Financial Data and Key Metrics Changes - The company reported record quarterly consolidated revenues of $776 million, up 6.3% compared to the same quarter last year, and up 5.5% on an organic basis [8][17] - Adjusted EBITDA grew 13.9% year over year to $197 million, with an adjusted EBITDA margin of 25.4%, an increase of 170 basis points [8][18] - Adjusted net income for the second quarter was $110 million, up 17% from the previous year, with adjusted diluted earnings per share rising to $0.52 from $0.44 [18][19] Performance by Business Segment - **Industrial Segment**: Revenues rose 7.6% to $338 million, with organic growth of 7%. Adjusted EBITDA increased 20.6% to $117 million, and the adjusted EBITDA margin improved to 34.6% [19][20] - **Consumer Segment**: Revenues were $340 million, up 5.6% overall and 4.7% organically. Adjusted EBITDA was $65 million, a 6.6% increase, with a margin of 19.1% [21][22] - **Software and Advisory Segment**: Revenues increased 4.3% to $98 million, with organic growth of 3.2%. Adjusted EBITDA remained unchanged at $15 million, with a margin of 15.3% [22][23] Market Data and Key Metrics Changes - The company noted a dynamic geopolitical and regulatory environment impacting customer behavior, with a pull forward in orders observed in both industrial and consumer segments [14][35] - The demand for data center services is expected to grow significantly, with power consumption by data centers projected to rise from 4.4% of total U.S. electricity demand in 2023 to 12% by 2028 [11][12] Company Strategy and Development Direction - The company is focusing on higher growth megatrends, including global energy transition, electrification, and digitalization, to drive future growth [6][7] - Strategic investments in lab expansions and capacity enhancements are aimed at addressing growth opportunities in key end markets [9][10] - The company remains committed to identifying and executing strategic acquisitions to enhance profitability and earnings potential [27][89] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertainties and affirmed the full-year 2025 outlook, expecting mid-single-digit organic revenue growth [26][25] - The company highlighted the essential nature of its services and the resilience of its business model, which supports sustained revenue streams and deep customer relationships [14][30] Other Important Information - The company generated $208 million in free cash flow in the first half of 2025, a 58.8% increase from the previous year [24] - Capital expenditures for the first half were $93 million, with expectations for 2025 capital expenditures to be around 7% to 8% of revenue [24][27] Q&A Session Summary Question: Changes in client behavior related to tariffs - Management noted a shift in client behavior due to uncertainties, with some pull forward in orders observed in both industrial and consumer segments [34][35] Question: Update on lab capacity and future investments - Management confirmed ongoing investments in lab capacity and improvements, with a focus on areas where customer demand is highest [36][37] Question: Tougher comparisons in the second half of the year - Management acknowledged the tougher comparisons but expressed confidence in the business's progress and affirmed guidance for the full year [42][43] Question: Quantifying pull forward activity in segments - Management indicated that pull forward activity was observed in both industrial and consumer segments, with specific quantification provided for organic revenue growth [46][47] Question: Margin expansion opportunities - Management sees margin expansion opportunities across all segments, with strong progress noted in the industrial segment [50][51] Question: Growth in data centers and related megatrends - Management discussed the confluence of electrification, sustainability, and digitalization as key trends driving growth in data centers [55][56] Question: M&A pipeline and competitive pressures - Management remains disciplined in the M&A environment, actively evaluating opportunities that align with the company's strategy [89][90]

Financial Data and Key Metrics Changes - The company reported record quarterly consolidated revenues of $776 million, up 6.3% compared to the same quarter last year, and up 5.5% on an organic basis [7][17] - Adjusted EBITDA grew 13.9% year over year to $197 million, with an adjusted EBITDA margin of 25.4%, an increase of 170 basis points from the previous year [7][18] - Adjusted net income for the second quarter was $110 million, up 17% from last year, with adjusted diluted earnings per share increasing to $0.52 from $0.44 [18][19] Performance by Business Segment - **Industrial Segment**: Revenues rose 7.6% to $338 million, with adjusted EBITDA increasing 20.6% to $117 million and an adjusted EBITDA margin of 34.6% [19][20] - **Consumer Segment**: Revenues were $340 million, up 5.6% overall and 4.7% organically, with adjusted EBITDA of $65 million, a 6.6% increase [21][22] - **Software and Advisory Segment**: Revenues increased 4.3% to $98 million, with adjusted EBITDA unchanged at $15 million and a margin of 15.3%, down 70 basis points [22][23] Market Data and Key Metrics Changes - The company noted a favorable impact from foreign exchange movements, particularly with the euro and Japanese yen, contributing to revenue growth [17] - The demand for data center services is expected to grow significantly, with power consumption by data centers projected to increase from 4.4% of total U.S. electricity demand in 2023 to 12% by 2028 [10][11] Company Strategy and Industry Competition - The company is focusing on higher growth megatrends, including global energy transition, electrification, and digitalization, which are expected to drive demand for its services [5][6] - Strategic investments include the launch of new testing facilities in Europe and expansions in HVAC testing capabilities to meet growing demand [9][10] - The company aims to capitalize on emerging opportunities while managing potential risks effectively, affirming its full-year 2025 outlook [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic geopolitical and macroeconomic environment, affirming a mid-single-digit organic revenue growth outlook for 2025 [27][28] - The company highlighted the essential nature of its services, noting a shift in customer behavior due to tariffs and geopolitical uncertainties, but a return to normalcy in June [13][66] Other Important Information - The company generated $208 million in free cash flow in the first half of 2025, a 58.8% increase from the previous year [24] - Capital expenditures for the first half were $93 million, with expectations to maintain capital expenditures at approximately 7% to 8% of revenue for 2025 [24][28] Q&A Session Summary Question: Changes in client behavior related to tariffs - Management noted a shift in client behavior due to uncertainties in 2025, with some pull forward in orders observed [34][35] Question: Update on lab capacity and future investments - Management confirmed ongoing investments in lab capacity and improvements, with a focus on meeting customer demand [36][37] Question: Clarification on full-year guidance and tougher comparisons - Management acknowledged tougher comparisons in the second half but expressed confidence in the business's progress [40][43] Question: Quantifying pull forward activity in segments - Management indicated pull forward activity in both industrial and consumer segments, with specific growth rates provided [46][48] Question: Margin expansion opportunities - Management sees margin expansion opportunities across all segments, with strong progress noted in the industrial segment [50][51] Question: Data center growth and related investments - Management discussed the importance of data centers and the potential for incremental lab capacity investments to capitalize on this trend [54][60] Question: Competitive pressures from recent acquisitions in the industry - Management remains disciplined in M&A activities, focusing on deals that align with their strategic goals [86][88] Question: Trends in the Software and Advisory segment - Management highlighted challenges in the advisory segment due to changing wind policies and pressures in commercial real estate [90][91]

Core Insights - UL Solutions Inc. reported quarterly earnings of $0.52 per share, exceeding the Zacks Consensus Estimate of $0.47 per share, and showing an increase from $0.44 per share a year ago, resulting in an earnings surprise of +10.64% [1][2] - The company achieved revenues of $776 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.91% and up from $730 million year-over-year [2] - UL Solutions Inc. shares have increased approximately 46.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $769.25 million, while for the current fiscal year, the estimate is $1.77 on revenues of $3.02 billion [7] - The estimate revisions trend for UL Solutions Inc. was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Business - Services industry, to which UL Solutions Inc. belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Q2 2025 Financial Highlights - Revenue grew by 6.3%, with organic revenue growth of 5.5%[9] - Adjusted Net Income increased by 17.0%[9] - Adjusted EBITDA increased by 13.9%, leading to a 170 bps increase in Adjusted EBITDA margin[9] - Free Cash Flow generated was $364 million for the last twelve months ended June 30, 2025[9] Q2 2025 Revenue Breakdown - Industrial revenue increased by 7.6% (7.0% organic), reaching $338 million[21, 22] - Consumer revenue increased by 5.6% (4.7% organic), reaching $340 million[24, 25] - Software and Advisory revenue increased by 4.3% (3.2% organic), reaching $98 million[27, 28] Q2 2025 Profitability - Industrial Adjusted EBITDA increased by $20 million, with Adjusted EBITDA margin increasing by 370 bps to 34.6%[22, 21] - Consumer Adjusted EBITDA increased by $4 million, with Adjusted EBITDA margin increasing by 20 bps to 19.1%[25, 24] - Software and Advisory Adjusted EBITDA remained flat, with Adjusted EBITDA margin decreasing by 70 bps to 15.3%[28, 27] Full-Year 2025 Outlook - The company affirms its 2025 outlook, expecting mid-single-digit constant currency organic revenue growth[34, 36] - Adjusted EBITDA margin organic improvement is expected to be approximately 24%[36] - Capital expenditures are expected to be 7% to 8% of revenue[36]

[Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) UL Solutions reported strong Q2 2025 revenue and Adjusted EBITDA growth, with GAAP Net Income declining due to a prior-year divestiture gain [Overall Performance](index=1&type=section&id=Overall%20Performance) UL Solutions achieved strong Q2 2025 revenue and Adjusted EBITDA growth, with revenue up **6.3%** to **$776 million** and Adjusted EBITDA up **13.9%** to **$197 million**, despite an **8.5%** GAAP Net Income decrease Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $776M | $730M | +$46M | +6.3% | | Organic Revenue Growth | 5.5% | N/A | N/A | N/A | | **Net Income** | $97M | $106M | -$9M | -8.5% | | Net Income Margin | 12.5% | 14.5% | -200 bps | N/A | | **Adjusted Net Income** | $110M | $94M | +$16M | +17.0% | | **Adjusted EBITDA** | $197M | $173M | +$24M | +13.9% | | Adjusted EBITDA Margin | 25.4% | 23.7% | +170 bps | N/A | | **Diluted EPS** | $0.45 | $0.50 | -$0.05 | -10.0% | | **Adjusted Diluted EPS** | $0.52 | $0.44 | +$0.08 | +18.2% | - Management attributes the record second-quarter revenue to the company's resilient business model, strategic positioning in high-growth markets, and strong execution across all segments[2](index=2&type=chunk) - The decrease in GAAP Net Income was primarily caused by a **$25 million** non-operating gain on the divestiture of the payments testing business in May 2024, which was absent in Q2 2025[4](index=4&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) The Industrial segment led growth with a **7.6%** revenue increase, while Consumer and Software & Advisory segments also showed solid revenue gains [Industrial Segment](index=1&type=section&id=Industrial%20Segment) The Industrial segment drove growth with a **7.6% revenue increase** to **$338 million** and a **20.6% rise in Adjusted EBITDA** to **$117 million**, expanding its margin to **34.6%** Industrial Segment Q2 2025 Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $338M | $314M | +7.6% | | Organic Revenue Growth | 7.0% | N/A | N/A | | **Operating Income** | $98M | $85M | +15.3% | | Operating Income Margin | 29.0% | 27.1% | +190 bps | | **Adjusted EBITDA** | $117M | $97M | +20.6% | | Adjusted EBITDA Margin | 34.6% | 30.9% | +370 bps | - Growth drivers included price increases, sustained demand for energy and automation testing, and expanded laboratory capacity[7](index=7&type=chunk)[9](index=9&type=chunk) [Consumer Segment](index=2&type=section&id=Consumer%20Segment) The Consumer segment achieved a **5.6% revenue increase** to **$340 million** and **6.6% Adjusted EBITDA growth** to **$65 million**, with a slight margin improvement to **19.1%** Consumer Segment Q2 2025 Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $340M | $322M | +5.6% | | Organic Revenue Growth | 4.7% | N/A | N/A | | **Operating Income** | $40M | $38M | +5.3% | | Operating Income Margin | 11.8% | 11.8% | 0 bps | | **Adjusted EBITDA** | $65M | $61M | +6.6% | | Adjusted EBITDA Margin | 19.1% | 18.9% | +20 bps | - Revenue growth was primarily driven by the consumer technology and retail sectors[10](index=10&type=chunk) [Software and Advisory Segment](index=2&type=section&id=Software%20and%20Advisory%20Segment) The Software and Advisory segment saw **4.3% revenue growth** to **$98 million**, but Adjusted EBITDA remained flat at **$15 million**, with margin contracting to **15.3%** due to higher compensation expenses Software and Advisory Segment Q2 2025 Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $98M | $94M | +4.3% | | Organic Revenue Growth | 3.2% | N/A | N/A | | **Operating Income** | $1M | $3M | -66.7% | | Operating Income Margin | 1.0% | 3.2% | -220 bps | | **Adjusted EBITDA** | $15M | $15M | 0.0% | | Adjusted EBITDA Margin | 15.3% | 16.0% | -70 bps | - Adjusted EBITDA was flat and margins decreased due to higher employee compensation expense relative to revenue growth[11](index=11&type=chunk) [Financial Position and Cash Flow](index=2&type=section&id=Financial%20Position%20and%20Cash%20Flow) The company demonstrated strong liquidity with increased operating cash flow and free cash flow, while reducing total debt and maintaining a healthy cash balance [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) The company achieved strong H1 2025 liquidity, with net cash from operations increasing to **$301 million** and Free Cash Flow rising to **$208 million**, alongside debt reduction and dividend payments Cash Flow for Six Months Ended June 30 (in millions) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | $301 | $244 | +$57 | | Capital Expenditures | ($93) | ($113) | +$20 | | **Free Cash Flow** | **$208** | **$131** | **+$77** | - The company paid a dividend of **$0.13 per share**, totaling **$26 million**, during the second quarter[14](index=14&type=chunk) - Total debt decreased to **$612 million** as of June 30, 2025, following **$135 million** of net repayments on its term loan and revolving credit facility[14](index=14&type=chunk) - The company ended the quarter with **$272 million** in cash and cash equivalents[15](index=15&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) UL Solutions affirmed its full-year 2025 guidance, projecting mid-single-digit organic revenue growth and an Adjusted EBITDA margin of approximately **24%** [Full-Year 2025 Outlook](index=2&type=section&id=Full-Year%202025%20Outlook) UL Solutions affirmed its full-year 2025 guidance, projecting mid-single-digit organic revenue growth and an Adjusted EBITDA margin of approximately **24%**, alongside planned capital expenditures and continued acquisitions - The company affirmed its full-year 2025 outlook, including: - Mid single digit constant currency organic revenue growth - Adjusted EBITDA margin organic improvement to approximately **24%** - Capital expenditures expected to be **7% to 8% of revenue** - Effective tax rate estimated to be approximately **26%** - Continuing to pursue acquisitions and portfolio refinements[16](index=16&type=chunk)[17](index=17&type=chunk) - The company does not provide guidance for net income margin, the most comparable GAAP measure to Adjusted EBITDA margin, due to the unavailability of reliable estimates for certain reconciling items[18](index=18&type=chunk) [Financial Statements and Reconciliations](index=6&type=section&id=Financial%20Statements%20and%20Reconciliations) This section presents detailed financial statements, including condensed consolidated statements of operations, balance sheets, cash flows, and supplemental reconciliations of GAAP to non-GAAP measures [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The income statement for Q2 2025 shows a **6.3% revenue increase**, but net income decreased from **$106 million** to **$97 million** year-over-year, impacted by 'Other (expense) income, net' Q2 Statement of Operations Highlights (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $776 | $730 | | Operating Income | $139 | $126 | | Other (expense) income, net | ($4) | $21 | | **Net Income** | **$97** | **$106** | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows total assets of **$2.92 billion** and total liabilities of **$1.81 billion**, with a decrease in long-term debt from year-end 2024 Balance Sheet Highlights (in millions) | Line Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $272 | $298 | | Total Assets | $2,922 | $2,800 | | Long-term debt | $608 | $692 | | Total Liabilities | $1,809 | $1,869 | | Total Stockholders' Equity | $1,113 | $931 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, net cash from operating activities increased to **$301 million**, while cash used in financing activities rose due to higher net debt repayments Six-Month Cash Flow Highlights (in millions) | Line Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $301 | $244 | | Net cash used in investing activities | ($107) | ($93) | | Net cash used in financing activities | ($221) | ($159) | | Net decrease in cash | ($26) | ($20) | [Supplemental Financial Information and Reconciliations](index=9&type=section&id=Supplemental%20Financial%20Information%20and%20Reconciliations) This section details Q2 2025 revenue by service category, with Ongoing Certification Services as the largest, and provides reconciliations of GAAP to non-GAAP measures like Adjusted EBITDA and Adjusted Net Income Q2 2025 Revenue by Major Service Category (in millions) | Service Category | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Certification Testing | $215 | $203 | | Ongoing Certification Services | $250 | $234 | | Non-certification Testing and Other Services | $241 | $225 | | Software | $70 | $68 | | **Total** | **$776** | **$730** | Q2 2025 Reconciliation of Net Income to Adjusted EBITDA (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net income** | **$97** | **$106** | | Depreciation and amortization | $46 | $41 | | Interest expense | $10 | $13 | | Other expense (income), net | $4 | ($21) | | Income tax expense | $28 | $28 | | Stock-based compensation | $13 | $6 | | **Adjusted EBITDA** | **$197** | **$173** | H1 2025 Reconciliation of Operating Cash Flow to Free Cash Flow (in millions) | Line Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $301 | $244 | | Capital expenditures | ($93) | ($113) | | **Free Cash Flow** | **$208** | **$131** |

Financial Performance - UL Solutions' 2024 revenue reached $2.9 billion[14] - The company achieved 8.7% organic revenue growth in 2024[14] - Adjusted EBITDA for 2024 was $656 million, representing a 22.9% margin[14, 42] - The average Free Cash Flow from 2022 to 2024 was $249 million, with a 9.2% margin[42] - Q1 2025 saw a 7.6% organic revenue increase and a 22.9% rise in Adjusted EBITDA[60] Business Segments - The Industrial segment generated $1.254 billion in revenue in 2024, with a 31.4% Adjusted EBITDA margin[25, 30] - The Consumer segment's 2024 revenue was $1.238 billion, with a 16.4% Adjusted EBITDA margin[25, 32] - Software and Advisory segment revenue reached $378 million in 2024, with a 15.6% Adjusted EBITDA margin[25, 34] Market Position and Growth - UL Solutions holds the 1 product TIC market share by revenue[21] - The outsourced product TIC market is projected to grow at a 5-6% CAGR from 2022-2026[26]

Summary of UL Solutions (ULS) FY Conference Call Company Overview - **Company**: UL Solutions (ULS) - **Industry**: Testing, Inspection, and Certification (TIC) - **Revenue**: $2.9 billion in the last fiscal year - **Customer Base**: Over 80,000 customers across more than 35 industries - **Global Presence**: 41% of revenue from the USA, 25% from Greater China, and the remainder from Europe, the Middle East, and the rest of Asia [12][18][22] Key Themes and Core Messages 1. **Mission-Driven Growth**: ULS emphasizes its mission of creating a safer world, which resonates with customers and their end-users [6][61] 2. **Safety Science Commitment**: The company focuses on applying safety science to help customers navigate challenges in innovation, security, and sustainability [7][62] 3. **Long-Term Customer Relationships**: ULS has a history of long-lived customer relationships, with many clients being with the company for over a century [8][62] 4. **Global Scale and Operating Leverage**: The company leverages its global scale to drive margin expansion and growth, having invested over $1.3 billion in acquisitions since 2010 [9][17] 5. **Financial Strength**: ULS maintains a healthy balance sheet and disciplined capital allocation, allowing for flexibility in growth strategies and shareholder returns [9][10] Market Dynamics - **Industry Size**: The TIC industry is valued at over $240 billion, with a significant portion being outsourced [17] - **Growth Drivers**: Key megatrends driving growth include energy transition, new mobility solutions, sustainability, digitalization, and regulatory compliance [20][22] - **Recurring Revenue**: 33% of ULS's revenue is recurring, stemming from ongoing certification services [15] Financial Performance and Projections - **EBITDA Margin**: The adjusted EBITDA margin was 22.9% last year, with a target of 24% for the current year [38][39] - **Growth Resilience**: ULS has demonstrated resilient growth, averaging nearly 7% compound annual growth over the past decade, even during economic shocks [33] Strategic Initiatives 1. **Capital Allocation**: ULS reinvests approximately 18% of revenue back into the business, focusing on organic growth and capacity expansion [46][48] 2. **M&A Strategy**: The company seeks acquisitions that enhance its capabilities in product testing, inspection, and certification, focusing on technical expertise and service extension [49][50] 3. **Software and Advisory Services**: ULS is optimistic about growth in its software segment, which supports product compliance and supply chain transparency [52][53] Additional Insights - **Impact of Tariffs**: ULS views tariffs as short-term challenges that can lead to increased demand for retesting and recertification services as manufacturers adapt [29][30] - **Energy Transition**: The electrification of various sectors is expected to significantly increase demand for ULS's services, particularly in testing and certification for new energy technologies [24][26] This summary encapsulates the key points discussed during the UL Solutions FY Conference Call, highlighting the company's strategic focus, market dynamics, and financial performance.

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1][2]. Company Overview: UL Solutions Inc. (ULS) - ULS currently holds a Momentum Style Score of B, indicating a favorable momentum outlook [3]. - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a strong historical performance [4]. Performance Metrics - ULS shares have increased by 17.24% over the past week, significantly outperforming the Zacks Business - Services industry, which rose by only 0.14% [6]. - Over the past month, ULS's price change is 26.6%, compared to the industry's 7.82% [6]. - In the last three months, ULS shares have risen by 25.69%, and over the past year, they have surged by 87.95%, while the S&P 500 has seen declines of -3.37% and gains of only 13.7% respectively [7]. Trading Volume - ULS has an average 20-day trading volume of 1,212,324 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the past two months, five earnings estimates for ULS have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $1.70 to $1.77 [10]. - For the next fiscal year, four estimates have also moved higher, with no downward revisions noted [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, ULS is positioned as a promising momentum pick for investors [12].

Company Performance - UL Solutions Inc. shares have increased by 22.4% over the past month and reached a new 52-week high of $71.95, with a year-to-date gain of 41% compared to 3.5% for the Zacks Business Services sector and 13.4% for the Zacks Business - Services industry [1] - The company has consistently exceeded earnings expectations, reporting EPS of $0.37 against a consensus estimate of $0.32 in its last earnings report [2] - For the current fiscal year, UL Solutions Inc. is projected to achieve earnings of $1.77 per share on revenues of $3.02 billion, reflecting a 4.12% increase in EPS and a 5.38% increase in revenues [3] Valuation Metrics - The stock trades at a valuation of 39.8X current fiscal year EPS estimates, significantly higher than the peer industry average of 18.1X, and at 26.4X on a trailing cash flow basis compared to an average of 9.5X for its peers [7] - UL Solutions Inc. has a Value Score of D, a Growth Score of A, and a Momentum Score of D, resulting in a VGM Score of B [6] Zacks Rank - The company holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, indicating potential for further stock price appreciation [8] Industry Comparison - Bright Horizons Family Solutions Inc. is a notable peer with a Zacks Rank of 2 (Buy), a Value Score of C, and both Growth and Momentum Scores of A, indicating a strong competitive position [9] - The Business - Services industry is performing well, ranking in the top 20% of all industries, suggesting favorable conditions for both UL Solutions Inc. and its peers [11]

Commission file number 001-42012 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to _________ UL Solutions Inc. (Exact name of registrant as specified in its charter) Delaware 27-0913800 (State or ...