Group 1 - The discussion is focused on UL Solutions, a company operating in the Testing, Inspection, and Certification (TIC) industry [1][2] - The TIC industry is recognized as one of the best business services subsectors for U.S. investors and analysts [2]

Core Insights - Bureau Veritas has appointed Santiago Arias Duval as Executive Vice-President for the Americas region, effective November 17, 2025, aligning with the company's new operating model initiated on September 1, 2025 [2][4]. Company Structure and Strategy - The restructuring of the executive committee aims to enhance organizational alignment and empower regional operations with scalable product lines, facilitating global solutions development and cross-selling opportunities [3][4]. - The Americas region is established to capitalize on rapidly developing market opportunities across North, Central, and South America, with a focus on expanding leadership across product lines and creating strongholds in high-growth markets [4]. Leadership and Experience - Santiago Arias Duval will report to Hinda Gharbi, the CEO of Bureau Veritas, and will be part of the Group Executive Committee [5]. - Hinda Gharbi expressed confidence in Santiago's ability to drive growth and performance in the Americas, leveraging his extensive industrial experience and proven business achievements [6]. - Santiago has a strong background, having served as Senior Vice President and General Manager at Ingersoll Rand, where he was responsible for strategy, operations, and commercial performance across various industries [7][8]. Educational Background - Santiago holds an MBA from the Massachusetts Institute of Technology (MIT) and a Bachelor of Science in Electrical Engineering from the Georgia Institute of Technology [10]. Company Overview - Bureau Veritas is a global leader in inspection, certification, and laboratory testing services, with a mission to ensure responsible progress and support customers in navigating change [12]. - Established in 1828, the company employs 84,000 people and operates in 140 countries, addressing challenges in quality, health and safety, environmental protection, and sustainability [13].

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 was $783 million, up 7.1% year-over-year and 6.3% on an organic basis [13][14] - Adjusted EBITDA grew 18.6% to $217 million, with an adjusted EBITDA margin of 27.7%, an increase of 270 basis points from the previous year [14][20] - Adjusted net income for Q3 was $119 million, up 14.4% from last year, with adjusted diluted earnings per share increasing to $0.56 from $0.49 [14][20] Business Line Data and Key Metrics Changes - Industrial segment revenues rose 8.2% to $343 million, with organic growth of 7.3%, driven by certification testing and ongoing services [15] - Consumer segment revenues were $340 million, up 5.9% overall and 5.3% organically, with strong demand in non-certification testing [16] - Software and advisory segment revenues increased 7.5% to $100 million, with organic growth of 6.5%, particularly strong in advisory services [17] Market Data and Key Metrics Changes - The company experienced balanced contributions from all three segments, with notable strength in energy and automation within the industrial sector [15][16] - Growth was observed across various geographic markets, with significant demand shifts noted in Vietnam, Thailand, and India, while traditional markets like Germany and Japan showed slight contractions [34][42] Company Strategy and Development Direction - The company is focusing on transformative industry trends, including energy transition and digital transformation, to drive sustainable growth [5][10] - A restructuring initiative was announced to streamline operations, reduce expenses, and focus on core growth areas, with an expected annual run-rate savings of $25-$30 million once fully implemented [9][20] - The launch of Landmark Artificial Intelligence Safety Certification Testing was highlighted as a strategic move to build public trust in AI technologies [23] Management's Comments on Operating Environment and Future Outlook - Management noted a resilient demand for services despite geopolitical uncertainties, with ongoing customer commitment to product development [10][24] - The full-year 2025 guidance was strengthened, expecting consolidated organic revenue growth of 5.5%-6.0% [20][22] - The company anticipates a modest headwind to organic revenue growth in 2026 due to exiting non-strategic service lines, but overall growth rates for core businesses are expected to remain stable [19][88] Other Important Information - The company generated $317 million in free cash flow year-to-date, up 47% from the previous year, with a robust balance sheet [17][18] - Capital expenditures for 2025 are now expected to be 6.5%-7.0% of revenue, down from previous guidance, primarily due to timing [21][22] Q&A Session Summary Question: Impact of macroeconomic conditions in China on business - Management acknowledged ongoing tariff discussions affecting customer behavior, noting a shift towards supply chain diversification and a new normal in operations [26][28] Question: Performance of the software and advisory business - Management indicated that the strong performance was due to high project completion rates, leading to increased staff utilization, but cautioned against assuming this trend would continue [29][30] Question: Tariff impacts and revenue consistency - Management reported a steady performance in Q3, with significant growth in emerging markets, while traditional markets showed some contraction [34][35] Question: Details on the restructuring plan - The restructuring will focus on exiting non-strategic service lines, freeing up resources for core growth areas, with a modest impact on 2026 revenue [36][38] Question: Growth dynamics across regions - Growth was observed in all regions, with particular strength in the U.S. and Greater China, especially in sectors supporting data center growth [41][42] Question: Utilization of new battery testing labs - Management expressed satisfaction with the investments in battery testing labs, noting a shift towards industrial energy storage systems [46] Question: Historical sources of excess costs and changes - Management confirmed ongoing business process improvements and technology investments to enhance service delivery and reduce costs [54][55] Question: Pricing contributions in Q3 - Pricing and volume growth contributed similarly to revenue growth, with ongoing certification services benefiting from pricing adjustments [58][60] Question: Assurance on growth outlook - Management reassured that the underlying growth outlook remains unchanged despite the restructuring, with a focus on core business areas [87][88]

UL SOLUTIONS INC. Earnings Presentation Q3 2025 November 4, 2025 © 2024 UL LLC. All Rights Reserved. Forward looking statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. These include statements regarding UL Solutions Inc.'s (the "Company") future financial results and estimates and business prospe ...

Core Insights - Bureau Veritas reported robust revenue performance in Q3 2025, with total revenue of EUR 1,583.7 million, reflecting a 2.3% year-on-year increase and a strong organic growth of 6.3% [10][8][11] - The company reaffirmed its full-year 2025 outlook, supported by a solid backlog and a strong opportunities pipeline, with an organic growth rate of 6.6% for the first nine months of the year [4][5][21] - The LEAP | 28 strategy continues to drive the company's growth, with targeted acquisitions contributing to revenue and expanding capabilities in key sectors [6][14] Q3 2025 Key Figures - Revenue of EUR 1,583.7 million, up 2.3% year-on-year and up 6.3% organically [10][8] - Organic growth rates by segment: Marine & Offshore (+16.2%), Buildings & Infrastructure (+7.1%), Industry (+6.9%), Certification (+5.9%), Consumer Products Services (+3.5%), and Agri-Food & Commodities (+2.5%) [11][8] - Negative currency impact of 4.8% due to the euro's appreciation against most currencies [8][11] Financial Position - As of September 30, 2025, the company had net financial debt higher than in June 2025, with over EUR 0.5 billion in available cash and EUR 600 million in undrawn committed credit lines [12] - A EUR 700 million bond was successfully issued with a 3.375% coupon, maturing in October 2033, rated A3 by Moody's [13][12] Strategic Acquisitions - Bureau Veritas signed agreements for two acquisitions in October 2025, expected to generate approximately EUR 32 million in annualized revenue, enhancing its leadership in Buildings & Infrastructure and expanding its Renewables capabilities [6][14] - A total of eight acquisitions have been signed or closed year-to-date, adding EUR 92 million of annualized revenue [6][14] Regional Performance - Revenue growth by region: Europe (+5.2% organically), Asia-Pacific (+8.6% organically), Americas (+1.9% organically), and Africa & Middle East (+15.7% organically) [15] - Strong performance in Southern Europe and France, with double-digit growth in South and Southeast Asia [15] Business Segment Highlights - **Marine & Offshore**: Revenue of EUR 136.6 million, with a strong organic growth of 16.2% driven by new construction and core in-service activities [23][24] - **Agri-Food & Commodities**: Revenue of EUR 284.5 million, with organic growth of 2.5%, supported by strong performance in Metals & Minerals [27][29] - **Industry**: Revenue of EUR 337.7 million, with organic growth of 6.9%, driven by Oil & Gas and Power & Utilities segments [33][35] - **Buildings & Infrastructure**: Revenue of EUR 495.0 million, with organic growth of 7.1%, led by strong demand in the US and Asia-Pacific [41][42] - **Certification**: Revenue of EUR 131.7 million, with organic growth of 5.9%, reflecting strong demand for QHSE & Specialized Schemes solutions [46][48] - **Consumer Products Services**: Revenue of EUR 198.2 million, with organic growth of 3.5%, driven by strong performance in Healthcare and Supply Chain & Sustainability services [52][56]

Core Insights - Bureau Veritas has signed agreements to acquire two companies, Sólida and London Building Control, enhancing its position in the renewables and buildings & infrastructure sectors [2][4] - The acquisitions align with Bureau Veritas' LEAP I 28 strategy, aimed at increasing capability and technical expertise in high-potential markets [3][4] Company Overview - Bureau Veritas is a global leader in Testing, Inspection, and Certification (TIC) services, with a mission to ensure responsible progress and sustainability [5] - The company operates in 140 countries with approximately 84,000 employees, addressing challenges in quality, health and safety, environmental protection, and sustainability [6] Acquisition Details - Sólida specializes in Owner's Engineering, Technical Advisory, and Project Management for renewable energy projects, with a track record of nearly 2,500 projects totaling over 220 GW of renewable capacity [8] - Sólida generated revenues of approximately €18 million in 2024 and employs around 225 professionals [8] - London Building Control is a leading Registered Building Control Approver in the UK, recognized for its services in residential and commercial projects, delivering over 14,000 projects annually [8] - London Building Control generated revenues of approximately €14 million in 2024 and has around 110 employees [8]

Core Insights - UL Solutions and GCC Technical Services Company (TS Co.) have significantly enhanced their strategic partnership to advance fire safety in the Gulf region, with TS Co. now recognized as part of the UL Witness Test Data Program for fire safety [2][3][4] Partnership Details - TS Co. will conduct critical fire safety tests at its laboratories in Dammam, Saudi Arabia, under the supervision of UL Solutions engineers, which will streamline the testing and certification process [4][6] - This localized approach eliminates the need for international shipping of product samples, significantly accelerating time-to-market for manufacturers in the region [5] Regional Impact - The partnership is crucial as Saudi Arabia advances its Vision 2030, which includes significant projects like NEOM and the New Murabba project, representing over $1.5 trillion in investment and requiring high international fire safety standards [8] - TS Co. supports major manufacturing in the Gulf Cooperation Council (GCC) region, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, by providing testing and certification services [7][11] Strategic Value - The collaboration combines UL Solutions' global leadership in safety science with TS Co.'s regional expertise, creating a strong value proposition for the market [9] - The partnership aims to ensure that construction projects in the region meet the highest international safety standards, thereby enhancing overall fire safety and conformity services [6][9]

Core Insights - The Fund underperformed the MSCI World ex USA Index for the quarter but has outperformed the benchmark since inception [5] - Consumer discretionary and materials sectors were the largest contributors to performance, while industrials and communication services were the largest detractors [5] - Geographically, the portfolio is heavily weighted towards Europe ex U.K. (68.4%), followed by the U.K. (11.5%) and Asia ex Japan (9.3%) [5] Performance Analysis - Kering was the top contributor during the quarter, driven by leadership changes and improving revenue trends [7] - CNH Industrial was the top detractor, facing weak results and soft demand, particularly in the U.S., but management expects a rebound in 2025 [8] Portfolio Activity - Six new positions were added to the Fund, while nine were exited during the quarter [9] - New purchases included Bunzl, which is expected to return to stable growth despite recent execution issues [10] - Dassault Systèmes, a leader in virtual twin technology, is viewed as a high-quality investment opportunity despite a nearly 40% decline in share price [11] Company Highlights - FEMSA, a diversified Latin American conglomerate, is well-positioned for growth through strategic divestments and share buybacks [12] - Hexagon has upgraded its management team and is expected to see improvements in return on capital employed and cash flow [13] - Siemens Healthineers is positioned for profitable growth in medical technology, with a favorable product cycle and turnaround in its diagnostics business [16] Investment Returns - The Fund's average annualized total returns show strong performance across various time frames, with the Institutional Class returning 26.51% year-to-date [18]

Core Insights - Acuren Corporation will rebrand as TIC Solutions, Inc. following its merger with NV5 [1] - The merger combines decades of expertise in testing, inspection, certification, engineering, consulting, and geospatial services [1] - The new corporate identity aims to unify the combined enterprise while maintaining the operation of Acuren, NV5, and other legacy brands as trusted entities [1]

Group 1 - Bureau Veritas successfully completed a bond issuance of EUR 700 million, maturing in October 2033, with a coupon rate of 3.375% [2][3] - The bond issuance was oversubscribed by 2.4 times, indicating strong investor confidence in Bureau Veritas' business model and credit profile [3] - The bond will be rated A3 by Moody's, reflecting the company's solid credit standing [3] Group 2 - The new bond issuance is part of Bureau Veritas' LEAP | 28 strategy, aimed at leveraging favorable market conditions for general corporate purposes [3] - Admission of the bonds to trading on Euronext Paris is expected to take place on October 1, 2025 [4] - Crédit Agricole CIB and Natixis served as Global Coordinators and Active Joint Bookrunners for the bond issuance [4] Group 3 - Bureau Veritas is a global leader in testing, inspection, and certification services, with a mission to ensure responsible progress and sustainability [5][6] - The company has a workforce of 84,000 employees operating in 140 countries, addressing challenges in quality, health and safety, environmental protection, and sustainability [6] - Bureau Veritas is listed on Euronext Paris and is part of the CAC 40 and CAC 40 ESG indices [7]