UL Solutions Inc. (ULS) AI Stock Analysis

UL Solutions Inc., headquartered in Northbrook, Illinois, is a global leader in safety science services catering to diverse industries worldwide. The company operates through three segments: Industrial, Consumer, and Software and Advisory. The Industrial segment provides testing, inspection, and certification services across energy, industrial automation, engineered materials, and the built environment. The Consumer segment offers safety certification testing, compliance, global market access, connectivity testing, and advisory services across electronics, medical devices, HVAC, and emerging technologies like new mobility and 5G. The Software and Advisory segment delivers software solutions, including its ULTRUS brand, helping clients navigate regulatory complexities and improve operational sustainability.

UL Solutions grew revenue from $2.52B in FY2021 to $3.05B in FY2025, reflecting a 5-year revenue CAGR of 5.8%. Operating margin expanded from 11.4% in FY2021 to 17.1% in FY2025, while gross margin reached 49.1%. Net income rose from $224.0M in FY2021 to $325.0M in FY2025, with diluted EPS at $1.98. For the trailing twelve months ended June 30, 2026, revenue stood at $3.15B with a net profit margin of 16.1% and EPS of $2.48. In the quarter ended June 30, 2026, quarterly revenue grew 5.2% year-over-year, while quarterly earnings increased 168.9%.

As of June 30, 2026, UL Solutions held $434.0M in cash and short-term investments against total debt of $551.0M, resulting in net debt of $117.0M. The company reported a current ratio of 1.42 and a debt-to-equity ratio of 0.35, supported by $1.59B in shareholders' equity. In FY2025, operating cash flow reached $600.0M, funding capital expenditures of $197.0M and generating free cash flow of $403.0M. Financing outflows included $104.0M in dividends paid during FY2025.

At $73.31, UL Solutions trades at a trailing P/E of 29.6x and a forward P/E of 24.9x, compared to medians of 24.8x and 17.2x for US-listed Industrials. Its enterprise value to EBITDA ratio is 14.1x versus the peer median of 13.9x, while price-to-sales stands at 4.7x compared to the peer median of 1.5x. Over the past year, the stock declined 3.4%, trailing the S&P 500 return of 16.8%.

UL Solutions pays a quarterly dividend totaling $0.58 annually, providing a dividend yield of 0.79% at its closing price of $73.31. The dividend payout ratio stands at 27.0%, backed by 3 consecutive years of payments. The most recent ex-dividend date occurred on August 31, 2026.

Wall Street coverage consists of 7 Strong Buy, 1 Buy, and 5 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target is $96.57, which is 31.7% above the last closing price of $73.31. Analysts estimate FY2026 revenue of $3.22B and EPS of $2.32, followed by FY2027 estimates of $3.46B in revenue and $2.60 in EPS. The company beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 3, 2026.

This page is an AI-written research summary of UL Solutions Inc. (ULS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: ULS income statement, ULS balance sheet, ULS key metrics, ULS analyst forecast, ULS chart. See the ULS stock overview for the latest quote and news.