UL Solutions (NYSE:ULS) Posts Quarterly Earnings Results, Beats Estimates By $0.08 EPS

UL Solutions (NYSE:ULS) announced its quarterly earnings results on Tuesday. The company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.42 by $0.08, FiscalAI reports. The company had revenue of $758.00 million during the quarter, compared to analyst estimates of $748.50 million. UL Solutions had a net margin of 10.61% and a return on equity of 31.62%. The firm’s revenue was up 7.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.37 EPS.

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

• Strong Q1 financial outperformance with consolidated revenue up 7.5% (organic 5.7%), adjusted EBITDA up ~22% and adjusted diluted EPS up ~31.5%, driven by higher utilization, expense discipline and restructuring benefits.
• Management raised full‑year profitability targets — now targeting about 27.0% adjusted EBITDA margin and reaffirming mid‑single‑digit consolidated organic revenue growth based on durable structural demand drivers.
• Announced definitive agreement to acquire Eurofins Electrical & Electronics (including the MET mark), expected to contribute roughly $200M standalone revenue in 2026 and be accretive to adjusted diluted EPS in the first full year after close (target Q4 2026).
• Strong cash generation and balance sheet optionality — trailing‑12‑month cash from operations of $665M, free cash flow of $450M, and a Moody’s upgrade to Baa2, enabling M&A financing via portfolio actions, cash and credit capacity.
• Portfolio actions (EHS software divestiture and exits of non‑strategic, lower‑profit lines) reduced near‑term consumer organic growth by about 1% and will alter segment comparability going forward.

UL Solutions Stock Performance

Shares of ULS stock traded up $12.21 on Tuesday, reaching $102.31. The stock had a trading volume of 640,665 shares, compared to its average volume of 913,872. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 0.38. The firm’s 50-day moving average is $85.22 and its two-hundred day moving average is $81.24. The firm has a market capitalization of $20.57 billion, a price-to-earnings ratio of 64.30, a P/E/G ratio of 3.70 and a beta of 0.59. UL Solutions has a 12 month low of $60.00 and a 12 month high of $104.38.

UL Solutions Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 12th. Stockholders of record on Monday, March 2nd were issued a $0.145 dividend. This represents a $0.58 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Monday, March 2nd. This is a positive change from UL Solutions’s previous quarterly dividend of $0.13. UL Solutions’s payout ratio is currently 36.48%.

Analysts Set New Price Targets

ULS has been the topic of several analyst reports. Robert W. Baird cut their price target on shares of UL Solutions from $97.00 to $96.00 and set an “outperform” rating on the stock in a research report on Friday, February 20th. BNP Paribas Exane initiated coverage on shares of UL Solutions in a research report on Monday, April 20th. They set a “neutral” rating and a $95.00 price target on the stock. Bank of America boosted their price target on shares of UL Solutions to $86.00 and gave the stock a “buy” rating in a research report on Tuesday, February 17th. Zacks Research raised shares of UL Solutions from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, April 14th. Finally, The Goldman Sachs Group reissued a “neutral” rating on shares of UL Solutions in a research report on Friday, February 20th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, UL Solutions has an average rating of “Moderate Buy” and a consensus price target of $88.42.

Insiders Place Their Bets

In other UL Solutions news, CEO Jennifer F. Scanlon sold 12,500 shares of the stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $91.57, for a total value of $1,144,625.00. Following the transaction, the chief executive officer directly owned 188,274 shares of the company’s stock, valued at $17,240,250.18. This represents a 6.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Pacer Advisors Inc. bought a new position in UL Solutions in the 4th quarter valued at about $715,000. Invesco Ltd. increased its holdings in shares of UL Solutions by 399.2% during the fourth quarter. Invesco Ltd. now owns 124,396 shares of the company’s stock worth $9,810,000 after purchasing an additional 99,478 shares during the period. State of Tennessee Department of Treasury bought a new position in shares of UL Solutions during the fourth quarter worth approximately $1,644,000. Empowered Funds LLC increased its holdings in shares of UL Solutions by 57.0% during the fourth quarter. Empowered Funds LLC now owns 34,712 shares of the company’s stock worth $2,737,000 after purchasing an additional 12,599 shares during the period. Finally, Zimmer Partners LP bought a new position in shares of UL Solutions during the fourth quarter worth approximately $35,076,000.

UL Solutions Company Profile

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.