UL Solutions Inc.(ULS) - 2025 Q3 - Quarterly Results

Revenue Performance - Revenue for Q3 2025 was $783 million, an increase of 7.1% compared to $731 million in Q3 2024, with organic growth of 6.3% across all segments[4] - Total revenue for the three months ended September 30, 2025, was $783 million, a 7.1% increase from $731 million in the same period of 2024[38] - For the nine months ended September 30, 2025, total revenue reached $2,264 million, up 6.2% from $2,131 million in 2024[38] Net Income and Margins - Net income rose to $106 million, a 12.8% increase from $94 million in Q3 2024, resulting in a net income margin of 13.5%, up 60 basis points[5] - Net income for the three months ended September 30, 2025, was $106 million, with a net income margin of 13.5%, compared to $94 million and 12.9% in 2024[46] - Net income attributable to stockholders rose to $100 million in Q3 2025, compared to $88 million in Q3 2024, reflecting a 13.6% increase[35] EBITDA and Operating Income - Adjusted EBITDA reached $217 million, reflecting an 18.6% increase from $183 million in Q3 2024, with an Adjusted EBITDA margin of 27.7%, expanded by 270 basis points[7] - Adjusted EBITDA for the three months ended September 30, 2025, was $217 million, representing a margin of 27.7%, compared to $183 million and a margin of 25.0% in 2024[46] - Operating income increased to $156 million in Q3 2025, up from $130 million in Q3 2024, representing a 20% growth[35] Segment Performance - The Industrial segment reported revenue of $343 million, an 8.2% increase year-over-year, with an operating income margin of 30.3%, up from 28.4%[8] - The Consumer segment generated $340 million in revenue, a 5.9% increase, with an operating income margin of 12.9%, up from 11.5%[11] - The Software and Advisory segment saw revenue of $100 million, a 7.5% increase, with an operating income margin of 8.0%, up from 3.2%[12] - The Software and Advisory segment achieved a revenue of $100 million for the three months ended September 30, 2025, with an Adjusted EBITDA margin of 24.0%[48] - The Consumer segment's revenue for the three months ended September 30, 2025, was $340 million, with an operating income margin of 12.9%[48] Cash Flow and Capital Expenditures - The company generated $456 million in net cash from operating activities for the first nine months of 2025, up from $394 million in the same period of 2024[13] - Cash flows from operating activities for the nine months ended September 30, 2025, were $456 million, an increase from $394 million in the same period of 2024[37] - Capital expenditures for the first nine months of 2025 were $139 million, down from $179 million in the same period of 2024[14] - Free Cash Flow for the nine months ended September 30, 2025, was $317 million, with a Free Cash Flow margin of 14.0%, compared to $215 million and 10.1% in 2024[57] Debt and Assets - Total assets increased to $2.898 billion as of September 30, 2025, compared to $2.800 billion at the end of 2024[36] - Long-term debt decreased to $544 million as of September 30, 2025, down from $692 million at the end of 2024[36] Dividends and Restructuring - The company paid $78 million in dividends to stockholders during the nine months ended September 30, 2025[37] - The company announced a restructuring initiative expected to incur pre-tax expenses of approximately $42-$47 million, aiming to improve annual operating income by $25-$30 million[17][18] - The company is focused on implementing its Restructuring Plan, which may impact future financial performance[27] Future Outlook - The company is strengthening its 2025 outlook, expecting constant currency organic revenue growth between 5.5% and 6%[25] - Adjusted EBITDA margin for the nine months ended September 30, 2025, was not specified but is used to measure operational strength[30][31] - Organic revenue growth for the three months ended September 30, 2025, was $46 million, with a total revenue change of $52 million, reflecting a 6.3% organic growth rate[39] - Adjusted Diluted Earnings Per Share for the three months ended September 30, 2025, was $0.56, compared to $0.49 in 2024[54]