Slide 1: Earnings Presentation Q4 2024
UL SOLUTIONS INC. Earnings Presentation Q4 2024 February 20, 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, as amended, about UL Solutions' (the "Company") financial results and estimates and business prospects that involve substantial risks and unc
Slide 3: 2024 Highlights
2024 Highlights Exceptional Financial and Operating Performance in First Year as a Public Company • High single digit organic1 revenue growth exceeded expectations • Strong Adjusted EBITDA2 margin progress against long-term goal driven by outstanding execution • Superior Free Cash Flow2 conversion o
Slide 4: Q4 2024 Highlights
Q4 2024 Highlights Extending the momentum throughout 2024: • 8.0% Revenue growth, 9.5% Organic1 • 64.5% Adjusted Net Income2 increase • Adjusted EBITDA2 up 27.1% / Adjusted EBITDA margin up 350 bps • Generated Free Cash Flow2 of $287M for the year ended December 31, 2024 1. Refer to Organic definiti
Slide 5: Q4 2024 Revenue +9.5% organic
Q4 2024 Revenue +9.5% organic1 $ in millions $5 $749 $19 $739 $41 ($4) ($6) $684 Q4 2023 Industrial Consumer S&A Q4 2024 FX1 Acquisition/ Q4 2024 Organic 1 Organic 1 Organic 1 Organic 1 Divestiture1 5 1. Refer to Organic, FX and Acquisition / Divestiture definitions in Appendix.
Slide 6: Full Year 2024 Revenue +8.7% organic
Full Year 2024 Revenue +8.7% organic1 $ in millions $16 $2,911 $81 $2,870 ($24) $136 ($17) $2,678 2023 Industrial Consumer S&A 2024 FX1 Acquisition/ 2024 Organic 1 Organic 1 Organic 1 Organic 1 Divestiture1 6 1. Refer to Organic, FX and Acquisition / Divestiture definitions in Appendix.
Slide 7: Q4 Adjusted EBITDA performance
Q4 Adjusted EBITDA1 performance +27.1% $ in millions % Adjusted EBITDA Margin1 $65 $169 $— $— $169 ($29) $133 19.4%1 22.9%1 Q4 2023 Organic 2 Organic 2 Q4 2024 FX 2 Acquisition/ Q4 2024 Revenue Expenses Organic 2 Divestiture 2 1. Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. Refe
Slide 8: Full Year Adjusted EBITDA performance +16.5%
Full Year Adjusted EBITDA1 performance +16.5% $ in millions % Adjusted EBITDA Margin1 $233 $670 $656 $563 ($126) ($5) ($9) 21.0%1 22.9%1 2023 Organic 2 Organic 2 2024 FX 2 Acquisition/ 2024 Revenue Expenses Organic 2 Divestiture 2 1. Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures.
Slide 9: Q4 Adjusted Net Income performance +64.5%
Q4 Adjusted Net Income1 performance +64.5% $ in millions % Adjusted Net Income Margin1 $65 $8 $102 ($32) ($1) $62 9.1%1 13.8%1 Q4 2023 Organic 3 Organic 3 Interest Other2 Q4 2024 Revenue Expenses 1. Adjusted Net Income and Adjusted Net Income margin are non-GAAP measures. Refer to the Appendix to th
Slide 10: Full Year Adjusted Net Income performance +18.8%
Full Year Adjusted Net Income1 performance +18.8% $ in millions % Adjusted Net Income Margin1 $233 $361 ($143) ($20) $304 ($13) 11.4%1 12.6%1 2023 Organic 3 Organic 3 Interest Other2 2024 Revenue Expenses 1. Adjusted Net Income and Adjusted Net Income margin are non-GAAP measures. Refer to the Appen
Slide 11: Industrial
Industrial $ in millions Q4 2024 results Industrial revenue • 11.6% Revenue Growth (+13.9% Organic2) +11.6% – Strength in demand in particular from electrical $328 products, renewable energy & components $294 – Increased lab capacity – Growth across all service lines, particularly Ongoing Certificat
Slide 12: Consumer
Consumer $ in millions Q4 2024 results Consumer revenue • 5.5% Revenue Growth (+6.5% Organic2) +5.5% $309 – Strength in Non-certification Testing and Other $293 Services, Certification Testing and Ongoing Certification Testing – Robust demand across retail and consumer technology Q4 2023 Q4 2024 • A
Slide 13: Software and Advisory
Software and Advisory $ in millions Q4 2024 results Software & Advisory revenue • 5.2% Revenue Growth (+5.2% Organic2) +5.2% – Driven by strong demand for Software, including $102 $97 retail product compliance and sustainability solutions Q4 2023 Q4 2024 • Adjusted EBITDA1 increased $1M; Adjusted So
Slide 14: 2024 Full Year Cash Flow
2024 Full Year Cash Full Year Cash Flow Operating Cash Flow Flow Capital Expenditures % in millions Free Cash Flow1 • Generated Free Cash Flow1 of $287M for the year ended December 31, 2024, an $524 increase of $35M (+13.9%) vs the year $467 ended December 31, 2023 • 2024 Free Cash Flow1 benefited f
Slide 15: Full-year 2025 outlook
• Mid single digit constant currency organic1 revenue growth • Adjusted EBITDA margin2 organic1 improvement to approximately 24%, in line with long term target Full-year • Capital expenditures expected to be 7% to 8% of revenue 2025 outlook • Effective tax rate estimated to be ~26% • Continuing to p
Slide 16: Long term financial targets
Long term financial targets Key metric Financial targets Organic1 revenue growth ~ 5% - 6% Adjusted EBITDA margin2 > 24% Capital expenditures (% of revenue) ~ 6% - 8% Free Cash Flow margin2 > 10 % Note: Reflects non-GAAP metrics. Financial targets are not projections or predictions, but represent go
Slide 17: Appendix
Appendix 17
Slide 18: Components of revenue change
Components of revenue change Three Months Ended December 31, 2024 Acquisition / (in millions) Organic1 Divestiture2 FX3 Total Organic % Change Total % Change Revenue change Industrial $ 41 $ (6) $ (1) $ 34 13.9 % 11.6 % Consumer 19 — (3) 16 6.5 % 5.5 % Software and Advisory 5 — — 5 5.2 % 5.2 % Total
Slide 19: Adjusted EBITDA and Adjusted EBITDA margin (non-GAAP measures)
Adjusted EBITDA and Adjusted EBITDA margin (non-GAAP measures)1 2 Three Months Ended Year Ended December 31, December 31, (in millions, unless otherwise stated) 2024 2023 2024 2023 Net income $ 85 $ 62 $ 345 $ 276 Depreciation and amortization expense 47 43 172 154 Interest expense 13 12 55 35 Other
Slide 20: Adjusted EBITDA and margin by segment
Adjusted EBITDA and Adjusted EBITDA margin (non-GAAP measures)1 2 by segment Three Months Ended December 31, Year Ended December 31, (in millions, unless otherwise stated) 2024 2023 2024 2023 Industrial Segment operating income $ 88 $ 66 $ 338 $ 308 Depreciation and amortization expense 14 12 47 38
Slide 21: Adjusted Net Income and Adjusted Net Income margin
Adjusted Net Income and Adjusted Net Income margin (non-GAAP measures)1 2 Three Months Ended Year Ended December 31, December 31, (in millions, unless otherwise stated) 2024 2023 2024 2023 Net income $ 85 $ 62 $ 345 $ 276 Other (income) expense, net 10 (5) (8) (13) Stock-based compensation 7 — 23 —
Slide 22: Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings Per Share (non-GAAP measure)1 Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 Diluted earnings per share $ 0.40 $ 0.29 $ 1.62 $ 1.30 Other (income) expense, net 0.05 (0.03) (0.04) (0.07) Stock-based compensation 0.04 — 0.12 — Goodwill impairment
Slide 23: Free Cash Flow and Free Cash Flow margin
Free Cash Flow and Free Cash Flow margin (non-GAAP measures)1 2 Year Ended December 31, (in millions, unless otherwise stated) 2024 2023 Net cash provided by operating activities $ 524 $ 467 Capital expenditures (237) (215) Free Cash Flow1 $ 287 $ 252 Revenue $ 2,870 $ 2,678 Net cash provided by ope