UL Solutions Inc. (ULS) Earnings
UL Solutions Inc. is expected to report next earnings on August 4, 2026 (in NaN days), with a consensus EPS estimate of $0.56. ULS has beaten EPS estimates in 5 of its last 6 reported quarters (average surprise +20.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $0.42 | $0.50 | +19.0% | $758M | +1.3% |
| Feb 19, 2026 | $0.46 | $0.53 | +15.2% | $789M | +5.6% |
| Nov 4, 2025 | $0.47 | $0.56 | +18.6% | $783M | +1.6% |
| Feb 20, 2025 | $0.38 | $0.49 | +28.9% | $739M | +4.9% |
| Jul 31, 2024 | $0.39 | $0.50 | +28.2% | $730M | +3.0% |
| May 20, 2024 | $0.28 | $0.28 | -1.0% | $670M | +0.3% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 5, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
Highlights of first quarter performance: Consolidated revenue growth 7.5%, organic revenue growth 5.7%, adjusted EBITDA up over 22%, margin expanded 320 basis points. Strategic developments: Granted first global safety certification for a robot in public environment, issued first certifications for AI-enabled products, announced acquisition of Eurofin's E&E business. Macro and geopolitical factors: Global backdrop complex but business navigating well, leading demand drivers structural and align with capabilities.
Guidance
Raise full year 2026 adjusted EBITDA margin outlook. Expect 2026 consolidated organic revenue growth in mid single digit range. Capital expenditure outlook 7%-8% of revenue. Tax rate expectation approximately 26%. Remaining expenses related to restructuring program approximately $3 million.
Segment performance
Industrial: Revenues were $375 million, up 10.3% total and 8.2% organically from Q1 2025. Adjusted EBITDA increased 20.6% to $123 million, margin improved 280 basis points to 32.8%. Consumer: Revenues were $318 million, up 4.6% total and 3.0% organically from Q1 2025. Adjusted EBITDA increased 25.0% to $55 million, margin improved 280 basis points to 17.3%. Risk and compliance software: Revenues were $65 million, up 6.6% total and 4.9% organically from prior year. Adjusted EBITDA was $19 million, up 26.7% year-over-year, margin expanded 460 basis points to 29.2%.
Risks & headwinds
Macro and geopolitical factors impacting end markets, uncertainty therein. FX rates volatility affecting revenue and margin. Risks associated with M&A such as regulatory approvals and closing conditions.
Analyst Q&A
Q: Just curious if you're seeing any notable changes in customer behavior yet that's attributable to the conflict you're on. And then should we think about that as similar to how the tariff narrative has played out, or is it more of a blanket pressure that can't be resolved by changing factory locations?
A: Our demand drivers in the Middle East are a very small portion of our EMEA. Customer behaviors are normal reaction to uncertainty, no material effect on business. Customers make ongoing decisions about where to conduct R&D, manufacture etc., and we're positioned to follow them.
Q: I guess the question that I wanted to ask about was about the AI adoption, the UL 3300 standard. I'm glad you brought it up, Jenny, because I think this should be an opportunity for the company. And just given that this is a new standard and kind of rolled out there and it's important, I just was hoping you could give us a little bit more context about where the standard sits relative to the innovation curve of the industry against competitive standards that might be being made other places.
A: UL 3300 is about robotics safety in areas with human interaction and UL 3115 is about AI transparency. Service robotics sector has steady growth, we're working closely with customers, and it brings together other services we provide.
Q: On the software business, post the EHS divestiture and the move of advisory into industrial, how should we think about the underlying run rate growth of the remaining compliance and risk business?
A: We're excited about risk and compliance software. The portion we divested is slightly slower growing than the remainder. We anticipate continued growth in that segment.
Q: I was just wondering, on the software business, post the EHS divestiture and the move of advisory into industrial, how should we think about the underlying run rate growth of the remaining compliance and risk business?
A: We're excited about risk and compliance software. The portion we divested is slightly slower growing than the remainder. We anticipate continued growth in that segment.
Q: I was just wondering about the strength in the free cash flow in the quarter, unusually strong here. Anything that you'd call out, attribute the strength to, and just maybe bigger picture your view towards you know, larger M&A, your appetite to do a bigger deal, and kind of thoughts around leverage.
A: Pleased with continued growth in cash flow from operations and free cash flow. Driven by net income margin increase and working capital items. We're well capitalized and have capacity to fund M&A including the E&E acquisition.
Q: We're actually hearing a lot about manufacturing capacity moves back to the US and government budget increases for US manufacturing. Along the trend, are you seeing any higher utilization rate of industrial TSE services driven by U.S. specific regulatory regulations?
A: Not seeing dramatic shift to US, but movement across Asia. We test wherever customers need us to test and perform services there.
Q: I wanted to touch on the margin performance in the quarter just to make sure I'm understanding this correctly. So obviously very strong performance to start the year. Just a note, this is with 40 basis points of FX headlines. I just want to confirm that the actual underlying performance was actually better. So as you think about just the margin expectations for as we progress through the year. Maybe just talk about your level of confidence just given the momentum in the first quarter and really the decision to still raise your guidance and maybe opportunity for additional upside as the year progresses.
A: FX had offsetting effect on earnings, but underlying performance is strong. We raised margin outlook based on progress, and will monitor through the year.
Q: I was wondering about the growth rate in Q1. I guess you were lapping some tougher compares in at least consumer. So Q1 was supposed to be the lowest growth quarter of the year. Do you think that will still be the case? So how are you thinking about sort of the performance in growth after the strong Q1?
A: Trends seen in Q1 will be consistent. Industrial growth continues, consumer growth suppressed by exiting non-strategic businesses, risk and compliance software outlook grounded in fundamentals.
Q: The first question I had was just around the margin development. So essentially you've managed to grow revenue organically by $40 million, organic expenses up by just $40 or sorry, down by three. I was just wondering if you could sort of explain how you've had so little cost pressure in there. So I guess, you know, with that in mind, it'd be interesting to know what proportion of the organic revenue growth was pricing versus volume and ultimately how you managed to grow revenue so much, you know, with so little cost. incremental cost pressure.
A: Operating leverage off stable cost base, better use of capacity, restructuring flowing through, focused on productivity. Revenue growth from volume and some pricing, with volume growth reflecting underlying demand for new products.