UL Solutions Inc. (NYSE:ULS) delivered better-than-expected fourth-quarter results, driven by steady organic growth and sharp margin expansion, and announced a double-digit dividend increase.
For the quarter, adjusted earnings per share came in at $0.53, beating analyst estimates by $0.12. Revenue rose 6.8% year over year to $789 million, supported by solid demand across its Consumer and Industrial segments. Organic revenue growth reached 5.7%.
Adjusted EBITDA jumped 28.4% to $217 million, while margins expanded 460 basis points to 27.5%. Net income totaled $71 million, down 16.5% from a year earlier due to a $37 million pre-tax restructuring charge. Excluding that charge, adjusted net income increased 11.8% to $114 million.
“I’m incredibly proud of our team’s outstanding performance, with fourth quarter and full-year results exceeding guidance,” said President and CEO Jennifer Scanlon. “Surpassing $3 billion in annual revenue for the first time is a significant milestone, reflecting our business model’s strength and resilience during an environment of changing global dynamics.”
For full-year 2025, revenue climbed 6.4% to $3.05 billion, with organic growth of 6.2%. Adjusted EBITDA rose 20.7% to $792 million, and margins improved by 300 basis points to 25.9%.
Cash generation strengthened, with operating cash flow reaching a record $600 million, up from $524 million in 2024. Free cash flow increased to $403 million from $287 million the prior year.
Looking ahead to 2026, UL Solutions expects mid-single-digit organic revenue growth on a constant-currency basis and further expansion in adjusted EBITDA margins. The company also raised its quarterly dividend by 11.5% to $0.145 per share.
Separately, UL Solutions announced it has entered into a definitive agreement to divest its Employee Health and Safety software unit, with the deal expected to close in the second quarter of 2026.