UL Solutions Inc. Reports Strong Third Quarter 2026 Results
UL Solutions Inc. (ULS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 UL Solutions Inc. Reports Strong Third Quarter 2026 Results Strong core business performance with disciplined operational execution expands profitability, while strong cash flow generation funds long-term value creation Third Quarter 2026 1 • Strong revenue growth of
How this was made
The 30-second read
Why it matters
The earnings beat and reaffirmed guidance provide a clear catalyst for short‑term price movement, with upside potential if investors respond positively.
Market read
ULS earnings are the primary driver of relevance; sector peers may see secondary interest.
What to watch
The incremental transaction costs from recent acquisitions could temper margin expansion going forward.
UL Solutions Inc. Reports Strong Third Quarter 2026 Results
Third-quarter revenue rose 5.1% with 7.0% organic revenue growth, net income increased 10.4%, Adjusted EBITDA increased 8.3% and the Adjusted EBITDA margin expanded 90 basis points to 28.6%. The company strengthened its full-year organic revenue growth outlook to approximately 6.5% while reaffirming approximately 27.0% Adjusted EBITDA margin.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $823M | – | 5.1% |
| Organic revenue growth, three months ended September 30, 2026other | 7.0% | – | 7.0% |
| Cost of revenue, three months ended September 30, 2026GAAP | $400M | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $260M | – | – |
| Restructuring, three months ended September 30, 2026GAAP | $1M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $162M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | $6M | – | – |
| Other income (expense), net, three months ended September 30, 2026GAAP | $4M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $160M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $43M | – | – |
| Net income, three months ended September 30, 2026GAAP | $117M | – | 10.4% |
| Net income attributable to stockholders of UL Solutions, three months ended September 30, 2026GAAP | $108M | – | – |
| Net income margin, three months ended September 30, 2026GAAP | 14.2% | – | 70 basis points |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $0.53 | – | $0.04 |
| Basic earnings per share, three months ended September 30, 2026GAAP | $0.53 | – | – |
| Adjusted Net Income, three months ended September 30, 2026non-GAAP | $135M | – | 13.4% |
| Adjusted Net Income margin, three months ended September 30, 2026non-GAAP | 16.4% | – | 120 basis points |
| Adjusted Diluted Earnings Per Share, three months ended September 30, 2026non-GAAP | $0.62 | – | $0.06 |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $235M | – | 8.3% |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 28.6% | – | 90 basis points |
| Revenue, nine months ended September 30, 2026GAAP | $2.40B | – | 5.9% |
| Operating income, nine months ended September 30, 2026GAAP | $450M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $469M | – | – |
| Net income margin, nine months ended September 30, 2026GAAP | 19.6% | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $2.19 | – | – |
| Adjusted Net Income, nine months ended September 30, 2026non-GAAP | $372M | – | – |
| Adjusted Net Income margin, nine months ended September 30, 2026non-GAAP | 15.5% | – | – |
| Adjusted Diluted Earnings Per Share, nine months ended September 30, 2026non-GAAP | $1.72 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $651M | – | – |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 27.2% | – | – |
| Net cash flows provided by operating activities, nine months ended September 30, 2026GAAP | $594M | – | 30.3% |
| Capital expenditures, nine months ended September 30, 2026GAAP | −$199M | – | – |
| Free Cash Flow, nine months ended September 30, 2026non-GAAP | $395M | – | 24.6% |
| Free Cash Flow margin, nine months ended September 30, 2026non-GAAP | 16.5% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Industrial, three months ended September 30, 2026Organic revenue change was $32 million, acquisition / divestiture impact was $— million, and FX impact was $(1) million. | $410M | – | 8.2% |
| Consumer, three months ended September 30, 2026Organic revenue change was $20 million, acquisition / divestiture impact was $— million, and FX impact was $— million. | $360M | – | 5.9% |
| Risk & Compliance Software, three months ended September 30, 2026Organic revenue change was $3 million, acquisition / divestiture impact was $(14) million, and FX impact was $— million. | $53M | – | (17.2)% |
| Industrial, nine months ended September 30, 2026Organic revenue change was $87 million, acquisition / divestiture impact was $— million, and FX impact was $8 million. | $1.19B | – | 8.7% |
| Consumer, nine months ended September 30, 2026Organic revenue change was $50 million, acquisition / divestiture impact was $— million, and FX impact was $6 million. | $1.04B | – | 5.7% |
| Risk & Compliance Software, nine months ended September 30, 2026Organic revenue change was $9 million, acquisition / divestiture impact was $(28) million, and FX impact was $1 million. | $170M | – | (9.6)% |
Full-Year 2026 outlook
- RevenueConstant currency, organic revenue growth to be approximately 6.5%
- Tax rateEffective tax rate of approximately 26%
- NoteInclusive of approximately 70 basis points revenue reduction from business exits announced in the Restructuring Plan
- NoteAdjusted EBITDA margin improvement to approximately 27.0%
- NoteInclusive of approximately 200 basis points of underlying margin expansion, partially offset by approximately 90 basis points of incremental transaction costs versus 2025
- 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 September 30, 2026.
- Dividends to stockholders of UL Solutions were $(88) million for the nine months ended September 30, 2026, compared to $(78) million for the same period in 2025.
- Dividends to non-controlling interest were $(20) million for the nine months ended September 30, 2026, compared to $(17) million for the same period in 2025.
What drove it
- Third-quarter organic revenue growth was led by the Industrial and Consumer segments.
- Adjusted EBITDA margin expansion resulted from higher revenue and operating leverage, led by the Consumer and Industrial segments.
- Net income margin increased due to lower interest expense and foreign exchange impacts.
- Net cash provided by operating activities reflected improved business performance and timing of certain working capital items.
- On October 1, 2026, the Company completed the E&E Transaction for approximately $686 million in cash.
- On October 30, 2026, the Company sold its shareholding in DQS Holding GmbH for approximately $117 million, subject to customary post-closing adjustments, and used the proceeds to repay revolving credit borrowings.
Concerns
- Risk & Compliance Software revenue declined (17.2)% in the third quarter and (9.6)% in the nine-month period, reflecting acquisition / divestiture impacts of $(14) million and $(28) million, respectively.
- Third-quarter net income margin and Adjusted EBITDA margin each included an estimated incremental 30 basis points impact from acquisition and divestiture transaction costs.
- The full-year outlook includes approximately 90 basis points of incremental transaction costs versus 2025.
- The outlook includes approximately 70 basis points revenue reduction from business exits announced in the Restructuring Plan.
- The company cited uncertainty related to the geopolitical and macroeconomic environment, including the possibility that customers may modify, delay or cancel plans to purchase services.
What to watch
- Delivery of approximately 6.5% full-year constant currency, organic revenue growth.
- Delivery of approximately 27.0% full-year Adjusted EBITDA margin improvement, including approximately 200 basis points of underlying margin expansion and approximately 90 basis points of incremental transaction costs versus 2025.
- Integration, transaction costs and financial impact of the E&E Transaction.
- The effect of business exits under the Restructuring Plan and their approximately 70 basis points revenue reduction.
- Risk & Compliance Software performance following the sale of the non-core Employee Health and Safety software business on April 1, 2026.
- Capital expenditures targeted at approximately 8.5% of revenue.
Balance sheet and cash flow
- Cash and cash equivalents were $1,016 million as of September 30, 2026, compared to $295 million as of December 31, 2025.
- Total debt was $766 million, prior to unamortized debt issuance costs, as of September 30, 2026.
- Long-term debt was $764 million as of September 30, 2026, compared to $491 million as of December 31, 2025.
- Net cash flows provided by operating activities were $594 million for the nine months ended September 30, 2026, compared to $456 million for the same period in 2025.
- Proceeds from (repayments of) long-term debt, net were $272 million for the nine months ended September 30, 2026, compared to $(200) million for the same period in 2025.
- Net increase (decrease) in cash and cash equivalents was $721 million for the nine months ended September 30, 2026, compared to $(43) million for the same period in 2025.
- Total Assets were $3,689 million as of September 30, 2026, compared to $2,921 million as of December 31, 2025.
- Total Liabilities were $1,951 million as of September 30, 2026, compared to $1,627 million as of December 31, 2025.
- Total Stockholders’ Equity was $1,738 million as of September 30, 2026, compared to $1,294 million as of December 31, 2025.
Analysis
UL Solutions reported a strong third quarter, with revenue of $823 million, up 5.1% from $783 million, and organic revenue growth of 7.0%. Industrial revenue increased 8.2% to $410 million and Consumer revenue increased 5.9% to $360 million. Those businesses led the company’s organic growth and margin expansion. Risk & Compliance Software revenue declined (17.2)% to $53 million, with a $(14) million acquisition / divestiture impact.
Profitability improved across reported measures. Net income rose 10.4% to $117 million and net income margin increased 70 basis points to 14.2%. Adjusted EBITDA increased 8.3% to $235 million, while Adjusted EBITDA margin expanded 90 basis points to 28.6%. The company attributed Adjusted EBITDA margin expansion to higher revenue and operating leverage, led by Consumer and Industrial. Both third-quarter net income margin and Adjusted EBITDA margin included an estimated incremental 30 basis points impact from acquisition and divestiture transaction costs.
Nine-month results include the portfolio-management effects more visibly. Revenue was $2,397 million, up from $2,264 million, while net income was $469 million versus $274 million, including a $191 million gain on divestiture. Adjusted Net Income was $372 million versus $309 million and Adjusted EBITDA was $651 million versus $575 million. Industrial generated $1,187 million of nine-month revenue, Consumer generated $1,040 million, and Risk & Compliance Software generated $170 million.
Cash generation was strong, with net cash flows provided by operating activities of $594 million, up 30.3% from $456 million, and Free Cash Flow of $395 million, up 24.6% from $317 million. Cash and cash equivalents rose to $1,016 million as of September 30, 2026, while total debt was $766 million prior to unamortized debt issuance costs. The cash build and revolving credit borrowings were undertaken in preparation for the E&E Transaction, which closed on October 1, 2026 for approximately $686 million in cash. The company subsequently sold its DQS Holding GmbH shareholding for approximately $117 million and used the proceeds to repay revolving credit borrowings.
Management strengthened its full-year constant currency, organic revenue growth outlook to approximately 6.5% and reaffirmed approximately 27.0% Adjusted EBITDA margin improvement. The outlook embeds approximately 70 basis points of revenue reduction from restructuring-related business exits and approximately 90 basis points of incremental transaction costs versus 2025. Execution against the planned underlying margin expansion, integration of the E&E Transaction, and the performance of Risk & Compliance Software remain central reported items to monitor.
Management, verbatim
This quarter’s record revenue and excellent margin expansion reflect our strategic focus and investments aligned to the megatrends including the global energy transition and electrification of everything.
Jennifer Scanlon, President and CEO
Our third-quarter results reflect continued strong execution across the business. We achieved 7.0% organic revenue growth and expanded our Adjusted EBITDA margin to a record 28.6%, driven by broad-based demand, operating leverage and productivity gains.
Ryan Robinson, CFO
Given our strong year-to-date results and continued momentum in key end markets, we are strengthening our outlook for organic revenue growth to approximately 6.5%.
Ryan Robinson, CFO
Not in the filing
stated, not guessed- Gross margin was not reported.
- Quarter-over-quarter comparisons were not reported.
- Prior-quarter figures for reported metrics were not provided.
- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- Full-year revenue dollars, gross margin guidance and operating expense guidance were not provided.
- The company does not provide guidance for net income margin and cannot provide a reconciliation between forecasted Adjusted EBITDA margin and net income margin without unreasonable effort.
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
UL Solutions Inc. (NYSE: ULS) released its Q3 2026 earnings via a Form 8‑K, detailing revenue, earnings, and cash flow performance.
Ticker impact
UL Solutions Inc. filed an 8‑K reporting Q3 2026 results with 5.1% revenue growth and reaffirmed full‑year Adjusted EBITDA margin guidance.
likely upward pressure as investors price in the revenue beat and margin expansion
The company posted higher revenue, net income, and adjusted EBITDA versus the prior year and reaffirmed its full‑year margin outlook, which typically supports a price rally.
Market effects
The results highlight strength in the TIC sector and may boost peers focused on safety and compliance services.
North American and European markets could see modest gains in related safety‑science stocks.
Limited to investors tracking industrial and consumer safety testing firms.
Counterpoint
If the market has already priced in the strong results, the stock may face a short‑term pull‑back.
Key entities
- ExecutiveJennifer Scanlon
President and CEO of UL Solutions, quoted on the results.
- ExecutiveRyan Robinson
CFO of UL Solutions, discussed financial performance.
