UL Solutions (NYSE: ULS) reported second-quarter 2026 revenue of $816 million, up 5.2% from $776 million, while diluted EPS rose 168.9% to $1.21 from $0.45. Organic revenue grew 6.6% and adjusted EBITDA margin expanded 140 basis points to 26.8%, although the much larger increase in GAAP earnings mainly reflected a gain on the sale of the Employee Health and Safety software business.
Core financial results
For the quarter ended June 30, 2026, UL Solutions generated higher revenue and improved adjusted profitability. Management attributed the adjusted margin expansion to productivity and cost improvements, higher revenue and operating leverage, led by the Consumer segment.
GAAP net income grew substantially faster than the adjusted measures because it included the software-business divestiture gain. Adjusted net income and adjusted EBITDA still posted double-digit growth, indicating that the quarter’s improvement was not solely transaction-driven.
| Metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Revenue | $816 million | $776 million | +5.2% |
| Net income | $254 million | $97 million | +161.9% |
| Net income margin | 31.1% | 12.5% | +1,860 bps |
| Adjusted net income | $129 million | $110 million | +17.3% |
| Adjusted net income margin | 15.8% | 14.2% | +160 bps |
| Diluted EPS | $1.21 | $0.45 | +168.9% |
| Adjusted diluted EPS | $0.59 | $0.52 | +13.5% |
| Adjusted EBITDA | $219 million | $197 million | +11.2% |
| Adjusted EBITDA margin | 26.8% | 25.4% | +140 bps |
Adjusted net income, adjusted EPS and adjusted EBITDA are non-GAAP measures and exclude certain items that affect their GAAP equivalents, including gains on divestitures where applicable.
Business and segment performance
Organic revenue increased 6.6%, exceeding the 5.2% reported revenue growth rate. The Industrial and Consumer segments led organic growth, while the Consumer segment was also the primary contributor to operating leverage and adjusted EBITDA margin expansion.
This indicates that the Consumer segment contributed to both the top line and profitability. The release did not provide detailed quarterly revenue or profit figures for individual segments.
A divestiture amplified GAAP profit beyond the underlying improvement
UL Solutions’ net income margin increased by 18.6 percentage points to 31.1%, compared with a 1.6-point increase in adjusted net income margin to 15.8%. The difference largely reflects the gain from selling the Employee Health and Safety software business within the Risk & Compliance Software segment.
The divestiture therefore limits the usefulness of comparing headline net income and EPS directly with the prior-year quarter. At the same time, adjusted net income growth of 17.3%, adjusted EBITDA growth of 11.2% and a 140-basis-point increase in adjusted EBITDA margin show a separate improvement in underlying operations.
Profitability, cash flow and the balance sheet
Cash-flow figures in the release cover the first six months of 2026 rather than the second quarter alone. Operating cash flow increased by $78 million to $379 million, from $301 million in the first half of 2025, reflecting improved business performance and the timing of certain working-capital items.
Capital expenditures rose to $138 million from $93 million as UL Solutions invested to meet demand and improve productivity. Despite the additional spending, first-half free cash flow increased to $241 million from $208 million.
UL Solutions ended June with $434 million in cash and cash equivalents, up from $295 million at the end of 2025. Total debt was $303 million before unamortized issuance costs, following $191 million of net repayments on the revolving credit facility. The company also paid a second-quarter dividend of $0.145 per share, totaling $29 million.
Full-year 2026 outlook
UL Solutions’ current full-year outlook calls for continued organic growth and an adjusted EBITDA margin of approximately 27.0%. The organic growth target already incorporates an estimated one-percentage-point revenue reduction from business exits associated with the restructuring plan.
| Metric | Full-year 2026 outlook | Key detail |
|---|---|---|
| Organic revenue growth | Mid-single digits | Constant-currency basis; includes approximately 1% reduction from business exits |
| Adjusted EBITDA margin | Approximately 27.0% | Q2 margin was 26.8% |
| Effective tax rate | Approximately 26% | Full-year rate |
| Capital expenditures | Approximately 8.5% of revenue | Supports capacity and productivity investments |
The outlook also assumes continued execution of the restructuring plan. UL Solutions did not provide a forecasted GAAP net income margin or a reconciliation to the adjusted EBITDA margin target because reliable estimates for certain components were unavailable.
Recent insider transactions
The supplied six-month aggregate data shows 455,992 shares purchased across 42 transactions and 93,050 shares sold across 10 transactions, resulting in net reported purchases of 362,942 shares. Separately, the most recent itemized records with a clear transaction type and value consisted mainly of sales, plus one stock gift.
| Date | Insider and role | Transaction | Reported value |
|---|---|---|---|
| July 1, 2026 | Jennifer F. Scanlon, CEO | Sale | $1,240,277 |
| June 9, 2026 | Karen K. Pepping, Officer | Sale | $70,862 |
| June 3, 2026 | Gitte Schjotz, COO | Sale | $2,154,723 |
| June 1, 2026 | Jennifer F. Scanlon, CEO | Sale | $1,249,983 |
| May 29, 2026 | Ryan D. Robinson, CFO | Stock gift | $0 |
| May 28, 2026 | Alberto Uggetti, Officer | Sale | $234,242 |
| May 21, 2026 | Friedrich Hecker, Director | Sale | $408,174 |
The aggregate six-month figures and the latest itemized transactions cover different views of insider activity and should not be treated as contradictory. Neither the sales nor the net aggregate purchases, by themselves, establish insiders’ views of the company’s prospects.
Risks investors should monitor
- Customer delays linked to geopolitical uncertainty: UL Solutions said customers could modify, delay or cancel testing and product-development plans, which could affect revenue and capacity utilization.
- Restructuring execution: The outlook includes an approximately 1% revenue reduction from planned business exits. Delays, higher costs or lower-than-expected benefits could affect growth and margins.
- Earnings comparability: The divestiture gain materially increased GAAP net income and EPS, making adjusted results more useful for assessing whether operating improvement continues.
- Higher investment requirements: First-half capital expenditures increased from $93 million to $138 million, while the full-year outlook calls for spending equal to approximately 8.5% of revenue. Continued elevated investment could limit how much operating cash flow converts into free cash flow.
Summary
UL Solutions’ second-quarter results combined 6.6% organic revenue growth with improved adjusted margins, supported by Industrial and Consumer growth, productivity and operating leverage. The software-business sale made the GAAP profit increase unusually large, but adjusted earnings and EBITDA also advanced. The main follow-up points are whether UL Solutions can sustain margins near its 27.0% full-year target, execute planned business exits and maintain free-cash-flow growth while capital spending remains elevated.
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