UL Solutions (ULS) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 grew 5.2% year-over-year to $816 million, with 6.6% organic growth led by Industrial and Consumer segments; net income surged 161.9% to $254 million, driven by a $191 million gain on the sale of the Employee Health and Safety software business and higher operating leverage.

• Adjusted EBITDA increased 11.2% to $219 million, with margin expanding 140 basis points to 26.8%; adjusted diluted EPS rose 13.5% to $0.59.

• Strong cash flow generation and a robust balance sheet support ongoing strategic investments, including increased dividends and capital expenditures.

• Continued focus on secular trends: energy transition, electrification, automation, AI/data center growth, and product innovation.

• Won the Robert W. Campbell Award for workplace safety leadership.

Financial highlights

• Q2 2026 revenue reached $816 million to $827 million, adjusted EBITDA was $219 million (26.8% margin), and adjusted net income was $129 million (15.8% margin).

• Free cash flow for the trailing 12 months was $436 million, with a margin of 13.9%; first half free cash flow was $241 million (15.3% margin).

• Cash and cash equivalents at quarter-end were $434 million; total debt reduced to $303 million.

• Quarterly dividend of $0.145 per share paid, totaling $29 million in Q2 and $58 million for the first half.

• Diluted EPS for Q2 was $1.21, up from $0.45; adjusted diluted EPS was $0.59.

Outlook and guidance

• Full-year 2026 outlook projects mid-single digit constant currency organic revenue growth, with about 1% revenue reduction from business exits.

• Adjusted EBITDA margin guidance affirmed at approximately 27% for the year.

• Full-year capital expenditures expected at 8.5% of revenue, reflecting investments in lab capacity and growth.

• Effective tax rate projected at 26%.

• Restructuring plan to be completed by Q1 2027, with $3 million in remaining pre-tax charges.