UL Solutions Q3 revenue beats; announces restructuring initiative

UL Solutions

04/11/2025 12:19

Overview

UL Solutions Q3 revenue grows 7.1% to $783 mln, beating analyst expectations

Adjusted EBITDA of $217 mln beats estimates, reflecting strong operational performance

Company announces restructuring initiative to reduce expenses and improve efficiency

Outlook

UL Solutions expects 2025 organic revenue growth of 5.5% to 6%

Company anticipates 2025 adjusted EBITDA margin to improve to ~25%

UL Solutions plans 2025 capital expenditures at 6.5% to 7% of revenue

Result Drivers

MARKET TAILWINDS - Strong demand for data center growth contributed to increased service demand, per CFO Ryan Robinson

OPERATING LEVERAGE - Margin expansion driven by higher revenue and operating leverage, particularly in the Industrial segment

RESTRUCTURING INITIATIVE - Co announced a restructuring plan to reduce expenses and exit non-strategic business lines

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$783 mln
$770.91 mln (9 Analysts)
Q3 Adjusted EPS
$0.56
Q3 EPS
$0.49
Q3 Adjusted Net Income
$119 mln
Q3 Net Income
$106 mln
Q3 Adjusted EBITDA
Beat
$217 mln
$197.84 mln (9 Analysts)
Q3 Operating Income
$156 mln
Q3 Pretax Profit
$146 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "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 $72.00, about 9.2% below its November 3 closing price of $78.61

The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 40 three months ago

Press Release: ID:nBw5dXxF7a

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