UL Solutions Inc. Class A (ULS) AI Stock Analysis

• Market Cap: $18.11B
• Dividend Yield: 0.58%
• Average Volume (3M): 583.18K
• Price to Earnings (P/E): 53.8
• Beta (1Y): 0.49
• Revenue Growth: 6.68%
• EPS Growth: 11.55%
• Country: US
• Employees: 14,813
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.56
• Shares Outstanding: 62,753,870
• 10 Day Avg. Volume: 524,002
• 30 Day Avg. Volume: 583,181
• PEG Ratio: 1.21
• Price to Book (P/B): 11.04
• Price to Sales (P/S): 3.48
• P/FCF Ratio: 34.76
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 4.96
• Enterprise Value/Gross Profit: 10.19
• Enterprise Value/Ebitda: 21.71
• 1Y Price Target: $86.33
• Price Target Upside: -4.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.89
• Revenue Forecast (FY): $3.05B

• Rating: 75 Outperform
• Price Target: $98.00 ▲(8.70% Upside)

UL Solutions Inc. demonstrates strong financial performance and positive earnings call highlights, which are significant strengths. However, the high P/E ratio suggests potential overvaluation, and technical indicators point to a possible short-term pullback. Challenges in the Chinese market and restructuring initiatives also present risks.

Positive Factors

Revenue Growth

Strong revenue growth across all segments indicates robust demand for UL Solutions' services, supporting long-term business expansion and market position.

Cash Generation

High free cash flow generation enhances financial flexibility, allowing for reinvestment in growth initiatives and potential debt reduction, strengthening long-term stability.

Software Advancements

Advancements in software offerings position UL Solutions as a leader in digital services, driving recurring revenue and enhancing competitive advantage.

Negative Factors

Restructuring Costs

The restructuring plan, while aimed at improving efficiency, incurs significant upfront costs and may disrupt operations, impacting short-term profitability.

Challenges in China

Economic challenges in China could hinder revenue growth in a key market, affecting overall performance and necessitating strategic adjustments.

Potential Revenue Slowdown

A projected revenue growth slowdown suggests potential market saturation or competitive pressures, which could impact future earnings momentum.

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 markets, including energy, industrial automation, engineered materials, and built environment, as well as stakeholders, such as manufacturers, building owners, end users, and regulators. The Consumer segment offers safety certification testing, ongoing certification, global market access, testing for connectivity, performance and quality, and critical systems advisory and training services, as well as product market acceptance and risk mitigation services for customers in the consumer products end markets comprising consumer electronics, medical devices, information technologies, appliances, HVAC, lighting, and retail, as well as consumer applications, such as new mobility, smart products, and 5G. The Software and Advisory segment provide software and technical advisory services that enable customers to manage regulatory requirements, deliver supply chain transparency, and operationalize sustainability for regulated industries, including life sciences, supply chain regulations, transparency needs, and new ESG and sustainability requirements. It offers ULTRUS software brand to help customers improve speed to market, sustainability and safety. UL Solutions Inc. was formerly known as UL Inc. and changed its name to UL Solutions Inc. in June 2022. The company was founded in 1894 and is headquartered in Northbrook, Illinois with additional offices in North America, Asia Pacific, Africa, Europe, Latin America, and Middle East. UL Solutions Inc. operates as a subsidiary of ULSE Inc.

How the Company Makes Money

UL Solutions generates revenue primarily through its testing and certification services, which are essential for companies looking to ensure their products comply with safety regulations and standards. Key revenue streams include fees for product testing, certification services, and regulatory consulting. The company also earns income from training and educational programs aimed at helping businesses understand compliance requirements and improve their safety practices. Strategic partnerships with industry leaders and regulatory bodies enhance UL's credibility and market reach, contributing significantly to its earnings.

UL Solutions Inc. Class A Financial Statement Overview

Summary

UL Solutions Inc. shows strong financial performance with consistent revenue growth, robust profitability, and effective cash flow management. The company has improved its leverage, enhancing financial stability. While the equity ratio suggests a balanced capital structure, further strengthening of equity could enhance long-term resilience.

Income Statement

UL Solutions Inc. demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 4.63% from the previous year. The company maintains healthy gross and net profit margins of 48.68% and 11.29%, respectively, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also robust at 11.52% and 21.31%, respectively, reflecting solid operational performance. Overall, the income statement reflects a positive growth trajectory and strong profitability.

Balance Sheet

The balance sheet shows a significant improvement in the debt-to-equity ratio, reducing from 1.63 to 0.60 in the TTM, indicating better leverage management. The return on equity remains strong at 32.39%, showcasing effective use of equity to generate profits. However, the equity ratio is moderate, suggesting a balanced capital structure. The company has made progress in strengthening its financial stability, though there is room for further improvement in equity levels.

Cash Flow

The cash flow statement highlights a notable free cash flow growth rate of 6.87% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.78, and the free cash flow to net income ratio is 0.63, both reflecting efficient cash conversion. The company demonstrates strong cash flow management, supporting its operational and financial activities effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.00B	2.87B	2.68B	2.52B	2.52B	2.30B
Gross Profit	1.46B	1.38B	1.26B	1.21B	1.18B	1.03B
EBITDA	686.00M	642.00M	535.00M	535.00M	417.00M	481.00M
Net Income	339.00M	326.00M	260.00M	293.00M	224.00M	231.00M
Balance Sheet
Total Assets	2.90B	2.80B	2.74B	2.72B	3.66B	3.55B
Cash, Cash Equivalents and Short-Term Investments	255.00M	298.00M	315.00M	373.00M	1.38B	971.00M
Total Debt	736.00M	935.00M	1.06B	660.00M	154.00M	161.00M
Total Liabilities	1.68B	1.87B	2.06B	1.64B	1.33B	1.28B
Stockholders Equity	1.19B	904.00M	654.00M	1.05B	2.31B	2.25B
Cash Flow
Free Cash Flow	389.00M	287.00M	252.00M	208.00M	314.00M	368.00M
Operating Cash Flow	586.00M	524.00M	467.00M	372.00M	421.00M	487.00M
Investing Cash Flow	-242.00M	-234.00M	-175.00M	-238.00M	178.00M	-344.00M
Financing Cash Flow	-396.00M	-284.00M	-294.00M	-1.12B	-228.00M	-20.00M

UL Solutions Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 90.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

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 90.16 is above the 20-day moving average (MA) of 85.50, above the 50-day MA of 78.46, and above the 200-day MA of 67.33, indicating a bullish trend. The MACD of 2.83 indicates Positive momentum. The RSI at 70.83 is Negative, neither overbought nor oversold. The STOCH value of 85.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ULS.

UL Solutions Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ULS	75 Outperform	$18.11B	53.81	32.83%	0.58%	6.68%	11.55%
MMS	75 Outperform	$4.70B	15.65	18.14%	1.39%	2.36%	11.30%
GPN	68 Neutral	$17.75B	10.52	6.72%	1.26%	-11.30%	34.28%
RTO	66 Neutral	$13.70B	41.35	5.86%	2.40%	1.56%	-32.50%
CBZ	66 Neutral	$2.67B	32.26	7.44%	―	59.19%	-35.47%
ARMK	64 Neutral	$9.81B	30.55	10.55%	1.17%	6.35%	24.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

UL Solutions Inc. Class A Corporate Events

UL Solutions Inc. Reports Strong Earnings Amid Challenges

The recent earnings call for UL Solutions Inc. Class A painted a picture of robust financial health, underscored by record revenue and EBITDA growth across all segments. The company is making strategic advancements, particularly in software and AI certification testing, which signal a positive trajectory. However, the call also highlighted some challenges, including a restructuring initiative, difficulties in the Chinese market, and a potential slowdown in Q4 revenue growth.

UL Solutions Announces Restructuring to Cut Costs

On November 4, 2025, UL Solutions Inc. announced a restructuring initiative aimed at reducing expenses and exiting non-strategic business lines, with expected pre-tax expenses of $42-$47 million. The plan, primarily affecting the Consumer and Industrial segments, is anticipated to be completed by the first quarter of 2027, potentially improving annual operating income by $25-$30 million. The announcement follows strong third-quarter results for 2025, where the company reported a 7.1% revenue increase to $783 million and a 12.8% rise in net income to $106 million, driven by organic growth and operating leverage across its segments.

The most recent analyst rating on (ULS) stock is a Buy with a $86.00 price target. To see the full list of analyst forecasts on UL Solutions Inc. Class A stock, see the ULS Stock Forecast page.

UL Solutions Inc. Secures $1 Billion Credit Agreement

On October 28, 2025, UL Solutions Inc. entered into a Credit Agreement establishing a $1.0 billion senior unsecured five-year multi-currency revolving facility with Bank of America, N.A. and other lenders. This agreement includes a $25 million sub-limit for letters of credit and an option to increase the facility by up to $500 million. The company borrowed $291 million under this facility to refinance its 2022 Credit Facility and plans to use additional borrowings for general corporate purposes. The facility, which matures on October 28, 2030, has specific interest rates and financial covenants, including a consolidated net leverage ratio requirement. The agreement impacts the company’s financial operations by providing flexibility for future borrowings and acquisitions, while also imposing certain financial and operational covenants.

The most recent analyst rating on (ULS) stock is a Buy with a $86.00 price target. To see the full list of analyst forecasts on UL Solutions Inc. Class A stock, see the ULS Stock Forecast page.

UL Solutions Inc. Announces Leadership Changes

On August 14, 2025, UL Solutions Inc. announced significant executive leadership changes effective September 1, 2025. Weifang Zhou will transition to a non-executive role as Special Advisor to the CEO, while Alex Dadakis will succeed him as Executive Vice President and President of Testing, Inspection, and Certification. Gitte Schjøtz will take over Dadakis’s previous role as Chief Business Operations and Innovation Officer. These changes aim to enhance the company’s agility and responsiveness to market demands, reinforcing its position in the Testing, Inspection, and Certification industry.

The most recent analyst rating on (ULS) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on UL Solutions Inc. Class A stock, see the ULS Stock Forecast page.

UL Solutions Inc. Reports Strong Q2 2025 Results

UL Solutions Inc., a global leader in safety science, specializes in independent third-party testing, inspection, certification services, and related software and advisory offerings, supporting customers in over 110 countries.

UL Solutions Inc. Reports Strong Earnings Growth

The earnings call for UL Solutions Inc. Class A depicted a positive outlook, underscored by robust revenue growth, margin improvements, and substantial cash flow generation. While challenges were noted in the Software & Advisory segment and uncertainties lingered around tariffs and geopolitical issues, the overall sentiment remained optimistic, driven by strategic expansions and strong performance across most segments.