A Business at a Glance
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UL Solutions Inc.
ULS
$17.4B
Mkt Cap
$85.46
-1.32%
UL Solutions Inc. (ULS) has a current P/E ratio of 53.4, compared to its historical median P/E of 40.4. The stock is currently considered Expensive based on its historical valuation range.
UL Solutions Inc. (ULS) has a 5-year average return on invested capital (ROIC) of 24.6%. This indicates strong capital allocation and a potential competitive advantage.
UL Solutions Inc. (ULS) has a market capitalization of $17.4B. It is classified as a large-cap stock.
Yes, UL Solutions Inc. (ULS) pays a dividend with a trailing twelve-month yield of 0.61%.
Based on historical P/E analysis, UL Solutions Inc. (ULS) appears expensive. The current P/E of 53.4 is 32% above its historical median of 40.4. The estimated fair value CAGR (P/E method) is 3.9%.
UL Solutions Inc. (ULS) operates in the Services-Testing Laboratories industry, within the Industrials sector.
UL Solutions Inc. (ULS) reported annual revenue of $3.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
UL Solutions is a global Testing, Inspection and Certification (TIC) services provider headquartered in North America, serving more than 80,000 customers across over 110 countries with comprehensive product safety, security and sustainability solutions. The company operates through three segments: Industrial, which provides TIC services for industrial products across energy, industrial automation, engineered materials and built environment; Consumer, which offers product market acceptance and risk mitigation services for consumer electronics, medical devices, appliances, HVAC, lighting and emerging applications; and Software and Advisory, which provides complementary software and data solutions enabling customers to manage regulatory requirements, supply chain transparency and sustainability. UL Solutions generates revenue through Certification Testing, Ongoing Certification Services, Non-certification Testing and Other Services, and Software offerings, leveraging over 650 technical accreditations, 76 commercial software solutions, participation in over 1,200 standards panels globally, and the iconic UL Mark certification that appears on billions of products worldwide. The company's business model combines high-touch technical expertise and quality of service with asset-light software and advisory capabilities, serving manufacturers, building owners, end users and regulators who value deep technical expertise and consistency, particularly for high-cost-of-failure components. UL Solutions' competitive moat is built on its long heritage dating to 1894, extensive technical accreditations and standards participation, global laboratory network, and trusted brand recognition across diverse end markets and geographies.
【Margin expansion and strategic M&A】 Management expects continued margin improvement in 2026 driven by operational leverage from price and volume, increased lab utilization, and ongoing restructuring initiatives that are expected to improve annual operating income by $25–$30 million once substantially completed by Q1 2027. The company is pursuing the acquisition of Eurofins Electrical and Electronics business, expected to close in Q4 2026 and generate approximately $200 million in revenue, which is anticipated to be accretive to adjusted diluted EPS in the first full calendar year after closing and extend capabilities in key geographies including EMEA and Asia Pacific. Management is also divesting the EHS software business to sharpen focus on core TIC and Risk and Compliance Software offerings while redeploying capital into businesses that extend core capabilities. The company expects mid-single-digit organic revenue growth across all three segments in 2026, with industrial anticipated to grow at a faster pace than consumer, supported by strong underlying demand drivers including data center growth, energy transition, electrification and digital transformation trends.
| Metric | Target | Period |
|---|---|---|
| Adjusted EBITDA margin | approximately 27.0% | FY2026 |
| Organic revenue growth | mid-single digit range | FY2026 |
| Capital expenditures | approximately 7%-8% of revenue | FY2026 |
| Effective tax rate | approximately 26% | FY2026 |
| Eurofins E&E business revenue | approximately $200 million | FY2026 |
Adjusted EBITDA margin (FY2026): “we are strengthening our expectation for 2026 adjusted EBITDA margin to be approximately 27.0%, assuming current forward FX rates”
Organic revenue growth (FY2026): “we continue to expect 2026 consolidated organic revenue growth to be in the mid-single digit range versus full year 2025”
Capital expenditures (FY2026): “Our capital expenditure outlook for 2026 remains a range of approximately 7%-8% of revenue”
Effective tax rate (FY2026): “Our current tax rate expectation for the year is approximately 26%”
Eurofins E&E business revenue (FY2026): “The standalone business is expected to generate approximately $200 million in revenue for the full year of 2026”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|
| Revenue | 3.1B | 3.1B | 2.9B | 2.7B | 2.5B |
| Net Income | 350M | 325M | 326M | 260M | 293M |
| EPS | $1.73 | $1.60 | $1.62 | $1.30 | $1.47 |
| Free Cash Flow | 450M | 403M | 287M | 252M | 208M |
| ROIC | 28.1% | 25.6% | 27.6% | 20.5% | - |
| Gross Margin | - | 49.5% | 48.5% | 47.9% | 47.9% |
| Debt/Equity | 0.27 | 0.54 | 1.03 | 1.63 | - |
| Dividends/Share | $0.52 | $0.52 | $0.50 | $3.40 | $8.00 |
| Operating Income | 551M | 522M | 462M | 368M | 412M |
| Operating Margin | 17.7% | 17.1% | 16.1% | 13.7% | 16.3% |
| ROE | 26.5% | 30.0% | 41.8% | 30.0% | - |
| Shares Outstanding | 204M | 203M | 201M | 200M | 199M |
| Metric | |||||
|---|---|---|---|---|---|
| Income Statement | |||||
| Revenue | 2.5B | 2.7B | 2.9B | 3.1B | 3.1B |
| Gross Margin | 47.9% | 47.9% | 48.5% | 49.5% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A |
| SG&A | 795M | 875M | 931M | 953M | 964M |
| EBIT | 412M | 368M | 462M | 522M | 551M |
| Op. Margin | 16.3% | 13.7% | 16.1% | 17.1% | 17.7% |
| Net Income | 293M | 260M | 326M | 325M | 350M |
| Net Margin | 11.6% | 9.7% | 11.4% | 10.6% | 11.3% |
| Non-Recurring | 0 | 41M | 1.0M | 35M | 35M |
| Returns on Capital | |||||
| ROIC | N/A | 20.5% | 27.6% | 25.6% | 28.1% |
| ROE | N/A | 30.0% | 41.8% | 30.0% | 26.5% |
| ROA | N/A | 18.9% | 11.8% | 11.4% | 11.8% |
| Cash Flow | |||||
| Op. Cash Flow | 372M | 467M | 524M | 600M | 665M |
| Free Cash Flow | 208M | 252M | 287M | 403M | 450M |
| Owner Earnings | 237M | 313M | 329M | 365M | 424M |
| CapEx | 164M | 215M | 237M | 197M | 215M |
| Maint. CapEx | 135M | 154M | 172M | 188M | 190M |
| Growth CapEx | 29M | 61M | 65M | 9.0M | 25M |
| D&A | 135M | 154M | 172M | 188M | 190M |
| CapEx/OCF | N/A | N/A | 45.2% | 32.8% | 32.3% |
| Capital Allocation | |||||
| Dividends Paid | 1.6B | 680M | 100M | 104M | 107M |
| Dividend Yield | N/A | N/A | 1.1% | 0.8% | 0.6% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | 0.0% | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 0 | 0 | 23M | 47M | 51M |
| Debt Repayment | 200M | 30M | 346M | 1.0B | 1.0B |
| Balance Sheet | |||||
| Net Debt | 378M | 748M | 637M | 388M | 99M |
| Cash & Equiv. | 322M | 315M | 298M | 295M | 258M |
| Long-Term Debt | 700M | 904M | 692M | 491M | 357M |
| Debt/Equity | N/A | 1.63 | 1.03 | 0.54 | 0.27 |
| Interest Coverage | 24.2 | 10.5 | 8.4 | 12.7 | 14.9 |
| Equity | N/A | 654M | 904M | 1.3B | 1.3B |
| Total Assets | N/A | 2.7B | 2.8B | 2.9B | 3.0B |
| Total Liabilities | N/A | 2.1B | 1.9B | 1.6B | 1.6B |
| Intangibles | N/A | 72M | 58M | 48M | 44M |
| Retained Earnings | N/A | 24M | 250M | 470M | 533M |
| Working Capital | N/A | 244M | 181M | 240M | 148M |
| Current Assets | 637M | 953M | 921M | 1.0B | 1.0B |
| Current Liabilities | N/A | 709M | 740M | 760M | 899M |
| Per Share Data | |||||
| EPS | 1.47 | 1.30 | 1.62 | 1.60 | 1.73 |
| Owner EPS | 1.19 | 1.57 | 1.63 | 1.80 | 2.08 |
| Book Value | N/A | 3.27 | 4.49 | 6.21 | 6.47 |
| Cash Flow/Share | 1.87 | 2.34 | 2.60 | 2.95 | 2.65 |
| Dividends/Share | 8.00 | 3.40 | 0.50 | 0.52 | 0.52 |
| Shares Out. | 199.3M | 200.0M | 201.2M | 203.1M | 204.0M |
| Valuation | |||||
| P/E Ratio | N/A | N/A | 30.8 | 49.9 | 49.5 |
| P/FCF | N/A | N/A | 35.0 | 40.2 | 38.7 |
| EV/EBIT | N/A | N/A | 22.2 | 30.9 | 31.8 |
| Price/Book | N/A | N/A | 11.1 | 12.8 | 13.2 |
| Price/Sales | N/A | N/A | 3.2 | 4.4 | 5.6 |
| FCF Yield | N/A | N/A | 2.9% | 2.5% | 2.6% |
| Market Cap | 0 | N/A | 10.0B | 16.2B | 17.4B |
| Avg. Price | 0.00 | N/A | 45.94 | 66.33 | 85.46 |
| Year-End Price | 0.00 | N/A | 49.93 | 79.82 | 85.46 |
UL Solutions Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
UL Solutions Inc. trades at 53.4x trailing earnings, compared to its 15-year median P/E of 40.4x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 16.4x vs a median of 37.6x. The company's 5-year average ROIC is 24.6% with a gross margin of 48.5%. Total shareholder yield (dividends) is 0.6%. At current prices, the estimated annualized return to fair value is +23.6%.
UL Solutions Inc. (ULS) has a net profit margin of 10.6%. This is a healthy margin.
UL Solutions Inc. (ULS) generated $403 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
UL Solutions Inc. (ULS) has a debt-to-equity ratio of 0.54. This indicates moderate leverage.
UL Solutions Inc. (ULS) reported earnings per share (EPS) of $1.60 in its most recent fiscal year.
UL Solutions Inc. (ULS) has a return on equity (ROE) of 30.0%. This indicates the company generates strong returns for shareholders.
UL Solutions Inc. (ULS) has a 5-year average gross margin of 48.5%. This indicates decent pricing power.
The Ledger Terminal provides 4 years of financial data for UL Solutions Inc. (ULS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
UL Solutions Inc. (ULS) has a book value per share of $6.21, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued margin improvement in 2026 driven by operational leverage from price and volume, increased lab utilization, and ongoing restructuring initiatives that are expected to improve annual operating income by $25–$30 million once substantially completed by Q1 2027. The company is pursuing the acquisition of Eurofins Electrical and Electronics business, expected to close in Q4 2026 and generate approximately $200 million in revenue, which is anticipated to be accretive to adjusted diluted EPS in the first full calendar year after closing and extend capabilities in key geographies including EMEA and Asia Pacific. Management is also divesting the EHS software business to sharpen focus on core TIC and Risk and Compliance Software offerings while redeploying capital into businesses that extend core capabilities. The company expects mid-single-digit organic revenue growth across all three segments in 2026, with industrial anticipated to grow at a faster pace than consumer, supported by strong underlying demand drivers including data center growth, energy transition, electrification and digital transformation trends.
Based on recent SEC filings and earnings calls, UL Solutions Inc. (ULS) has provided the following forward guidance: Adjusted EBITDA margin: approximately 27.0% (FY2026); Organic revenue growth: mid-single digit range (FY2026); Capital expenditures: approximately 7%-8% of revenue (FY2026); Effective tax rate: approximately 26% (FY2026); Eurofins E&E business revenue: approximately $200 million (FY2026).