Summary of UL Solutions Conference Call Company Overview - **Company**: UL Solutions (NYSE: ULS) - **Industry**: Testing, Inspection, and Certification (TIC) Key Points Business Segments and Revenue - UL Solutions operates in two main segments: industrial tech and consumer tech, with 33% of revenue being recurring from inspection and certification services [4][8][11] - Industrial tech is identified as the core focus, with historical roots in electrical safety [11][12] - Industrial segment has experienced high single-digit revenue growth, driven by mega trends such as energy transition and the proliferation of devices connected to the electrical grid [14][15] Growth Drivers - The industrial segment has seen double-digit revenue growth in 2023 and 2024, attributed to trends in energy generation and innovative uses of electrical energy [14] - Data centers and renewable energy are significant growth drivers, although specific revenue percentages tied to these sectors have not been disclosed [16][17][38] Margin Expansion - EBITDA margin expansion in the industrial segment is attributed to operational efficiencies and pricing initiatives [23][28] - Consumer segment margins have improved but are inherently lower due to higher labor intensity in testing processes [36][37] Market Position and Competitive Advantage - UL Solutions has a strong reputation in the U.S. market, benefiting from its involvement in crafting safety standards and regulations [38][39] - The company has historically outperformed industry growth rates and expects to continue this trend [39][41] Future Investments and Innovations - Plans for new laboratory facilities, including a Fire Research Center of Excellence, are set to enhance UL's capabilities in fire safety [50][72] - The company is focusing on expanding its software and advisory services, particularly in supply chain traceability and ESG reporting [51][75] Challenges and Adaptations - The consumer product division faced challenges due to tariff uncertainties, but clients have adapted to the new normal [33][34] - The company is continuously looking for ways to optimize its lab utilization and operational efficiency [31][32] Conclusion - UL Solutions is positioned for continued growth in the TIC industry, with a strong focus on industrial tech and a commitment to innovation and operational efficiency. The company is adapting to market changes and investing in future capabilities to maintain its competitive edge.

Core Insights - SGS demonstrates strong confidence in the Chinese market by participating in the China International Import Expo, showcasing its commitment to quality and trust [1][2] - The company has identified significant growth opportunities in emerging sectors such as electric vehicles, beauty and medical aesthetics, smart home appliances, and green building materials, driven by China's consumption policies [1][2] Group 1: Market Opportunities - SGS has expanded its service offerings in response to new demands for semiconductor chip testing, battery testing, cosmetic efficacy evaluation, and cybersecurity certification [1] - The company has over 16,000 employees, more than 100 branches, and over 200 laboratories in China, establishing a comprehensive service network [1] Group 2: Sustainability and Compliance - There is a growing focus on "quality compliance" in the Chinese market, extending beyond product safety to include eco-friendliness and carbon footprint considerations [2] - SGS has introduced a sustainable development service framework to provide efficient solutions for companies aiming for sustainability [2] Group 3: Technological Integration - The widespread application of network technology and artificial intelligence allows SGS to offer one-stop testing and certification services for AI products, including robotics [2] - The company plans to support Chinese enterprises in obtaining multi-country certifications to facilitate their expansion into domestic and international markets [2] Group 4: Future Directions - SGS aims to align with China's industrial policy directions and expand its third-party quality services in emerging industries [2] - The company is focused on digital transformation and AI empowerment to enhance service efficiency and customer experience in China [2]