UL Solutions Surpasses $3B Revenue, Boosts Dividend Amid Margin Expansion
Event summary
- UL Solutions reported $3.05B in full-year 2025 revenue, up 6.4% YoY, exceeding guidance.
- Adjusted EBITDA margin expanded to 25.9%, a 300 basis point increase from 2024.
- Fourth-quarter revenue grew 6.8% YoY to $789M, with organic growth of 5.7%.
- The company increased its quarterly dividend by 11.5% to $0.145 per share.
- UL Solutions plans to sell its Employee Health and Safety software business in Q2 2026.
The big picture
UL Solutions' strong 2025 performance reflects its strategic positioning in the global energy transition and AI-fueled digitalization trends. The company's ability to expand margins while increasing dividends highlights disciplined capital allocation in a competitive testing and certification market. The planned divestiture suggests a focus on streamlining operations to drive long-term value.
What we're watching
- Execution Risk
- Whether UL Solutions can sustain mid-single digit organic revenue growth in 2026 amid geopolitical uncertainty.
- Strategic Focus
- How the divestiture of the Employee Health and Safety software business will impact the company's core ULTRUSTM portfolio.
- Operational Efficiency
- The pace at which UL Solutions can continue improving Adjusted EBITDA margins through productivity gains and footprint optimization.
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