10-Q · August 4, 2026
UL Solutions delivered Q2 revenue of $816 million, up 5.2% year over year and 7.7% sequentially, with organic growth of 6.6% led by Industrial and Consumer. Gross margin rose to 51.1% and operating margin improved to…
Earnings analysis · 10-Q
ULS earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
UL Solutions delivered $823 million of third-quarter revenue, up approximately 5.1% year over year and ahead of the $816.7 million consensus estimate. GAAP diluted EPS of $0.53 improved from $0.49 a year earlier but…
Read full summary
UL Solutions delivered $823 million of third-quarter revenue, up approximately 5.1% year over year and ahead of the $816.7 million consensus estimate. GAAP diluted EPS of $0.53 improved from $0.49 a year earlier but fell sharply from $1.21 in the prior quarter; adjusted EPS of $0.62 exceeded consensus. Management raised full-year organic revenue growth expectations to approximately 6.5% while maintaining its approximately 27.0% Adjusted EBITDA margin outlook, but transaction costs, variable-rate debt and foreign-exchange exposure remain meaningful risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.53
What stood out
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Revenue grew and beat consensus
Third-quarter revenue was $823 million, up approximately 5.1% from $783 million in Q3 2025 and approximately 0.9% from $816 million in Q2 2026. Revenue also exceeded the $816.7 million consensus estimate by approximately 0.8%.
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Adjusted EPS beat estimates
GAAP diluted EPS was $0.53 versus $0.49 in Q3 2025, an increase of approximately 8.2%, but declined approximately 56.2% from $1.21 in Q2 2026. Adjusted diluted EPS was $0.62, above the $0.60 consensus estimate.
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EBITDA margin remained strong
Adjusted EBITDA margin reached 28.6% in the quarter, above the maintained full-year outlook of approximately 27.0%. Management attributed the outlook to approximately 200 basis points of underlying margin expansion, partly offset by approximately 90 basis points of incremental transaction costs.
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Free cash flow improved
Free cash flow increased 24.6% year over year, although the extracted filing text does not provide the quarter's absolute free-cash-flow amount or capex figure.
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Industrial and Consumer led growth
Industrial and Consumer were identified as the primary growth contributors, while total revenue reached $823 million; the extracted filing does not provide the segment revenue amounts needed to quantify each segment's growth.
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China joint venture term extended
The UL-CCIC agreement was extended to January 12, 2037, with no financial statement impact from the amendment and restatement.
What to watch
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Floating-rate debt exposure
The 2025 Credit Facility had a floating interest rate of 5.87% at September 30, 2026. Management states that a hypothetical 100-basis-point rate change would not materially affect interest expense based on outstanding borrowings, but future rate changes remain an earnings risk.
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Debt and refinancing obligations
The company has $300 million of fixed-rate senior notes bearing a 6.500% coupon and maturing in 2028. The notes are not exposed to rate fluctuations before maturity, but refinancing and debt-service obligations remain relevant.
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Foreign-exchange volatility
The company has foreign-currency exposure across the Chinese renminbi, euro, Japanese yen, New Taiwan dollar, British pound sterling and Korean won. A hypothetical 10% change in average exchange rates for the first nine months of 2026 would not materially affect operating income, but intercompany-balance remeasurement could materially affect net income.
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Transaction costs pressure margins
Management identified approximately 90 basis points of incremental transaction costs versus 2025, partially offsetting approximately 200 basis points of underlying margin expansion. The transaction-cost burden could pressure earnings if integration activity increases.
Management's outlook
Management raised full-year 2026 constant-currency organic revenue growth outlook to approximately 6.5% and maintained an approximately 27.0% Adjusted EBITDA margin outlook, including approximately 200 basis points of underlying expansion offset by approximately 90 basis points of incremental transaction costs versus 2025.
Earlier filings 4
10-Q · May 5, 2026
UL Solutions Inc. delivered robust Q1 2026 results, reporting a revenue of $758 million, a 7.5% increase year-over-year (up $53 million), and an EPS of $0.50, surpassing estimates. The Industrial segment led in growth…
10-K · February 19, 2026
UL Solutions presents a strategy focused on expanding its core TIC business, cross-selling Software & Advisory (S&A) offerings and pursuing targeted M&A while pursuing operational margin expansion. The 10‑K highlights…
10-Q · November 4, 2025
UL Solutions beat revenue and improved margins in Q3: revenue rose to $783 million (up $52M or +7.1% YoY from $731M) and operating income increased to $156 million (19.9% margin). Diluted EPS was $0.49 vs $0.44 a year…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.