SEC Form 10-Q filed by UL Solutions Inc.

8/5/25 4:14:11 PM ET

Precision Instruments

Health Care

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uls-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to _________

Commission file number 001-42012

UL Solutions Inc.

(Exact name of registrant as specified in its charter)

Delaware

27-0913800

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

333 Pfingsten Road

Northbrook, Illinois 60062

(Address of Principal Executive Offices and zip code)

(847) 272-8800

Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.001 per share	ULS	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	x	Smaller reporting company	o
		Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x

The registrant had outstanding 62,752,788 shares of Class A common stock, par value $0.001 per share, and 138,130,000 shares of Class B common stock, par value $0.001 per share, as of July 25, 2025.


UL Solutions Inc.

Table of Contents


			Page
PART I. FINANCIAL INFORMATION			2
ITEM 1. Condensed Consolidated Financial Statements (Unaudited)			2
Condensed Consolidated Statements of Operations			2
Condensed Consolidated Statements of Comprehensive Income			3
Condensed Consolidated Balance Sheets			4
Condensed Consolidated Statements of Stockholders’ Equity			5
Condensed Consolidated Statements of Cash Flows			6
Notes to the Condensed Consolidated Financial Statements			7
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			15
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk			31
ITEM 4. Controls and Procedures			32
PART II. OTHER INFORMATION			34
ITEM 1. Legal Proceedings			34
ITEM 1A. Risk Factors			34
ITEM 6. Exhibits			34
SIGNATURE			35

PART I. FINANCIAL INFORMATION

ITEM 1. Condensed Consolidated Financial Statements (Unaudited)

Condensed Consolidated Statements of Operations


UL Solutions Inc.
Condensed Consolidated Statements of Operations
(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions, except per share data)	2025		2024		2025		2024
Revenue	$	776	$	730	$	1,481	$	1,400
Cost of revenue	393		364		757		715
Selling, general and administrative expenses	244		240		476		468

Operating income	139		126		248		217
Interest expense	(10)		(13)		(22)		(28)
Other (expense) income, net	(4)		21		(7)		18
Income before income taxes	125		134		219		207
Income tax expense	28		28		51		41
Net income	97		106		168		166
Less: net income attributable to non-controlling interests	6		5		10		9
Net income attributable to stockholders of UL Solutions	$	91	$	101	$	158	$	157

Earnings per common share:
Basic	$	0.45	$	0.51	$	0.79	$	0.79
Diluted	$	0.45	$	0.50	$	0.78	$	0.78

Weighted average common shares outstanding:
Basic	201		200		201		200
Diluted	203		201		203		201

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements


UL Solutions Inc.

Condensed Consolidated Statements of Comprehensive Income
(Unaudited)

Condensed Consolidated Statements of Comprehensive Income


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2025		2024		2025		2024
Net income	$	97	$	106	$	168	$	166
Other comprehensive income (loss), net of tax:
Pension and postretirement benefit plans, net of tax	(1)		—		(1)		1

Foreign currency translation gain (loss)	36		(10)		53		(26)
Total other comprehensive income (loss)	35		(10)		52		(25)
Comprehensive income	132		96		220		141
Less: comprehensive income attributable to non-controlling interests	6		5		10		8
Comprehensive income attributable to stockholders of UL Solutions	$	126	$	91	$	210	$	133

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements


UL Solutions Inc.
Condensed Consolidated Balance Sheets
(Unaudited)

Condensed Consolidated Balance Sheets


(in millions, except share and per share data)	June 30, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	272	$	298

Accounts receivable, net of allowance of $13 and $9	424		380
Contract assets, net of allowance of $2 and $1	224		182

Other current assets	89		61
Total current assets	1,009		921

Property, plant and equipment, net of accumulated depreciation of $849 and $772	649		631
Goodwill	656		633
Intangible assets, net of accumulated amortization of $250 and $239	55		58
Operating lease right-of-use assets	188		186
Deferred income taxes	110		108
Capitalized software, net of accumulated amortization of $463 and $427	119		127
Other assets	136		136
Total Assets	$	2,922	$	2,800
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt	$	—	$	50
Accounts payable	139		182
Accrued compensation and benefits	208		254
Operating lease liabilities - current	42		38
Contract liabilities	328		162
Other current liabilities	48		54
Total current liabilities	765		740
Long-term debt	608		692
Pension and postretirement benefit plans	202		196
Operating lease liabilities	155		155

Other liabilities	79		86
Total Liabilities	1,809		1,869
Commitments and contingencies (Note 15)
Stockholders’ equity:
Class A common stock, $0.001 per share, 62,748,277 and 62,044,493 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively	—		—
Class B common stock, $0.001 per share, 138,130,000 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively	—		—
Additional paid-in capital	852		821
Retained earnings	356		250
Accumulated other comprehensive loss	(115)		(167)
Total stockholders’ equity before non-controlling interests	1,093		904
Non-controlling interests	20		27
Total Stockholders’ Equity	1,113		931
Total Liabilities and Stockholders’ Equity	$	2,922	$	2,800

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements


UL Solutions Inc.
Condensed Consolidated Statements of Stockholders’ Equity
(Unaudited)

Condensed Consolidated Statements of Stockholders’ Equity


(in millions, except per share data)	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Non-controlling Interests		Total
Balance at March 31, 2025	$	—	$	829	$	291	$	(150)	$	14	$	984
Net income	—		—		91		—		6		97
Other comprehensive income, net of tax	—		—		—		35		—		35
Stock-based compensation	—		23		—		—		—		23
Dividend to stockholders of UL Solutions ($0.13 per share)	—		—		(26)		—		—		(26)

Balance at June 30, 2025	$	—	$	852	$	356	$	(115)	$	20	$	1,113

Balance at December 31, 2024	$	—	$	821	$	250	$	(167)	$	27	$	931
Net income	—		—		158		—		10		168
Other comprehensive income, net of tax	—		—		—		52		—		52
Stock-based compensation	—		31		—		—		—		31
Dividends to stockholders of UL Solutions ($0.26 per share)	—		—		(52)		—		—		(52)
Dividend to non-controlling interest	—		—		—		—		(17)		(17)
Balance at June 30, 2025	$	—	$	852	$	356	$	(115)	$	20	$	1,113

Balance at March 31, 2024	$	—	$	776	$	55	$	(160)	$	12	$	683
Net income	—		—		101		—		5		106
Other comprehensive loss, net of tax	—		—		—		(10)		—		(10)
Stock-based compensation	—		32		—		—		—		32
Dividend to stockholders of UL Solutions ($0.125 per share)	—		—		(25)		—		—		(25)

Balance at June 30, 2024	$	—	$	808	$	131	$	(170)	$	17	$	786

Balance at December 31, 2023	$	—	$	776	$	24	$	(146)	$	24	$	678
Net income	—		—		157		—		9		166
Other comprehensive loss, net of tax	—		—		—		(24)		(1)		(25)
Stock-based compensation	—		32		—		—		—		32
Dividends to stockholders of UL Solutions ($0.25 per share)	—		—		(50)		—		—		(50)
Dividend to non-controlling interest	—		—		—		—		(15)		(15)
Balance at June 30, 2024	$	—	$	808	$	131	$	(170)	$	17	$	786

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements


UL Solutions Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

Condensed Consolidated Statements of Cash Flows


	Six Months Ended June 30,
(in millions)	2025		2024
Operating activities
Net income	$	168	$	166
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization	91		82


Gain on divestiture	—		(25)
Stock-based compensation	21		6
Losses on foreign exchange transactions	5		6



Deferred income taxes	1		(10)

Other, net	11		12
Changes in assets and liabilities, excluding the effects of acquisitions and divestitures:
Accounts receivable	(26)		(33)
Contract and other assets	(48)		(26)
Accounts payable	(27)		(20)
Accrued expenses	(38)		(74)
Pension and postretirement benefit plans	(5)		(3)
Contract and other liabilities	148		163
Net cash flows provided by operating activities	301		244
Investing activities
Capital expenditures	(93)		(113)
Acquisitions, net of cash acquired	(1)		(10)
Proceeds from divestiture	—		30

Purchases of investments	(14)		—



Sales of investments	1		—
Net cash flows used in investing activities	(107)		(93)
Financing activities

Proceeds from long-term debt	150		20
Repayments of long-term debt	(285)		(115)



Dividends to stockholders of UL Solutions	(52)		(50)
Dividends to non-controlling interest	(17)		(15)
Employee taxes paid on settlement of stock-based compensation	(13)		—
Other financing activities, net	(4)		1
Net cash flows used in financing activities	(221)		(159)
Effect of exchange rate changes on cash and cash equivalents	1		(12)
Net decrease in cash and cash equivalents	(26)		(20)
Cash and cash equivalents
Beginning of period	298		315
End of period	$	272	$	295

Supplemental disclosures of cash flow information
Cash paid during the period for interest	$	22	$	29
Cash paid during the period for income taxes	40		29
Cash paid during the period for stock-based compensation	2		18

Noncash investing and financing activities
Capital expenditures funded by liabilities	$	23	$	30
Conversion of stock-based compensation awards to equity	25		26

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements


UL Solutions Inc.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Notes to the Condensed Consolidated Financial Statements

1. Significant Accounting Policies

Description of Business

UL Solutions Inc. (together with its consolidated subsidiaries, “UL Solutions” and the “Company”) is a global safety science leader that provides independent third-party testing, inspection and certification services and related software and advisory offerings. Underwriters Laboratories Inc. (“UL Research Institutes”) is the sole member of ULSE Inc. (“UL Standards & Engagement”), which controls the majority of the voting power of the Company’s common stock.

Basis of Presentation

The condensed consolidated financial statements are unaudited and have been prepared in accordance with applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K. It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair statement of the Company’s results of operations, financial position and cash flows. Results of operations for any interim period are not necessarily indicative of future or annual results.

Recently Issued Accounting Standards – Not Adopted

In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments will be applied prospectively. The ASU will result in additional income tax disclosures within the Company’s financial statements but is not expected to impact the Company’s financial condition, results of operations or cash flows.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures, which is intended to improve disclosures about a public business entity’s expense and provide more detailed information to investors about the types of expenses in commonly presented expense captions. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, on either a prospective or retrospective basis, with early adoption permitted. The Company is currently evaluating the impact this ASU may have on its consolidated financial statements.

2. Earnings Per Share

Basic and diluted earnings per share were calculated as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions, except per share data)	2025		2024		2025		2024
Net income attributable to stockholders of UL Solutions	$	91	$	101	$	158	$	157
Basic weighted average common shares outstanding	201		200		201		200
Effect of dilutive securities	2		1		2		1
Diluted weighted average common shares outstanding	203		201		203		201

Basic earnings per share attributable to stockholders of UL Solutions	$	0.45	$	0.51	$	0.79	$	0.79
Diluted earnings per share attributable to stockholders of UL Solutions	$	0.45	$	0.50	$	0.78	$	0.78

3. Revenue

The table below summarizes the major service categories from which the Company derives its revenues:


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2025		2024		2025		2024
Certification Testing	$	215	$	203	$	404	$	379
Ongoing Certification Services	250		234		495		467
Non-certification Testing and Other Services	241		225		444		419
Software	70		68		138		135
Total	$	776	$	730	$	1,481	$	1,400

Contract Balances

The revenue recognized during the three and six months ended June 30, 2025, which was included in contract liabilities at December 31, 2024, amounted to $51 million and $87 million, respectively. The revenue recognized during the three and six months ended June 30, 2024, which was included in contract liabilities at December 31, 2023, amounted to $49 million and $79 million, respectively.

Remaining Performance Obligations

At June 30, 2025, the Company estimates that $203 million in revenue is expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. The Company expects to recognize approximately 61% of its unsatisfied (or partially unsatisfied) performance obligations as revenue in the subsequent 12 months, with the remaining balance to be recognized thereafter.

Remaining consideration from contracts with customers is included in the amount presented above and includes contracts with multiple performance obligations and multi-year maintenance agreements, which are typically recognized as the performance obligation is satisfied.

4. Acquisitions and Divestitures

Acquisitions

In July 2024, the Company acquired 100% of the outstanding stock of TesTneT Engineering GmbH (together with its subsidiaries, “TesTneT”) for approximately $19 million in cash consideration (as adjusted for customary post-closing adjustments). TesTneT is a Germany-based company that provides testing services for various hydrogen storage systems, refueling stations and their components. Goodwill of $14 million represents anticipated future revenue growth and margin expansion opportunities from new customers and has been included within the Company’s Industrial segment. Goodwill related to this acquisition is not deductible for income tax purposes.

In May 2024, the Company acquired 100% of the outstanding stock of BatterieIngenieure GmbH (together with its subsidiaries, “BatterieIngenieure”) for approximately $12 million in cash consideration (as adjusted for customary post-closing adjustments). BatterieIngenieure is a Germany-based battery testing company that was, at the time of acquisition, in the process of building a laboratory in Aachen, Germany to replace the leased facility it was using and to add testing and simulation capacity. The purchase price is primarily related to property, plant, and equipment of $9 million and goodwill of $8 million. Goodwill represents anticipated future revenue growth and margin expansion opportunities from new customers and has been included within the Company’s Industrial segment. Goodwill related to this acquisition is not deductible for income tax purposes.

Aggregate acquisition-related costs associated with business combinations are not material for the three and six months ended June 30, 2025 and 2024, and are included in selling, general and administrative expenses in the Company’s Condensed Consolidated Statements of Operations as incurred.

Divestiture

In May 2024, the Company completed the sale of its payments testing business in the Industrial segment to an affiliate of Gallant Capital Partners, a California-based private equity firm, for a base price of $29 million in cash (as adjusted for customary post-closing adjustments) with the potential for additional cash consideration if certain earn-out provisions are met. The divestiture resulted in a pre-tax gain on sale of $24 million, which was recorded within other (expense) income, net in the Company’s Condensed Consolidated Statements of Operations.

5. Other (Expense) Income, net

The components of other (expense) income, net are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2025		2024		2025		2024

Foreign exchange losses	$	(2)	$	(4)	$	(5)	$	(6)
Interest income	1		1		2		2


Non-operating pension and postretirement benefit expense	(1)		(2)		(2)		(4)

Gain on divestiture(a)	—		25		—		25
Other	(2)		1		(2)		1
Total	$	(4)	$	21	$	(7)	$	18

__________

(a)See Note 4.

6. Fair Value of Financial Instruments

The carrying amount and fair value of the Company’s debt was as follows:


	June 30, 2025				December 31, 2024
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Term loans	$	309	$	309	$	444	$	444

Senior notes	300		315		300		311
Other	3		3		3		3
Total	$	612	$	627	$	747	$	758

The fair value of the Company’s term loans reflects current market conditions and is primarily determined using broker quotes, which are Level 2 inputs in the fair value hierarchy. The fair value of the Company’s senior notes is estimated based on prevailing interest rates and trading activity, which are Level 2 inputs in the fair value hierarchy.

7. Investments in Equity Securities

The Company holds investments in equity securities of various companies, certain of which comprise less than 10% of the applicable company’s outstanding equity securities and are included within other assets in the Company’s Condensed Consolidated Balance Sheets. The Company accounts for these investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The carrying amount of these investments was $33 million as of June 30, 2025 and $36 million as of December 31, 2024.

The Company owns 70% of the issued and outstanding equity interests of UL-CCIC Company Limited (“UL-CCIC”), an entity formed under the laws of the People’s Republic of China. The Company determined that it is the primary beneficiary of UL-CCIC and assets of $168 million and $193 million and liabilities of $83 million and $87 million, inclusive of intercompany eliminations, were included in the Company’s Condensed Consolidated Balance Sheets at June 30, 2025 and December 31, 2024, respectively.

8. Goodwill

Changes in the carrying amount of goodwill for the six months ended June 30, 2025 were as follows:



(in millions)	Industrial		Consumer		Software and Advisory		Total
Balance at December 31, 2024(a)	$	340	$	225	$	68	$	633

Measurement period adjustments	1		—		—		1

Effect of changes in foreign exchange rates	9		9		4		22

Balance at June 30, 2025(a)	$	350	$	234	$	72	$	656

__________

(a)Net of accumulated impairment losses of $137 million as of June 30, 2025 and December 31, 2024.

9. Intangible Assets

The following tables summarize intangible assets:


	June 30, 2025						December 31, 2024
(in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	267	$	(220)	$	47	$	261	$	(211)	$	50
Intellectual property and patents	16		(13)		3		15		(11)		4

Trademarks	22		(17)		5		21		(17)		4
Total	$	305	$	(250)	$	55	$	297	$	(239)	$	58

Intangible asset amortization expense, reported within selling, general and administrative expenses within the Condensed Consolidated Statements of Operations, was $3 million for both of the three month periods ended June 30, 2025 and 2024, and was $6 million for both of the six month periods ended June 30, 2025 and 2024.

10. Pension

The components of net periodic benefit cost for the Company’s U.S. defined benefit pension plan were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,

(in millions)	2025		2024			2025		2024

Service cost	$	1	$	1		$	1	$	1
Interest cost	4		4			8		8
Expected return on plan assets	(3)		(4)			(6)		(7)


Amortization of net actuarial loss	—		1			1		2


Net periodic benefit cost	$	2	$	2		$	4	$	4

For the three and six months ended June 30, 2025, expenses related to various defined contribution plans were $14 million and $29 million, respectively. For the three and six months ended June 30, 2024, expenses related to various defined contribution plans were $13 million and $25 million, respectively.

11. Income Taxes

The effective tax rate for the three and six months ended June 30, 2025 was 22.4% and 23.3%, respectively, which differed from the U.S. federal statutory tax rate of 21%, primarily due to foreign tax effects, U.S. tax on Global Intangible Low Taxed Income net of related foreign tax credits, and Section 162(m) limitations on current year compensation deductions of certain executive officers, partially offset by excess tax benefits associated with stock-based compensation deductions.

Several countries in which the Company operates have enacted aspects of the Organisation for Economic Co-operation and Development’s Pillar Two rules, which impose a 15% corporate minimum tax, into their local legislation effective either January 1, 2024, or January 1, 2025. The effective tax rate for the three and six months ended June 30, 2025 of 22.4% and 23.3%, respectively, was higher than the effective tax rate for the three and six months ended June 30, 2024 of 20.9% and 19.8%, respectively, primarily due to the impact of the Qualified Domestic Minimum Top-up Tax, a subset of the Pillar Two rules that became effective on January 1, 2025.

The effective tax rate for the three and six months ended June 30, 2024 was 20.9% and 19.8%, respectively, which differed from the U.S. federal statutory tax rate of 21%, primarily due to earnings subject to lower tax rates in foreign jurisdictions and a discrete tax benefit for the release of valuation allowances. This was offset by a discrete tax expense for the reduction to previously established deferred tax assets of approximately $5 million due to the Company becoming subject to Section 162(m) of the Internal Revenue Code in the U.S., which limits compensation expenses of certain executive officers that were previously deductible as a private company, as well as Section 162(m) limitations on current year deductions and U.S. tax on Global Intangible Low Taxed Income net of related foreign tax credits.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the U.S. The OBBBA includes several corporate tax provisions that apply to the Company, such as the permanent extension of certain expiring provisions of the U.S. Tax Cuts and Jobs Act and modifications to the international tax framework and business interest expense limitations. The Company is currently assessing the impact the OBBBA may have on its consolidated financial statements.

12. Long-Term Debt

The Company’s outstanding debt consisted of the following:


(in millions)	Currency	Maturity Date	June 30, 2025		December 31, 2024
Term loans	USD	January 2027	$	309	$	444

Senior notes	USD	October 2028	300		300
Other	USD	August 2033	3		3
Total debt			612		747
Less: unamortized debt issuance costs			(4)		(5)
Total debt, net of unamortized debt issuance costs			608		742
Less: current portion of long-term debt			—		(50)
Long-term debt			$	608	$	692

Credit Facility

In January 2022, the Company entered into a credit agreement with Bank of America, N.A. and certain other lenders, which provides for senior unsecured credit facilities in an aggregate principal amount of $1,250 million (collectively, and as amended, the “Credit Facility”), consisting of term loans and revolving loan commitments. The Company’s wholly owned subsidiary, UL LLC, a Delaware limited liability company, provides a guaranty of its obligations thereunder. As of June 30, 2025, the Company was in compliance with all covenants under the Credit Facility. The interest rate on the term loans was 5.55% as of June 30, 2025 and 5.58% as of December 31, 2024.

Senior Notes

In October 2023, the Company issued $300 million in aggregate principal amount of 6.500% senior notes due 2028 (the “notes”). The notes are senior unsecured obligations of UL Solutions Inc. and are unconditionally guaranteed by UL LLC. Borrowings under the notes bear a fixed interest rate of 6.500% per annum.

13. Accumulated Other Comprehensive Loss

The following tables summarize the changes in accumulated other comprehensive loss.


	Three Months Ended June 30, 2025
(in millions)	Foreign Currency Translation		Pension and Postretirement Plans		Total
Balance at March 31, 2025, net of tax	$	(71)	$	(79)	$	(150)

Amounts before reclassifications	36		—		36
Amounts reclassified out	—		(1)		(1)


Total other comprehensive income (loss), net of tax	36		(1)		35
Balance at June 30, 2025, net of tax	$	(35)	$	(80)	$	(115)


	Three Months Ended June 30, 2024
(in millions)	Foreign Currency Translation		Pension and Postretirement Plans		Total
Balance at March 31, 2024, net of tax	$	(64)	$	(96)	$	(160)

Amounts before reclassifications	(10)		(1)		(11)
Amounts reclassified out	—		1		1


Total other comprehensive loss, net of tax	(10)		—		(10)
Balance at June 30, 2024, net of tax	$	(74)	$	(96)	$	(170)



	Six Months Ended June 30, 2025
(in millions)	Foreign Currency Translation		Pension and Postretirement Plans		Total
Balance at December 31, 2024, net of tax	$	(88)	$	(79)	$	(167)

Amounts before reclassifications	53		—		53
Amounts reclassified out	—		(1)		(1)


Total other comprehensive income (loss), net of tax	53		(1)		52
Balance at June 30, 2025, net of tax	$	(35)	$	(80)	$	(115)



	Six Months Ended June 30, 2024
(in millions)	Foreign Currency Translation		Pension and Postretirement Plans		Total
Balance at December 31, 2023, net of tax	$	(49)	$	(97)	$	(146)

Amounts before reclassifications	(25)		(1)		(26)
Amounts reclassified out	—		2		2


Total other comprehensive (loss) income, net of tax	(25)		1		(24)
Balance at June 30, 2024, net of tax	$	(74)	$	(96)	$	(170)

14. Stock-based Compensation

Stock-based compensation expense was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2025		2024		2025		2024
Cost of revenue	$	2	$	2	$	3	$	2
Selling, general and administrative expenses	12		14		20		13
Stock-based compensation expense	14		16		23		15
Income tax benefit	(3)		(3)		(4)		(3)
Stock-based compensation expense, net	$	11	$	13	$	19	$	12

Stock-based compensation expense by type of award
Restricted stock units	$	7	$	3	$	10	$	3
Performance share units	3		1		6		1
Stock options	1		1		2		1
Stock-settled stock appreciation rights	1		1		1		1
Employee stock purchase plan	1		—		2		—
Cash-settled awards	1		10		2		9
Stock-based compensation expense	$	14	$	16	$	23	$	15

15. Commitments and Contingencies

The Company is, in the ordinary course of business, party to certain claims, litigation, audits and investigations. The Company will record an accrual for a loss contingency when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company believes it has established adequate accruals for liabilities that are probable and reasonably estimable and that may be incurred in connection with any such currently pending or threatened matter, none of which are material. In the Company’s opinion, the settlement of any such currently pending or threatened matter is not expected to have a material impact on the Company’s financial position, results of operations, or cash flows.

16. Related Party Transactions

In the three and six months ended June 30, 2025, the Company incurred expenses of $6 million and $11 million, respectively, to access the library of standards owned and maintained by UL Standards & Engagement. In the three and six months ended June 30, 2024, the Company incurred expenses of $5 million and $10 million, respectively, to access the library of standards owned and maintained by UL Standards & Engagement.

In the three and six months ended June 30, 2025, the Company declared and paid regular cash dividends to stockholders, resulting in payments of $18 million and $36 million to UL Standards & Engagement, respectively. In the three and six months ended June 30, 2024, the Company declared and paid regular cash dividends to stockholders, resulting in payments of $20 million and $45 million to UL Standards & Engagement, respectively.

17. Segment Information

The following table provides revenue, significant segment expenses and operating income, by segment for the three months ended June 30, 2025 and 2024:


	Industrial				Consumer				Software and Advisory				Total
(in millions)	2025		2024		2025		2024		2025		2024		2025		2024
Revenue	$	338	$	314	$	340	$	322	$	98	$	94	$	776	$	730

Employee compensation	155		150		193		184		69		65		417		399
Services and materials	71		69		87		80		16		15		174		164
Depreciation and amortization	14		10		20		20		12		11		46		41

Operating income	$	98	$	85	$	40	$	38	$	1	$	3	$	139	$	126

The following table provides revenue, significant segment expenses and operating income, by segment for the six months ended June 30, 2025 and 2024:


	Industrial				Consumer				Software and Advisory				Total
(in millions)	2025		2024		2025		2024		2025		2024		2025		2024
Revenue	$	646	$	609	$	644	$	608	$	191	$	183	$	1,481	$	1,400

Employee compensation	300		294		370		354		134		128		804		776
Services and materials	137		134		169		160		32		31		338		325
Depreciation and amortization	28		21		39		39		24		22		91		82

Operating income	$	181	$	160	$	66	$	55	$	1	$	2	$	248	$	217

Capital expenditures of the Company’s segments were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2025		2024		2025		2024
Industrial	$	10	$	28	$	20	$	47
Consumer	9		8		21		16
Software and Advisory	8		8		16		16
Total segments	27		44		57		79
Corporate	15		12		36		34
Total	$	42	$	56	$	93	$	113

Assets by segment are not disclosed as the Company does not allocate assets to segments for internal reporting presentations provided to the Company’s chief operating decision maker.

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of the Company’s results of operations, financial condition and liquidity and capital resources should be read in conjunction with the Company’s condensed consolidated financial statements and the related notes as of June 30, 2025 and for the three and six month periods ended June 30, 2025 and 2024, which are included in this Quarterly Report, as well as the Company’s audited consolidated financial statements for the year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K. This discussion and analysis contains forward-looking statements that involve risks and uncertainties about the Company’s business and operations. The Company’s actual results and the timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those described under “Risk Factors” in Part I Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. See “Cautionary Note Regarding Forward-Looking Statements.” Additionally, the Company’s historical results are not necessarily indicative of the results that may be expected for any period in the future.

References to “UL Solutions” and the “Company” refer to UL Solutions Inc. and its consolidated subsidiaries as a whole, unless the context otherwise requires.

Overview

UL Solutions is a global safety science leader that provides independent third-party testing, inspection and certification (“TIC”) services and related software and advisory (“S&A”) offerings.

UL Solutions reports its financial results through three segments: Industrial, Consumer and Software and Advisory.

Since January 1, 2024, the Company has completed the following acquisitions and divestiture, which impact the comparability of results between periods:

•In July 2024, the Company acquired 100% of the outstanding stock of TesTneT Engineering GmbH (together with its subsidiaries, “TesTneT”) for approximately $19 million. TesTneT is a Germany-based company that provides testing services for various hydrogen storage systems, refueling stations and their components. The results of operations of TesTneT are included in the Industrial segment since the date of acquisition.

•In May 2024, the Company acquired 100% of the outstanding stock of BatterieIngenieure GmbH (together with its subsidiaries, “BatterieIngenieure”) for approximately $12 million. BatterieIngenieure is a Germany-based battery testing company that was, at the time of acquisition, in the process of building a laboratory in Aachen, Germany to replace the leased facility it was using and to add testing and simulation capacity. The results of operations of BatterieIngenieure are included in the Industrial segment since the date of acquisition.

•In May 2024, the Company completed the sale of its payments testing business to an affiliate of Gallant Capital Partners, for a base price of $29 million. The business performed Software and Non-certification Testing and Other Services and the results of operations were included in the Industrial segment until the date of divestiture. The divestiture resulted in a pre-tax gain on sale of $24 million, which was recorded within other (expense) income, net in the Company’s consolidated results of operations.

Recently, the geopolitical environment and attendant increased levels of uncertainty have caused, and may continue to cause, the Company’s customers to modify, delay or cancel plans to purchase services. Accordingly, ongoing uncertainty related to the current geopolitical environment and the associated unpredictability of the macroeconomic environment could have an adverse impact on various aspects of the Company’s business in the future, including its results of operations and financial condition. The Company is unable at this time to reasonably determine any future negative impacts from reduced or delayed customer testing or product development as a result of uncertainty that may result from the current geopolitical environment.

Components of the Company’s Results of Operations

Revenue

The Company conducts its operations across four major service categories: (1) Certification Testing of products, components and systems according to standards and regulatory requirements and other design and performance specifications; (2) Ongoing Certification Services to validate the continued compliance of previously certified products, components and systems; (3) Non-certification Testing and Other Services, which includes performance testing for customer or other

requirements that may not be required by any regulation and may not result in a certification, as well as other services, including advisory and technical services; and (4) Software, comprising software as a service and license-based software solutions, including implementation and training services related to software.

Components of Revenue Change

The Company uses Organic, Acquisition / Divestiture and FX to explain the change in revenue from period to period. Revenue change is calculated as the percentage change in revenue in one period relative to the prior period’s revenue and is a key financial measure that the Company uses to manage its business. The Company defines these components of revenue as follows:

“Organic” reflects revenue change in a given period excluding Acquisition / Divestiture and FX in that same period, expressed in dollars or as a percentage of revenue in the prior period.

“Acquisition / Divestiture” is calculated as revenue change in a given period related to acquisitions or disposals of businesses using prior period exchange rates, expressed in dollars or as a percentage of revenue in the prior period. Revenues from an acquisition or disposal are measured as Acquisition / Divestiture for the initial twelve-month period following the acquisition or disposal date. Subsequently, the revenue impact from the acquired or disposed business is measured as Organic.

“FX” reflects the impact that foreign currency exchange rates have on revenue in a given period, expressed in dollars or as a percentage of revenue in the prior period. The Company uses constant currency to calculate the FX impact on revenue in a given period by translating current period revenues at prior period exchange rates, expressed as a percentage of revenue in the prior period.

Cost of Revenue

Cost of revenue includes employee compensation consisting of salaries, incentives, stock-based compensation and other benefits for employees directly attributable to revenue generation across each of the Company’s four major service categories. In addition, cost of revenue includes services and materials expenses including occupancy and facility-related costs for laboratories and other buildings where testing and inspection services are performed, customer-related travel costs, expenses related to third-party contractors or third-party facilities and consumable materials and supplies used in testing and inspection and other costs associated with generating revenue. Cost of revenue also includes depreciation on equipment used in testing and amortization of capitalized software.

Selling, General and Administrative Expenses

Selling, general and administrative expenses include employee compensation consisting of salaries, incentives, stock-based compensation and other benefits for sales and indirect administrative functions such as executive, finance, legal, human resources and information technology, not included within cost of revenue. In addition, selling, general and administrative expenses include services and materials expenses such as third-party consultancy costs, facility costs, internal research and development costs as well as legal and accounting fees, travel, marketing, bad debt and non-chargeable materials and supplies. Selling, general and administrative expenses also include depreciation and amortization.

Operating Income

Operating income is calculated as revenue less cost of revenue and selling, general and administrative expenses. Operating income margin is calculated as operating income as a percentage of revenue.

Components of Operating Income Change

The Company uses Organic, Acquisition / Divestiture and FX to explain the change in operating income from period to period. Operating income change is calculated as the percentage change in operating income in one period relative to the prior period’s operating income and is a key financial measure that the Company uses to manage its business. The Company defines these components of operating income as follows:

“Organic” reflects total operating income change in a given period excluding Acquisition / Divestiture and FX in that same period, expressed in dollars or as a percentage of operating income in the prior period.

“Acquisition / Divestiture” is calculated as operating income change in a given period related to acquisitions or disposals of businesses using prior period exchange rates, expressed in dollars or as a percentage of operating income in the prior period. Operating income change from an acquisition or disposal is measured as Acquisition / Divestiture for the initial twelve-month period following the acquisition or disposal date. Subsequently, operating income impact from the acquired or disposed business is measured as Organic. Acquisition / Divestiture also includes the change in due diligence-related costs for merger and acquisition and disposal activities.

“FX” reflects the impact that foreign currency exchange rates have on operating income in a given period expressed in dollars or as a percentage of operating income in the prior period. The Company uses constant currency to calculate the FX impact on operating income in a given period by translating current period operating income at prior period exchange rates, expressed as a percentage of operating income in the prior period.

Interest Expense

Interest expense consists primarily of interest expense on the Company’s debt obligations.

Other (Expense) Income, net

Other (expense) income, net consists primarily of non-operating gains and losses, including gains and losses related to foreign exchange transactions and the revaluation performed on designated balance sheet accounts, interest income, non-operating pension and postretirement benefit expenses and gains on divestitures.

Income Before Income Taxes

Income before income taxes is calculated as revenue less cost of revenue, selling, general and administrative expenses, interest expense and other (expense) income, net.

Income Tax Expense

Income tax expense consists of current and deferred federal and state taxes for the Company’s U.S. and foreign jurisdictions.

Net Income

Net income is calculated as revenue less cost of revenue, selling, general and administrative expenses, interest expense, other (expense) income, net and income tax expense. Net income margin is calculated as net income as a percentage of revenue.

Results of Operations

The following table sets forth the Company’s condensed consolidated results of operations for the periods presented.

Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024


	Three Months Ended June 30,								Change
(in millions)	2025		% Revenue		2024		% Revenue
Revenue	$	776	N/A		$	730	N/A		$	46
Cost of revenue	393		50.6	%	364		49.9	%	29
Selling, general and administrative expenses	244		31.4	%	240		32.9	%	4

Operating income	139		17.9	%	126		17.3	%	13
Interest expense	(10)		(1.3)	%	(13)		(1.8)	%	3
Other (expense) income, net	(4)		(0.5)	%	21		2.9	%	(25)
Income before income taxes	125		16.1	%	134		18.4	%	(9)
Income tax expense	28		3.6	%	28		3.8	%	—
Net income	$	97	12.5	%	$	106	14.5	%	(9)

Revenue


	Three Months Ended June 30,
(in millions)	2025		2024		Change		% Change
Industrial	$	338	$	314	$	24	7.6	%
Consumer	340		322		18		5.6	%
Software and Advisory	98		94		4		4.3	%

Total	$	776	$	730	$	46	6.3	%

Revenue increased by $46 million, or 6.3%, for the three months ended June 30, 2025, as compared to the same period in 2024. Revenue increased on an organic basis by $40 million, or 5.5%, due to organic growth across all segments in the second quarter of 2025, driven by the Industrial and Consumer segments in Non-certification Testing and Other Services, Ongoing Certification Services and Certification Testing revenue. FX increased revenue by $7 million, or 1.0%, primarily due to the relative strength of the euro and the Japanese yen.


	Three Months Ended June 30, 2025
(in millions)	Organic		Acquisition / Divestiture		FX		Total		Organic % Change		Total % Change
Revenue change
Industrial	$	22	$	(1)	$	3	$	24	7.0	%	7.6	%
Consumer	15		—		3		18		4.7	%	5.6	%
Software and Advisory	3		—		1		4		3.2	%	4.3	%

Total	$	40	$	(1)	$	7	$	46	5.5	%	6.3	%

Cost of Revenue

Cost of revenue increased by $29 million, or 8.0%, for the three months ended June 30, 2025, as compared to the same period in 2024. On an organic basis, employee compensation increased $12 million, related to base salary and headcount increases. In addition, on an organic basis, professional fees increased $3 million related to outsourced labor associated with higher revenue and occupancy costs increased $3 million related to higher utility costs and rent expense. Depreciation and amortization increased $4 million on an organic basis related to the completion of additional laboratory capacity and software ready for its intended use. FX increased cost of revenue by $5 million, primarily due to the relative strength of the euro, the Japanese yen, the British pound sterling and the New Taiwan dollar.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased by $4 million, or 1.7%, for the three months ended June 30, 2025, as compared to the same period in 2024. On an organic basis, base salary increases, resulting in $7 million of increased employee compensation costs in 2025, were offset by lower performance-based incentive costs of $7 million, primarily related to the Company’s Cash-settled Stock Appreciation Rights, which were remeasured to fair value at the initial public offering date upon conversion to Stock-settled Stock Appreciation Rights in 2024. In addition, costs associated with internal software projects increased $5 million on an organic basis. FX increased selling, general and administrative expenses by $2 million, primarily due to the relative strength of the euro.

Interest Expense

Interest expense decreased by $3 million for the three months ended June 30, 2025, as compared to the same period in 2024. The decrease is primarily due to lower balances in the current period on the Company’s term loan and revolving loan commitments. For additional information refer to “—Liquidity and Capital Resources.”

Other (Expense) Income, net

Other (expense) income, net decreased by $25 million due to a $25 million gain on divestiture of the Company’s payments testing business in May 2024.

Income Tax Expense

The effective tax rate for the three months ended June 30, 2025 was 22.4%, which differed from the U.S. federal statutory tax rate of 21%, primarily due to foreign tax effects, U.S. tax on Global Intangible Low Taxed Income net of related foreign tax credits, and Section 162(m) limitations on current year compensation deductions of certain executive officers, partially offset by excess tax benefits associated with stock-based compensation deductions.

Several countries in which the Company operates have enacted aspects of the Organisation for Economic Co-operation and Development’s Pillar Two rules, which impose a 15% corporate minimum tax, into their local legislation effective either January 1, 2024, or January 1, 2025. The effective tax rate for the three months ended June 30, 2025 of 22.4% was higher than the effective tax rate for the three months ended June 30, 2024 of 20.9%, primarily due to the impact of the Qualified Domestic Minimum Top-up Tax, a subset of the Pillar Two rules that became effective on January 1, 2025.

The effective tax rate for the three months ended June 30, 2024 was 20.9%, which differed from the U.S. federal statutory tax rate of 21%, primarily due to earnings subject to lower tax rates in foreign jurisdictions and a discrete tax benefit for the release of valuation allowances. This was partially offset by a discrete tax expense for the reduction to previously established deferred tax assets of approximately $5 million due to the Company becoming subject to Section 162(m) of the Internal Revenue Code in the U.S., which limits compensation expenses of certain executive officers that were previously deductible as a private company, as well as Section 162(m) limitations on current year deductions and U.S. tax on Global Intangible Low Taxed Income net of related foreign tax credits.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024


	Six Months Ended June 30,								Change
(in millions)	2025		% Revenue		2024		% Revenue
Revenue	$	1,481	N/A		$	1,400	N/A		$	81
Cost of revenue	757		51.1	%	715		51.1	%	42
Selling, general and administrative expenses	476		32.1	%	468		33.4	%	8

Operating income	248		16.7	%	217		15.5	%	31
Interest expense	(22)		(1.5)	%	(28)		(2.0)	%	6
Other (expense) income, net	(7)		(0.5)	%	18		1.3	%	(25)
Income before income taxes	219		14.8	%	207		14.8	%	12
Income tax expense	51		3.4	%	41		2.9	%	10
Net income	$	168	11.3	%	$	166	11.9	%	2

Revenue


	Six Months Ended June 30,
(in millions)	2025		2024		Change		% Change
Industrial	$	646	$	609	$	37	6.1	%
Consumer	644		608		36		5.9	%
Software and Advisory	191		183		8		4.4	%

Total	$	1,481	$	1,400	$	81	5.8	%

Revenue increased by $81 million, or 5.8%, for the six months ended June 30, 2025, as compared to the same period in 2024. Revenue increased on an organic basis by $91 million, or 6.5%, due to organic growth across all segments in 2025, driven by the Industrial and Consumer segments in Ongoing Certification Services, Non-certification Testing and Other Services and Certification Testing revenue. Acquisition / Divestiture decreased revenue by $8 million, or 0.6%, primarily due to the sale of the payments testing business in the Industrial segment.


	Six Months Ended June 30, 2025
(in millions)	Organic		Acquisition / Divestiture		FX		Total		Organic % Change		Total % Change
Revenue change
Industrial	$	46	$	(8)	$	(1)	$	37	7.6	%	6.1	%
Consumer	37		—		(1)		36		6.1	%	5.9	%
Software and Advisory	8		—		—		8		4.4	%	4.4	%

Total	$	91	$	(8)	$	(2)	$	81	6.5	%	5.8	%

Cost of Revenue

Cost of revenue increased by $42 million, or 5.9%, for the six months ended June 30, 2025, as compared to the same period in 2024, primarily due to increased compensation expenses of $21 million, related to base salary and headcount increases. In addition, on an organic basis, professional fees increased $9 million related to outsourced labor associated with higher revenue and occupancy costs increased $7 million related to higher utility costs and rent expense. Depreciation and amortization increased $9 million related to the completion of additional laboratory capacity and software placed in service. FX decreased cost of revenue by $3 million, primarily due to the relative weakness of the Mexican peso and the Korean won. Acquisition / Divestiture decreased cost of revenue by $3 million, primarily due to the sale of the payments testing business.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased by $8 million, or 1.7%, for the six months ended June 30, 2025, as compared to the same period in 2024, due to increased compensation expenses of $12 million, primarily due to base salary increases.

Interest Expense

Interest expense decreased by $6 million for the six months ended June 30, 2025, as compared to the same period in 2024. The decrease is primarily due to lower balances in the current period on the Company’s term loan and revolving loan commitments. For additional information refer to “—Liquidity and Capital Resources.”

Other (Expense) Income, net

Other (expense) income, net decreased by $25 million due to a $25 million gain on divestiture of the Company’s payments testing business in May 2024.

Income Tax

The effective tax rate for the six months ended June 30, 2025 was 23.3%, which differed from the U.S. statutory rate of 21%, primarily due to foreign tax effects, U.S. tax on Global Intangible Low Taxed Income net of related foreign tax credits, and Section 162(m) limitations on current year compensation deductions of certain executive officers, partially offset by excess tax benefits associated with stock-based compensation deductions.

Several countries in which the Company operates have enacted aspects of the Organisation for Economic Co-operation and Development’s Pillar Two rules, which impose a 15% corporate minimum tax, into their local legislation effective either January 1, 2024, or January 1, 2025. The effective tax rate for the six months ended June 30, 2025 of 23.3% was higher than the effective tax rate for the six months ended June 30, 2024 of 19.8%, primarily due to the impact of the Qualified Domestic Minimum Top-up Tax, a subset of the Pillar Two rules that became effective on January 1, 2025.

The effective tax rate for the six months ended June 30, 2024 was 19.8%, which differed from the U.S. federal statutory tax rate of 21%, primarily due to earnings subject to lower tax rates in foreign jurisdictions and a discrete tax benefit for the release of valuation allowances. This was partially offset by a discrete tax expense for the reduction to previously established deferred tax assets of approximately $5 million due to the Company becoming subject to Section 162(m) of the Internal Revenue Code in the U.S., which limits compensation expenses of certain executive officers that were previously deductible as a private company, as well as Section 162(m) limitations on current year deductions and U.S. tax on Global Intangible Low Taxed Income net of related foreign tax credits.

Industrial

The Industrial segment provides TIC services to help ensure customers’ industrial products meet or exceed international standards for product safety, performance and sustainability. The Industrial segment provides services that address needs across a number of end markets, including energy, industrial automation, engineered materials (plastics and wire and cable) and built environment, and across a variety of stakeholders, including manufacturers, building owners, end users and regulators.

The following tables summarize the change in Industrial’s revenue and operating income for the periods presented:


	Three Months Ended June 30,										Six Months Ended June 30,
(in millions)	2025			2024			Change		% Change		2025			2024			Change		% Change
Revenue	$	338		$	314		$	24	7.6	%	$	646		$	609		$	37	6.1	%
Employee compensation	155			150			5		3.3	%	300			294			6		2.0	%
Services and materials	71			69			2		2.9	%	137			134			3		2.2	%
Depreciation and amortization	14			10			4		40.0	%	28			21			7		33.3	%

Segment operating income	$	98		$	85		$	13	15.3	%	$	181		$	160		$	21	13.1	%

Segment operating income margin	29.0		%	27.1		%					28.0		%	26.3		%


	Three Months Ended June 30, 2025								Six Months Ended June 30, 2025
(in millions)	Organic		Acquisition/ Divestiture		FX		Total		Organic		Acquisition/ Divestiture		FX		Total
Revenue change	$	22	$	(1)	$	3	$	24	$	46	$	(8)	$	(1)	$	37
Segment operating income change	$	12	$	1	$	—	$	13	$	22	$	(1)	$	—	$	21

Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

Revenue

Revenue increased by $24 million, or 7.6%, for the three months ended June 30, 2025, as compared to the same period in 2024. On an organic basis, revenue increased $22 million, or 7.0%, primarily due to growth in Ongoing Certification Services revenue of $9 million across most industries due in part to price increases and additional volume. Certification Testing revenue increased $8 million, driven by price increases, continued demand for energy and automation testing, and new capacity provided by recent laboratory investments. FX increased revenue by $3 million, or 1.0%, primarily due to the relative strength of the euro and the Japanese yen.

Segment Operating Income

Segment operating income increased by $13 million, or 15.3%, for the three months ended June 30, 2025, as compared to the same period in 2024, primarily due to the $22 million increase in organic revenue noted above. This was partially offset by a $10 million organic increase in expenses, primarily due to higher employee compensation of $4 million related to base salary and headcount increases. Depreciation and amortization also increased $2 million primarily related to the completion of additional laboratory capacity.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

Revenue

Revenue increased by $37 million, or 6.1%, for the six months ended June 30, 2025, as compared to the same period in 2024. On an organic basis, revenue increased $46 million, or 7.6%, primarily due to growth in Ongoing Certification Services

revenue of $21 million across most industries due in part to price increases and additional volume. Certification Testing revenue increased $19 million, driven by price increases, continued demand for energy and automation testing, and new capacity provided by recent laboratory investments. Acquisition / Divestiture decreased revenue by $8 million, or 1.3%, primarily due to the sale of the payments testing business.

Segment Operating Income

Segment operating income increased by $21 million, or 13.1%, for the six months ended June 30, 2025, as compared to the same period in 2024, primarily due to the $46 million increase in organic revenue noted above. This was partially offset by a $24 million organic increase in expenses, primarily due to higher employee compensation of $10 million related to base salary and headcount increases. Depreciation and amortization also increased $5 million primarily related to the completion of additional laboratory capacity.

Consumer

The Consumer segment provides a variety of global product market acceptance and risk mitigation services for customers in the consumer products end market, including consumer electronics, medical devices, information technologies, appliances, HVAC, lighting, retail (softlines and hardlines) and emerging consumer applications, including new mobility, smart products and 5G. The primary services offered by this segment include safety certification testing, ongoing certification, global market access, testing for connectivity, performance and quality and critical systems advisory and training.

The following tables summarize the change in Consumer’s revenue and operating income for the periods presented:


	Three Months Ended June 30,										Six Months Ended June 30,
(in millions)	2025			2024			Change		% Change		2025			2024			Change		% Change
Revenue	$	340		$	322		$	18	5.6	%	$	644		$	608		$	36	5.9	%
Employee compensation	193			184			9		4.9	%	370			354			16		4.5	%
Services and materials	87			80			7		8.8	%	169			160			9		5.6	%
Depreciation and amortization	20			20			—		—	%	39			39			—		—	%

Segment operating income	$	40		$	38		$	2	5.3	%	$	66		$	55		$	11	20.0	%

Segment operating income margin	11.8		%	11.8		%					10.2		%	9.0		%


	Three Months Ended June 30, 2025								Six Months Ended June 30, 2025
(in millions)	Organic		Acquisition/ Divestiture		FX		Total		Organic		Acquisition/ Divestiture		FX		Total
Revenue change	$	15	$	—	$	3	$	18	$	37	$	—	$	(1)	$	36
Segment operating income change	$	4	$	(2)	$	—	$	2	$	13	$	(2)	$	—	$	11

Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

Revenue

Revenue increased by $18 million, or 5.6%, for the three months ended June 30, 2025, as compared to the same period in 2024. On an organic basis, revenue increased $15 million, or 4.7%, primarily due to Non-certification Testing and Other Services revenue growth of $9 million in consumer technology driven by increased demand for electromagnetic compatibility testing for consumer electronics and in retail. FX increased revenue by $3 million, or 0.9%, primarily due to the relative strength of the euro and the Japanese yen.

Segment Operating Income

Segment operating income increased by $2 million for the three months ended June 30, 2025, as compared to the same period in 2024, primarily due to the $15 million increase in organic revenue noted above. This was partially offset by a $11 million organic increase in expenses, primarily due to higher employee compensation of $7 million, related to base salary and headcount increases. In addition, costs associated with internal software projects increased by $2 million.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

Revenue

Revenue increased by $36 million, or 5.9%, for the six months ended June 30, 2025, as compared to the same period in 2024. On an organic basis, revenue increased $37 million, or 6.1%, primarily due to Non-certification Testing and Other Services revenue growth of $22 million in consumer technology driven by increased demand for electromagnetic compatibility testing for consumer electronics and in retail.

Segment Operating Income

Segment operating income increased by $11 million for the six months ended June 30, 2025, as compared to the same period in 2024, primarily due to the $37 million increase in organic revenue noted above. This was partially offset by a $24 million organic increase in expenses, primarily due to higher employee compensation of $17 million, related to base salary and headcount increases. In addition, costs associated with internal software projects increased by $4 million.

Software and Advisory

The Software and Advisory segment provides complementary software and advisory solutions that extend the value proposition of TIC services the Company offers. The software and technical advisory offerings enable the Company’s customers to manage complex regulatory requirements, deliver supply chain transparency and operationalize sustainability.

The following tables summarize the change in Software and Advisory’s revenue and operating income for the periods presented:


	Three Months Ended June 30,										Six Months Ended June 30,
(in millions)	2025			2024			Change		% Change		2025			2024			Change		% Change
Revenue	$	98		$	94		$	4	4.3	%	$	191		$	183		$	8	4.4	%
Employee compensation	69			65			4		6.2	%	134			128			6		4.7	%
Services and materials	16			15			1		6.7	%	32			31			1		3.2	%
Depreciation and amortization	12			11			1		9.1	%	24			22			2		9.1	%

Segment operating income	$	1		$	3		$	(2)	(66.7)	%	$	1		$	2		$	(1)	(50.0)	%

Segment operating income margin	1.0		%	3.2		%					0.5		%	1.1		%


	Three Months Ended June 30, 2025								Six Months Ended June 30, 2025
(in millions)	Organic		Acquisition/ Divestiture		FX		Total		Organic		Acquisition/ Divestiture		FX		Total
Revenue change	$	3	$	—	$	1	$	4	$	8	$	—	$	—	$	8
Segment operating income change	$	(1)	$	(1)	$	—	$	(2)	$	(1)	$	(1)	$	1	$	(1)

Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

Revenue

Revenue increased by $4 million, or 4.3%, for the three months ended June 30, 2025, as compared to the same period in 2024. On an organic basis, revenue increased $3 million, or 3.2% driven by demand for software, including retail product compliance.

Segment Operating Income

Segment operating income decreased by $2 million for the three months ended June 30, 2025, as compared to the same period in 2024, primarily due to a $4 million organic increase in expenses, which was primarily driven by higher employee compensation of $3 million related to base salary increases. This was partially offset by the $3 million increase in organic revenue noted above.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

Revenue

Revenue increased by $8 million, or 4.4%, for the six months ended June 30, 2025, as compared to the same period in 2024. On an organic basis, revenue increased $8 million, or 4.4% driven by demand for software, including retail product compliance.

Segment Operating Income

Segment operating income decreased by $1 million for the six months ended June 30, 2025, as compared to the same period in 2024, primarily due to a $9 million organic increase in expenses, which was primarily driven by higher employee compensation of $6 million related to base salary increases. This was partially offset by the $8 million increase in organic revenue noted above.

Non-GAAP Financial Measures

In addition to financial measures determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company considers a variety of supplemental non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income margin, Adjusted Diluted Earnings Per Share and Free Cash Flow. Management uses non-GAAP financial measures in addition to GAAP measures to understand and compare operating results across periods and for forecasting and other purposes. Management believes these non-GAAP financial measures provide useful information to investors and reflect results in a manner that enables, in some instances, more meaningful analysis of trends and facilitates comparison of results across periods. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for net income, operating income, diluted earnings per share, net cash provided by operating activities or any other measure calculated in accordance with GAAP, and may not be comparable to similarly titled measures reported by other companies due to potential differences between the companies in calculations.

The Company uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income margin and Adjusted Diluted Earnings Per Share to measure the operational strength and performance of its business and believes these measures provide additional information to investors about certain non-cash items and unusual items that the Company does not expect to continue at the same level in the future. Further, management believes these non-GAAP financial measures provide a meaningful measure of business performance. The Company uses Free Cash Flow as an additional liquidity measure and believes it provides useful information to investors about the cash generated from the Company’s core operations that may be available to repay debt, make other investments and return cash to stockholders.

There are material limitations to using these non-GAAP financial measures. Adjusted EBITDA does not take into account certain significant items, including depreciation and amortization, interest expense, other expense (income), net, income tax expense, stock-based compensation expense for equity-settled awards, material asset impairment charges and restructuring expenses which directly affect the Company’s net income, as applicable. Adjusted Net Income and Adjusted Diluted Earnings Per Share do not take into account certain significant items, including other expense (income), net, stock-based compensation expense for equity-settled awards, material asset impairment charges and restructuring expenses which directly affect the Company’s net income and diluted earnings per share, as applicable. Free Cash Flow adjusts for cash items that are ultimately within management’s discretion to direct, and therefore, may imply that there is less or more cash that is available than the most comparable GAAP measure. Free Cash Flow is not intended to represent residual cash flow for discretionary expenditures since debt repayment requirements and other non-discretionary expenditures are not deducted. These limitations are best addressed by considering the economic effects of the excluded items independently, and by considering these non-GAAP financial measures in conjunction with net income, operating income, diluted earnings per share and net cash provided by operating activities as calculated in accordance with GAAP.

The table below presents these non-GAAP measures with the most directly comparable GAAP measures.


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions, unless otherwise stated)	2025			2024			2025			2024



Net income	$	97		$	106		$	168		$	166
Net income margin	12.5		%	14.5		%	11.3		%	11.9		%
Adjusted EBITDA	$	197		$	173		$	358		$	304
Adjusted EBITDA margin	25.4		%	23.7		%	24.2		%	21.7		%
Adjusted Net Income	$	110		$	94		$	190		$	155
Adjusted Net Income margin	14.2		%	12.9		%	12.8		%	11.1		%

Diluted Earnings per Share	$	0.45		$	0.50		$	0.78		$	0.78
Adjusted Diluted Earnings Per Share	$	0.52		$	0.44		$	0.89		$	0.73

Net Cash provided by Operating Activities							$	301		$	244
Free Cash Flow							$	208		$	131

Adjusted EBITDA

The Company defines Adjusted EBITDA as net income adjusted for depreciation and amortization expense, interest expense, other expense (income), net, income tax expense, as well as stock-based compensation expense for equity-settled awards, material asset impairment charges and restructuring expenses, as applicable. Adjusted EBITDA margin is calculated as Adjusted EBITDA as a percentage of revenue.

The table below reconciles net income to Adjusted EBITDA.


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions, unless otherwise stated)	2025			2024			2025			2024
Net income	$	97		$	106		$	168		$	166
Depreciation and amortization expense	46			41			91			82
Interest expense	10			13			22			28
Other expense (income), net	4			(21)			7			(18)
Income tax expense	28			28			51			41
Stock-based compensation	13			6			21			6

Restructuring	(1)			—			(2)			(1)
Adjusted EBITDA	$	197		$	173		$	358		$	304
Revenue	$	776		$	730		$	1,481		$	1,400
Net income margin	12.5		%	14.5		%	11.3		%	11.9		%
Adjusted EBITDA margin	25.4		%	23.7		%	24.2		%	21.7		%

The table below reconciles segment operating income to segment Adjusted EBITDA.


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions, unless otherwise stated)	2025			2024			2025			2024
Industrial
Segment operating income	$	98		$	85		$	181		$	160
Depreciation and amortization expense	14			10			28			21
Stock-based compensation	5			2			8			2


Adjusted EBITDA	$	117		$	97		$	217		$	183
Revenue	$	338		$	314		$	646		$	609
Operating income margin	29.0		%	27.1		%	28.0		%	26.3		%
Adjusted EBITDA margin	34.6		%	30.9		%	33.6		%	30.0		%

Consumer
Segment operating income	$	40		$	38		$	66		$	55
Depreciation and amortization expense	20			20			39			39
Stock-based compensation	6			3			10			3

Restructuring	(1)			—			(2)			(1)
Adjusted EBITDA	$	65		$	61		$	113		$	96
Revenue	$	340		$	322		$	644		$	608
Operating income margin	11.8		%	11.8		%	10.2		%	9.0		%
Adjusted EBITDA margin	19.1		%	18.9		%	17.5		%	15.8		%

Software and Advisory
Segment operating income	$	1		$	3		$	1		$	2
Depreciation and amortization expense	12			11			24			22
Stock-based compensation	2			1			3			1


Adjusted EBITDA	$	15		$	15		$	28		$	25
Revenue	$	98		$	94		$	191		$	183
Operating income margin	1.0		%	3.2		%	0.5		%	1.1		%
Adjusted EBITDA margin	15.3		%	16.0		%	14.7		%	13.7		%

Adjusted EBITDA	$	197		$	173		$	358		$	304

Adjusted Net Income

The Company defines Adjusted Net Income as net income adjusted for other expense (income), net, stock-based compensation expense for equity-settled awards, material asset impairment charges and restructuring expenses, as applicable, each net of tax. Adjusted Net Income margin is calculated as Adjusted Net Income as a percentage of revenue.

The table below reconciles net income to Adjusted Net Income.


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions, unless otherwise stated)	2025			2024			2025			2024
Net income	$	97		$	106		$	168		$	166
Other expense (income), net	4			(21)			7			(18)
Stock-based compensation	13			6			21			6

Restructuring	(1)			—			(2)			(1)
Tax effect of adjustments(a)	(3)			3			(4)			2
Adjusted Net Income	$	110		$	94		$	190		$	155
Revenue	$	776		$	730		$	1,481		$	1,400
Net income margin	12.5		%	14.5		%	11.3		%	11.9		%
Adjusted Net Income margin	14.2		%	12.9		%	12.8		%	11.1		%

__________________

(a)The Company computed the tax effect of adjustments to net earnings by applying the statutory tax rate in the relevant jurisdictions to the taxable income or expense items that are adjusted in the period presented. If a valuation allowance exists, the rate applied is zero.

Adjusted Diluted Earnings Per Share

The Company defines Adjusted Diluted Earnings Per Share as diluted earnings per share attributable to stockholders of UL Solutions adjusted for other expense (income), net, stock-based compensation expense for equity-settled awards, material asset impairment charges and restructuring expenses, as applicable.

The table below reconciles diluted earnings per share to Adjusted Diluted Earnings Per Share.


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Diluted earnings per share	$	0.45	$	0.50	$	0.78	$	0.78
Other expense (income), net	0.02		(0.11)		0.04		(0.09)
Stock-based compensation	0.06		0.03		0.10		0.03

Restructuring	—		—		(0.01)		—
Tax effect of adjustments(a)	(0.01)		0.02		(0.02)		0.01
Adjusted Diluted Earnings Per Share	$	0.52	$	0.44	$	0.89	$	0.73

__________

Free Cash Flow

The Company defines Free Cash Flow as cash from operating activities less cash outlays related to capital expenditures. The Company defines capital expenditures to include purchases of property, plant and equipment and capitalized software. These items are subtracted from cash from operating activities because they represent long-term investments that are required for normal business activities.

The table below reconciles net cash provided by operating activities to Free Cash Flow.


	Six Months Ended June 30,
(in millions)	2025		2024
Net cash provided by operating activities	$	301	$	244
Capital expenditures	(93)		(113)
Free Cash Flow	$	208	$	131

Liquidity and Capital Resources

Overview

The Company’s primary sources of liquidity are cash and cash equivalents on hand, cash flows from operating activities and cash borrowed under a credit agreement with Bank of America, N.A. and certain other lenders, which provides for senior unsecured credit facilities in an aggregate principal amount of $1,250 million (collectively, and as amended, the “Credit Facility”). The Company believes the combination of cash and cash equivalents on hand, the generation of cash from operating activities, funds available under the Credit Facility and the Company’s ability to access the capital markets provide sufficient liquidity to meet the Company’s cash requirements for working capital, capital expenditures, service of indebtedness and to address other needs for the next twelve months and the foreseeable future thereafter, as well as to finance acquisitions, make contributions to the Company’s pension and postretirement plans and pay dividends to stockholders, as the Company’s board of directors deems appropriate.

The Company’s cash flows from operations, borrowing availability and overall liquidity are subject to certain risks and uncertainties, including those referenced in the section titled “Risk Factors” in Part I Item 1A of the Company’s Annual Report on Form 10-K. In addition, the Company cannot predict whether or when it may enter into acquisitions, joint ventures or dispositions, make contributions to the Company’s pension and postretirement plans, pay dividends, or what impact any such transactions could have on the Company’s financial condition, results of operations or cash flows.

As of June 30, 2025, the Company had $272 million in cash and cash equivalents and $745 million of unused availability under the Credit Facility and access to an accordion feature permitting an increase in the Credit Facility by an aggregate amount of up to $625 million (of which up to $400 million may consist of term loans), subject to the consent of any lenders providing such increase, the absence of any default or event of default and entry into customary documentation with respect to such increase.

Cash Flows

The following table is a summary of the Company’s cash flow activity:


	Six Months Ended June 30,
(in millions)	2025		2024
Net cash provided by operating activities	$	301	$	244
Net cash used in investing activities	$	(107)	$	(93)
Net cash used in financing activities	$	(221)	$	(159)

Cash flows from operating activities

Net cash provided by operating activities was $301 million for the six months ended June 30, 2025, an increase of $57 million compared to net cash provided by operating activities of $244 million for the same period in 2024. The increase was primarily driven by higher net income after non-cash adjustments due to business performance during the six months ended June 30, 2025 compared to the same period in 2024 and employee contributions to the Company’s employee stock purchase plan which was not in place during the same period in 2024.

Cash flows from investing activities

Net cash used in investing activities was $107 million for the six months ended June 30, 2025, an increase of $14 million compared to net cash used in investing activities of $93 million for the same period in 2024. The increase in cash used in investing activities was primarily driven by proceeds from the divestiture of the Company’s payments testing business of $30 million for the six months ended June 30, 2024 and a $14 million increase in purchases of investments for the six months ended June 30, 2025 compared to the same period in 2024. The increase was partially offset by a $20 million decrease in capital expenditures compared to the same period in 2024.

Cash flows from financing activities

Net cash used in financing activities was $221 million for the six months ended June 30, 2025, an increase of $62 million compared to net cash used in financing activities of $159 million for the same period in 2024. The change was primarily driven by a $40 million increase in repayments net of proceeds on the Company’s Credit Facility compared to the same

period in 2024 and $13 million in employee taxes paid on settlement of stock-based compensation for the six months ended June 30, 2025 which did not occur for the same period in 2024.

Capital Expenditures

The Company makes strategic investments in capital expenditures to enable growth by expanding testing capacity to meet increased demand, to enable new capabilities and product offerings and to increase the efficiency of the Company’s processes. Capital expenditures include the building and refurbishment of laboratories and office space, the replacement and upgrade of existing laboratory equipment at the end of its useful life, and investments in technology for internal-use and sale to customers through product development of new software and enhancements of existing software. Cash paid for capital expenditures decreased $20 million, to $93 million for the six months ended June 30, 2025, compared to $113 million for the same period in 2024.

Long-Term Debt

Credit Facility

In January 2022, the Company entered into the Credit Facility with Bank of America, N.A. and certain other lenders, which provides for senior unsecured credit facilities in an aggregate principal amount of $1,250 million, consisting of term loans and revolving loan commitments. The Company’s wholly owned subsidiary, UL LLC, a Delaware limited liability company, provides a guaranty of its obligations thereunder. As of June 30, 2025, the Company was in compliance with all covenants under the Credit Facility.

Senior Notes

Dividends

The Company increased the regular quarterly dividend to 13 cents per share beginning in the first quarter of 2025, an increase from the previous 12.5 cents per share. The Company will periodically assess the size of the regular quarterly dividend based on the Company’s dividend policy and certain factors described in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Dividends” in Part II Item 7 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. The Company cannot give any assurance that the Company will continue to declare dividends in any particular amounts, or at all, in the future.

In the three and six months ended June 30, 2025, the Company paid dividends to stockholders of $26 million and $52 million, respectively. In the three and six months ended June 30, 2024, the Company paid dividends to stockholders of $25 million and $50 million, respectively.

Contractual Obligations

The Company has purchase obligations related to agreements to purchase goods and services that are enforceable and legally binding, and that specify all significant terms, including the goods to be purchased or services to be rendered, the price at which the goods or services are to be rendered, and the timing of the transactions. Purchase obligations exclude liabilities that are included on Company’s Condensed Consolidated Balance Sheets and include commitments for outsourced services, facilities, capital expenditures, cloud service arrangements and various other types of noncancelable contracts.

Refer to the Company’s consolidated financial statements for the year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K for information about the Company’s noncancelable purchase obligations.

Recent Accounting Pronouncements

For a discussion of new accounting pronouncements recently adopted and not yet adopted, see Note 1 to the condensed consolidated financial statements included elsewhere in this Quarterly Report.

Critical Accounting Policies and Estimates

The Company prepares its condensed consolidated financial statements in accordance with GAAP. While the majority of the Company’s revenue, expenses, assets and liabilities are not based on estimates, there are certain accounting principles that require management to make judgments and estimates regarding matters that are uncertain and susceptible to change. Critical accounting policies are defined as those policies that are reflective of significant judgments, estimates and uncertainties, which could potentially result in materially different results under different assumptions and conditions. Management regularly reviews the estimates and assumptions used in the preparation of the financial statements for reasonableness and adequacy. The Company’s estimates are based on historical experience, current conditions and various other assumptions that the Company believes to be reasonable under the circumstances. Actual results may differ from these estimates and assumptions. To the extent that there are differences between estimates and actual results, the Company’s future financial statement presentation, financial condition, results of operations and cash flows may be affected.

There have been no material changes to the Company’s critical accounting policies and estimates as described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this Quarterly Report may be forward-looking statements. Statements regarding the Company’s future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding the Company’s expected growth and future capital expenditures are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “would,” “likely,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “continue” and variations of these terms and similar expressions, or the negative of these terms or similar expressions (although not all forward-looking statements may contain such words). The Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

There are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following:

•any failure on the Company’s part to protect and maintain its brand and reputation, or the impact on its brand or reputation of third-party events or actions outside of its control;

•risks associated with the Company’s information technology and software, including those relating to any future data breach or other cybersecurity incident;

•the potential disruption of the TIC or S&A industries by technological advances in artificial intelligence;

•the Company’s ability to innovate, adapt to changing customer needs and successfully introduce new products and services in response to changes in the Company’s industries and technological advances;

•the Company’s ability to compete in its industries and the effects of increased competition from its competitors;

•risks associated with conducting business outside the United States, including those relating to fluctuations in foreign currency exchange rates; the imposition of tariffs and enhanced trade, import or export restrictions; and global, regional or political instability;

•risks associated with the Company’s operations in China, which subject the Company and UL-CCIC Company Limited, the Company’s joint venture with the China Certification & Inspection (Group) Co., Ltd. (“CCIC”), to China’s complex and rapidly evolving laws, which may be interpreted, applied or enforced inconsistently or in ways inconsistent with its current operations, as well as risks associated with the fact that the Chinese government has the power to exercise significant oversight and discretion over, and intervene in and influence, its business operations in China;

•the relationship between the United States and China and between the Company and CCIC, as well as changes in U.S. and Chinese regulations affecting the Company’s business operations in China;

•any failure on the Company’s part to attract, hire or retain its key employees, including its senior leadership and its skilled and trained engineering, technical and professional personnel;

•the level of the Company’s customers’ satisfaction and any failure on its part to properly and timely perform its services, meet its contractual obligations or fulfil its customers’ needs;

•changes to the relevant regulatory frameworks or private sector requirements, including any requirement that the Company accept third-party test results or certifications of components, end products, processes or systems or any

changes that result in a reduction in required inspections, tests or certifications or harmonized international or cross-industry benchmarks and standards;

•the Company’s ability to adequately maintain, protect and enhance its intellectual property, including its registered UL-in-a-circle certification mark and other certification marks;

•the Company’s ability to implement its growth strategies and initiatives successfully;

•the Company’s reliance on third parties, including subcontractors and outside laboratories;

•the Company’s ability to obtain and maintain the requisite licenses, approvals, accreditations and delegations of authority necessary to conduct its business;

•the outcomes of current and future legal proceedings;

•the Company’s level of indebtedness and future cash needs;

•failure to generate sufficient cash to service the Company’s indebtedness;

•a change in the assumptions the Company uses to value its goodwill or intangible assets, or the impairment of its goodwill or intangible assets;

•constraints imposed on the Company’s ability to operate its business or make necessary capital investments due to the Company’s outstanding indebtedness;

•the increased expenses and responsibilities associated with being a public company;

•the significant influence that UL Standards & Engagement has over the Company, including pursuant to its rights under the Company’s amended and restated certificate of incorporation and the Stockholder Agreement with UL Standards & Engagement;

•natural disasters and other catastrophic events, including pandemics and the rapid spread of contagious illnesses;

•changes in tax laws in jurisdictions in which we operate or adverse outcomes resulting from examination of our or our affiliates tax returns; and

•the other factors discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” herein and in the “Risk Factors” in Part I Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in the section titled “Risk Factors” in Part I Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and the Company’s subsequent filings with the SEC. If one or more events related to these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, actual results may differ materially from what the Company anticipates. Many of the important factors that will determine these results are beyond the Company’s ability to control or predict. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. If the Company updates one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements. New factors emerge from time to time, and it is not possible for the Company to predict which will arise. In addition, the Company cannot assess the impact of each factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements attributable to the Company, or others acting on the Company’s behalf, are expressly qualified in their entirety by the cautionary statements above.

In addition, statements that “the Company believes” and similar statements reflect the Company’s beliefs and opinions on the relevant subject. These statements are based upon information available to the Company as of the date of this Quarterly Report, and while the Company believes such information forms a reasonable basis for such statements, such information may be limited or incomplete, and the Company’s statements should not be read to indicate that the Company has conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

You should read this Quarterly Report and the documents that the Company references in this Quarterly Report with the understanding that the Company’s actual future results, levels of activity, performance and achievements may be materially different from what the Company expects.

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

The Company is exposed to market risk in the ordinary course of business. Market risk represents the risk of loss that may impact the Company’s financial position due to adverse changes in financial market prices and rates, such as interest and foreign currency exchange rates and equity prices. The Company’s market risk exposure is primarily a result of exposure to

potential changes in interest rates or inflation and the resulting impact on investment income and interest expense. The Company does not hold financial instruments for trading purposes.

Interest Rate Risk

The Company’s operating results are subject to risk from interest rate fluctuations on its Credit Facility, which carries variable interest rates. Subsequent to June 28, 2024, borrowings under the Credit Facility bear interest at a rate per annum equal to, at the Company’s option, (a) in the case of U.S. dollar loans, the Term SOFR (as defined in the Credit Facility) plus a Secured Overnight Financing Rate (“SOFR”) adjustment of 0.1% plus a margin, and for all other currencies, a specified benchmark rate for the applicable currency plus, in certain instances, a specified spread adjustment plus a margin (loans with a rate based on this clause (a), “benchmark rate loans”) or (b) for U.S. dollar loans only, the base rate plus a margin (loans with a rate based on this clause (b), “base rate loans”). Because the Company’s borrowings bear interest at a variable rate, the Company is exposed to market risks relating to changes in interest rates. The Company is also exposed to interest rate risk associated with its cash and cash equivalents balances. The Company does not currently use derivative financial instruments in its investment portfolio.

During the first six months of 2025, the variable interest rates applicable to both benchmark rate loans and base rate loans under the Credit Facility generally fluctuated in line with interest rate changes in the marketplace and are expected to continue fluctuating with any future Federal Reserve Board interest rate changes and future changes to the SOFR Index. In addition, increases in interest expense are considered with other expense increases that may be passed, in whole or in part, along to the Company’s customers; however, the Company does not expect increases in interest expenses to materially impact pricing strategy in the near term. The increased interest payments on the Company’s variable-rate debt are not material to the Company’s overall liquidity position and have not impacted, and are not expected to have an impact on, the Company’s ability to make timely payments under the Credit Facility or its other obligations. Furthermore, while interest rates impact management’s evaluation of capital expenditure projects, the overall cash flows required to support the Company’s planned investments have not been materially impacted. Thus, fluctuations in interest rates have not had a material impact on the Company’s financial condition.

The interest rate for the Company’s term loan as of June 30, 2025 was 5.55%, which was a floating rate based on the Term SOFR plus a SOFR adjustment of 0.10%. A hypothetical 100 basis point change in interest rates affecting the Credit Facility would result in a change to the annual interest expense of approximately $3 million, based on outstanding borrowings at June 30, 2025. A hypothetical 100 basis point change in interest rates affecting the Company’s cash and cash equivalents or short-term investments would not have a material impact on the Company’s financial statements. Notwithstanding the Company’s efforts to manage interest rate risk, there can be no assurances that the Company will be adequately protected against the risks associated with interest rate fluctuations.

Foreign Currency Risk

With global operations, the Company has foreign currency risk related to its revenues and expenses denominated in currencies other than the U.S. dollar, primarily the Japanese yen, the Chinese renminbi, the New Taiwan dollar, the euro, the Korean won, the British pound sterling, the Mexican peso and the Singapore dollar. Foreign currency gains (losses) are recorded in net income as transactions occur. Changes in exchange rates may substantially affect, either positively or negatively, the revenues and expenses, as expressed in U.S. dollars, of the Company’s foreign subsidiaries with functional currencies other than the U.S. dollar. Assuming a hypothetical change of 10% in the average foreign currency exchange rate for the six months ended June 30, 2025, the effect on operating income would not be material. The Company is also subject to foreign currency exchange rate risk associated with the translation of local currencies of its foreign subsidiaries into U.S. dollars.

The Company’s results of operations are exposed to foreign currency exchange risk related to intercompany loan and operating balances between subsidiaries that are denominated in currencies other than the U.S. dollar, primarily the euro, Korean won and the Japanese yen. A transaction made in a currency that differs from the local entity’s functional currency is first remeasured at the entity’s functional currency. Subsequent foreign currency exchange rate changes result in foreign currency gains (losses) that are recognized in net income. If the transaction is already denominated in the entity’s functional currency, only the translation to U.S. dollar reporting is necessary. The remeasurement process required by GAAP for such intercompany loan and operating balances will give rise to foreign exchange gains (losses), which could materially impact the Company’s results of operations.

ITEM 4. Controls and Procedures

Evaluation of disclosure controls and procedures

The Company has conducted an evaluation, under the supervision and with the participation of management, including the Company’s principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, the Company’s principal executive officer and principal financial officer concluded that, as of June 30, 2025, the Company’s disclosure controls and procedures were effective such that the information required to be disclosed in the Company’s SEC reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to the Company’s management, including the Company’s principal executive officer and principal financial officer, as appropriate to allow for timely decisions regarding required disclosure.

Changes in Internal Controls Over Financial Reporting

No changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the quarter ended June 30, 2025, that have materially affected, or that are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. Legal Proceedings

The Company is, in the ordinary course of business, party to certain claims, litigation, audits and investigations. Discussion of these and other legal matters is incorporated by reference from Part I, Item 1, Note 15, “Commitments and Contingencies,” of this Quarterly Report and should be considered an integral part of Part II, Item 1, “Legal Proceedings.”

ITEM 1A. Risk Factors

See the section titled “Risk Factors” in Part I Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes to the Company’s risk factors as previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

ITEM 6. Exhibits


Exhibit No.			Description
3.1			Amended and Restated Certificate of Incorporation of UL Solutions Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed with the SEC on April 17, 2024).
3.2			Amended and Restated Bylaws of UL Solutions Inc. (incorporated by reference to Exhibit 3.2 to the Company’s Form 8-K filed with the SEC on April 17, 2024).
10.1†*			UL Solutions Inc. Executive Regular and Change in Control Severance Plan (as amended and restated, effective May 20, 2025)
































































31.1*			Certification of Principal Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*			Certification of Principal Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**			Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**			Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101*			The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, formatted in Inline Extensible Business Reporting Language (iXBRL) includes (i) the Condensed Consolidated Statements of Operations, (ii) the Condensed Consolidated Statements of Comprehensive Income; (iii) the Condensed Consolidated Balance Sheets; (iv) the Condensed Consolidated Statements of Stockholders’ Equity; (v) the Condensed Consolidated Statements of Cash Flows; and (vi) the Notes to Condensed Consolidated Financial Statements.
104*			Cover Page Interactive Data File (embedded within the iXBRL document).

* Filed herewith.

**Furnished herewith. The certifications attached as Exhibits 32.1 and 32.2 to this Quarterly Report are deemed furnished and not filed with the SEC and are not to be incorporated by reference into any filing of the Company under the Securities Act or the Exchange Act, whether made before or after the date of this Quarterly Report, irrespective of any general incorporation language contained in such filing.

† Indicates a management contract or compensatory plan or arrangement.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		UL Solutions Inc.
Date: August 5, 2025
	By	/s/ Ryan D. Robinson
		Ryan D. Robinson
		Executive Vice President and Chief Financial Officer
		(Duly authorized officer and principal financial officer of the Registrant)

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Date	Price Target	Rating	Analyst
5/14/2025	$71.00	Buy → Neutral	Citigroup
10/7/2024	$60.00	Buy	Citigroup
7/12/2024	$41.00 → $46.00	Outperform → Neutral	Robert W. Baird

SEC Form 10-Q filed by UL Solutions Inc.

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