UL Solutions (NYSE:ULS) Issues Earnings Results, Beats Expectations By $0.07 EPS

UL Solutions (NYSE:ULS) issued its earnings results on Thursday. The company reported $0.53 EPS for the quarter, topping the consensus estimate of $0.46 by $0.07, FiscalAI reports. The business had revenue of $789.00 million during the quarter, compared to the consensus estimate of $782.37 million. UL Solutions had a return on equity of 34.49% and a net margin of 11.29%.The firm’s revenue was up 6.8% compared to the same quarter last year. During the same quarter last year, the company earned $0.49 EPS.

Here are the key takeaways from UL Solutions’ conference call:

• UL Solutions reported a record 2025 with revenues of nearly $3.1 billion (organic +6.2%) and a 20.7% increase in Adjusted EBITDA, driving a 300-basis-point expansion to a 25.9% adjusted EBITDA margin.
• The company guided to mid-single-digit organic revenue growth for 2026 and raised its Adjusted EBITDA margin target to 26.5%–27%, with CapEx expected at roughly 7%–8% of revenue.
• Management is investing heavily in strategic lab capacity and services—new/expanded facilities for battery, EMC, HVAC, motor and IoT testing, plus a Global Fire Science Center of Excellence—and launched battery-related certifications, ECOLOGO industrial certification, and AI-enabled Ultras software updates to capture megatrend-driven demand.
• Strong cash generation (≈$600M operating cash, $403M free cash flow in 2025) funded $253M of debt repayment, an 11.5% dividend increase, and supports the planned ~$210M sale of the EHS software unit to further strengthen the balance sheet and enable reinvestment or M&A.
• The company recorded $37M of Q4 restructuring charges (total plan $42–47M) and realigned segments—moving ~$139M of advisory revenue into Industrial and divesting an ~$56M EHS software business—which will change near-term revenue mix and is expected to complete through mid-2026/early-2027.

UL Solutions Stock Performance

Shares of NYSE:ULS traded down $1.19 during mid-day trading on Friday, reaching $81.45. 155,472 shares of the company traded hands, compared to its average volume of 1,160,209. UL Solutions has a 52 week low of $49.34 and a 52 week high of $91.95. The firm has a market cap of $16.36 billion, a PE ratio of 48.77, a PEG ratio of 3.96 and a beta of 1.11. The company’s 50 day moving average price is $76.01 and its 200-day moving average price is $74.99. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.33 and a quick ratio of 1.33.

UL Solutions Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Monday, March 2nd will be given a dividend of $0.145 per share. This represents a $0.58 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, March 2nd. This is an increase from UL Solutions’s previous quarterly dividend of $0.13. UL Solutions’s payout ratio is presently 31.14%.

Analyst Ratings Changes

ULS has been the subject of a number of analyst reports. Robert W. Baird set a $96.00 price objective on shares of UL Solutions in a research report on Friday. Bank of America increased their target price on shares of UL Solutions to $86.00 and gave the stock a “buy” rating in a research note on Tuesday. Zacks Research lowered shares of UL Solutions from a “strong-buy” rating to a “hold” rating in a research report on Thursday, January 29th. Weiss Ratings reiterated a “buy (b)” rating on shares of UL Solutions in a research report on Monday, December 29th. Finally, UBS Group reissued a “neutral” rating and set a $90.00 price objective on shares of UL Solutions in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $84.38.

UL Solutions News Summary

Here are the key news stories impacting UL Solutions this week:

• Positive Sentiment: Beat on earnings and revenue: Q4 EPS was $0.53 vs. consensus $0.46 and revenue was $789M (vs. est. $782M); revenue grew ~6.8% year‑over‑year — a clear near‑term catalyst for the stock. MarketBeat Q4 results
• Positive Sentiment: Dividend increase: The board raised the quarterly payout to $0.145 (an 11.5% increase from $0.13), payable March 12 (ex‑dividend March 2). The raise signals confidence in cash flow and supports shareholder returns.
• Positive Sentiment: Profitability metrics look solid: reported net margin ~11.3% and ROE ~34.5%, which reinforce the quality of reported earnings and operational leverage.
• Neutral Sentiment: Earnings call materials posted: Full Q4 earnings call transcript and slide presentation are available for deeper read (useful for investors assessing segment trends and guidance). Earnings call transcript Slide presentation
• Neutral Sentiment: Analyst write‑ups are available breaking down key metrics vs. estimates — helpful for gauging how much of the beat is recurring vs. one‑time. Zacks analysis
• Negative Sentiment: Valuation and yield considerations: ULS trades at a rich P/E (~49) and PEG (~3.96) with a modest dividend yield (~0.7%), which could limit upside if growth disappoints or broader markets re‑rate cyclical/expensive names.

Hedge Funds Weigh In On UL Solutions

Several large investors have recently made changes to their positions in the business. Northwestern Mutual Wealth Management Co. boosted its stake in UL Solutions by 3,070.0% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 634 shares of the company’s stock worth $46,000 after buying an additional 614 shares during the period. Rhumbline Advisers purchased a new stake in UL Solutions in the 1st quarter worth about $49,000. CIBC Private Wealth Group LLC boosted its position in shares of UL Solutions by 112.7% during the fourth quarter. CIBC Private Wealth Group LLC now owns 904 shares of the company’s stock valued at $71,000 after buying an additional 479 shares during the period. PNC Financial Services Group Inc. raised its holdings 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 during the period. Finally, US Bancorp DE lifted its stake in shares of UL Solutions by 253.9% during the 3rd quarter. US Bancorp DE now owns 1,596 shares of the company’s stock worth $113,000 after acquiring an additional 1,145 shares during the last quarter.

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.