ULS NYSE Russell 1000 Earnings call
UL Solutions (ULS) · Q2 2026 results and valuation
Share price: $81.58 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 4 Aug 2026 and 5 May 2026
Net income up 167.4% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+167.4%
Net income vs Q1 2026
Outlook given
Net income 246.0M vs 92.0M
Revenue +7.7%
Against the same quarter last year (Q2 2025) it is +170.3%, so it is not just seasonal.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Key theme
Higher costs expected from performance-based compensation tied to improved profitability.
Valuation
Is UL Solutions undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 6.6% growth a year (3-year revenue growth), the model's fair value is $37.63 a share — the stock trades 117% above it. Today's price assumes 17.3% growth a year.
Current price
$81.58
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+17.3% for 10 yrs
Fair value / share
$37.63
Buy below
$28.22
Price vs fair value
Overvalued 117%
Price vs buy-below price
Overvalued 189%
Read between the lines
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Guidance
UL Solutions now expects full year capital expenditures of approximately 8.5% of revenue, including the timing of its previously discussed investments in laboratory capacity and other growth opportunities to meet…
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Guidance
ULS expects to incur performance-based compensation expenses based on improvements in profitability.
Source quote
“We expect to have some performance-based compensation expenses based on the improvements that we have made in our profitability.”
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Figure
Adjusted EBITDA for Consumer grew 24.2% to $77 million compared to the second quarter of last year.
Source quote
“Adjusted EBITDA for Consumer was $77 million, an increase of 24.2% versus the second quarter of last year.”
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Fading
Full-year capital expenditures are now expected at about 8.5% of revenue, including previously discussed investments in laboratory capacity and other growth opportunities.
Source quote
“Adjusted EBITDA grew over 22% and adjusted EBITDA margin expanded 320 basis points. We delivered consolidated revenue growth of 7.5% as compared to the prior year period with organic revenue growth of 5.7%. Adjusted diluted EPS increased 31.5% year-over-year.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“And different trends, things like last fall, there was some concerns around chip shortages and other things.”
“But one area that I don't think is maybe well understood is any potential volatility that you guys might see in your demand for your services or quite frankly, lack...”
“In our Risk & Compliance segment, revenues were $52 million, a decrease of 17.5% year-over-year.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 816.0M | 758.0M | +7.7% | 776.0M | +5.2% |
| Gross profit | 417.0M | 381.0M | +9.4% | 382.0M | +9.2% |
| Operating income | 150.0M | 138.0M | +8.7% | 139.0M | +7.9% |
| Net income | 246.0M | 92.0M | +167.4% | 91.0M | +170.3% |
| EPS | 1.21 | 0.45 | +168.9% | 0.45 | +168.9% |
| P/E today 27.5 | 41.1 | 49.8 | −8.7 | 45.0 | −3.9 |
Topics
Most discussed now
- New UL Solutions is pleased that it has made progress and anticipate spending more against some of those projects in 2026 as it...
- Fading The decline reflects the divestiture of UL Solutions' EHS Software business, which closed on April 1.
- These durable trends create ongoing demand for safety science expertise, testing capabilities and certification services that help…
- On the Consumer side, UL Solutions sees ongoing product innovation and increasingly interconnected devices.
- These results were delivered in a dynamic operating environment and reflect the discipline, resilience and focus that define UL Solutions'…
Faded since Q1 2026
- Fading EHS software contributed revenue and profitability to Q1 results and its absence will affect year-over-year comparisons and margin profiles…
- Dropped Its resilient business model continues to serve us well as UL Solutions innovates with its customers while they embrace rapid…
- Fading UL Solutions is executing with greater precision expanding its margin profile and positioning itself to grow with structural mega trends…
- Fading Adjusted net income increased 33.8% year-over-year, resulting in a 35.1% increase in adjusted diluted earnings per share.
Latest announcements
Official filings, newest first.
- Regulation FD disclosure · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure; Other events · SEC 8-K
- Results of operations · SEC 8-K
- Other events · SEC 8-K