UL Solutions (ULS) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue surpassing $3 billion in 2025, exceeding guidance with strong execution, disciplined expense management, and robust organic growth across all segments and regions.

• Delivered significant margin expansion, strong cash flow, and maintained an investment-grade balance sheet.

• Strategic investments in global testing infrastructure, digital platforms, and portfolio realignment supported growth.

• Announced an 11.5% increase in the quarterly dividend and a definitive agreement to sell the Employee Health and Safety software business.

• Continued focus on growth investments and portfolio refinements.

Financial highlights

• Full-year 2025 revenue reached $3,053M, up 6.4% year-over-year (6.2% organic); Q4 revenue was $789M, up 6.8% (5.7% organic).

• Adjusted EBITDA for 2025 rose 20.7% to $792M, margin up 300 bps to 25.9%; Q4 Adjusted EBITDA up 28.4% to $217M, margin up 460 bps to 27.5%.

• Adjusted net income for 2025 increased 17.2% to $423M; Q4 adjusted net income was $114M, up 11.8%.

• Free cash flow for 2025 was $403M, up from $287M in 2024; free cash flow margin at 13.2%.

• Ended 2025 with $295M in cash and $494M in total debt after $253M in net repayments.

Outlook and guidance

• 2026 outlook projects mid-single digit constant currency organic revenue growth, with Adjusted EBITDA margin guidance of 26.5–27.0%.

• Capital expenditures projected at 7–8% of revenue; effective tax rate expected at 26%.

• Guidance includes ~1% revenue reduction from business exits under the Restructuring Plan.

• Q1 2026 expected to be seasonally softer, with more margin improvement in the second half.

• Ongoing focus on acquisitions and portfolio refinements.