UL Solutions (ULS) BofA Securities 2026 Information & Business Services Conference summary

Company overview and industry positioning

• Mission-driven focus on applied safety science and sustainability, with deep, long-term customer relationships fueling recurring revenue streams and global scale.

• Leader in product safety testing, generating $3.1 billion in revenue with 14,500 employees, operating across industrial, consumer, and software services segments.

• Revenue distribution: 41% from U.S.-headquartered customers, 25% Greater China, 17% EMEA, and the rest from Asia Pacific and other regions.

• Holds about 7% global market share in the $38 billion outsourced product and component testing, inspection, and certification market.

Service offerings and business model

• Four main service categories: Certification Testing (28% of revenue), Ongoing Certification Services (33%), Non-certification Testing (30%), and Enterprise Software (9%).

• Ongoing certification involves regular, unannounced factory visits to ensure product quality and compliance, supporting recurring revenue.

• Software services focus on risk and compliance, supply chain insights, and sustainability objectives.

• Extensive technical moat: 4,000 standards, 650 accreditations, and 350+ independent services.

Growth drivers and industry trends

• Megatrends propelling growth include energy transition, electrification, mobility shifts, sustainability, digitalization, and AI.

• Regulatory complexity and supply chain realignments drive demand for retesting and compliance services.

• Expansion of battery testing labs globally and strategic M&A to stay ahead of customer needs in energy storage and EVs.

• Geographic expansion in response to supply chain shifts, with new capacity in Vietnam, India, Singapore, Mexico, and the U.S.