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 industries and 145 locations worldwide.

• Growth strategy centers on organic expansion, margin improvement through innovation and automation, and targeted acquisitions to enhance capabilities and geographic reach.

• Capital allocation prioritizes reinvestment, disciplined M&A, maintaining a strong balance sheet, and returning capital to shareholders via dividends and potential share repurchases.

Financial performance and resilience

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

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

• Demonstrates a durable, cash-generative profile with 98% retention among its 500 largest customers and a conservative leverage ratio (total debt/adjusted EBITDA of 0.6x).

• Q1 2026 saw 7.5% revenue growth, 5.7% organic growth, and a 320 bps increase in adjusted EBITDA margin to 26.0%.

• Last twelve months free cash flow rose 47.1% to $450M, with a 14.5% 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.