UL Solutions Inc. Class A (ULS)
NYSE:ULS
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UL Solutions Inc. Class A
(NYSE:ULS)
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Rating:64Neutral
Price Target:
$90.00
▼(-1.88% Downside)
Action:ReiteratedDate:04/14/26
Score is driven by strong operating performance and supportive earnings guidance (growth plus margin expansion), partly offset by cash flow volatility (2025 free cash flow reversal) and a demanding valuation (high P/E with low yield). Technicals are neutral-to-mildly positive and add limited incremental support.
Positive Factors
Steady Revenue Growth
Consistent multi-year top-line growth to $3.05B in 2025 demonstrates durable demand for TIC and recurring compliance services. Broad segment footprint (Industrial, Consumer, Software & Advisory) and regulatory-driven need for testing support ongoing organic revenue expansion over the next 2–6 months.
Negative Factors
Free Cash Flow Volatility
Marked swings in free cash flow and cash conversion weaken funding predictability; negative FCF in one reported view suggests sensitivity to working capital, large reinvestments, or timing. This volatility can constrain discretionary capital allocation and increases reliance on liquidity sources.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
Consistent multi-year top-line growth to $3.05B in 2025 demonstrates durable demand for TIC and recurring compliance services. Broad segment footprint (Industrial, Consumer, Software & Advisory) and regulatory-driven need for testing support ongoing organic revenue expansion over the next 2–6 months.
Read all positive factors
UL Solutions Inc. Class A (ULS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.71B
Dividend Yield0.67%
Average Volume (3M)816.71K
Price to Earnings (P/E)48.8
Beta (1Y)0.58
Revenue Growth6.38%
EPS Growth-0.98%
CountryUS
Employees14,813
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.53
Shares Outstanding77,446,655
10 Day Avg. Volume623,151
30 Day Avg. Volume816,711
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/Revenue5.97
Enterprise Value/Gross Profit12.17
Enterprise Value/Ebitda24.69
Forecast
1Y Price Target
$93.48Price Target Upside1.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)2.2
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 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 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
91.72
Price Trends
81.75
Positive
80.23
Positive
76.18
Positive
Market Momentum
1.98
Negative
66.49
Neutral
91.04
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 91.72 is above the 20-day moving average (MA) of 85.68, above the 50-day MA of 81.75, and above the 200-day MA of 76.18, indicating a bullish trend. The MACD of 1.98 indicates Negative momentum. The RSI at 66.49 is Neutral, neither overbought nor oversold. The STOCH value of 91.04 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 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $11.82B | 25.02 | 10.17% | 1.14% | 7.07% | -6.46% | |
67 Neutral | $3.56B | 12.60 | 21.76% | 1.38% | -0.15% | 41.72% | |
66 Neutral | $1.82B | 27.64 | 6.21% | ― | 52.08% | 62.60% | |
64 Neutral | $17.71B | 48.77 | 28.48% | 0.67% | 6.38% | -0.98% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $19.53B | 13.26 | 6.20% | 1.25% | -18.13% | -6.31% | |
60 Neutral | $16.52B | 31.61 | 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 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.