versus last year, and the balance sheet remains strong.
AI Safety Certification Launch: The company introduced a new artificial intelligence safety certification, aimed at building trust in emerging AI products.
Balanced Global Performance: Growth was seen across all regions and segments, with notable strength in areas supporting data centers and energy storage.
