UL Solutions Inc. (ULS): Results of Operations and Financial Condition
UL Solutions Inc. (ULS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 UL Solutions Inc. Reports Strong Second Quarter 2026 Results Second Quarter 2026 1 • Strong revenue growth of 5.2% to $816 million, including 6.6% organic revenue growth • Net income of $254 million increased 161.9%, Adjusted Net Income of $129 million increased 17.3
How this was made
The 30-second read
Why it matters
The release provides fresh, decision-relevant financial metrics (revenue, adjusted EPS/EBITDA, cash flow) and explicit 2026 targets, plus risk framing around restructuring and geopolitical uncertainty.
Market read
Traders can update models immediately using the disclosed Q2 performance and the stated 2026 guidance ranges/targets, especially the adjusted EBITDA margin improvement to ~27%.
What to watch
The outlook assumes business exits from the restructuring plan and includes uncertainty around delayed or canceled customer plans; traders should monitor whether organic growth and EBITDA margin targets are sensitive to those assumptions.
UL Solutions Inc. Reports Strong Second Quarter 2026 Results
Revenue grew 5.2% with 6.6% organic revenue growth, while Adjusted EBITDA increased 11.2% and Adjusted EBITDA margin expanded 140 basis points to 26.8%. Net income growth was amplified by the gain on sale of the Employee Health and Safety software business.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $816 million | – | 5.2% |
| Organic revenue growthother | 6.6% | – | – |
| Net incomeGAAP | $254 million | – | 161.9% |
| Net income marginGAAP | 31.1% | – | increased 1,860 basis points |
| Adjusted Net Incomenon-GAAP | $129 million | – | 17.3% |
| Adjusted Net Income marginnon-GAAP | 15.8% | – | increased 160 basis points |
| Diluted earnings per shareGAAP | $1.21 | – | 168.9% |
| Adjusted Diluted Earnings Per Sharenon-GAAP | $0.59 | – | 13.5% |
| Adjusted EBITDAnon-GAAP | $219 million | – | 11.2% |
| Adjusted EBITDA marginnon-GAAP | 26.8% | – | increased 140 basis points |
| Net cash provided by operating activities for the six months ended June 30, 2026GAAP | $379 million | – | – |
| Capital expenditures for the six months ended June 30, 2026other | $138 million | – | – |
| Free Cash Flow for the six months ended June 30, 2026non-GAAP | $241 million | – | – |
Full-Year 2026 outlook
- RevenueMid-single digit constant currency organic revenue growth
- Tax rateEffective tax rate of approximately 26%
- NoteInclusive of approximately 1% revenue reduction from business exits announced in the Restructuring Plan
- NoteAdjusted EBITDA margin improvement to approximately 27.0%
- NoteCapital expenditures of approximately 8.5% of revenue
- NoteContinuing to pursue acquisitions and portfolio refinements
Capital returns
- The Company paid a dividend of $0.145 per share, or $29 million, during the three months ended June 30, 2026.
What drove it
- Organic revenue growth of 6.6% was led by the Industrial and Consumer segments.
- The net income margin increase was driven by the gain on sale of the Company’s Employee Health and Safety software business in the Risk & Compliance Software segment, as well as higher revenue and operating leverage.
- Adjusted EBITDA margin expansion resulted from higher revenue and operating leverage, led by the Consumer segment.
- Net cash provided by operating activities reflected improved business performance and timing of certain working capital items.
Concerns
- The full-year outlook includes approximately 1% revenue reduction from business exits announced in the Restructuring Plan.
- The Company stated that customers may modify, delay or cancel plans to purchase services amid the geopolitical environment and associated macroeconomic uncertainty.
- The Company is unable to reasonably determine future negative impacts from reduced or delayed customer testing or product development resulting from uncertainty related to the current geopolitical environment.
What to watch
- Delivery of mid-single digit constant currency organic revenue growth inclusive of the approximately 1% revenue reduction from planned business exits.
- Progress toward Adjusted EBITDA margin improvement to approximately 27.0%.
- Capital expenditures of approximately 8.5% of revenue and the stated pursuit of acquisitions and portfolio refinements.
- The effect of geopolitical and macroeconomic uncertainty on customer testing, product development and service-purchase plans.
Balance sheet and cash flow
- For the six months ended June 30, 2026, the Company generated $379 million of net cash provided by operating activities, an increase from $301 million for the same period in 2025.
- Capital expenditures were $138 million for the six months ended June 30, 2026, compared to $93 million for the same period in 2025.
- Free Cash Flow for the six months ended June 30, 2026 was $241 million, compared to $208 million for the same period in 2025.
- As of June 30, 2026, total debt was $303 million, prior to unamortized debt issuance costs.
- The Company made $191 million of net repayments on the Company’s revolving credit facility.
- The Company ended the quarter with cash and cash-equivalents of $434 million, compared to $295 million of cash and cash-equivalents as of December 31, 2025.
Analysis
UL Solutions reported a strong second quarter, with revenue of $816 million, up 5.2%, and organic revenue growth of 6.6%. The release identified the Industrial and Consumer segments as the leaders of organic growth, though it did not provide revenue or growth figures for individual segments. Management characterized quarterly revenue as record revenue.
Profitability improved materially. Adjusted EBITDA increased 11.2% to $219 million, and Adjusted EBITDA margin expanded 140 basis points to 26.8%, driven by higher revenue and operating leverage, led by the Consumer segment. Adjusted Net Income rose 17.3% to $129 million, while Adjusted Net Income margin increased 160 basis points to 15.8%.
GAAP net income rose 161.9% to $254 million and net income margin reached 31.1%. The release attributed this outsized GAAP increase and the 1,860-basis-point net income-margin expansion partly to the gain on sale of the Employee Health and Safety software business in the Risk & Compliance Software segment, alongside higher revenue and operating leverage. Adjusted figures provide the clearer view of underlying operating progress because they exclude the effect reflected in the gap between reported and adjusted net income.
Cash generation was substantial for the first six months of 2026. Net cash provided by operating activities was $379 million, compared with $301 million in the same period in 2025, while Free Cash Flow was $241 million compared with $208 million. The company increased capital expenditures to $138 million from $93 million, repaid $191 million net on its revolving credit facility, ended the quarter with $434 million of cash and cash-equivalents, and paid a $0.145 per-share dividend.
The full-year outlook calls for mid-single digit constant currency organic revenue growth, inclusive of approximately 1% revenue reduction from restructuring-related business exits, and Adjusted EBITDA margin improvement to approximately 27.0%. The guide implies continued attention to productivity and portfolio actions, with capital expenditures of approximately 8.5% of revenue and continued pursuit of acquisitions and portfolio refinements. Management also highlighted geopolitical and macroeconomic uncertainty that could cause customers to modify, delay or cancel service purchases.
Management, verbatim
I am pleased to report another outstanding quarter, driven once again by record revenue, substantial cash flow and impressive margin expansion.
Jennifer Scanlon, President and CEO
As we monitor our business and the macro environment for the remainder of the year, we feel confident that our alignment with megatrends and ability to meet our customers’ needs for safe product innovation position us well for the second half of 2026.
Jennifer Scanlon, President and CEO
Our resilient business model, strong cash flow generation and robust balance sheet enable us to strategically invest in growth opportunities for long-term value creation.
Ryan Robinson, Chief Financial Officer
Not in the filing
stated, not guessed- Segment revenue, segment year-over-year growth and segment quarter-over-quarter growth were not provided in the supplied filing text.
- Gross profit and gross margin were not provided.
- Operating income, operating margin and operating expenses were not provided.
- Prior-quarter comparisons for quarterly revenue, income, EPS and Adjusted EBITDA were not provided.
- Quarterly operating cash flow, capital expenditures and Free Cash Flow were not provided.
- A full-year revenue dollar guidance range was not provided.
- Gross-margin and operating-expense guidance were not provided.
- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Share repurchases were not reported in the supplied filing text.
- The supplied filing text did not provide a prior-year comparison for total debt or cash and cash-equivalents.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with UL Solutions’ Q2 2026 results and a full-year 2026 outlook.
Ticker impact
UL Solutions reported Q2 revenue of $816M (+5.2%) and raised confidence via 2026 outlook targeting ~27% adjusted EBITDA margin.
Bullish bias for the next session and into guidance digestion, with focus on whether margin expansion is sustainable given the restructuring plan and macro uncertainty.
The filing discloses multiple concrete datapoints: revenue growth, large net income jump, adjusted EPS/EBITDA increases, free cash flow, and explicit 2026 targets (organic growth, EBITDA margin, capex).
Market effects
Applied safety science and compliance services demand signals may strengthen if UL’s margin and organic growth trajectory is viewed as durable.
Limited direct regional spillover; primarily US-listed earnings and guidance read-through for industrial/compliance services.
UL cites global operations and macro/geopolitical uncertainty, which can influence customer testing and project timing across regions.
Counterpoint
Margin expansion may be partly driven by one-time items (gain on sale) and operating leverage that could fade if customer testing delays from geopolitics worsen.
Key entities
- companyUL Solutions Inc.
Applied safety science provider reporting Q2 2026 results and issuing 2026 outlook.
- executiveJennifer Scanlon
President and CEO quoted on confidence for H2 2026.
- executiveRyan Robinson
CFO quoted on productivity, cost improvements, and adjusted EBITDA margin expansion.
