UL Solutions Q2 Earnings Call Highlights

UL Solutions reported second-quarter 2026 revenue growth and record adjusted EBITDA, citing demand tied to electrification, automation, product innovation and AI data-center infrastructure. The company also reaffirmed its full-year outlook as it continues a restructuring program, expands laboratory capacity and pursues portfolio changes.

Revenue rose 5.2% from a year earlier to $816 million, including organic growth of 6.6%. Operating income increased 7.9% to $150 million. Adjusted EBITDA grew 11.2% to a quarterly record of $219 million, while adjusted EBITDA margin expanded 140 basis points to 26.8%. Adjusted diluted earnings per share increased 13.5% to $0.59.

Chief Executive Officer Jenny Scanlon said the results reflected operating leverage from organic growth, improved employee productivity and benefits from the restructuring plan initiated late last year. The company said it achieved 6.6% organic growth despite planned revenue reductions associated with business exits under that program.

Industrial revenue increased 7.8% to $402 million, including 7.2% organic growth. UL Solutions said ongoing certification services and certification testing both contributed to growth, with materials, energy and automation serving as leading drivers. Industrial adjusted EBITDA rose 7.4% to $130 million, though its adjusted EBITDA margin declined 10 basis points to 32.3%, as higher performance-based employee compensation costs offset the benefit of revenue growth.

Consumer revenue rose 6.5% to $362 million, or 6.2% organically. Growth was driven by certification testing in consumer technology, non-certification testing and other retail services, and ongoing certification in appliances and HVAC. Consumer adjusted EBITDA increased 24.2% to $77 million, and its margin improved 310 basis points to 21.3%. The company attributed consumer margin expansion to operating leverage, employee productivity, favorable business mix following exits from lower-margin service lines, and restructuring benefits.

During the question-and-answer session, Scanlon said consumer demand included activity related to data centers, including power supplies for AI racks, AI-powered chips and servers, as well as broader product certification needs.

Risk and compliance revenue declined 17.5% to $52 million, reflecting the April 1 divestiture of the company’s EHS software business. Excluding that divestiture, organic revenue in the segment grew 4.8%, driven by demand for supply-chain insights in retail. Adjusted EBITDA fell 14.3% to $12 million, while adjusted EBITDA margin improved 90 basis points to 23.1% on a leaner cost structure.