UL Solutions Q1 revenue rises 7.5%, beats estimates

UL Solutions

05/05/2026 12:32

Overview

Applied safety science firm's Q1 revenue grew 7.5%, beating analyst expectations

Q1 adjusted EBITDA rose 22.4% and beat analyst expectations

Company closed sale of Employee Health and Safety software business, acquisition of Eurofins E&E business announced

Outlook

UL Solutions expects mid-single digit constant currency organic revenue growth for full-year 2026

Company sees full-year 2026 Adjusted EBITDA margin improving to about 27.0%

UL Solutions says ongoing geopolitical and macroeconomic uncertainty may impact future results

Result Drivers

ORGANIC GROWTH - Q1 organic revenue growth of 5.7% was led by the Industrial segment and supported by ongoing certification services and strong demand in certification testing

COST MANAGEMENT - Adjusted EBITDA margin expansion was supported by disciplined headcount and expense management, according to CFO Ryan Robinson

OPERATING LEVERAGE - Higher revenue and operating leverage drove increases in net income and margins

Company press release: ID:nBw7ggWska

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$758 mln
$748.55 mln (9 Analysts)
Q1 Adjusted EPS
$0.50
Q1 EPS
$0.45
Q1 Adjusted Net Income
$107 mln
Q1 Net Income
$97 mln
Q1 Adjusted EBITDA
Beat
$197 mln
$177.49 mln (10 Analysts)
Q1 Operating Income
$138 mln
Q1 Pretax Profit
$129 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy"

Wall Street's median 12-month price target for UL Solutions Inc is $96.00, about 6.5% above its May 4 closing price of $90.10

The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 34 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)