UL Solutions (ULS) Investor presentation summary

Business overview and strategy

• Operates as a global leader in the testing, inspection, and certification (TIC) industry, with a 132-year history and a mission-driven approach focused on safety science and sustainability.

• Maintains long-term customer relationships, recurring revenue streams, and a robust business model anchored by the globally recognized UL Mark.

• Pursues growth through organic initiatives, innovation, disciplined capital allocation, and strategic acquisitions, targeting best-in-class shareholder returns.

• Holds leadership positions in standards bodies and boasts over 650 technical accreditations across 28 countries.

• Growth is driven by megatrends such as energy transition, sustainability, digitization, supply chain risks, and regulatory compliance.

Financial performance and resilience

• Reported $3.1B in 2025 revenue, with 6.2% organic growth and $792M in adjusted EBITDA (25.9% margin).

• Achieved 13.2% free cash flow margin in 2025, with $403M in free cash flow and a conservative leverage profile (total debt/adjusted EBITDA of 0.6x).

• Demonstrated consistent revenue growth (6.8% CAGR from 2011–2025) and high customer retention (98% for top 500 customers since 2021).

• Q2 2026 saw 5.2% revenue growth, 6.6% organic growth, and a 140 bps increase in adjusted EBITDA margin to 26.8%.

• LTM free cash flow reached $436M, up 19.8% year-over-year, with a 13.9% margin.

Segment highlights

• Industrial segment: $1,480M in 2025 revenue, 32.9% adjusted EBITDA margin, and 7.6% organic growth.

• Consumer segment: $1,319M in 2025 revenue, 18.0% adjusted EBITDA margin, and 4.8% organic growth.

• Risk & Compliance Software: $254M in 2025 revenue, 26.8% adjusted EBITDA margin, and 6.3% organic growth.