UL Solutions Q3 revenue slightly beats estimates on consumer segment strength
Overview
Applied safety science firm's Q3 revenue rose 5.1%, slightly beating analyst expectations
Q3 adjusted EBITDA rose 8.3%, beating analyst expectations
Company completed largest-ever acquisition, expanding TIC capabilities
Outlook
Company expects 2026 organic revenue growth of about 6.5%
Company sees 2026 adjusted EBITDA margin at about 27.0%
Company forecasts 2026 capital expenditures at about 8.5% of revenue
Result Drivers
BROAD-BASED DEMAND - Co said organic revenue growth and margin expansion were driven by broad-based demand, operating leverage and productivity gains
SEGMENT GROWTH - Industrial and Consumer segments led organic revenue growth, per co
MARGIN DRIVERS - Lower interest expense and foreign exchange impacts contributed to margin increase
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $823 mln | $815.72 mln (10 Analysts) |
Q3 Adjusted EPS | $0.62 | ||
Q3 EPS | $0.53 | ||
Q3 Adjusted Net Income | $135 mln | ||
Q3 Net Income | $117 mln | ||
Q3 Adjusted EBITDA | Beat | $235 mln | $230.66 mln (10 Analysts) |
Q3 Operating Income | $162 mln | ||
Q3 Pretax Profit | $160 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for UL Solutions Inc is $97.00, about 29.1% above its November 2 closing price of $75.14
The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 37 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)