Key Highlights

  • Second-quarter revenue was $816 million, up 5.2%, with organic growth of 6.6%.
  • Net income was $254 million, boosted by a $191 million gain.
  • Adjusted EBITDA rose 11.2% to $219 million, a 26.8% margin.
  • Free cash flow for six months was $241 million versus $208 million.

UL Solutions Inc. (NYSE:ULS), a safety science, testing, inspection and certification company, was named in S&P Dow Jones Indices' December 5, 2025 announcement as an addition to the S&P MidCap 400. The company's second-quarter 2026 results, reported August 4, combined organic growth, higher margins and a large one-off gain from selling a software business.

Latest Company Context

For the quarter ended June 30, 2026, UL Solutions reported revenue of $816 million, up 5.2% from $776 million, with organic growth of 6.6%. Net income was $254 million versus $97 million, boosted by a $191 million gain on the sale of the Employee Health and Safety software business; diluted EPS was $1.21 versus $0.45. Adjusted net income rose 17.3% to $129 million, adjusted diluted EPS was $0.59 versus $0.52, and adjusted EBITDA rose 11.2% to $219 million, a 26.8% margin, up 140 basis points.

By segment, Industrial revenue was $402 million (up 7.8%), Consumer was $362 million (up 6.5%) and Risk & Compliance Software was $52 million (down 17.5%). Six-month revenue was $1,574 million, up 6.3%; free cash flow was $241 million versus $208 million. At June 30, cash was $434 million and total debt $303 million before issuance costs. A dividend of $0.145 per share was paid in the quarter.

Key Business and Index Drivers

Management's 2026 outlook is for mid-single-digit constant-currency organic revenue growth, including roughly a 1% reduction from business exits, an adjusted EBITDA margin of about 27.0%, an effective tax rate of about 26% and capital expenditure of about 8.5% of revenue. These are company expectations, not guarantees.

Key drivers include demand for testing and certification tied to product safety, electrification and industrial compliance, and the company's ability to expand margins while capital expenditure rises: six-month capex was $138 million versus $93 million. The shrinking software segment reflects the divestiture and business exits, which may make reported growth look different from underlying organic trends.

Regarding index relevance, S&P MidCap 400 inclusion was announced on December 5, 2025. A secondary source also reported a secondary sale of 14.375 million existing Class A shares at $78.00 by a major shareholder around the same period, which did not add shares but may have increased free float and liquidity.

What Investors Should Watch

Investors may watch the third-quarter 2026 report, expected in the coming weeks or months, for confirmation of the roughly 27% margin target and organic growth trends in Industrial and Consumer. Use of proceeds from the software divestiture, including potential debt reduction, capital expenditure or acquisitions, may be another focus. The pace of capital spending against free cash flow, and the dividend, which stood at $0.145 per share in the latest quarter, may also be monitored. Regulatory changes affecting product certification and tariff-related trade shifts could influence demand, although their effects are uncertain.

Organic Growth and Wider Margins Beside a One-Off Gain

UL Solutions' quarter combined 6.6% organic growth and a wider adjusted EBITDA margin with a one-off $191 million gain from selling its Employee Health and Safety software business. Adjusted results are the cleaner read.