Revenue grew 5.2% YoY to $816M in 2026Q2, with gross margin expanding to 51.1% and operating margin to 18.4%, reflecting pricing power and SG&A efficiency (32.7% of revenue).
UL Solutions Inc. (ULS) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Sales/Revenue | 3.15B | 3.05B | 2.87B | 2.68B | 2.52B | 2.52B | 2.3B |
| Revenue Growth % | 6.61% | 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 | 1.58B | 1.5B | 1.38B | 1.26B | 1.21B | 1.18B | 1.03B |
| Gross Margin % | 50.15% | 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 | 1.02B | 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 | 1.02B | 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 | 562.35M | 522.35M | 462M | 405M | 412M | 287M | 363M |
| Operating Margin % | 17.88% | 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 | 947M | 758M | 634M | 559M | 547M | 429M | 510M |
| EBITDA Margin % | 30.1% | 24.83% | 22.09% | 20.87% | 21.71% | 17.04% | 22.16% |
| EBITDA Growth % | 40.5% | 19.56% | 13.42% | 2.19% | 27.51% | -15.88% | - |
| D&A (Non-Cash Add-back) | 191.65M | 235.65M | 172M | 154M | 135M | 142M | 147M |
| EBIT | 740.7M | 502.7M | 470M | 381M | 400M | 275M | 334M |
| Net Interest Income | -30M | -38M | -51M | -23M | -17M | -1M | -1M |
| Interest Income | 2M | 3M | 4M | 12M | 0 | 0 | 0 |
| Interest Expense | 32M | 41M | 55M | 35M | 17M | 1M | 1M |
| Other Income/Expense | 147.35M | -60.65M | -47M | -59M | -29M | -13M | -30M |
| Pretax Income | 709.7M | 461.7M | 415M | 346M | 383M | 274M | 333M |
| Pretax Margin % | 22.56% | 15.12% | 14.46% | 12.92% | 15.2% | 10.89% | 14.47% |
| Income Tax | 181.7M | 116.7M | 70M | 70M | 74M | 36M | 90M |
| Effective Tax Rate % | 25.6% | 25.28% | 16.87% | 20.23% | 19.32% | 13.14% | 27.03% |
| Net Income | 504M | 325M | 326M | 260M | 293M | 224M | 231M |
| Net Margin % | 16.02% | 10.65% | 11.36% | 9.71% | 11.63% | 8.9% | 10.04% |
| Net Income Growth % | 54.13% | -0.31% | 25.38% | -11.26% | 30.8% | -3.03% | - |
| Net Income (Continuing) | 528M | 345M | 345M | 276M | 309M | 238M | 243M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 25M | 32M | 27M | 24M | 23M | 21M | 20M |
| EPS (Diluted) | 2.47 | 1.60 | 1.62 | 1.30 | 1.47 | 1.12 | 1.16 |
| EPS Growth % | 52.47% | -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% |
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.
Key Metrics
Top Statement Risk
Dependence on regulatory and certification demand
Metrics are mathematically derived from official filings.
Steady Revenue Growth Amidst Modest Acceleration
ULS's revenue grew 5.2% year-over-year in 2026Q2, reaching $816M, with sequential acceleration from 4.8% in 2025Q4, according to the latest quarterly report.
The company has maintained a consistent mid-single-digit growth trajectory over the past ten quarters, with quarterly year-over-year growth ranging from 5.2% to 8.1%. The recent uptick in 2026Q2 suggests a slight acceleration, possibly driven by increased demand for certification services. However, growth remains modest compared to peers like nVent (29.5%) and TransUnion (9.4%), indicating a mature market position.
Gross Margin Expansion Reflects Pricing Power
Gross margin improved to 51.1% in 2026Q2, up from 47.6% in 2024Q1, as reported in financial statements, indicating sustained pricing power and operational efficiency.
The steady expansion of gross margins from 47.6% to 51.1% over the ten-quarter period suggests that ULS has been able to pass on cost increases or optimize its service mix. This margin profile is superior to many peers, such as BrightView (23.3%) and nVent (37.7%), and is comparable to TransUnion (59.1%). The improvement may reflect a shift towards higher-value testing and certification services, which warrants monitoring for sustainability.
Operating Leverage Evident in Margin Expansion
Operating margin rose to 18.4% in 2026Q2 from 13.6% in 2024Q1, as per SEC filings, indicating that revenue growth is translating into disproportionate profit gains.
The operating margin has expanded by nearly 500 basis points over the ten quarters, from 13.6% to 18.4%, while revenue grew only about 22% over the same period. This suggests that SG&A expenses are growing slower than revenue, reflecting operational leverage. The company's ability to control overhead costs while scaling its service offerings is a positive sign for future profitability.
Net Income Volatility Driven by Non-Operating Items
Net margin swung from 8.4% in 2024Q1 to 30.1% in 2026Q2, with EPS growth of 168.9% in 2026Q2, as reported, suggesting significant non-operating influences.
The dramatic fluctuation in net margin, particularly the spike to 30.1% in 2026Q2, is not mirrored in operating margin, which remained stable at 18.4%. This divergence suggests that net income is being influenced by non-operating items such as tax benefits or one-time gains. Investors should scrutinize the sustainability of these items, as they may not recur, and the quality of earnings may be lower than the headline numbers suggest.
SG&A Efficiency Drives Margin Gains
SG&A as a percentage of revenue declined to 32.7% in 2026Q2 from 34.0% in 2024Q1, based on reported figures, indicating disciplined cost management.
While COGS has increased in absolute terms, the gross margin expansion indicates that cost of services is being managed effectively. SG&A expenses have grown at a slower pace than revenue, with the ratio improving from 34.0% to 32.7% over the period. This suggests that the company is achieving economies of scale in its administrative functions, which is a key driver of operating leverage.
Potential Margin Compression from Competitive Pressures
Despite recent margin expansion, ULS's gross margin of 51.1% in 2026Q2 may face pressure from increased competition and pricing dynamics, as per industry trends.
The company's high gross margins could attract new entrants or encourage existing competitors to undercut pricing, especially in a mature industry. Additionally, the reliance on regulatory and certification demand means that any changes in regulations or trade policies could impact revenue growth. The recent net income volatility, driven by non-operating items, also raises questions about the sustainability of reported profitability. Investors should monitor whether the company can maintain its margin trajectory in the face of potential headwinds.