UL Solutions Q2 Revenue Hits $816M, Adjusted EBITDA Margin Expands to 26.8%, Raises Full-Year Margin Outlook
ULS sits 48% above its 52-week low of $61.64.
Summary
UL Solutions reported Q2 2026 revenue of $816 million, up 5.2% (6.6% organic), with Adjusted EBITDA margin expanding to 26.8%. The company raised its full-year Adjusted EBITDA margin outlook to approximately 27.0%, reflecting strong operational execution and confidence in continued margin improvement.
Key Events · Earnings and Guidance · ULS
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Q2 Revenue and Organic Growth
Revenue reached $816 million, a 5.2% increase year-over-year, driven by 6.6% organic growth led by the Industrial and Consumer segments.
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Adjusted EBITDA Margin Expansion
Adjusted EBITDA rose 11.2% to $219 million, with margin expanding 140 basis points to 26.8%, fueled by operating leverage and productivity gains.
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Net Income Boosted by Divestiture Gain
Net income surged 161.9% to $254 million, including a $191 million gain on the sale of the Employee Health and Safety software business; Adjusted Net Income grew 17.3% to $129 million.
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Raised Full-Year Margin Outlook
The company now expects full-year Adjusted EBITDA margin of approximately 27.0%, up from prior implied levels, alongside mid-single digit organic revenue growth.
Analysis · ULS · Industrial Applications And Services
A strong second quarter underscored UL Solutions' operational momentum, with organic revenue climbing 6.6% and Adjusted EBITDA margin widening 140 basis points to 26.8%. Net income soared 161.9% to $254 million, lifted by a $191 million gain on the divestiture of its EHS software business. Confidence in sustained profitability prompted the company to raise its full-year Adjusted EBITDA margin target to approximately 27.0%. Free cash flow remained robust at $241 million for the first half, and the balance sheet is healthy with $434 million in cash against $303 million in debt. The results and upgraded guidance highlight the company's ability to drive margin expansion through operating leverage and productivity improvements, even as it navigates planned business exits and a mixed macro environment.
At the time of this filing, ULS was trading at $91.05 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $18.4B. The 52-week trading range was $61.64 to $107.54. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.