UL Solutions Surpasses $3B Revenue, Pivots for AI and Energy Future

NORTHBROOK, IL – February 19, 2026 – UL Solutions Inc. (NYSE: ULS) announced a landmark financial performance for 2025, surpassing $3 billion in annual revenue for the first time in its history. The global safety science leader reported strong fourth-quarter and full-year results that exceeded guidance, signaling robust health and strategic momentum. The company paired its record-breaking financial report with a forward-looking strategy that includes an 11.5% dividend increase and the strategic sale of a software business unit, positioning itself to capitalize on the burgeoning demands of artificial intelligence and the global energy transition.

A Record Year of Financial Strength

UL Solutions closed 2025 with a full-year revenue of $3.053 billion, a 6.4% increase from the previous year, driven by a strong 6.2% organic growth rate. This performance notably outpaces the broader Testing, Inspection, and Certification (TIC) market, where analysts project average growth rates between 3% and 4% for the same period. The results underscore the essential nature of the company’s safety, security, and sustainability services across a wide range of industries.

“I’m incredibly proud of our team’s outstanding performance, with fourth quarter and full-year results exceeding guidance,” said President and CEO Jennifer Scanlon in a statement. “Surpassing $3 billion in annual revenue for the first time is a significant milestone, reflecting our business model’s strength and resilience during an environment of changing global dynamics.”

The company’s profitability metrics were equally impressive. For the full-year 2025, UL Solutions delivered an Adjusted EBITDA margin of 25.9%, a significant 300 basis point expansion from the prior year. This figure stands well above the long-term average EBITDA margin of approximately 18% for the TIC industry, highlighting superior operational efficiency and cost management. The strong performance was underpinned by a record $600 million in cash flow from operations, a substantial increase from $524 million in 2024. This robust cash generation enabled the company to increase its quarterly dividend to $0.145 per share, reduce its total debt by making $253 million in net repayments, and post a 40.4% increase in free cash flow, which reached $403 million.

“Strong organic growth, continued Adjusted EBITDA margin expansion and robust cash flow generation demonstrate the essential role we play helping customers worldwide,” stated Chief Financial Officer Ryan Robinson. He attributed the margin improvement to operational initiatives, including laboratory productivity gains and footprint optimization.

While GAAP net income for the fourth quarter decreased to $71 million from $85 million in the prior year, this was primarily due to a $37 million pre-tax charge related to a previously announced restructuring plan. On an adjusted basis, which excludes such one-time items, fourth-quarter net income rose 11.8% to $114 million, and Adjusted Diluted EPS increased to $0.53, beating analyst expectations.

Strategic Pruning for Sharper Focus

Alongside its financial achievements, UL Solutions announced a key strategic move: the sale of its Employee Health and Safety (EHS) software business. The definitive agreement, signed on February 12, 2026, is expected to close in the second quarter. While the buyer and financial terms were not disclosed, the company framed the divestiture as a deliberate step to refine its portfolio.

The sale allows UL Solutions to concentrate its resources and strategic efforts on its core ULTRUS™ software platform. This portfolio provides customers with sophisticated risk and compliance software solutions crucial for product safety, supply chain transparency, and enterprise sustainability. By shedding the non-core EHS asset, the company signals a disciplined approach to capital allocation, doubling down on software offerings that are more deeply integrated with its primary testing, inspection, and certification services. This move is consistent with a broader strategy to build a more focused, high-growth business aligned with complex, technology-driven market needs.

Harnessing the Megatrends of AI and Green Energy

The company's strong performance and strategic realignment are deeply connected to its focus on capitalizing on global megatrends. CEO Jennifer Scanlon explicitly pointed to "the global energy transition and rapid AI-fueled digitalization" as key drivers for future growth. The company’s 2025 results already reflect success in these areas, with its Industrial and Consumer segments showing significant strength.

The Industrial segment's revenue grew 7.3% in the fourth quarter, driven primarily by demand in the energy, automation, and fire safety sectors. The Consumer segment saw an 8.4% revenue increase, led by demand for consumer technology services like electromagnetic compatibility (EMC) testing—a critical field for the proliferation of connected, AI-enabled devices.

This alignment positions UL Solutions to capture significant growth in burgeoning markets. The TIC market for energy, for example, is projected to grow at a rate of 9% to 11% annually, fueled by the global push for renewable energy sources and the ongoing need for safety in traditional oil and gas. As new technologies in solar, wind, and battery storage are deployed, the need for trusted, third-party validation of their safety, performance, and interoperability becomes paramount. Similarly, as AI integrates into everything from automobiles to medical devices, UL Solutions’ role in testing for security and reliability expands, solidifying its "science of safety" mission in a new technological era.

Outperforming in a Competitive Field

The global TIC market is a vast and fragmented landscape, with major players including SGS Group, Bureau Veritas, and Intertek Group. In this competitive environment, UL Solutions' 2025 performance demonstrates a clear ability to gain market share and deliver superior profitability. Its focus on outsourced services, which represents the largest and fastest-growing portion of the TIC market, is a key advantage. As companies increasingly look to external experts to navigate complex global regulations and supply chains, UL Solutions’ established brand and comprehensive service offerings become even more valuable.

For 2026, the company projects continued mid-single-digit constant currency organic revenue growth, even after accounting for a 1% reduction from business exits related to its restructuring. It also anticipates further Adjusted EBITDA margin improvement to a range between 26.5% and 27.0%. This confident outlook, combined with its strategic investments and strong balance sheet, suggests UL Solutions is well-equipped to continue its trajectory of high-quality growth and leadership in an industry foundational to global trade and innovation.