UL Solutions (ULS) 46th Annual William Blair Growth Stock Conference summary

Key business themes and industry positioning

• Mission-driven growth in the global testing, inspection, and certification (TIC) industry, emphasizing safety science and long-term customer relationships with over 80,000 clients worldwide.

• Global scale and operating leverage support margin expansion, with a disciplined capital allocation strategy targeting best-in-class shareholder returns.

• Revenue of $3.1 billion, 15,000 employees, 6.2% organic revenue growth, and $792 million adjusted EBITDA last year.

• 42% of revenue is recurring, with a leading market share in outsourced product TIC, operating in a fragmented and growing market.

• Growth fueled by megatrends such as energy transition, digitalization, AI, and evolving regulatory compliance needs.

Business segments and services

• Operates through three segments: Industrial (B2B), Consumer (B2C), and Risk & Compliance Software, with services spanning certification, ongoing certification, non-certification testing, and software.

• 41% of customers are in the U.S., 25% in Greater China, with the remainder in EMEA and other regions, supporting global market access.

• Ongoing certification services account for 33% of revenue and require regular, unannounced factory visits to maintain product certification.

• Risk & Compliance Software segment provides enterprise solutions for supply chain transparency, sustainability, and regulatory data.

• Over 350 independent services offered, supported by 650+ accreditations across 29 countries.

Financial performance and operating model

• 42% of revenue is contractually recurring, with high cash flow from operations and strong, durable growth driven by product innovation.

• Conservative financial profile with less than 1x funded debt to EBITDA, enabling growth initiatives and recent acquisitions.

• Revenue has grown at a 6.8% CAGR since 2011, primarily organically through price, volume, and geographic/service expansion.

• Margin expansion driven by operating leverage, integrated labs, common systems, and centers of excellence, with further upside potential.

• Restructuring and consolidation of labs have improved utilization and reduced costs, supporting higher profitability.