Overview

* UL Solutions ( ULS ) Q3 revenue grows 7.1% to $783 mln, beating analyst expectations

* Adjusted EBITDA of $217 mln beats estimates, reflecting strong operational performance

* Company announces restructuring initiative to reduce expenses and improve efficiency

Outlook

* UL Solutions ( ULS ) expects 2025 organic revenue growth of 5.5% to 6%

* Company anticipates 2025 adjusted EBITDA margin to improve to ~25%

* UL Solutions ( ULS ) plans 2025 capital expenditures at 6.5% to 7% of revenue

Result Drivers

* MARKET TAILWINDS - Strong demand for data center growth contributed to increased service demand, per CFO Ryan Robinson

* OPERATING LEVERAGE - Margin expansion driven by higher revenue and operating leverage, particularly in the Industrial segment

* RESTRUCTURING INITIATIVE - Co announced a restructuring plan to reduce expenses and exit non-strategic business lines

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $783 mln $770.91

Revenue mln (9

Analysts

)

Q3 $0.56

Adjusted

EPS

Q3 EPS $0.49

Q3 $119 mln

Adjusted

Net

Income

Q3 Net $106 mln

Income

Q3 Beat $217 mln $197.84

Adjusted mln (9

EBITDA Analysts

)

Q3 $156 mln

Operatin

g Income

Q3 $146 mln

Pretax

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the business support services peer group is "buy"

* Wall Street's median 12-month price target for UL Solutions Inc ( ULS ) is $72.00, about 9.2% below its November 3 closing price of $78.61

* The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 40 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)