UL Solutions Inc. Class A AI Stock Analysis
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UL Solutions Inc. Class A (ULS) AI Stock Analysis
UL Solutions Inc. Class A
(NYSE:ULS)
The score is driven primarily by strong financial performance (expanding profitability, rising cash flow, and improving leverage) and a constructive, guidance-up earnings call. Technicals are supportive but look overbought and still below the 200-day average, while valuation is a meaningful headwind due to the high P/E and low dividend yield.
UL Solutions Inc. Class A Key Performance Indicators (KPIs)
Operating Income by SegmentShows 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.
Industrial is the clear profit engine — steady, expanding operating income driven by materials, energy and automation demand — and underpins management’s margin‑expansion thesis. Consumer is delivering operating‑leverage improvements (management cited higher productivity and exits of lower‑margin services) but remains highly seasonal and lumpy quarter‑to‑quarter. Software & Advisory is small and erratic, with recent swings tied to the EHS divestiture and portfolio actions, so it won’t meaningfully lift profitability near term. Strong cash flow and lower debt give UL flexibility for the Eurofins deal and higher capex, though expect short‑term noise from integration and incentive costs.
UL Solutions Inc. Class A (ULS) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $16.47B
- Dividend Yield
- 0.69%
- Average Volume (3M)
- 872.53K
- Price to Earnings (P/E)
- 32.1
- Beta (1Y)
- 0.37
- Revenue Growth
- 6.09%
- EPS Growth
- 50.22%
- Country
- US
- Employees
- 14,719
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Specialty Business Services
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, inspec...
How the Company Makes Money
UL Solutions primarily makes money by charging customers for services that validate products, systems, facilities, and processes against applicable safety, performance, cybersecurity, and sustainability requirements. Key revenue streams include: (1)...
UL Solutions Inc. Class A Earnings Call Summary
The call was strongly positive overall. Highlights significantly outweighed the lowlights, with record quarterly revenue growth, profitability, cash flow, segment margins, strengthened full-year guidance, resilient demand, and strategic investments in AI data centers and testing capabilities. The main challenges were the decline in Risk & Compliance Software results, Advisory headwinds, planned business-exit impacts, and higher transaction and integration costs.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For full year 2026, UL Solutions expects constant currency organic revenue growth of approximately 6.5%, inclusive of approximately 70 basis points of revenue reduction from business exits associated with its restructuring plan, and adjusted EBITDA margin to improve to approximately 27.0%, driven by approximately 200 basis points of underlying margin expansion and partially offset by approximately 90 basis points of incremental transaction costs versus 2025. E&E is expected to contribute approximately $50 million of fourth quarter revenue, with margin performance in line with expectations; transaction and integration costs are expected to total approximately $37 million to $40 million for the full year of 2026, representing approximately 120 basis points, compared with approximately 30 basis points impact in 2025. The company expects its full year effective tax rate to be approximately 26% and full year capital expenditures of approximately 8.5% of revenue, expects to complete back-office integration by the end of 2027, and expects go-to-market and lab utilization synergies to be largely realized by the end of 2028; it also expects some integration costs in 2027, some margin improvement in the fourth quarter for Risk & Compliance Software, and a reversion toward a more normal growth and EBITDA range beyond the fourth quarter.
UL Solutions Inc. Class A Financial Statement Overview
Summary
Profitability and cash generation are strong, with expanding margins (TTM net margin ~16%) and rising operating cash flow/free cash flow. Balance sheet leverage has improved meaningfully to ~0.54 debt-to-equity (TTM) with strong ROE (~35%). Key offsets are variability in historical leverage/equity and mixed cash conversion (TTM FCF ~0.65 of net income), plus the note that TTM growth may be less consistent than the longer trend.
Income Statement
82Very PositiveBalance Sheet
68PositiveCash Flow
74Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.19B | 3.05B | 2.87B | 2.68B | 2.52B | 2.52B |
| Gross Profit | 1.61B | 1.50B | 1.38B | 1.26B | 1.21B | 1.18B |
| EBITDA | 944.70M | 690.70M | 642.00M | 535.00M | 535.00M | 417.00M |
| Net Income | 512.00M | 325.00M | 326.00M | 260.00M | 293.00M | 224.00M |
Balance Sheet | ||||||
| Total Assets | 3.69B | 2.92B | 2.80B | 2.74B | 2.72B | 3.66B |
| Cash, Cash Equivalents and Short-Term Investments | 1.02B | 295.00M | 298.00M | 315.00M | 373.00M | 1.38B |
| Total Debt | 934.00M | 832.00M | 935.00M | 1.06B | 660.00M | 154.00M |
| Total Liabilities | 1.95B | 1.63B | 1.87B | 2.06B | 1.64B | 1.33B |
| Stockholders Equity | 1.70B | 1.26B | 904.00M | 654.00M | 1.05B | 2.31B |
Cash Flow | ||||||
| Free Cash Flow | 481.00M | 403.00M | 287.00M | 252.00M | 208.00M | 314.00M |
| Operating Cash Flow | 738.00M | 600.00M | 524.00M | 467.00M | 372.00M | 421.00M |
| Investing Cash Flow | -17.00M | -204.00M | -234.00M | -175.00M | -238.00M | 178.00M |
| Financing Cash Flow | 46.00M | -396.00M | -284.00M | -294.00M | -1.12B | -228.00M |
UL Solutions Inc. Class A Technical Analysis
Price Trends
Market Momentum
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 81.58 is above the 20-day moving average (MA) of 75.88, above the 50-day MA of 71.44, and below the 200-day MA of 82.64, indicating a neutral trend. The MACD of 2.65 indicates Negative momentum. The RSI at 67.81 is Neutral, neither overbought nor oversold. The STOCH value of 84.14 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 96 risk factors in its most recent earnings report. UL Solutions Inc. Class A reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksUL Solutions Inc. Class A Peers Comparison
Overall Rating
CTAS83Outperform
ULS74Outperform
TRNS67Neutral
ABM63Neutral
TIC55Neutral
WFCF55Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 83Outperform | $89.45B | 44.30 | 42.08% | 0.82% | 9.51% | 12.19% | |
| 74Outperform | $16.47B | 32.12 | 34.84% | 0.69% | 6.09% | 50.22% | |
| 67Neutral | $1.00B | 214.52 | 1.52% | ― | 20.04% | -60.04% | |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| 63Neutral | $3.21B | 19.52 | 9.44% | 2.14% | 6.00% | 50.32% | |
| 55Neutral | $2.40B | -15.07 | -5.32% | ― | ― | ― | |
| 55Neutral | $81.17M | 57.07 | 15.39% | ― | -2.23% | -28.33% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| ULS | UL Solutions Inc. Class A | 81.58 | -3.21 | -3.79% | |
| ABM | Abm Industries Incorporated | 54.28 | 12.88 | 31.11% | |
| CTAS | Cintas | 227.26 | 41.22 | 22.16% | |
| TRNS | Transcat | 105.11 | 51.18 | 94.91% | |
| WFCF | Where Food Comes From, Inc. | 15.99 | 4.17 | 35.28% | |
| TIC | Tic Solutions, Inc. | 11.23 | 0.95 | 9.24% |
UL Solutions Inc. Class A Corporate Events
UL Solutions Reports Strong Third-Quarter Growth and Strategic Portfolio Progress
PositiveOn November 3, 2026, UL Solutions reported third-quarter revenue of $823 million, up 5.1% year over year, including 7.0% organic growth led by its Industrial and Consumer segments. Net income rose 10.4% to $117 million, while Adjusted EBITDA increase...
UL Solutions acquires Eurofins electronics business, expands TIC reach
PositiveOn Oct. 1, 2026, UL Solutions Inc. announced it had completed the acquisition of Eurofins Scientific SE’s electrical and electronics business, strengthening its position in testing, inspection and certification for electrical safety and connected pro...
UL Solutions posts strong Q2 results and outlook
PositiveOn 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 segme...
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.
Date of analysis: Nov 04, 2026
