Ul Solutions Inc. · NYSE:ULS
Ul Solutions — Q1 2025 Earnings Presentation
18 slides from Ul Solutions's earnings presentation, May 6, 2025
Slide 1: Earnings Presentation Q1 2025
UL SOLUTIONS INC. Earnings Presentation Q1 2025 May 6, 2025 © 2025 UL LLC. All Rights Reserved.
Slide 2: Forward looking statements
Forward looking statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. These include stat
Slide 3: Q1 2025 Highlights
Q1 2025 Highlights Strong execution and momentum drives Q1 performance • 5.2% Revenue growth, 7.6% Organic1 • 31.1% Adjusted Net Income2 increase • Adjusted EBITDA2 up 22.9% / Adjusted EBITDA margin2 up 320 bps • Generated Free Cash Flow2 of $306M for the last twelve months ended March 31, 2025 1. O
Slide 4: Q1 2025 Revenue +7.6% Organic
Q1 2025 Revenue +7.6% Organic $ in millions $5 $721 $22 $705 $24 ($9) ($7) $670 Q1 2024 Industrial Consumer S&A Q1 2025 FX Acquisition/ Q1 2025 Organic Organic Organic Organic Divestiture 4
Slide 5: Q1 Adjusted EBITDA +22.9%
Q1 Adjusted EBITDA +22.9% $ in millions % Adjusted EBITDA margin $51 $163 $161 ($19) ($1) ($1) $131 19.6% 22.8% Q1 2024 Organic Organic Q1 2025 FX Acquisition/ Q1 2025 Revenue Expenses Organic Divestiture 5
Slide 6: Q1 Adjusted Net Income +31.1%
Q1 Adjusted Net Income +31.1% $ in millions % Adjusted Net Income margin $51 $2 $80 ($24) $61 ($10) 9.1% 11.3% 1 Q1 2024 Organic Organic Tax Other Q1 2025 Revenue Expenses 6 1. Other includes FX, Acquisition / Divestiture and interest expense. 6
Slide 7: Industrial
Industrial $ in millions Q1 2025 results Revenue • 4.4% Revenue Growth (+8.1% Organic) +4.4% – Strength across most industries, including energy and $308 automation and materials $295 – Increased lab capacity – Growth across ongoing certification services and certification testing Q1 2024 Q1 2025 –
Slide 8: Consumer
Consumer $ in millions Q1 2025 results Revenue • 6.3% Revenue Growth (+7.7% Organic) +6.3% $304 – Strong demand from consumer technology and retail $286 customers – Growth across non-certification testing and other services and certification testing Q1 2024 Q1 2025 • Adjusted EBITDA increased $13M;
Slide 9: Software and Advisory
Software and Advisory $ in millions Q1 2025 results Revenue • 4.5% Revenue Growth (+5.6% Organic) +4.5% $93 – Driven by strong demand for ULTRUS software $89 including retail product compliance and sustainability software solutions • Adjusted EBITDA increased $3M; Adjusted Q1 2024 Q1 2025 EBITDA mar
Slide 10: LTM Cash Flow
LTM Cash Flow LTM Cash Flow Operating Cash Flow % in millions Capital Expenditures Free Cash Flow • Generated Free Cash Flow of $306M for the last twelve months ended March 31, $537 2025, an increase of $68M (28.6%) vs the $447 last twelve months ended March 31, 2024 • YTD Free Cash Flow benefited f
Slide 11: Full-year 2025 outlook
Affirming 2025 outlook: • Mid single digit constant currency organic revenue growth • Adjusted EBITDA margin organic improvement to Full-year approximately 24% 2025 outlook • Capital expenditures expected to be 7% to 8% of revenue • Effective tax rate estimated to be ~26% • Continuing to pursue acqu
Slide 12: Appendix
Appendix 12
Slide 13: Components of revenue change
Components of revenue change Three Months Ended March 31, 2025 Acquisition / (in millions) Organic1 Divestiture2 FX3 Total Organic % Change Total % Change Revenue change Industrial $ 24 $ (7) $ (4) $ 13 8.1 % 4.4 % Consumer 22 — (4) 18 7.7 % 6.3 % Software and Advisory 5 — (1) 4 5.6 % 4.5 % Total $
Slide 14: Adjusted EBITDA and Adjusted EBITDA margin (non-GAAP measures)
Adjusted EBITDA and Adjusted EBITDA margin (non-GAAP measures)1 2 Three Months Ended March 31, (in millions, unless otherwise stated) 2025 2024 Net income $ 71 $ 60 Depreciation and amortization expense 45 41 Interest expense 12 15 Other expense, net 3 3 Income tax expense 23 13 Stock-based compensa
Slide 15: Adjusted EBITDA and Adjusted EBITDA margin by segment
Adjusted EBITDA and Adjusted EBITDA margin (non-GAAP measures)1 2 by segment Three Months Ended March 31, (in millions, unless otherwise stated) 2025 2024 Industrial Segment operating income $ 83 $ 75 Depreciation and amortization expense 14 11 Stock-based compensation 3 — Adjusted EBITDA1 $ 100 $ 8
Slide 16: Adjusted Net Income and Adjusted Net Income margin (non-GAAP measures)
Adjusted Net Income and Adjusted Net Income margin (non-GAAP measures)1 2 Three Months Ended March 31, (in millions, unless otherwise stated) 2025 2024 Net income $ 71 $ 60 Other expense, net 3 3 Stock-based compensation 8 — Restructuring (1) (1) Tax effect of adjustments3 (1) (1) 1 Adjusted Net Inc
Slide 17: Adjusted Diluted Earnings Per Share (non-GAAP measure)
Adjusted Diluted Earnings Per Share (non-GAAP measure)1 Three Months Ended March 31, 2025 2024 Diluted earnings per share $ 0.33 $ 0.28 Other expense, net 0.02 0.02 Stock-based compensation 0.04 — Restructuring (0.01) (0.01) Tax effect of adjustments2 (0.01) (0.01) 1 Adjusted Diluted Earnings Per Sh
Slide 18: Free Cash Flow and Free Cash Flow margin (non-GAAP measures)
Free Cash Flow and Free Cash Flow margin (non-GAAP measures)1 3 Three Months Ended LTM2 March 31, March 31, (in millions, unless otherwise stated) 2025 2024 2025 2024 Net cash provided by operating activities $ 154 $ 141 $ 537 $ 447 Capital expenditures (51) (57) (231) (209) Free Cash Flow1 $ 103 $