Summary of UL Solutions Conference Call Company Overview - **Company**: UL Solutions (NYSE: ULS) - **Industry**: Product safety testing, inspection, and certification - **Revenue**: $3.1 billion in the previous year with approximately 14,500 employees - **Market Share**: Approximately 7% of the global market for product and component testing, inspection, and certification [6][12] Key Messages - **Mission-Driven**: UL Solutions has a long-standing mission focused on safety science, starting in 1894, which continues to distinguish the company in a fragmented and consolidating industry [4][5] - **Customer Relationships**: The company has deep, long-lasting relationships with customers, contributing to recurring revenue streams [5] - **Global Presence**: 41% of customers are based in the U.S., 25% in Greater China, and 17% in Europe, Middle East, and Africa [7] Revenue Segmentation - **Certification Testing**: 28% of revenue, driven by regulatory requirements [8] - **Ongoing Certification Services**: 33% of revenue, ensuring products continue to meet safety standards [9] - **Non-Certification Testing and Other Services**: 30% of revenue, including performance testing and wireless product testing [10] - **Enterprise Software**: 9% of revenue, focusing on risk reduction and compliance [11] Industry Dynamics - **Market Size**: The global testing, inspection, and certification industry is valued at over $240 billion, with $99 billion outsourced [12] - **Megatrends**: Key growth drivers include energy transition, electrification, digitalization, and AI, which are reshaping product development and safety requirements [14][15] Strategic Focus - **Consolidation**: The industry is consolidating, with UL Solutions focusing on acquisitions that expand service offerings and operational footprint [18][20] - **Capacity Building**: The company is investing in new labs and facilities to meet customer demands, particularly in battery testing for electric vehicles [22][23] - **Supply Chain Adaptation**: UL Solutions is evolving its geographic distribution to support customers' changing supply chain needs, including expansion in Vietnam, India, and Mexico [26] Financial Performance - **CAGR**: The company has maintained a steady growth rate of 6.8% since 2012, driven by innovation rather than GDP growth [28] - **Margin Expansion**: Adjusted EBITDA grew by 21% last year, with a forecast for additional margin expansion of 60 to 110 basis points in 2026 [48][49] Brand and Global Expansion - **UL Mark**: Recognized as a premier safety brand in North America, with opportunities for global expansion through partnerships with UL Standards & Engagement and UL Research Institutes [51][54] Software and Technology - **EHS Software Business**: The focus is on risk and compliance software, helping customers navigate changing regulations and manage supply chain risks [58][59] - **AI Integration**: The company is developing standards for AI-embedded products and enhancing internal processes through technology [38][42] Capital Allocation - **Investment Strategy**: The company prioritizes reinvestment in growth, with nearly $200 million allocated back into the business last year [63] - **Dividend Policy**: UL Solutions has increased its cash dividend and is considering share repurchases as part of its capital allocation strategy [63] Conclusion - UL Solutions is well-positioned in a consolidating industry with a strong focus on safety, innovation, and customer relationships, supported by a robust financial performance and strategic investments in technology and capacity expansion. The company is leveraging megatrends to drive growth and enhance its market presence globally.

Financial Data and Key Metrics Changes - In 2025, the company achieved a revenue growth of approximately 4% to $2.1 billion, marking the highest combined full-year revenue [9] - Adjusted EBITDA for the full year was approximately $312 million, with an adjusted EBITDA margin of 14.8% [9][24] - For Q4 2025, total revenue was $508 million, reflecting a flat year-over-year performance, with adjusted gross profit increasing by 8% to $197 million [22][24] Business Line Data and Key Metrics Changes - In the Inspection and Mitigation (I&M) segment, revenue was approximately $1.1 billion for 2025, remaining roughly flat year-over-year, with an adjusted gross margin of 27.8% [19][20] - The Consulting Engineering (CE) segment saw revenue of $714 million, up roughly 8% against 2024, with an adjusted gross margin of 47.0% [20][21] - Geospatial (Geo) revenue was $298 million, up roughly 6% against 2024, with an adjusted gross margin of 51.5% [21] Market Data and Key Metrics Changes - The backlog within CE and Geo was $1.07 billion, up about 10% from approximately $970 million last year [15] - Data center revenue increased significantly, reaching nearly $70 million in 2025, more than doubling from the prior year [12] - The federal funding lapse affected timing of work in Geo but did not lead to material cancellations [14] Company Strategy and Development Direction - The company plans to accelerate organic growth with a focus on cross-selling and deeper client engagement across segments [10] - There is a strong emphasis on strengthening organizational alignment and cultural cohesion while driving margin expansion through cost management [10][16] - The company aims to leverage its combined capabilities to expand share of wallet with key clients in infrastructure, industrial, utilities, and government sectors [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leadership transition and the strategic direction of the company, highlighting the importance of maintaining operational stability during the transition [7][31] - The company anticipates continued growth driven by infrastructure reinvestment and regulatory compliance, with a focus on execution and delivering on targets [34] - For 2026, the company expects revenue in the range of $2.15 billion to $2.25 billion, with adjusted EBITDA between $330 million and $355 million [27] Other Important Information - The company completed a $250 million private placement to strengthen its balance sheet and provide flexibility for growth opportunities [25] - An integration program is underway, with a commitment to deliver $25 million in cost synergies, with half expected to be realized in 2026 [26] - A $200 million share repurchase program has been authorized to provide flexibility based on market conditions [32] Q&A Session Summary Question: Can you talk more about the integration process and specific milestones for 2026? - Management expressed confidence in the integration process, focusing on communication, culture, and achieving cost savings [39] Question: What are the biggest potential synergies and go-to-market strategies? - Management highlighted exciting developments in cross-selling opportunities, particularly in the data center space [40][41] Question: What are the expectations for the energy and oil end markets? - Management indicated good visibility on planned outages and run-and-maintain contracts, suggesting stability in the energy sector [51] Question: Can you elaborate on the EBITDA margins in the latest 2026 guidance? - Management acknowledged adjustments due to stock compensation changes but emphasized growth and margin expansion from improved execution [59] Question: How does the current situation in the Middle East impact the business? - Management noted that the Middle East represents a small portion of the business, with minimal current impact from rising oil prices [65] Question: What is the outlook for capital allocation? - Management confirmed a robust tuck-in acquisition pipeline while maintaining flexibility for share buybacks based on market conditions [78][79]

4Q 2025 Earnings Presentation March 12, 2026 Disclaimer FORWARD-LOOKING STATEMENTS Certain statements in this presentation are "forward-looking" statements based on assumptions currently believed to be valid. Forward-looking statements are all statements other than statements of historical facts. The words "anticipate," "believe," "ensure," "expect," "if," "intend," "estimate," "probable," "project," "forecasts," "predict," "outlook," "aim," "will," "could," "should," "would," "potential," "may," "might," " ...

Core Viewpoint - TIC Solutions reported a full year revenue of $1.5 billion for 2025, with a fourth quarter revenue of $508.3 million, alongside a net loss of $87.1 million and an Adjusted EBITDA of $234.1 million. The company also announced a CEO succession plan, with Ben Heraud set to take over from Tal Pizzey on March 31, 2026, following a deliberate succession planning process [1][2][5]. Financial Performance - Full year 2025 revenue reached $1,530.3 million, a 39% increase compared to the prior year's combined revenue of $1.1 billion [1][5]. - The Adjusted EBITDA for 2025 was $234.1 million, reflecting a 25% improvement from the previous year's combined Adjusted EBITDA of $186.7 million [1][5]. - The net loss for 2025 was $87.1 million, an improvement from the prior year's combined net loss of $121.2 million [1][5]. Fourth Quarter Highlights - Fourth quarter revenue for 2025 was $508.3 million, a 94% increase from the previous year's fourth quarter revenue of $262.0 million [1][5]. - Adjusted EBITDA for the fourth quarter was $76.4 million, an 87% increase year-over-year [1][5]. - The net loss for the fourth quarter was $47.2 million, compared to a net loss of $15.6 million in the same quarter of the previous year [1][5]. Business Integration and Strategy - The integration of NV5 is progressing, with $25 million in identified cost synergies expected to be realized, half of which is anticipated in 2026 [1][2]. - The company aims to reduce net leverage to below 3 times and plans to increase the pace of strategic acquisitions supported by strong cash flow generation [2][5]. Capital Resources and Liquidity - As of December 31, 2025, TIC Solutions had total liquidity of $550.6 million, including cash and cash equivalents of $439.5 million [2][5]. - The company completed a $250 million private placement in October 2025, enhancing its balance sheet and providing flexibility for corporate purposes [2][5]. Guidance for 2026 - For the full year 2026, TIC Solutions expects Adjusted EBITDA in the range of $330 to $355 million and revenue between $2,150 to $2,250 million [2][5].

Company Overview - Intertek Group reported total revenue of £3.4 billion, an increase of 4.3% at constant currency and 1.1% at actual rates, with operating profit at constant rates rising 9.3% to £620 million [6] - The company achieved diluted EPS of 253.5 pence, reflecting a 10.1% increase at constant rates and 5.4% at actual rates [6][7] - The operating margin improved to 18.1%, up 90 basis points year-on-year at constant currency, with cash conversion at 110% [7] Segment Performance - **World of Energy**: Revenue decreased to £729 million, down 1.3% from 2024, with operating profit at £63 million, down 15%. The company anticipates low single-digit like-for-like growth in 2026 [1] - **Industry & Infrastructure**: Revenue increased to £858 million, up 5.3%, with operating profit rising 24% to £95 million. Management expects mid-single-digit like-for-like growth in 2026 [2] - **Health & Safety**: Revenue rose to £347 million, up 5.5%, with operating profit increasing 2% to £45 million. The company expects low single-digit like-for-like growth in 2026 [3] - **Corporate Insurance**: Revenue increased to £514 million, up 6.8%, with operating profit at £116 million, up 3%. The company anticipates high single-digit like-for-like growth in 2026 [4] - **Consumer Products**: Revenue reached £983 million, up 6.2%, with operating profit rising 11% to £299 million. Management expects mid-single-digit like-for-like growth in 2026 [4] Cash Flow and Financial Guidance - Adjusted cash from operations was £762 million, down from a peak in 2024, with adjusted free cash flow at £352 million due to lower cash generation and increased costs [5] - Financial guidance for 2026 includes net finance costs of £71 million to £72 million, an effective tax rate of 25.5% to 26.5%, and CapEx of £150 million to £160 million [17] Strategic Initiatives - The company has completed seven acquisitions in recent years, with acquired businesses delivering an aggregate 34% margin in 2025 [12] - Management highlighted ongoing restructuring efforts, with annual savings from restructuring programs projected at £8 million in 2026 [11] - Intertek launched SupplyTek in 2025 to assist clients in assessing supply chain options amid changing economic conditions [15] Market Outlook - Management expects mid-single-digit like-for-like revenue growth in 2026, alongside further margin progression and strong cash generation [9] - The company reported 5.4% like-for-like growth in China in 2025, maintaining a diversified portfolio across business lines [14]

Core Insights - Bureau Veritas achieved sector-leading organic revenue growth of 6.5% in FY 2025, with a strong margin improvement to 16.3% [1][4][10] - The company has a positive growth outlook for 2026, expecting continued margin expansion and a new EUR 200 million share buyback program [1][4][8] Financial Performance - Full-year revenue reached EUR 6,466.4 million, up 6.5% organically, with Q4 organic growth at 6.3% [4][9][40] - Adjusted operating profit increased to EUR 1,052.9 million, a 5.7% rise from EUR 996.2 million in FY 2024, with an adjusted operating margin of 16.3% [4][9][37] - Adjusted net profit was EUR 631.4 million, up 1.7% from EUR 620.7 million in FY 2024, with adjusted EPS at EUR 1.42, reflecting a 2.8% increase [4][9][47] - Free cash flow totaled EUR 824.2 million, a 3.9% organic increase, with cash conversion at 107% [4][9][50] Strategic Developments - The company executed nine bolt-on acquisitions in 2025, contributing EUR 96 million in annualized revenue, while also divesting two non-core activities [4][20][21] - The LEAP I 28 strategy is progressing, with a focus on enhancing operational leverage and functional scalability [4][5][20] - A new organizational structure was implemented to accelerate strategy execution and improve alignment across geographic platforms [4][26][28] Market Trends and Growth Drivers - Strong organic growth was driven by increased energy investments, digital infrastructure development, and demand for corporate risk assessment solutions [4][10][20] - The Americas region saw organic revenue growth of 4.0%, Europe at 4.1%, Asia-Pacific at 8.2%, and the Middle East & Africa at 16.6% [4][40] Shareholder Returns - Bureau Veritas achieved double-digit shareholder returns, supported by a 9% EPS growth at constant currency and a proposed dividend of EUR 0.92 per share, up 2.2% year-on-year [4][13][14] - The new EUR 200 million share buyback program represents approximately 1.5% of outstanding share capital [4][8][13]

Core Insights - Bureau Veritas is acquiring SPIN360, an Italian consulting firm specializing in sustainable innovation for premium fashion and luxury brands, to enhance its capabilities in the Consumer Product Services industry [1][2][3] Group 1: Acquisition Details - The acquisition aligns with Bureau Veritas' LEAP | 28 strategy aimed at establishing strongholds in key markets, particularly Italy [2] - SPIN360 offers proprietary Life Cycle Assessment (LCA) tools and data-driven advisory services, which will complement Bureau Veritas' certification and supply chain auditing expertise [3] - SPIN360 generated approximately €4 million in revenue in 2024 and employs around 30 experts in various sustainability-related fields [4] Group 2: Strategic Goals - The acquisition is intended to position Bureau Veritas as a global center of excellence for premium fashion and luxury brands, enhancing its portfolio in sustainability solutions [3][5] - Bureau Veritas aims to be the preferred partner for brands navigating sustainable transformation, reflecting its commitment to integrated compliance and sustainability solutions [5]

Core Insights - The increasing expectations for Environmental, Social, and Governance (ESG) from society are putting pressure on non-listed small and medium-sized enterprises (SMEs) to disclose reliable sustainability data [1][3] - The Voluntary Sustainability Reporting Standard for Non-Listed SMEs (VSME) provides a simplified and scalable solution for micro, small, and medium enterprises, serving as an alternative to the Corporate Sustainability Reporting Directive (CSRD) [1][3] Group 1: VSME Overview - VSME is a voluntary standard specifically designed for non-listed micro, small, and medium enterprises that are not required to comply with CSRD but face growing ESG reporting demands [3] - Two modules are available under VSME: a basic module and a comprehensive module, allowing companies to choose based on their needs and capabilities [3] Group 2: Basic Module - The basic module requires SMEs to disclose 11 simplified ESG information items, focusing on key indicators without the need for dual materiality analysis [4] Group 3: Comprehensive Module - The comprehensive module adds nine additional disclosure items for SMEs needing to provide more detailed reports, including general information, environmental indicators, social indicators, governance indicators, business model and strategy, practices and policies, Scope 3 greenhouse gas emissions, climate risks and GHG targets, and human rights [5] Group 4: Benefits of VSME - VSME helps clarify sustainability positions and standardizes ESG reporting, enhancing transparency and building trust with stakeholders [7] - Clear and structured information disclosure improves relationships with banks and investors, facilitating better financing channels [8] - Preparing for future regulations by proactively addressing potential reporting obligations under evolving EU directives and standards [9] - Identifying internal ESG opportunities by recognizing gaps in energy, water, waste, and labor management performance [10] - Gaining a competitive advantage through verified and credible reporting, showcasing sustainability leadership in the industry [11] Group 5: SGS Services - SGS offers end-to-end services covering the entire VSME process, from understanding standards to report preparation, data verification, and report assurance [13] - Customized services for VSME implementation are available based on the company's needs and maturity, providing guidance and tools for understanding and adopting VSME standards [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]

Q3 2025 Financial Highlights - Revenue grew by 71% with organic growth of 63%[9] - Adjusted Net Income increased by 144%[9] - Adjusted EBITDA increased by 186% with Adjusted EBITDA margin up by 270 bps[9] - Free Cash Flow generated was $389 million for the last twelve months ended September 30 2025[9] Q3 2025 Revenue Breakdown - Total revenue for Q3 2025 was $783 million, compared to $731 million in Q3 2024[11] - Industrial revenue increased by 82% to $343 million[20] - Consumer revenue increased by 59% to $340 million[23] - Software and Advisory revenue increased by 75% to $100 million[27] Q3 2025 Adjusted EBITDA - Adjusted EBITDA for Q3 2025 was $217 million, a 186% increase from $183 million in Q3 2024[14] - Industrial Adjusted EBITDA increased by 160% to $123 million with a margin of 359%[20] - Consumer Adjusted EBITDA increased by 129% to $70 million with a margin of 206%[23] - Software and Advisory Adjusted EBITDA increased by 600% to $24 million with a margin of 240%[27] 2025 Outlook - The company expects constant currency organic revenue growth to be between 55% and 6%[37] - Adjusted EBITDA margin organic improvement is expected to be approximately 25%[37] - Capital expenditures are projected to be between 65% and 7% of revenue[37]