Ul Solutions Inc. · NYSE:ULS
Ul Solutions — William Blair 45th Annual Growth Stock Conference 2025
29 slides from Ul Solutions's conference presentation, Jun 3, 2025
Slide 1: June 2025 Investor Presentation
UL SOLUTIONS INC. June 2025 Investor Presentation
Slide 2: Disclaimer
Disclaimer This presentation and related discussion are being presented by UL Solutions (“UL Solutions,” the “Company,” “we,” “us” and “our”) solely for informational purposes. This presentation and accompanying statements contain “forward-looking statements” within the meaning of the Private Securi
Slide 3: UL Solutions is a global leader
UL Solutions is a global leader Mission-driven growth company, in the fragmented and consolidating testing, inspection 1 and certification industry 2 Dedication to applied safety science and ESG underpins our reputation as a trusted partner Long-term customer relationships — supported by disciplined
Slide 4: The iconic UL Mark
The iconic UL Mark • Iconic UL Mark introduced in 1906 • UL Mark image and service portfolio evolves as customer needs and “UL is a premium mark … market demands change they have the experts in the fields who really • Billions of new components and understand what the right finished products carry t
Slide 5: UL Solutions overview
UL Solutions overview Revenue Breakdown (2024) Segments Customer Geographies5 13% 4% 17% • A leading global business services company focused on independent testing, inspection and certification (TIC) 43% 87% 41% 13% • Dedicated to safety science since 18941 44% • Strong brand recognition and differ
Slide 6: UL Solutions has an integrated service portfolio
UL Solutions has an integrated service portfolio High percentage of recurring revenue and differentiated value proposition 27% 33% 30% 10% Certification testing Ongoing certification Non-certification testing Software services and other services • Industry standards, • Monitoring • Performance testi
Slide 7: UL Solutions is a global leader with #1 product TIC market share
UL Solutions is a global leader with #1 product TIC market share (by revenue)1 Global TIC market 1. Mission-driven growth company $38B Global product TIC market ~$38B Dedicated to applied safety Product TIC 7% 2. science and ESG ~$61B Nonproduct TIC 3. Long-term customer relationships — 27% reinforc
Slide 8: UL Solutions differentiates with its global accreditations and service portfolio
UL Solutions differentiates with its global accreditations and service portfolio Helping our customers navigate the complexities of global requirements Standards Accreditations Services Deep involvement – including leadership Broad and global portfolio of 650+ technical Over 400 independent third-pa
Slide 9: Segment overview
Segment overview Strong fundamentals drive growth in all segments Testing, Inspection and Certification Industrial Consumer Software and Advisory Primary end Industrials: renewable energy, markets Power and energy products, industrial Consumer products and electronics, chemicals, built environment a
Slide 10: Megatrends driving growth
Megatrends driving growth Energy Transition New Mobility Sustainability and ESG New Technology, Supply Chain Risks Regulatory Compliance Connectivity and Digitalization 10
Slide 11: Industrial segment overview
Industrial segment overview Markets $1,254M 44% 2024 revenue UL Solutions 2024 revenue Energy and Automation Materials 31.4% Power, automation and electrical products, renewable energy, and large batteries used in industrial, energy, utility and automotive Wire, cable and plastics used in industrial
Slide 12: Consumer segment overview
Consumer segment overview Markets $1,238M 43% 2024 revenue UL Solutions 2024 revenue Consumer Technology Mobility 16.4% Consumer electronics, IT equipment, medical devices and components such as Electric and autonomous vehicles, and critical software and systems used in medical, 2024 Adjusted EBITDA
Slide 13: Software and Advisory segment overview
Software and Advisory segment overview $378M 13% Unifying platform with three core domains 2024 revenue UL Solutions 2024 revenue 15.6% 2024 Adjusted EBITDA margin1 5.0% 4.5% 2024 revenue growth Q1 '25 revenue growth Software and advisory solutions to help customers meet regulatory, supply chain and
Slide 14: Key attributes of our financial model
Key attributes of our financial model Strong base of Constant and attractive Strong free cash Healthy balance recurring revenue revenue growth flow generation sheet • Essential nature of services drives • Revenue CAGR of 6.9% • Consistent and attractive • Conservative leverage profile stable, predic
Slide 15: Compelling financial profile
Compelling Scale $2.9B 150 financial profile 2024 revenue Locations across more than 35 countries3 Growth 6.9% 56 acquisitions 20111 – 2024 from 2010 – 2024 to supplement total revenue CAGR strong organic drivers Profitability $361M | 12.6% $656M | 22.9% 2024 Adjusted Net Income2 | 2024 Adjusted EBI
Slide 16: UL Solutions exhibits exceptional financial momentum with strong free cash flow generation
UL Solutions exhibits exceptional financial momentum with strong free cash flow generation Compelling organic growth profile with significant upside Strong business services $ in millions Total revenue Adj. EBITDA1 11 Adj. EBITDA margin financial profile CAGR: 6.9% $2,870 Long-term stable $2,678 $2,
Slide 17: Capital allocation strategy and financial policy
Capital allocation strategy and financial policy Capital allocation priorities Reinvest in the business Maintain strong balance sheet Return capital to shareholders • Organic capex to support innovation, • Conservative leverage consistent • Intend to pay regular dividends productivity and top-line g
Slide 18: UL Solutions growth strategy
UL Solutions growth strategy 1. Pursue organic 2. Expand margin 3. Be the acquirer opportunities of choice • Increase existing and new • Automate and digitize work that • Continue proven, value-enhancing customer wallet share provides innovation in customer track record of tuck-ins services and oper
Slide 19: Acquisitions are an important part of UL Solutions' growth
Acquisitions are an important part of UL Solutions’ growth Acquisitions since 2010 More than $1.3B deployed towards 56 Industrial Consumer Software acquisitions 2010 – 2024 and Advisory Acquisitions executed at attractive 12 24 20 multiples in critical end markets Select acquisitions Dedicated team
Slide 20: 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.
Slide 21: Q1 2025 Revenue +7.6% Organic
Q1 2025 Revenue +7.6% Organic1 $ in millions 21 1. Refer to Organic, FX and Acquisition / Divestiture definitions in Appendix.
Slide 22: Q1 Adjusted EBITDA +22.9%
Q1 Adjusted EBITDA1 +22.9% $ in millions % Adjusted EBITDA margin 19.6% 22.8% 1. Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. Refer to the Appendix to this presentation for definition and 22 reconciliation to the most directly comparable GAAP financial measures.
Slide 23: 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, 2025, an increase of $68M (28.6%) vs the last twelve months ended March 31, 2024 • YTD Free Cash Flow benefited from strong
Slide 24: Appendix
Appendix 24
Slide 25: 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 26: Adjusted EBITDA and Adjusted EBITDA margin
Adjusted EBITDA and Adjusted EBITDA margin (non-GAAP measures)1 2 Three Months Ended Year Ended March 31, December 31, (in millions, unless otherwise stated) 2025 2024 2024 2023 2022 2021 Net income $ 71 $ 60 $ 345 $ 276 $ 309 $ 238 Depreciation and amortization 45 41 172 154 135 142 Interest expens
Slide 27: Adjusted EBITDA and Adjusted EBITDA margin by segment
Adjusted EBITDA and Adjusted EBITDA margin (non-GAAP measures)1 2 by segment Year Ended December 31, (in millions, unless otherwise stated) 2024 2023 Industrial Segment operating income $ 338 $ 308 Depreciation and amortization expense 47 38 Stock-based compensation 9 — Restructuring — 1 Adjusted EB
Slide 28: 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 March 31, December 31, (in millions, unless otherwise stated) 2025 2024 2024 2023 Net income $ 71 $ 60 $ 345 $ 276 Other (income) expense, net 3 3 (8) (13) Stock-based compensation 8 — 23 — Goodwi
Slide 29: Free Cash Flow and Free Cash Flow margin
Free Cash Flow and Free Cash Flow margin (non-GAAP measures)1 3 Three Months Ended LTM2 Year Ended December 31, March 31, March 31, (in millions, unless otherwise stated) 2025 2024 2025 2024 2024 2023 2022 2021 Net cash provided by $ 154 $ 141 $ 537 $ 447 $ 524 $ 467 $ 372 $ 421 operating activities
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