UL Solutions Q2 revenue rises 5.2%, slightly beats estimates

UL Solutions

04/08/2026 12:18

Overview
Applied safety science firm's Q2 revenue grew 5.2%, slightly beating analyst expectations
Q2 adjusted EBITDA rose 11.2%, beating analyst expectations
Net income surged on business sale gain and higher revenue

Outlook
UL Solutions sees mid-single digit constant currency organic revenue growth for full-year 2026
Company expects adjusted EBITDA margin improvement to approximately 27.0% for 2026
UL Solutions says ongoing geopolitical uncertainty may impact customer demand and financial results

Result Drivers
SEGMENT GROWTH - Organic revenue growth was led by the Industrial and Consumer segments
MARGIN EXPANSION - Margin expansion resulted from higher revenue and operating leverage, led by the Consumer segment
BUSINESS SALE GAIN - Net income margin increase was driven by the gain on sale of the Employee Health and Safety software business in the Risk & Compliance Software segment

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$816 mln
$814.22 mln (10 Analysts)
Q2 Adjusted EPS
 
$0.59
 
Q2 EPS
 
$1.21
 
Q2 Adjusted Net Income
 
$129 mln
 
Q2 Net Income
 
$254 mln
 
Q2 Adjusted EBITDA
Beat
$219 mln
$214.73 mln (10 Analysts)
Q2 Operating Income
 
$150 mln
 
Q2 Pretax Profit
 
$338 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "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 $114.00, about 25.2% above its August 3 closing price of $91.05
The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 40 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.)