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UL Solutions Inc. Class A
(NYSE:ULS)
Select Model
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Rating:65Neutral
Price Target:
$84.00
▼(-1.71% Downside)
Action:Reiterated
Date:08/05/26
The score is supported primarily by strong profitability, improving leverage, and constructive reaffirmed guidance with margin expansion and solid cash generation. It is held back by clearly bearish technical momentum (price below major moving averages with negative MACD) and a demanding valuation (high P/E and low dividend yield), which increases downside sensitivity if growth normalizes.
Positive Factors
Margin Expansion & Profitability
Sustained margin improvement to the mid‑20s reflects structural operating leverage in testing and certification, exit of lower‑margin lines, and disciplined cost management. Management’s reiterated ~27% adjusted EBITDA target implies durable profitability that supports reinvestment and returns over the medium term.
Negative Factors
Revenue Growth Volatility
An unusually large TTM growth jump versus prior steady mid‑single‑digit growth increases uncertainty about sustainable top‑line momentum. Volatility complicates forecasting, capital allocation and investor visibility, and raises the risk that future results revert toward historical modest growth rates.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion & Profitability
Sustained margin improvement to the mid‑20s reflects structural operating leverage in testing and certification, exit of lower‑margin lines, and disciplined cost management. Management’s reiterated ~27% adjusted EBITDA target implies durable profitability that supports reinvestment and returns over the medium term.
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
$18.47B
Dividend Yield0.6%
Average Volume (3M)1.14M
Price to Earnings (P/E)52.7
Beta (1Y)0.54
Revenue Growth6.92%
EPS Growth3.07%
CountryUS
Employees14,851
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)2.51
Shares Outstanding77,808,110
10 Day Avg. Volume659,203
30 Day Avg. Volume1,144,554
Financial Highlights & Ratios
PEG Ratio-79.35
Price to Book (P/B)12.56
Price to Sales (P/S)5.19
P/FCF Ratio39.33
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$96.98Price Target Upside13.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)2.3
Revenue Forecast (FY)$3.21B
UL Solutions Inc. Class A Business Overview & Revenue Model
Company Description
UL Solutions Inc. is a global leader in safety science services. The company's operations are organized into three primary business units: Industrial, Consumer, and Software and Advisory. The Industrial division provides comprehensive testing, ins...
How the Company Makes Money
UL Solutions makes money primarily by charging fees for services that assess, validate, and monitor compliance with standards and requirements. Key revenue streams include: (1) Testing, Inspection, and Certification (TIC) services—customers pay fo...
UL Solutions Inc. Class A Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial performance with record revenue, double-digit adjusted EBITDA growth, margin expansion, solid free cash flow growth, and strategic investments and product launches aligned with long-term megatrends. There are manageable near-term headwinds — notably higher incentive and stock-based compensation, elevated SG&A, the reported revenue impact from the EHS Software divestiture, and higher CapEx and acquisition-related expenses — but management characterized these as strategic, temporary or timing-related and reiterated full-year guidance. On balance, the positives (organic growth, margin expansion, cash flow strength, strategic capability additions and portfolio actions) outweigh the lowlights.Positive Updates
Record Revenue and Strong Organic Growth
Consolidated revenue of $816M, up 5.2% year-over-year, including organic revenue growth of 6.6%; management emphasized this as a quarterly record and noted organic growth despite planned revenue reductions from Restructuring Plan exits.
Negative Updates
SG&A and Incentive Compensation Pressure
Selling, general and administrative expenses as a percentage of revenue rose 130 basis points, driven by higher performance-based incentive compensation and professional fees; performance-based compensation increased materially, contributing to higher SG&A in the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Strong Organic Growth
Consolidated revenue of $816M, up 5.2% year-over-year, including organic revenue growth of 6.6%; management emphasized this as a quarterly record and noted organic growth despite planned revenue reductions from Restructuring Plan exits.
Read all positive updates
Company Guidance
Management reaffirmed full‑year 2026 guidance calling for consolidated organic revenue growth in the mid‑single‑digit range (inclusive of an approximately 1% revenue reduction from Restructuring exits), adjusted EBITDA margin improving to about 27% for the year (Q2 margin was 26.8%; YTD margin expansion ~220 bps), a full‑year effective tax rate of ~26%, and full‑year capital expenditures of roughly 8.5% of revenue (timing‑driven increase to support lab capacity); FX impact in H2 is expected to be negligible, the Restructuring Plan is largely complete with ~ $3 million of remaining pretax charges expected through Q1 2027, the Eurofins E&E acquisition is expected to close in Q4 2026 and the sale of DQS in H2 2026, and the company cites a strong cash position and liquidity (cash & equivalents $434M, total debt $303M) plus robust cash generation (trailing‑12‑month operating cash flow $678M and free cash flow $436M, FCF margin 13.9%) to fund these priorities.UL Solutions Inc. Class A Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.15B | 3.05B | 2.87B | 2.68B | 2.52B | 2.52B |
| Gross Profit | 1.58B | 1.50B | 1.38B | 1.26B | 1.21B | 1.18B |
| EBITDA | 932.35M | 738.35M | 642.00M | 535.00M | 535.00M | 417.00M |
| Net Income | 504.00M | 325.00M | 326.00M | 260.00M | 293.00M | 224.00M |
Balance Sheet | ||||||
| Total Assets | 3.12B | 2.92B | 2.80B | 2.74B | 2.72B | 3.66B |
| Cash, Cash Equivalents and Short-Term Investments | 434.00M | 295.00M | 298.00M | 315.00M | 373.00M | 1.38B |
| Total Debt | 551.00M | 832.00M | 935.00M | 1.06B | 660.00M | 154.00M |
| Total Liabilities | 1.50B | 1.63B | 1.87B | 2.06B | 1.64B | 1.33B |
| Stockholders Equity | 1.59B | 1.26B | 904.00M | 654.00M | 1.05B | 2.31B |
Cash Flow | ||||||
| Free Cash Flow | 436.00M | 403.00M | 287.00M | 252.00M | 208.00M | 314.00M |
| Operating Cash Flow | 678.00M | 600.00M | 524.00M | 467.00M | 372.00M | 421.00M |
| Investing Cash Flow | -27.00M | -204.00M | -234.00M | -175.00M | -238.00M | 178.00M |
| Financing Cash Flow | -483.00M | -396.00M | -284.00M | -294.00M | -1.12B | -228.00M |
UL Solutions Inc. Class A Technical Analysis
Negative
85.46
Price Trends
92.70
Negative
91.67
Negative
85.49
Negative
Market Momentum
-2.03
Positive
31.14
Neutral
35.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ULS, the sentiment is Negative. The current price of 85.46 is below the 20-day moving average (MA) of 87.48, below the 50-day MA of 92.70, and below the 200-day MA of 85.49, indicating a bearish trend. The MACD of -2.03 indicates Positive momentum. The RSI at 31.14 is Neutral, neither overbought nor oversold. The STOCH value of 35.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $2.95B | 25.15 | 6.60% | ― | 14.32% | 22.34% | |
72 Outperform | $3.17B | 8.95 | 21.75% | 2.11% | -1.44% | 33.09% | |
65 Neutral | $18.47B | 52.67 | 37.37% | 0.64% | 6.92% | 3.07% | |
65 Neutral | $23.00B | -28.41 | -3.07% | 1.24% | -12.55% | -39.16% | |
65 Neutral | $14.98B | 41.89 | 11.23% | 0.81% | 10.15% | 3.07% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $11.68B | 24.44 | 5.82% | 2.18% | 2.92% | 43.13% |
* Industrials Sector Average
ULS
UL Solutions Inc. Class A
79.05
14.06
21.63%
CBZ
CBIZ
54.80
-7.15
-11.54%
GPN
Global Payments
87.48
3.05
3.61%
MMS
Maximus
63.15
-10.44
-14.18%
ARMK
ARAMARK Holdings
56.88
17.85
45.72%
RTO
Rentokil Initial
24.75
1.06
4.46%
UL Solutions Inc. Class A Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
UL Solutions posts strong Q2 results and outlook
Positive
Aug 4, 2026
On August 4, 2026, UL Solutions reported strong financial results for its second quarter ended June 30, 2026, highlighted by revenue rising 5.2% year over year to $816 million, including 6.6% organic growth driven by the Industrial and Consumer se...
Executive/Board Changes
UL Solutions Grants Special Long-Term Incentive to CEO
Positive
Jun 3, 2026
On June 1, 2026, UL Solutions Inc. approved a special, one-time grant of 200,120 performance share units to President and Chief Executive Officer Jennifer F. Scanlon under the company’s 2024 Long-Term Incentive Plan, with the target value se...
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...
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.