UL Solutions Inc. (NYSE: ULS) reported a 6.8% increase in fourth-quarter revenue to $789 million, compared to $739 million in the same period the previous year. GAAP net income for the quarter ended December 31, 2025, was $71 million, a decrease from $85 million in the prior-year period. On an adjusted basis, net income rose 11.8% to $114 million.
Segment Highlights
Revenue performance varied across the company’s three primary reporting segments during the fourth quarter:
- Industrial: Revenue increased 7.3% to $352 million, driven by certification testing in energy, automation, and fire safety.
- Consumer: Revenue grew 8.4% to $335 million, led by demand for electromagnetic compatibility testing in consumer technology.
- Software and Advisory: Revenue was flat at $102 million. Growth in retail product compliance software was offset by a decline in advisory services.
Full-Year 2025 Results Context
For the full year 2025, consolidated revenue reached $3,053 million, a 6.4% increase from $2,870 million in 2024. Annual GAAP net income remained stable at $345 million, matching 2024 levels. Adjusted net income for the year grew 17.2% to $423 million. The company reported record free cash flow of $403 million for the year, representing a 40.4% increase over 2024.
Business and Operations Update
The company has initiated a Restructuring Plan intended to exit certain businesses. As part of a software portfolio realignment, UL Solutions announced the sale of its non-core Employee Health and Safety (EHS) software business. The remaining software assets, including the ULTRUST portfolio, are being reorganized to align with the core Industrial segment and a new Risk & Compliance Software segment starting in 2026.
M&A and Strategic Moves
Strategic activity centered on the announced divestiture of the EHS software business. Management stated that the company will continue to pursue acquisitions and portfolio refinements as part of its ongoing capital allocation strategy.
Guidance and Outlook
For the full year 2026, UL Solutions issued guidance for mid-single digit constant currency organic revenue growth. This outlook includes an estimated 1% revenue reduction resulting from business exits identified in the Restructuring Plan.
Factors to watch include the transition to the new “Risk & Compliance Software” segment structure and the impact of the effective tax rate, which is projected to be approximately 26%. Capital expenditures for 2026 are expected to be between 7% and 8% of revenue.
Performance Summary
UL Solutions reported Q4 revenue of $789 million and full-year revenue of $3,053 million. Quarterly GAAP net income was $71 million. The Consumer segment led quarterly growth at 8.4%, while Software and Advisory revenue remained flat. The company anticipates continued revenue growth and margin expansion through 2026.