Revenue growth remains steady with gross margins consistently near the 50% threshold, peaking at 50.3% in 2026Q1 despite fluctuating operating margins.
| Sales/Revenue | 3.11B | 3.05B | 2.87B | 2.68B | 2.52B | 2.52B | 2.3B |
| Revenue Growth % | 6.92% | 6.38% | 7.17% | 6.27% | 0.12% | 9.39% | - |
| Cost of Goods Sold | 1.57B | 1.56B | 1.49B | 1.41B | 1.31B | 1.34B | 1.27B |
| COGS % of Revenue | - | 50.94% | 51.92% | 52.76% | 52.1% | 53.16% | 55.19% |
| Gross Profit | 1.54B | 1.5B | 1.38B | 1.26B | 1.21B | 1.18B | 1.03B |
| Gross Margin % | 49.61% | 49.06% | 48.08% | 47.24% | 47.9% | 46.84% | 44.81% |
| Gross Profit Growth % | - | 8.54% | 9.09% | 4.81% | 2.37% | 14.36% | - |
| Operating Expenses | 989.47M | 975.47M | 918M | 860M | 795M | 892M | 668M |
| OpEx % of Revenue | - | 31.95% | 31.99% | 32.11% | 31.55% | 35.44% | 29.03% |
| Selling, General & Admin | 989.47M | 975.47M | 918M | 860M | 795M | 892M | 668M |
| SG&A % of Revenue | - | 31.95% | 31.99% | 32.11% | 31.55% | 35.44% | 29.03% |
| Research & Development | 0 | 0 | 59M | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 2.06% | - | - | - | - |
| Other Operating Expenses | 0 | 0 | -59M | 0 | 0 | 0 | 0 |
| Operating Income | 551.35M | 522.35M | 462M | 405M | 412M | 287M | 363M |
| Operating Margin % | 17.75% | 17.11% | 16.1% | 15.12% | 16.35% | 11.4% | 15.78% |
| Operating Income Growth % | - | 13.06% | 14.07% | -1.7% | 43.55% | -20.94% | - |
| EBITDA | 742M | 758M | 634M | 559M | 547M | 429M | 510M |
| EBITDA Margin % | 23.89% | 24.83% | 22.09% | 20.87% | 21.71% | 17.04% | 22.16% |
| EBITDA Growth % | 13.11% | 19.56% | 13.42% | 2.19% | 27.51% | -15.88% | - |
| D&A (Non-Cash Add-back) | 190.65M | 235.65M | 172M | 154M | 135M | 142M | 147M |
| EBIT | 534.7M | 502.7M | 470M | 381M | 400M | 275M | 334M |
| Net Interest Income | -27M | -38M | -51M | -23M | -17M | -1M | -1M |
| Interest Income | 2M | 3M | 4M | 12M | 0 | 0 | 0 |
| Interest Expense | 21M | 41M | 55M | 35M | 17M | 1M | 1M |
| Other Income/Expense | -54.65M | -60.65M | -47M | -59M | -29M | -13M | -30M |
| Pretax Income | 496.7M | 461.7M | 415M | 346M | 383M | 274M | 333M |
| Pretax Margin % | 15.99% | 15.12% | 14.46% | 12.92% | 15.2% | 10.89% | 14.47% |
| Income Tax | 125.7M | 116.7M | 70M | 70M | 74M | 36M | 90M |
| Effective Tax Rate % | 25.31% | 25.28% | 16.87% | 20.23% | 19.32% | 13.14% | 27.03% |
| Net Income | 349M | 325M | 326M | 260M | 293M | 224M | 231M |
| Net Margin % | 11.24% | 10.65% | 11.36% | 9.71% | 11.63% | 8.9% | 10.04% |
| Net Income Growth % | 3.56% | -0.31% | 25.38% | -11.26% | 30.8% | -3.03% | - |
| Net Income (Continuing) | 366M | 345M | 345M | 276M | 309M | 238M | 243M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 27M | 24M | 23M | 21M | 20M |
| EPS (Diluted) | 1.71 | 1.60 | 1.62 | 1.30 | 1.47 | 1.12 | 1.16 |
| EPS Growth % | 1.79% | -1.23% | 24.62% | -11.56% | 31.25% | -3.45% | - |
| EPS (Basic) | - | 1.62 | 1.63 | 1.30 | 1.47 | 1.12 | 1.16 |
| Diluted Shares Outstanding | 204M | 203M | 201M | 200M | 200M | 200M | 200M |
| Basic Shares Outstanding | 201M | 201M | 200M | 200M | 200M | 200M | 200M |
| Dividend Payout Ratio | - | 32% | 30.67% | 261.54% | 546.08% | 89.29% | 3.9% |
Regulatory dependency and labor costs
According to reported financial data, ULS has maintained a steady revenue growth trajectory, with quarterly figures consistently rising from $670.0M in 2024Q1 to $758.0M in 2026Q1, reflecting the durable demand for mandatory safety certifications across diverse industrial and consumer product sectors globally.
The company's ability to sustain mid-single-digit growth suggests that its certification services are largely non-discretionary for manufacturers. Investors should monitor whether this growth remains tied to physical product cycles or if the Software and Advisory segment can accelerate top-line expansion through recurring digital revenue streams.
Based on the provided income statements, ULS has demonstrated robust pricing power, with gross margins consistently hovering near the 50% threshold, peaking at 50.3% in 2026Q1, which underscores the company's unique position as a gatekeeper in the North American regulatory and safety landscape.
The stability of these margins indicates that ULS successfully passes through labor and infrastructure costs to its customers without significant volume erosion. This structural advantage appears to be a direct result of the 'UL Mark' acting as a mandatory barrier to entry for market participants.
As reported in recent filings, operating margins have fluctuated between 12.7% and 19.9% over the last ten quarters, suggesting that while gross profitability is stable, the company has yet to achieve consistent operating leverage as SG&A expenses continue to scale alongside revenue growth.
The variability in operating income implies that management is currently prioritizing investment in infrastructure or market expansion over immediate margin optimization. Further investigation is warranted to determine if these SG&A costs are temporary integration expenses or a permanent feature of the company's new public corporate structure.
Analysis of the income statement reveals that net income volatility, such as the 20% decline in EPS observed in 2025Q4, is partially influenced by periodic stock-based compensation charges, which reached $15.0M in 2025Q3, impacting the overall quality of reported bottom-line earnings for shareholders.
Investors should distinguish between core operational performance and these non-cash compensation items to gauge the true earnings power of the business. The inconsistent nature of these charges suggests that the company is still normalizing its compensation structure following its transition to a standalone public entity.
While ULS maintains a strong market position, the potential for margin compression remains a key risk, as evidenced by the 2025Q4 operating margin dip to 15.0%, which may indicate that agile competitors in the ESG and software space are beginning to challenge ULS's pricing power.
Short-term margin pressure could intensify if the company is forced to increase R&D spending to defend its ULTRUS platform against pure-play SaaS providers. The market may be overestimating the moat's durability if regulatory requirements shift toward more automated, less labor-intensive compliance solutions.
Quick answers to the most common questions about buying ULS stock.
For fiscal year 2025, UL Solutions Inc. (ULS) reported total revenue of $3.05B. This represents a 32.7% increase compared to $2.30B in 2020.
UL Solutions Inc. (ULS) is profitable, generating $325.0M in net income for the fiscal year ending 2025 with a net profit margin of 10.6%.
UL Solutions Inc. (ULS) reported an operating income of $522.4M, resulting in an operating profit margin of 17.1%. This margin reflects the operational efficiency of the business before interest and taxes.
UL Solutions Inc. (ULS) generated $1.50B in gross profit for the year, representing a gross profit margin of 49.1%. This demonstrates the company's core pricing power and production efficiency.