UL Solutions Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the quarter ended September 30, 2026, was $823 million, an increase of 5.1% from $783 million in the same period in 2025, with organic revenue growth of 7.0%.
• Net income was $117 million, up 10.4% from $106 million in Q3 2025; net income margin increased to 14.2% from 13.5% (a 70 basis point expansion).
• Adjusted Net Income was $135 million, up 13.4% from $119 million in Q3 2025; Adjusted Net Income margin expanded to 16.4% from 15.2% (a 120 basis point increase).
• Diluted earnings per share (EPS) were $0.53, an 8.2% increase from $0.49 in Q3 2025; Adjusted Diluted EPS was $0.62, up 10.7% from $0.56.
• Adjusted EBITDA was $235 million, an 8.3% increase from $217 million in Q3 2025; Adjusted EBITDA margin expanded to 28.6% from 27.7% (a 90 basis point increase).
• For the nine months ended September 30, 2026, net cash provided by operating activities was $594 million, a 30.3% increase from $456 million in the prior year period.
• Free Cash Flow for the nine months ended September 30, 2026, was $395 million, a 24.6% increase from $317 million in the same period in 2025.
• Total debt as of September 30, 2026, was $766 million, up from December 31, 2025 levels due to borrowings for the E&E Transaction.
• Cash and cash equivalents ended the quarter at $1,016 million, compared to $295 million at December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 organic revenue growth outlook strengthened to approximately 6.5% (inclusive of approximately 70 basis points revenue reduction from business exits in the Restructuring Plan).
• Full-year 2026 Adjusted EBITDA margin outlook reaffirmed at approximately 27.0%, driven by approximately 200 basis points of underlying margin expansion, partially offset by approximately 90 basis points of incremental transaction costs versus 2025.
• Full-year 2026 effective tax rate expected to be approximately 26%.
• Full-year 2026 capital expenditures expected to be approximately 8.5% of revenue.
• Company intends to continue pursuing acquisitions and portfolio refinements.

Business Segments and Product Lines:

• Industrial Segment: Revenue was $410 million in Q3 2026, up 8.2% from $379 million in Q3 2025; Adjusted EBITDA margin was 36.1% in Q3 2026 versus 34.6% in Q3 2025.
• Consumer Segment: Revenue was $360 million in Q3 2026, up 5.9% from $340 million in Q3 2025; Adjusted EBITDA margin was 21.4% in Q3 2026 versus 19.7% in Q3 2025.
• Risk & Compliance Software Segment: Revenue was $53 million in Q3 2026, down 17.2% from $64 million in Q3 2025; Adjusted EBITDA margin was 18.9% in Q3 2026 versus 29.7% in Q3 2025.
• On April 1, 2026, the Company sold its non-core Employee Health and Safety software business for $201 million in cash.
• In July 2026, the Company acquired Evnia Consulting Firm Inc. for approximately $6 million in cash to add extended producer responsibility management and environmental compliance services.
• On October 1, 2026, the Company completed the acquisition of Eurofins Scientific SE's electrical and electronics (E&E) business for approximately $686 million in cash, the largest acquisition in the Company's history.

Market and Competitive Landscape:

• Growth is aligned with megatrends including the global energy transition and electrification of everything.
• Demand is driven by increasingly digital, interconnected products and supply chains requiring trusted services and software.
• The E&E Transaction expands support for customers seeking global market access with new laboratories and accreditations across EMEA, Asia, and the United States.
• The Company focuses on solidifying its position as a leader in product testing, inspection, and certification (TIC) services.

Risks and Challenges:

• Geopolitical environment and associated macroeconomic uncertainty may cause customers to modify, delay, or cancel plans to purchase services.
• Risks include potential disruption from technological advances in artificial intelligence and cybersecurity incidents.
• Uncertainty regarding the financial performance following the E&E Transaction and the ability to successfully integrate the acquired business.
• Risks related to operations in China, including complex and evolving laws and potential government oversight or intervention.
• The Restructuring Plan involves charges and expenditures that may differ from estimates, and benefits may not be realized as anticipated.
• Potential impacts from foreign currency exchange rate fluctuations, tariffs, and trade restrictions.

Management Commentary and Tone:

• President and CEO Jennifer Scanlon described the quarter's record revenue and margin expansion as reflecting a strategic focus on megatrends and noted strong year-to-date performance with ongoing opportunities for growth.
• CFO Ryan Robinson highlighted continued strong execution, broad-based demand, operating leverage, and productivity gains as drivers for the 7.0% organic revenue growth and record Adjusted EBITDA margin.
• Management expressed confidence in the strengthened outlook for organic revenue growth and the ability to achieve the full-year Adjusted EBITDA margin target despite transaction costs.

Other Key Points:

• On October 30, 2026, the Company sold its shareholding in DQS Holding GmbH for approximately $117 million and used the proceeds to repay revolving credit borrowings.
• The Company paid a dividend of $0.145 per share ($29 million total) during the three months ended September 30, 2026.
• The Company does not provide guidance for net income margin or a reconciliation of forecasted Adjusted EBITDA margin to net income margin without unreasonable effort.
• The E&E Transaction is intended to strengthen TIC capabilities in electromagnetic compatibility, wireless testing, electrical safety, and medical devices.