UL Solutions Affirms 2026 EBITDA Margin Guidance at 27%

UL Solutions, a 132-year-old leader in product testing, inspection, and certification, affirmed its 2026 adjusted EBITDA margin guidance at 27%, marking a cumulative expansion of 600 basis points since its April 2024 IPO. The company’s adjusted EBITDA margin reached 21.0% in 2023 and expanded by 300 basis points in 2025 alone, with year-to-date gains of 220 basis points through mid-2026. CEO Jenny Scanlon emphasized the firm’s long-standing expertise, noting it remains a trusted partner for complex product innovations despite its public-market debut in 2024. Organic revenue growth for 2025 was 6.2%, with first-half 2026 industrial segment growth at 7.7% and certification testing up 10.9% year-to-date. Return on invested capital (ROIC) remains close to 30% across its portfolio, reflecting disciplined capital allocation and operational efficiency. The company’s strategy includes divestitures of underperforming consumer businesses (1% of revenue in H1 2026) and the planned sale of non-strategic minority stakes in DQS, while reclassifying advisory services for renewable energy and infrastructure into its industrial segment. A pending acquisition of Eurofins’ electrical and electronics business—its first major post-IPO deal—will bolster its European presence and medical device testing capabilities. Lab footprint adjustments include closing the Melville facility and relocating capacity to Northbrook, Research Triangle Park, and a new Mexico facility. UL Solutions operates around 350 of its 80,000 customers globally through strategic accounts, focusing on high-value clients in sectors like power automation, wire and cable testing, and performance materials. The firm also highlighted its expansion of risk and compliance software, including the ULTRUS platform, while planning to divest the EHS module from this division. Scanlon underscored the growing complexity of product development, citing interconnected safety challenges that drive demand for specialized testing and certification services.