UL Solutions strengthens 2026 organic growth outlook to 6.5%

UL Solutions (ULS) said on Nov. 3 that third-quarter revenue rose 5.1% to $823 million, and it strengthened its full-year organic revenue growth outlook to approximately 6.5%.

Adjusted diluted earnings per share were 62 cents, in line with the 62-cent consensus estimate compiled by Finnhub. Revenue was in line with the $823.88 million consensus estimate compiled by Finnhub.

UL Solutions sells testing, inspection and certification services, advisory offerings and software in more than 110 countries, according to its press release.

Here's how the company did:

• Revenue: $823 million vs. $783 million a year earlier, in line with the $823.88 million consensus estimate compiled by Finnhub
• Adjusted EPS: 62 cents vs. 56 cents a year earlier, in line with the 62-cent consensus estimate compiled by Finnhub
• Net income: $117 million vs. $106 million a year earlier
• Adjusted EBITDA: $235 million vs. $217 million a year earlier, with an Adjusted EBITDA margin of 28.6%

Organic revenue growth was 7.0%, led by the Industrial and Consumer segments. Net income margin was 14.2%, up 70 basis points from 13.5%.

President and CEO Jennifer Scanlon said the quarter reflected “record revenue and excellent margin expansion” tied to the company’s strategic focus and investments.

Segment results

Industrial revenue rose 8.2% to $410 million from $379 million a year earlier. Consumer revenue rose 5.9% to $360 million from $340 million.

Risk & Compliance Software revenue fell 17.2% to $53 million from $64 million. The company sold its Employee Health and Safety software business on April 1 for $201 million in cash.

2026 guidance

The company now expects organic revenue growth of approximately 6.5% for 2026. That outlook includes approximately 70 basis points of revenue reduction from business exits in its Restructuring Plan.

The company reaffirmed its full-year Adjusted EBITDA margin outlook of approximately 27.0%. It expects an effective tax rate of approximately 26% and capital expenditures of approximately 8.5% of revenue.

CFO Ryan Robinson said, “we are strengthening our outlook for organic revenue growth to approximately 6.5%.”

Acquisitions and cash

On Oct. 1 the company completed its acquisition of Eurofins Scientific’s electrical and electronics business, known as the E&E Transaction, for approximately $686 million in cash. The company called it the largest acquisition in its history.

On Oct. 30 the company sold its shareholding in DQS Holding GmbH for approximately $117 million, subject to customary post-closing adjustments. It used the proceeds to repay revolving credit borrowings.

Net cash provided by operating activities was $594 million for the nine months ended Sept. 30, up 30.3% from $456 million a year earlier. Free Cash Flow rose 24.6% to $395 million from $317 million.

Cash and cash equivalents were $1.02 billion at Sept. 30, up from $295 million at Dec. 31, 2025. The company paid a dividend of 14.5 cents per share, or $29 million, in the third quarter.