--- title: "UL Solutions | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 758 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285192362.md" datetime: "2026-05-05T11:04:35.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285192362.md) - [en](https://longbridge.com/en/news/285192362.md) - [zh-HK](https://longbridge.com/zh-HK/news/285192362.md) --- # UL Solutions | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 758 M Revenue: As of FY2026 Q1, the actual value is USD 758 M, beating the estimate of USD 748.66 M. EPS: As of FY2026 Q1, the actual value is USD 0.45, beating the estimate of USD 0.3706. EBIT: As of FY2026 Q1, the actual value is USD 146 M. ### First Quarter 2026 Financial Results #### Overall Performance UL Solutions Inc. reported a net income of $97 million, a 36.6% increase from $71 million in Q1 2025, with the net income margin expanding by 270 basis points to 12.8%. Adjusted Net Income increased by 33.8% to $107 million from $80 million in Q1 2025, and the Adjusted Net Income margin rose by 280 basis points to 14.1%. Adjusted EBITDA increased by 22.4% to $197 million from $161 million, with the Adjusted EBITDA margin expanding by 320 basis points to 26.0%. #### Operating Costs Operating income for the quarter was $138 million, an increase from $109 million in Q1 2025. Cost of revenue was $377 million in Q1 2026, up from $365 million in Q1 2025. Selling, general, and administrative expenses were $243 million, compared to $232 million in the prior year. Interest expense was - $8 million, an improvement from - $12 million in Q1 2025, and other expense, net, was - $1 million, down from - $3 million. Income tax expense increased to $32 million from $23 million. #### Revenue by Major Service Category - **Certification Testing:** $211 million in Q1 2026, up from $189 million in Q1 2025. - **Ongoing Certification Services:** $265 million in Q1 2026, up from $245 million in Q1 2025. - **Non-certification Testing and Other Services:** $209 million in Q1 2026, up from $203 million in Q1 2025. - **Software:** $73 million in Q1 2026, up from $68 million in Q1 2025. #### Revenue and Profitability by Segment (Q1 2026) - **Industrial Segment:** Segment operating income was $101 million (26.9% margin) in Q1 2026, compared to $83 million (24.4% margin) in Q1 2025. Adjusted EBITDA for the segment was $123 million (32.8% margin) in Q1 2026, up from $102 million (30.0% margin) in Q1 2025. - **Consumer Segment:** Segment operating income was $30 million (9.4% margin) in Q1 2026, compared to $22 million (7.2% margin) in Q1 2025. Adjusted EBITDA for the segment was $55 million (17.3% margin) in Q1 2026, up from $44 million (14.5% margin) in Q1 2025. - **Risk & Compliance Software Segment:** Segment operating income was $7 million (10.8% margin) in Q1 2026, compared to $4 million (6.6% margin) in Q1 2025. Adjusted EBITDA for the segment was $19 million (29.2% margin) in Q1 2026, up from $15 million (24.6% margin) in Q1 2025. #### Liquidity and Capital Resources Net cash provided by operating activities significantly increased to $219 million for the three months ended March 31, 2026, from $154 million in the same period of 2025. Capital expenditures were - $69 million in Q1 2026, compared to - $51 million in Q1 2025. Free Cash Flow for the quarter was $150 million, an increase from $103 million in the prior year. The company paid dividends of - $29 million during the quarter. As of March 31, 2026, total debt was $360 million, a decrease from December 31, 2025, due to - $134 million in net repayments on the revolving credit facility. Cash and cash equivalents stood at $258 million at the end of the quarter, down from $295 million as of December 31, 2025. #### Portfolio Management Activities UL Solutions Inc. closed the sale of its Employee Health and Safety software business on April 1, 2026, for approximately $202 million in cash. The company also entered into an agreement to acquire Eurofins’ E&E business for approximately €575 million, expected to close in Q4 2026, and agreed to sell its approximately 28% shareholding of DQS Holding GmbH for approximately €105 million in cash, expected to be completed in the second half of 2026. ### Full-Year 2026 Outlook UL Solutions Inc. anticipates mid-single-digit constant currency organic revenue growth for full-year 2026, including approximately 1% revenue reduction from a restructuring plan. The company expects an Adjusted EBITDA margin improvement to approximately 27.0% and an effective tax rate of about 26%. Capital expenditures are projected to be between 7% and 8% of revenue, with continued pursuit of acquisitions and portfolio refinements. ### Year Ended December 31, 2025 vs. 2024 #### Total Company Total Operating Income increased by 13.0% to $522 million in 2025 from $462 million in 2024. #### Industrial Segment Operating Income increased by 13.5% to $396 million in 2025 from $349 million in 2024, with the Operating Income Margin rising to 26.8% from 25.3%. Adjusted EBITDA was $487 million in 2025, up from $413 million in 2024, with the Adjusted EBITDA Margin increasing to 32.9% from 30.0%. Employee compensation was $692 million in 2025 compared to $666 million in 2024, and services and materials were $321 million in 2025 compared to $308 million in 2024. Depreciation and amortization was $64 million in 2025 compared to $54 million in 2024, restructuring costs were $7 million in 2025 compared to $0 in 2024, and stock-based compensation was $20 million in 2025 compared to $10 million in 2024. #### Consumer Segment Operating Income increased by 10.2% to $108 million in 2025 from $98 million in 2024, with the Operating Income Margin rising to 8.2% from 7.8%. Adjusted EBITDA was $237 million in 2025, up from $188 million in 2024, with the Adjusted EBITDA Margin increasing to 18.0% from 15.0%. Employee compensation was $755 million in 2025 compared to $735 million in 2024, and services and materials were $348 million in 2025 compared to $342 million in 2024. Depreciation and amortization was $82 million in 2025 compared to $80 million in 2024, restructuring costs were $26 million in 2025 compared to - $1 million in 2024, and stock-based compensation was $21 million in 2025 compared to $11 million in 2024. #### Risk & Compliance Software Segment Operating Income increased by 20.0% to $18 million in 2025 from $15 million in 2024, with the Operating Income Margin rising to 7.1% from 6.3%. Adjusted EBITDA was $68 million in 2025, up from $55 million in 2024, with the Adjusted EBITDA Margin increasing to 26.8% from 23.0%. Employee compensation was $168 million in 2025 compared to $164 million in 2024, and services and materials were $24 million in 2025 compared to $22 million in 2024. Depreciation and amortization was $42 million in 2025 compared to $38 million in 2024, restructuring costs were $2 million in 2025 compared to $0 in 2024, and stock-based compensation was $6 million in 2025 compared to $2 million in 2024. #### Operational Changes Effective in the first quarter of 2026, UL Solutions Inc. reorganized its segments by moving the Advisory business from the Software and Advisory segment to the Industrial segment and renaming the Software and Advisory segment to “Risk & Compliance Software.” This reorganization did not impact the Company’s consolidated financial position, results of operations, or cash flows. ### Related Stocks - [ULS.US](https://longbridge.com/en/quote/ULS.US.md) ## Related News & Research - [FS KKR Capital to post investor presentations on website after market close](https://longbridge.com/en/news/286815114.md) - [LOWE'S REPORTS FIRST QUARTER 2026 SALES AND EARNINGS RESULTS | LOW Stock News](https://longbridge.com/en/news/287043063.md) - [Bally’s Corporation Reports First Quarter 2026 Results | BALY Stock News](https://longbridge.com/en/news/286814213.md) - [Donaldson Company dividend preview: 30-year growth streak set to continue](https://longbridge.com/en/news/286805354.md) - [Capital City Bank Group posts Q1 2026 investor presentation on website](https://longbridge.com/en/news/286599786.md)