UL Solutions Inc. Class A (ULS)
NYSE:ULS
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UL Solutions Inc. Class A
(NYSE:ULS)
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Rating:72Outperform
Price Target:
$111.00
▲(21.02% Upside)
Action:Reiterated
Date:05/10/26
The score is driven by solid financial performance (growth, margins, and improved leverage) and strong technical momentum. Earnings-call guidance and operational execution were supportive, while the main constraint is valuation (high P/E with a low dividend yield).
Positive Factors
Recurring, diversified TIC and advisory revenue streams
ULS’s core business is fee-based testing, inspection and certification with built-in recurring surveillance, licensing and advisory fees. This created durable revenue visibility tied to product lifecycles, regulatory obligations and customer supply chains, supporting predictable cash generation over multiple years.
Negative Factors
M&A execution and regulatory approval risk
The Eurofins E&E acquisition is strategically accretive but depends on antitrust/national security approvals, portfolio monetizations and integration execution. Regulatory delays, divestiture timing or integration costs could reduce near‑term synergies and strain management bandwidth over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, diversified TIC and advisory revenue streams
ULS’s core business is fee-based testing, inspection and certification with built-in recurring surveillance, licensing and advisory fees. This created durable revenue visibility tied to product lifecycles, regulatory obligations and customer supply chains, supporting predictable cash generation over multiple years.
Read all positive factors
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 (ULS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.56B
Dividend Yield0.67%
Average Volume (3M)675.92K
Price to Earnings (P/E)46.8
Beta (1Y)0.61
Revenue Growth6.92%
EPS Growth3.07%
CountryUS
Employees14,813
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)1.74
Shares Outstanding77,808,110
10 Day Avg. Volume769,551
30 Day Avg. Volume675,917
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 Cap1.01
Enterprise Value/Revenue6.70
Enterprise Value/Gross Profit13.50
Enterprise Value/Ebitda26.94
Forecast
1Y Price Target
$107.93Price Target Upside17.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)2.3
Revenue Forecast (FY)$3.22B
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 primarily makes money by charging fees for services that assess, validate, and document whether products, components, facilities, and processes meet defined safety, performance, cybersecurity, and sustainability requirements. Key reve...
UL Solutions Inc. Class A Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: the company reported strong top‑line growth (+7.5% consolidated; organic +5.7%), sizable margin expansion (+320 bps adjusted EBITDA margin) and robust cash generation (T12M cash from operations $665M, FCF $450M). Management raised full‑year margin guidance to ~27.0% and highlighted strategic progress (E&E acquisition, divestitures, and leadership in AI/robotics certification). Offsetting items include portfolio exits that reduce near‑term revenue in certain areas (consumer and EHS), FX translation impacts on margins, and execution/regulatory risk around M&A and divestitures. Overall, the positive operational and financial momentum and upgraded guidance outweigh the transitional and execution risks discussed on the call.Positive Updates
Strong Consolidated Financial Performance
Q1 consolidated revenue $758M, up 7.5% YoY (organic +5.7%). Adjusted EBITDA $197M, up 22.4% YoY; adjusted EBITDA margin 26.0%, up 320 bps YoY. Adjusted net income +33.8% YoY; adjusted diluted EPS increased materially (company reported ~31.5% in CEO remarks and 35.1% in CFO remarks).
Negative Updates
Consumer Growth Pressures and Portfolio Exits
Consumer growth was pressured by a difficult Q1 2025 comparator and management's exit of nonstrategic, lower‑profit service lines — exits reduced consumer organic revenue growth by ~1%. The completed EHS divestiture removes a ~ $56M 2025 revenue contributor and will affect future segment comparisons.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Consolidated Financial Performance
Q1 consolidated revenue $758M, up 7.5% YoY (organic +5.7%). Adjusted EBITDA $197M, up 22.4% YoY; adjusted EBITDA margin 26.0%, up 320 bps YoY. Adjusted net income +33.8% YoY; adjusted diluted EPS increased materially (company reported ~31.5% in CEO remarks and 35.1% in CFO remarks).
Read all positive updates
Company Guidance
UL Solutions is guiding 2026 to mid‑single‑digit consolidated organic revenue growth versus 2025 and has raised full‑year adjusted EBITDA margin guidance to approximately 27.0% (up from a prior ~26.5% midpoint), assuming current forward FX; management expects forward FX to imply about a 1% revenue tailwind (largely offset by higher translated expenses and ~40 bps of margin headwind). Other targets: capital expenditures of ~7–8% of revenue, an effective tax rate of ~26%, and remaining restructuring expenses of about $3 million (versus $5–10M previously). Management also expects the Eurofins E&E acquisition (target close Q4’26) to contribute roughly $200M of standalone revenue in 2026 and be accretive to adjusted diluted EPS in the first full year after close (ex‑intangibles/integration), with ~45% of the purchase price to be funded via portfolio management (including an anticipated DQS sale of ~€105M in H2’26); UL cited strong cash generation (trailing‑12‑month cash from operations $665M; free cash flow $450M) and investment‑grade financing capacity to execute.UL Solutions Inc. Class A Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.11B | 3.05B | 2.87B | 2.68B | 2.52B | 2.52B |
| Gross Profit | 1.54B | 1.50B | 1.38B | 1.26B | 1.21B | 1.18B |
| EBITDA | 772.35M | 738.35M | 642.00M | 535.00M | 535.00M | 417.00M |
| Net Income | 349.00M | 325.00M | 326.00M | 260.00M | 293.00M | 224.00M |
Balance Sheet | ||||||
| Total Assets | 2.96B | 2.92B | 2.80B | 2.74B | 2.72B | 3.66B |
| Cash, Cash Equivalents and Short-Term Investments | 258.00M | 295.00M | 298.00M | 315.00M | 373.00M | 1.38B |
| Total Debt | 539.00M | 832.00M | 935.00M | 1.06B | 660.00M | 154.00M |
| Total Liabilities | 1.62B | 1.63B | 1.87B | 2.06B | 1.64B | 1.33B |
| Stockholders Equity | 1.34B | 1.29B | 904.00M | 654.00M | 1.05B | 2.31B |
Cash Flow | ||||||
| Free Cash Flow | 450.00M | 403.00M | 287.00M | 252.00M | 208.00M | 314.00M |
| Operating Cash Flow | 665.00M | 600.00M | 524.00M | 467.00M | 372.00M | 421.00M |
| Investing Cash Flow | -215.00M | -204.00M | -234.00M | -175.00M | -238.00M | 178.00M |
| Financing Cash Flow | -455.00M | -396.00M | -284.00M | -294.00M | -1.12B | -228.00M |
UL Solutions Inc. Class A Technical Analysis
Positive
91.72
Price Trends
89.59
Positive
83.31
Positive
78.86
Positive
Market Momentum
3.26
Positive
61.21
Neutral
42.55
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 91.72 is below the 20-day moving average (MA) of 95.43, above the 50-day MA of 89.59, and above the 200-day MA of 78.86, indicating a bullish trend. The MACD of 3.26 indicates Positive momentum. The RSI at 61.21 is Neutral, neither overbought nor oversold. The STOCH value of 42.55 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 96 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $20.56B | 46.81 | 28.40% | 0.67% | 6.92% | 3.07% | |
72 Outperform | $3.13B | 8.91 | 21.75% | 1.38% | -1.44% | 33.09% | |
67 Neutral | $1.69B | 2.56 | 8.32% | ― | 28.34% | 67.93% | |
65 Neutral | $18.78B | ― | -3.07% | 1.25% | -12.55% | -39.16% | |
65 Neutral | $13.92B | 27.46 | 11.23% | 1.14% | 10.15% | 3.07% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $15.91B | 13.26 | 6.51% | 2.20% | -0.33% | 20.26% |
* Industrials Sector Average
ULS
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UL Solutions Inc. Class A Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
UL Solutions Q1 Results Strong Amid Portfolio Streamlining
Positive
May 5, 2026
In the first quarter ended March 31, 2026, UL Solutions Inc., a global applied safety science leader in testing, inspection, certification and risk and compliance software, delivered strong financial results, with revenue up 7.5% to $758 million a...
Business Operations and StrategyM&A Transactions
UL Solutions to Acquire Eurofins Electrical Testing Business
Positive
Apr 13, 2026
On April 13, 2026, UL Solutions Inc. announced a definitive agreement for its Dutch subsidiary to acquire Eurofins Scientific’s electrical and electronics testing and certification business, including the MET Labs certification mark, for app...
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.