UL Solutions (ULS) Investor presentation summary

Business overview and strategy

• Operates as a global leader in the testing, inspection, and certification (TIC) industry, with a 132-year history and a mission-driven approach focused on safety science and sustainability.

• Maintains long-term customer relationships, recurring revenue streams, and a robust business model anchored by the globally recognized UL Mark.

• Holds the #1 market share in outsourced product TIC, serving over 80,000 customers across 35 industry verticals and 145 locations worldwide.

• Growth strategy centers on organic expansion, margin improvement through innovation and automation, and disciplined M&A to enhance capabilities and geographic reach.

• Capital allocation prioritizes maintaining a strong balance sheet, regular dividends, reinvestment in innovation, and strategic acquisitions.

Financial performance and momentum

• Achieved $3.1B in 2025 revenue, with 6.2% organic growth and a 25.9% adjusted EBITDA margin.

• 2025 adjusted net income reached $423M (13.9% margin), and free cash flow was $403M (13.2% margin).

• Q2 2026 saw 5.2% revenue growth (6.6% organic), 26.8% adjusted EBITDA margin (up 140 bps), and a 13.5% increase in adjusted diluted EPS to $0.59.

• LTM free cash flow rose 19.8% to $436M, with a 13.9% margin, supported by strong business performance and disciplined capital expenditures.

• Financial targets set at IPO for 2025 were exceeded in organic growth, EBITDA margin, capex, and free cash flow margin.

Segment highlights

• Industrial segment: $1,480M revenue (49% of total), 32.9% adjusted EBITDA margin, 7.6% organic growth in 2025.

• Consumer segment: $1,319M revenue (43% of total), 18.0% adjusted EBITDA margin, 4.8% organic growth in 2025.

• Risk & Compliance Software: $254M revenue (8% of total), 26.8% adjusted EBITDA margin, 6.3% organic growth in 2025.