UL Solutions Inc. Class A (ULS)
NYSE:ULS
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UL Solutions Inc. Class A
(NYSE:ULS)
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Rating:69Neutral
Price Target:
$90.00
▲(5.60% Upside)
Action:DowngradedDate:02/20/26
The score is driven primarily by strong operating fundamentals (revenue growth and margin improvement) and a positive earnings outlook with guided margin expansion. These strengths are tempered by the cash flow risk flagged in the provided cash flow analysis and an expensive valuation (high P/E, low yield), while technicals remain generally supportive but with some momentum cooling (negative MACD).
Positive Factors
Consistent Revenue Growth
ULS has shown multi-year top-line expansion (from ~$2.3B in 2020 to ~ $3.05B/2025) driven by recurring testing, inspection and advisory demand across industrial and consumer end markets. That steady organic growth underpins durable revenue visibility and scale benefits over 2–6 months.
Negative Factors
Free Cash Flow Volatility
Despite positive operating cash flow (~$600M in 2025), a sharp FCF reversal to negative in 2025 signals working‑capital swings or heavy reinvestment that can constrain funding flexibility. Persistent FCF volatility could pressure capital returns or force external financing within 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue Growth
ULS has shown multi-year top-line expansion (from ~$2.3B in 2020 to ~ $3.05B/2025) driven by recurring testing, inspection and advisory demand across industrial and consumer end markets. That steady organic growth underpins durable revenue visibility and scale benefits over 2–6 months.
Read all positive factors
UL Solutions Inc. Class A (ULS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.13B
Dividend Yield0.67%
Average Volume (3M)801.94K
Price to Earnings (P/E)48.8
Beta (1Y)0.56
Revenue Growth6.68%
EPS Growth11.55%
CountryUS
Employees14,813
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.53
Shares Outstanding77,287,210
10 Day Avg. Volume921,308
30 Day Avg. Volume801,943
Financial Highlights & Ratios
PEG Ratio-79.50
Price to Book (P/B)12.25
Price to Sales (P/S)5.19
P/FCF Ratio39.33
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue5.79
Enterprise Value/Gross Profit11.80
Enterprise Value/Ebitda23.93
Forecast
1Y Price Target
$91.54Price Target Upside7.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)2.19
Revenue Forecast (FY)$3.21B
UL Solutions Inc. Class A Business Overview & Revenue Model
Company Description
UL Solutions Inc. provides safety science services worldwide. It operates through three segments: Industrial, Consumer, and Software and Advisory. The Industrial segment provides testing, inspection, and certification services across various end m...
How the Company Makes Money
UL Solutions generates revenue primarily through its comprehensive suite of testing and certification services. The company charges fees for testing products to ensure compliance with safety and performance standards, which can vary significantly ...
UL Solutions Inc. Class A Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows how much profit each business unit generates after operating costs, revealing which segments drive margins and which may be draining resources. Useful for judging where the company is most competitive, where management should focus, and how segment performance will affect overall earnings.
Shows how much profit each business unit generates after operating costs, revealing which segments drive margins and which may be draining resources. Useful for judging where the company is most competitive, where management should focus, and how segment performance will affect overall earnings.
Data provided by:
The Fly
The FlyUL Solutions Inc. Class A Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 25, 2026
Earnings Call Sentiment Positive
The call communicated a clearly positive operational and financial performance: record full-year revenue, strong organic growth, substantial adjusted EBITDA and margin expansion, robust cash generation, disciplined capital allocation and sizable strategic investments in labs and software. Management acknowledged near-term headwinds including restructuring charges, the planned divestiture of an EHS software business (~$56M revenue), an elevated effective tax rate, and the usual Q1 seasonality. However, the magnitude and number of positive drivers (revenue growth, margin expansion, improved cash flow, targeted CapEx, and a constructive 2026 guide) substantially outweigh the lowlights, and management provided clear plans to redeploy proceeds and complete efficiency programs.Positive Updates
Record Full-Year Revenue and Organic Growth
Full-year 2025 revenue nearly $3.1 billion, up 6.4% vs 2024 and up 6.2% on an organic basis.
Negative Updates
Restructuring Charges and Ongoing Program Costs
Recorded $37 million of pretax restructuring charges in Q4; total restructuring program cost range remains ~$42–47 million with actions expected to be substantially completed by end of Q1 2027.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Revenue and Organic Growth
Full-year 2025 revenue nearly $3.1 billion, up 6.4% vs 2024 and up 6.2% on an organic basis.
Read all positive updates
Company Guidance
UL Solutions guided 2026 consolidated organic revenue growth in the mid‑single‑digit range (constant‑currency, excl. acquisitions/divestitures), with Industrial expected to outpace Consumer and current forward FX rates implying roughly a +50 basis‑point revenue tailwind (largely in H1); they expect adjusted EBITDA margin of 26.5%–27%, an effective tax rate of ~26%, and capital expenditures of ~7%–8% of revenue (vs. $197M or 6.5% in 2025). The plan reflects exiting ~1% of 2025 revenue from nonstrategic services, the announced EHS software divestiture (≈$56M of 2025 revenue; ~$210M sale price expected to close in Q2), and benefits from restructuring (Q4 pretax charges of $37M recorded; total cost range unchanged) that is expected to be substantially complete by end‑Q1 2027 (remaining actions mainly in H1 2026) and to improve annual operating income by $25M–$30M vs. the trailing 12 months ended Q3 2025; they noted Q1 is seasonally weakest (Lunar New Year/fewer workdays) and that more margin expansion is expected in H2 2026.UL Solutions Inc. Class A Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
54
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.05B | 2.87B | 2.68B | 2.52B | 2.52B |
| Gross Profit | 1.50B | 1.38B | 1.26B | 1.21B | 1.18B |
| EBITDA | 738.35M | 642.00M | 535.00M | 535.00M | 417.00M |
| Net Income | 325.00M | 326.00M | 260.00M | 293.00M | 224.00M |
Balance Sheet | |||||
| Total Assets | 2.92B | 2.80B | 2.74B | 2.72B | 3.66B |
| Cash, Cash Equivalents and Short-Term Investments | 295.00M | 298.00M | 315.00M | 373.00M | 1.38B |
| Total Debt | 832.00M | 935.00M | 1.06B | 660.00M | 154.00M |
| Total Liabilities | 1.63B | 1.87B | 2.06B | 1.64B | 1.33B |
| Stockholders Equity | 1.29B | 904.00M | 654.00M | 1.05B | 2.31B |
Cash Flow | |||||
| Free Cash Flow | 403.00M | 287.00M | 252.00M | 208.00M | 314.00M |
| Operating Cash Flow | 600.00M | 524.00M | 467.00M | 372.00M | 421.00M |
| Investing Cash Flow | -204.00M | -234.00M | -175.00M | -238.00M | 178.00M |
| Financing Cash Flow | -396.00M | -284.00M | -294.00M | -1.12B | -228.00M |
UL Solutions Inc. Class A Technical Analysis
Positive
85.23
Price Trends
79.44
Positive
80.11
Positive
75.61
Positive
Market Momentum
0.97
Positive
55.17
Neutral
36.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ULS, the sentiment is Positive. The current price of 85.23 is above the 20-day moving average (MA) of 84.48, above the 50-day MA of 79.44, and above the 200-day MA of 75.61, indicating a bullish trend. The MACD of 0.97 indicates Positive momentum. The RSI at 55.17 is Neutral, neither overbought nor oversold. The STOCH value of 36.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ULS.
UL Solutions Inc. Class A Risk Analysis
UL Solutions Inc. Class A disclosed 95 risk factors in its most recent earnings report. UL Solutions Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
UL Solutions Inc. Class A Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $17.13B | 48.77 | 28.48% | 0.67% | 6.68% | 11.55% | |
68 Neutral | $11.38B | 25.02 | 10.17% | 1.14% | 6.35% | 24.07% | |
67 Neutral | $3.55B | 12.60 | 21.76% | 1.38% | 2.36% | 11.30% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $18.21B | 13.26 | 6.20% | 1.25% | -11.30% | 34.28% | |
60 Neutral | $1.52B | 27.64 | 6.21% | ― | 59.19% | -35.47% | |
60 Neutral | $16.84B | 31.61 | 6.51% | 2.20% | 1.56% | -32.50% |
* Industrials Sector Average
ULS
UL Solutions Inc. Class A
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30.51
55.75%
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UL Solutions Inc. Class A Corporate Events
Private Placements and Financing
UL Solutions Inc. Completes Stock Sale Agreement
Neutral
Dec 5, 2025
On December 3, 2025, UL Solutions Inc. entered into an underwriting agreement with Goldman Sachs Co. LLC and J.P. Morgan Securities LLC for the sale of 12,500,000 shares of its Class A common stock at $78.00 per share. The offering, which closed ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.