First Quarter 2025 (Comparisons to First Quarter 2024unless otherwise noted)¹

Strong revenue growth of 5.2% to $705 million, including 7.6% organic growth
Net income of $71 million increased 18.3%, Net income margin of 10.1%, expanded 110 basis points
Diluted earnings per share of $0.33 increased 17.9%, Adjusted Diluted Earnings Per Share of $0.37 increased 32.1%
Adjusted EBITDA of $161 million increased 22.9%, Adjusted EBITDA margin of 22.8% expanded 320 basis points

UL Solutions Inc. (NYSE:ULS), a global safety science leader in independent third-party testing, inspection and certification services and related software and advisory offerings, today reported results for the first quarter ended March 31, 2025.

"As we completed our first full year as a public company, I'm encouraged by the strong execution and outstanding results our team continued to deliver, with momentum once again across all segments, service offerings and regions," said President and CEO Jennifer Scanlon. "Strong organic growth, improved profitability and increased cash flow generation reflect our strategic focus on high-growth markets and ongoing operational excellence. Our global laboratory additions and expansions directly address evolving customer needs while strengthening our market leadership position across key industries."

Scanlon continued, "In today's environment of heightened global uncertainty, our work is never done. Customers continue to rely on UL Solutions as an essential strategic partner to navigate complex regulatory landscapes and bring products to market safely and efficiently. The investments we're making help position us at the forefront of global megatrends shaping our industry's future."

"Our strong first quarter results included 7.6% organic revenue growth, 22.9% Adjusted EBITDA improvement, and Adjusted EBITDA margin expansion of 320 basis points, all while maintaining our strong liquidity and investment grade balance sheet," said CFO Ryan Robinson. "The solid start to 2025 reinforces our guidance for mid-single digit constant currency organic revenue growth with full-year Adjusted EBITDA margin organic improvement. Our disciplined capital allocation strategy enables us to pursue strategic growth opportunities aligned with global megatrends while generating significant cash flow—creating a foundation for sustainable long-term value creation."

First Quarter 2025 Financial Results

Revenue of $705 million compared to $670 million in the first quarter of 2024, an increase of 5.2%. Organic growth of 7.6% across all segments, led by the Industrial and Consumer segments.

Net income of $71 million compared to $60 million in the first quarter of 2024, an increase of 18.3%. Net income margin of 10.1% compared to 9.0% in the first quarter of 2024, an increase of 110 basis points. The margin expansion resulted from higher revenue and operating leverage, partially offset by increased income tax expense driven by continued implementation of the Organisation for Economic Co-operation and Development's Pillar Two rules.

Adjusted Net Income of $80 million compared to $61 million in the first quarter of 2024, an increase of 31.1%. Adjusted Net Income margin of 11.3% compared to 9.1% in the first quarter of 2024, an increase of 220 basis points.

Diluted earnings per share of $0.33 compared to $0.28 in the first quarter of 2024, an increase of $0.05. Adjusted Diluted Earnings Per Share of $0.37 compared to $0.28 in the first quarter of 2024, an increase of $0.09.

Adjusted EBITDA of $161 million compared to $131 million in the first quarter of 2024, an increase of 22.9%. Adjusted EBITDA margin of 22.8% compared to 19.6% in the first quarter of 2024, an increase of 320 basis points. The margin expansion resulted from higher revenue and operating leverage, led by the Industrial and Consumer segments.

¹This press release includes references to non-GAAP financial measures. Please refer to "Non-GAAP Financial Measures" later in this release for the definitions of each non-GAAP financial measure presented, as well as reconciliations of these measures to their most directly comparable GAAP measures.

First Quarter 2025 Segment Performance

Industrial Segment Results

Industrial revenue of $308 million compared to $295 million in the first quarter of 2024, an increase of 4.4%, or 8.1% on an organic basis. Operating income of $83 million compared to $75 million in the first quarter of 2024. Operating income margin of 26.9% compared to 25.4% in the first quarter of 2024. Adjusted EBITDA of $100 million compared to $86 million in the first quarter of 2024, an increase of 16.3%. Adjusted EBITDA margin of 32.5% compared to 29.2% in the first quarter of 2024. Revenue gains were driven by price increases, continued demand related to electrical products and component certification testing and services and increased laboratory capacity. Adjusted EBITDA gains and margin improvement were driven primarily by higher revenue and operating leverage.

Consumer Segment Results

Consumer revenue of $304 million compared to $286 million in the first quarter of 2024, an increase of 6.3%, or 7.7% on an organic basis. Operating income of $26 million compared to $17 million in the first quarter of 2024. Operating income margin of 8.6% compared to 5.9% in the first quarter of 2024. Adjusted EBITDA of $48 million compared to $35 million in the first quarter of 2024, an increase of 37.1%. Adjusted EBITDA margin of 15.8% compared to 12.2% in the first quarter of 2024. Revenue gains were driven by consumer technology and retail. Adjusted EBITDA gains and margin improvement were driven primarily by higher revenue and operational efficiency.

Software and Advisory Segment Results

Software and Advisory revenue of $93 million compared to $89 million in the first quarter of 2024, an increase of 4.5% or 5.6% on an organic basis. Operating loss of $0 compared to $1 million in the first quarter of 2024. Operating loss margin of 0.0% compared to 1.1% in first quarter of 2024. Adjusted EBITDA of $13 million compared to $10 million in the first quarter of 2024, an increase of 30.0%. Adjusted EBITDA margin of 14.0% compared to 11.2% in the first quarter of 2024. Revenue gains were driven by demand for software. Adjusted EBITDA gains and margin improvement were driven primarily by higher revenue and operating leverage.

Liquidity and Capital Resources

For the first three months of 2025, the Company generated $154 million of net cash provided by operating activities, an increase from $141 million for the same period in 2024. Net cash provided by operating activities in the first quarter was impacted by higher net income due to business performance.

The Company continues to make strategic capital investments to meet increased demand and drive greater productivity. Capital expenditures were $51 million, a decrease from $57 million for the same period in 2024. Free Cash Flow for the first three months was $103 million, compared to $84 million for the same period in 2024.

The Company paid a dividend of $0.13 per share, or $26 million, during the three months ended March 31, 2025.

As of March 31, 2025, total debt was $657 million, prior to unamortized debt issuance costs, a decrease from December 31, 2024 due to $90 million of net repayments on the Company's term loan and revolving credit facility.

The Company ended the quarter with cash and cash-equivalents of $267 million compared to $298 million at December 31, 2024.

Full-Year 2025 Outlook

The Company is affirming its 2025 outlook:

Mid single digit constant currency organic revenue growth
Adjusted EBITDA margin organic improvement to approximately 24%
Capital expenditures expected to be 7% to 8% of revenue
Effective tax rate estimated to be approximately 26%
Continuing to pursue acquisitions and portfolio refinements

The Company's 2025 outlook is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company's expectations may change. There can be no assurance that the Company will achieve the results expressed by this outlook. In addition, the increasingly uncertain and complex near-term macroeconomic and geopolitical environment presents both potential risks and opportunities for the Company. Like many other global businesses, the Company is carefully monitoring the potential impacts.

The Company does not provide guidance for net income margin, the most directly comparable GAAP measure to Adjusted EBITDA margin, and similarly cannot provide a reconciliation between its forecasted Adjusted EBITDA margin and net income margin without unreasonable effort due to the unavailability of reliable estimates for certain components of net income and the respective reconciliations. These forecasted items are not within the Company's control, may vary greatly between periods and could significantly impact future financial results.

Conference Call and Webcast

UL Solutions will host a conference call today at 8:30 am ET to discuss the Company's financial results. The live webcast of the conference call and accompanying presentation materials can be accessed through the UL Solutions Investor Relations website at ir.ul.com. For those unable to access the webcast, the conference call can be accessed by dialing 1-844-825-9789 (domestic) or 1-412-317-5180 (international). An archive of the webcast will be available on the Company's website for 30 days.

About UL Solutions

A global leader in applied safety science, UL Solutions Inc. (NYSE:ULS) transforms safety, security and sustainability challenges into opportunities for customers in more than 110 countries. UL Solutions delivers testing, inspection and certification services, together with software products and advisory offerings, that support our customers' product innovation and business growth. The UL Mark serves as a recognized symbol of trust in our customers' products and reflects an unwavering commitment to advancing our safety mission. We help our customers innovate, launch new products and services, navigate global markets and complex supply chains, and grow sustainably and responsibly into the future. Our science is your advantage.

Investors and others should note that UL Solutions intends to routinely announce material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the UL Solutions Investor Relations website. We also intend to use certain social media channels as a means of disclosing information about us and our products to consumers, our customers, investors and the public on our X account (@UL_Solutions) and our LinkedIn account (@ULSolutions). The information posted on social media channels is not incorporated by reference in this press release or in any other report or document we file with the SEC. While not all of the information that the Company posts to the UL Solutions Investor Relations website or to social media accounts is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in UL Solutions to review the information shared on our Investor Relations website at ir.ul.com and to regularly follow our social media accounts. Users can automatically receive email alerts and information about the Company by subscribing to "Investor Email Alerts" at the bottom of the UL Solutions Investor Relations website at ir.ul.com.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release may be forward-looking statements. These include statements regarding management's objectives for future operations and the Company's plans, business strategy, outlook and future results of operations and financial position. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "would," "likely," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "continue" and variations of these terms and similar expressions, or the negative of these terms or similar expressions (although not all forward-looking statements may contain such words). The Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

There are or will be important factors that could cause the Company's actual results to differ materially from those expressed or implied by the forward-looking statements made in this press release, including, but not limited to, the following: any failure on the Company's part to protect and maintain its brand and reputation, or the impact on its brand or reputation of third-party events or actions outside of its control; risks associated with the Company's information technology and software, including those relating to any future data breach or other cybersecurity incident; the potential disruption of the TIC or S&A industries by technological advances in artificial intelligence; the Company's ability to innovate, adapt to changing customer needs and successfully introduce new products and services in response to changes in the Company's industries and technological advances; the Company's ability to compete in its industries and the effects of increased competition from its competitors; risks associated with conducting business outside the United States, including those relating to fluctuations in foreign currency exchange rates; the imposition of tariffs and enhanced trade, import or export restrictions or changes in U.S. trade policy or similar government actions; and global, regional or political instability and geopolitical tensions; risks associated with the Company's operations in China, which subject the Company and UL-CCIC Company Limited, the Company's joint venture with the China Certification & Inspection (Group) Co., Ltd. ("CCIC"), to China's complex and rapidly evolving laws, which may be interpreted, applied or enforced inconsistently or in ways inconsistent with its current operations, as well as risks associated with the fact that the Chinese government has the power to exercise significant oversight and discretion over, and intervene in and influence, its business operations in China; the relationship between the United States and China and between the Company and CCIC, as well as changes in U.S. and Chinese regulations affecting the Company's business operations in China; any failure on the Company's part to attract, hire or retain its key employees, including its senior leadership and its skilled and trained engineering, technical and professional personnel; the level of the Company's customers' satisfaction and any failure on its part to properly and timely perform its services, meet its contractual obligations or fulfil its customers' needs; changes to the relevant regulatory frameworks or private sector requirements, including any requirement that the Company accept third-party test results or certifications of components, end products, processes or systems or any changes that result in a reduction in required inspections, tests or certifications or harmonized international or cross-industry benchmarks and standards; the Company's ability to adequately maintain, protect and enhance its intellectual property, including its registered UL-in-a-circle certification mark and other certification marks; the Company's ability to implement its growth strategies and initiatives successfully; the Company's reliance on third parties, including subcontractors and outside laboratories; the Company's ability to obtain and maintain the requisite licenses, approvals, accreditations and delegations of authority necessary to conduct its business; the outcomes of current and future legal proceedings; the Company's level of indebtedness and future cash needs; failure to generate sufficient cash to service the Company's indebtedness; a change in the assumptions the Company uses to value its goodwill or intangible assets, or the impairment of its goodwill or intangible assets; constraints imposed on the Company's ability to operate its business or make necessary capital investments due to the Company's outstanding indebtedness; the increased expenses and responsibilities associated with being a public company; the significant influence that ULSE Inc., our parent and controlling stockholder, has over the Company, including pursuant to its rights under the Company's amended and restated certificate of incorporation and the Stockholder Agreement with ULSE Inc.; natural disasters and other catastrophic events, including pandemics and the rapid spread of contagious illnesses; changes in tax laws in jurisdictions in which we operate or adverse outcomes resulting from examination of our or our affiliates tax returns; and other factors discussed in our filings with the Securities and Exchange Commission (the "SEC"), including those set forth under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part I, Item 2 of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and under "Risk Factors" in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as well as other factors described from time to time in our filings with the SEC.

If one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may differ materially from what the Company anticipates. Many of the important factors that will determine these results are beyond the Company's ability to control or predict. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. If the Company updates one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect to those or other forward-looking statements. New factors emerge from time to time, and it is not possible for the Company to predict which will arise. In addition, the Company cannot assess the impact of each factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements attributable to the Company, or others acting on the Company's behalf, are expressly qualified in their entirety by the cautionary statements above.

Non-GAAP Financial Measures

In addition to financial measures determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"), this press release includes supplemental non-GAAP financial measures, including the presentation of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income margin, Adjusted Diluted Earnings Per Share, Free Cash Flow and Free Cash Flow margin. Management uses non-GAAP financial measures in addition to GAAP measures to understand and compare operating results across periods and for forecasting and other purposes. Management believes these non-GAAP financial measures provide useful information to investors and reflect results in a manner that enables, in some instances, more meaningful analysis of trends and facilitates comparison of results across periods. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for net income, operating income, diluted earnings per share, net cash provided by operating activities or any other measure calculated in accordance with GAAP, and may not be comparable to similarly titled measures reported by other companies due to potential differences between the companies in calculations.

The Company uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income margin and Adjusted Diluted Earnings Per Share to measure the operational strength and performance of its business and believes these measures provide additional information to investors about certain non-cash items and unusual items that the Company does not expect to continue at the same level in the future. Further, management believes these non-GAAP financial measures provide a meaningful measure of business performance. The Company uses Free Cash Flow and Free Cash Flow margin as additional liquidity measures and believes these measures provide useful information to investors about the cash generated from the Company's core operations that may be available to repay debt, make other investments and return cash to stockholders.

There are material limitations to using these non-GAAP financial measures. Adjusted EBITDA does not take into account certain significant items, including depreciation and amortization, interest expense, other expense, net, income tax expense, stock-based compensation expense for equity-settled awards, material asset impairment charges and restructuring expenses which directly affect the Company's net income, as applicable. Adjusted Net Income and Adjusted Diluted Earnings Per Share do not take into account certain significant items, including other expense, net, stock-based compensation expense for equity-settled awards, material asset impairment charges and restructuring expenses which directly affect the Company's net income and diluted earnings per share, as applicable. Free Cash Flow and Free Cash Flow margin adjust for cash items that are ultimately within management's discretion to direct and therefore may imply that there is less or more cash that is available than the most comparable GAAP measure. Free Cash Flow and Free Cash Flow margin are not intended to represent residual cash flow for discretionary expenditures since debt repayment requirements and other non-discretionary expenditures are not deducted. These limitations are best addressed by considering the economic effects of the excluded items independently, and by considering these non-GAAP financial measures in conjunction with net income, operating income, diluted earnings per share and net cash provided by operating activities as calculated in accordance with GAAP.

See additional information below for definitions of these non-GAAP financial measures, and reconciliations to their most directly comparable GAAP measures.

Source Code: ULS-IR



UL Solutions Inc. Condensed Consolidated Statements of Operations (Unaudited)


	Three Months Ended March 31,
(in millions, except per share data)		2025			2024
Revenue	$	705		$	670
Cost of revenue		364			351
Selling, general and administrative expenses		232			228
Operating income		109			91
Interest expense		(12	)		(15	)
Other expense, net		(3	)		(3	)
Income before income taxes		94			73
Income tax expense		23			13
Net income		71			60
Less: net income attributable to non-controlling interests		4			4
Net income attributable to stockholders of UL Solutions	$	67		$	56

Earnings per common share:
Basic	$	0.34		$	0.28
Diluted	$	0.33		$	0.28

Weighted average common shares outstanding:
Basic		200			200
Diluted		203			200


UL Solutions Inc. Condensed Consolidated Balance Sheets (Unaudited)


(in millions)	March 31, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	267	$	298
Accounts receivable, net		463		380
Contract assets, net		203		182
Other current assets		65		61
Total current assets		998		921
Property, plant and equipment, net		631		631
Goodwill		641		633
Intangible assets, net		56		58
Operating lease right-of-use assets		182		186
Deferred income taxes		108		108
Capitalized software, net		123		127
Other assets		139		136
Total Assets	$	2,878	$	2,800
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt	$	—	$	50
Accounts payable		143		182
Accrued compensation and benefits		164		254
Operating lease liabilities - current		40		38
Contract liabilities		400		162
Other current liabilities		57		54
Total current liabilities		804		740
Long-term debt		653		692
Pension and postretirement benefit plans		195		196
Operating lease liabilities		150		155
Other liabilities		92		86
Total Liabilities		1,894		1,869
Total Stockholders' Equity		984		931
Total Liabilities and Stockholders' Equity	$	2,878	$	2,800


UL Solutions Inc. Condensed Consolidated Statements of Cash Flows (Unaudited)


	Three Months Ended March 31,
(in millions)		2025			2024
Operating activities
Net cash flows provided by operating activities	$	154		$	141

Investing activities
Capital expenditures		(51	)		(57	)
Other investing activities, net		1			—
Net cash flows used in investing activities		(50	)		(57	)

Financing activities
Repayments of long-term debt, net		(90	)		(25	)
Dividends to stockholders of UL Solutions		(26	)		(25	)
Dividends to non-controlling interest		(17	)		—
Other financing activities, net		(2	)		1
Net cash flows used in financing activities		(135	)		(49	)

Effect of exchange rate changes on cash and cash equivalents		—			(6	)

Net (decrease) increase in cash and cash equivalents		(31	)		29

Cash and cash equivalents
Beginning of period		298			315
End of period	$	267		$	344


UL Solutions Inc. Supplemental Financial Information Revenue by Major Service Category and Revenue Growth Components (Unaudited)


Revenue by Major Service Category	Three Months Ended March 31,
(in millions)	2025		2024
Certification Testing	$	189	$	176
Ongoing Certification Services		245		233
Non-certification Testing and Other Services		203		194
Software		68		67
Total	$	705	$	670


Revenue Change Components	Three Months Ended March 31, 2025
(in millions)	Organic¹		Acquisition / 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	$	51	$	(7	)	$	(9	)	$	35	7.6	%	5.2	%

Organic reflects revenue change in a given period excluding Acquisition / Divestiture and FX in that same period, expressed in dollars or as a percentage of revenue in the prior period.
Acquisition / Divestiture is calculated as revenue change in a given period related to acquisitions or disposals of businesses using prior period exchange rates, expressed in dollars or as a percentage of revenue in the prior period. Revenues from an acquisition or disposal are measured as Acquisition / Divestiture for the initial twelve month period following the acquisition or disposal date. Subsequently, the revenue impact from the acquired or disposed business is measured as Organic.
FX reflects the impact that foreign currency exchange rates have on revenue in a given period, expressed in dollars or as a percentage of revenue in the prior period. The Company uses constant currency to calculate the FX impact on revenue in a given period by translating current period revenues at prior period exchange rates, expressed as a percentage of revenue in the prior period.

UL Solutions Inc.

Supplemental Financial Information

Non-GAAP Measures

(Unaudited)

The table below reconciles net income to Adjusted EBITDA.

	Three Months Ended March 31,
(in millions, unless otherwise stated)		2025			2024
Net income	$	71		$	60
Depreciation and amortization expense		45			41
Interest expense		12			15
Other expense, net		3			3
Income tax expense		23			13
Stock-based compensation		8			—
Restructuring		(1	)		(1	)
Adjusted EBITDA¹	$	161		$	131
Revenue	$	705		$	670
Net income margin		10.1	%		9.0	%
Adjusted EBITDA margin²		22.8	%		19.6	%

The Company defines Adjusted EBITDA as net income adjusted for depreciation and amortization expense, interest expense, other expense, net, income tax expense, as well as stock-based compensation expense for equity-settled awards, material asset impairment charges and restructuring expenses, as applicable. The Company believes that the presentation of Adjusted EBITDA provides additional information to investors about certain non-cash items and unusual items that are not expected to continue at the same level in the future. Further, the Company believes Adjusted EBITDA provides a meaningful measure of business performance and provides a basis for comparing its performance to that of other peer companies using similar measures. There are material limitations to using Adjusted EBITDA. Adjusted EBITDA does not take into account certain significant items, including depreciation and amortization, interest expense, other expense, net, income tax expense, stock-based compensation expense for equity-settled awards, material asset impairment charges and restructuring expenses which directly affect the Company's net income, as applicable. These limitations are best addressed by considering the economic effects of the excluded items independently, and by considering Adjusted EBITDA in conjunction with net income as calculated in accordance with GAAP.
Adjusted EBITDA margin is calculated as Adjusted EBITDA as a percentage of revenue.

The table below reconciles segment operating income to segment Adjusted EBITDA.

	Three Months Ended March 31,
(in millions, unless otherwise stated)		2025			2024
Industrial
Segment operating income	$	83		$	75
Depreciation and amortization expense		14			11
Stock-based compensation		3			—
Adjusted EBITDA¹	$	100		$	86
Revenue	$	308		$	295
Operating income margin		26.9	%		25.4	%
Adjusted EBITDA margin²		32.5	%		29.2	%

Consumer
Segment operating income	$	26		$	17
Depreciation and amortization expense		19			19
Stock-based compensation		4			—
Restructuring		(1	)		(1	)
Adjusted EBITDA¹	$	48		$	35
Revenue	$	304		$	286
Operating income margin		8.6	%		5.9	%
Adjusted EBITDA margin²		15.8	%		12.2	%

Software and Advisory
Segment operating loss	$	—		$	(1	)
Depreciation and amortization expense		12			11
Stock-based compensation		1			—
Adjusted EBITDA¹	$	13		$	10
Revenue	$	93		$	89
Operating loss margin		—	%		(1.1	)%
Adjusted EBITDA margin²		14.0	%		11.2	%

Adjusted EBITDA¹	$	161		$	131

See definition on previous page.
See definition on previous page.

The table below reconciles net income to Adjusted Net Income.

	Three Months Ended March 31,
(in millions, unless otherwise stated)		2025			2024
Net income	$	71		$	60
Other expense, net		3			3
Stock-based compensation		8			—
Restructuring		(1	)		(1	)
Tax effect of adjustments³		(1	)		(1	)
Adjusted Net Income¹	$	80		$	61
Revenue	$	705		$	670
Net income margin		10.1	%		9.0	%
Adjusted Net Income margin²		11.3	%		9.1	%

The Company defines Adjusted Net Income as net income adjusted for other expense, net, stock-based compensation expense for equity-settled awards, material asset impairment charges and restructuring expenses, as applicable, each net of tax. The Company believes that the presentation of Adjusted Net Income provides additional information to investors about certain non-cash items and unusual items that are expected to continue at the same level in the future. Further, the Company believes Adjusted Net Income provides a meaningful measure of business performance and provides a basis for comparing its performance to that of other peer companies using similar measures. There are material limitations to using Adjusted Net Income. Adjusted Net Income does not take into account certain significant items, including other expense, net, stock-based compensation expense for equity-settled awards, material asset impairment charges and restructuring expenses which directly affect the Company's net income, as applicable. These limitations are best addressed by considering the economic effects of the excluded items independently, and by considering Adjusted Net Income in conjunction with net income as calculated in accordance with GAAP.
Adjusted Net Income margin is calculated as Adjusted Net Income as a percentage of revenue.
The Company computed the tax effect of adjustments to net earnings by applying the statutory tax rate in the relevant jurisdictions to the taxable income or expense items that are adjusted in the period presented. If a valuation allowance exists, the rate applied is zero.

The table below reconciles diluted earnings per share to Adjusted Diluted Earnings Per Share.

	Three Months Ended March 31,
		2025			2024
Diluted earnings per share	$	0.33		$	0.28
Other expense, net		0.02			0.02
Stock-based compensation		0.04			—
Restructuring		(0.01	)		(0.01	)
Tax effect of adjustments²		(0.01	)		(0.01	)
Adjusted Diluted Earnings Per Share¹	$	0.37		$	0.28

The Company defines Adjusted Diluted Earnings Per Share as diluted earnings per share attributable to stockholders of UL Solutions adjusted for other expense, net, stock-based compensation expense for equity-settled awards, material asset impairment charges and restructuring expenses, as applicable. The Company believes that the presentation of Adjusted Diluted Earnings Per Share provides additional information to investors about certain non-cash items and unusual items that are expected to continue at the same level in the future. Further, the Company believes Adjusted Diluted Earnings Per Share provides a meaningful measure of business performance and provides a basis for comparing its performance to that of other peer companies using similar measures. There are material limitations to using Adjusted Diluted Earnings Per Share. Adjusted Diluted Earnings Per Share does not take into account certain significant items, including other expense, net, stock-based compensation expense for equity-settled awards, material asset impairment charges and restructuring expenses which directly affect the Company's diluted earnings per share, as applicable. These limitations are best addressed by considering the economic effects of the excluded items independently, and by considering Adjusted Diluted Earnings Per Share in conjunction with diluted earnings per share as calculated in accordance with GAAP.
See definition on previous page.

The table below reconciles net cash provided by operating activities to Free Cash Flow.

	Three Months Ended March 31,
(in millions)		2025			2024
Net cash provided by operating activities	$	154		$	141
Capital expenditures		(51	)		(57	)
Free Cash Flow¹	$	103		$	84
Revenue	$	705		$	670
Net cash provided by operating activities margin		21.8	%		21.0	%
Free Cash Flow margin²		14.6	%		12.5	%

The Company defines Free Cash Flow as cash from operating activities less cash outlays related to capital expenditures. The Company defines capital expenditures to include purchases of property, plant and equipment and capitalized software. These items are subtracted from cash from operating activities because they represent long-term investments that are required for normal business activities. The Company uses Free Cash Flow as an additional liquidity measure and believes it provides useful information to investors about the cash generated from its core operations that may be available to repay debt, make other investments and return cash to stockholders. There are material limitations to using Free Cash Flow. Free Cash Flow adjusts for cash items that are ultimately within management's discretion to direct, and therefore, may imply that there is less or more cash that is available than the most comparable GAAP measure. Free Cash Flow is not intended to represent residual cash flow for discretionary expenditures since debt repayment requirements and other non-discretionary expenditures are not deducted. These limitations are best addressed by considering the economic effects of the excluded items independently, and by considering Free Cash Flow in conjunction with net cash provided by operating activities as calculated in accordance with GAAP.
Free Cash Flow margin is calculated as Free Cash Flow as a percentage of revenue.

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Kathy Fieweger

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Kathy.Fieweger@ul.com

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Investors:

Dan Scott / Rodny Nacier, ICR Inc.

IR@ul.com

UL Solutions Inc. Reports Strong First Quarter 2025 Results