Fourth Quarter 2024 (Comparisons to Fourth Quarter 2023
unless otherwise noted)1
- Strong revenue growth of 8.0% to $739 million, including 9.5%
organic growth
- Net income of $85 million increased 37.1%, Net income margin of
11.5%, expanded 240 basis points
- Diluted earnings per share of $0.40 increased 37.9%, Adjusted
Diluted Earnings Per Share of $0.49 increased 69.0%
- Adjusted EBITDA of $169 million increased 27.1%, Adjusted
EBITDA margin of 22.9% expanded 350 basis points
Full Year 2024 (Comparisons to Full Year 2023 unless
otherwise noted)1
- Strong revenue growth of 7.2% to $2.9 billion, including 8.7%
organic growth
- Net income of $345 million increased 25.0%, Net income margin
of 12.0%, expanded 170 basis points
- Diluted earnings per share of $1.62 increased 24.6%, Adjusted
Diluted Earnings Per Share of $1.70 increased 18.1%
- Adjusted EBITDA of $656 million increased 16.5%, Adjusted
EBITDA margin of 22.9% expanded 190 basis points
- Net cash provided by operating activities of $524 million and
Free Cash Flow of $287 million for the year ended December 31,
2024
- Successfully completed Initial Public Offering in April
- Introduces 2025 growth outlook
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 fourth quarter and full year ended
December 31, 2024.
“I’m incredibly proud of our team for the strong fourth quarter
results that capped off a remarkable first year as a public
company, with sustained momentum across all segments, service lines
and regions,” said President and CEO Jennifer Scanlon. “Robust
organic revenue growth, margin expansion and strong cash flow
generation underscored the resilience and predictability of our
business model, along with the growth drivers propelling us
forward.”
Scanlon continued, “Our close customer relationships and recent
investments in advanced testing facilities worldwide are already
delivering results for UL Solutions as we help companies in many
industries navigate complex regulatory requirements and their own
business challenges. As safety science evolves and new technologies
emerge, we remain committed to our mission of working for a safer,
more secure and sustainable world.”
“For the full year we generated robust net cash provided by
operating activities of $524 million, Free Cash Flow of $287
million and finished with strong liquidity and an investment grade
balance sheet," said Chief Financial Officer Ryan Robinson.
“Looking ahead to 2025, we expect to achieve mid-single digit
constant currency organic revenue growth while further improving
our Adjusted EBITDA margins. We will continue investing to expand
our capabilities that align with global megatrends while
maintaining our disciplined approach to capital allocation.”
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
measures presented, as well as reconciliations of these measures to
their most directly comparable GAAP measures.
Fourth Quarter 2024 Financial Results
Revenue of $739 million compared to $684 million in the fourth
quarter of 2023, an increase of 8.0%. Organic growth of 9.5% across
all segments, led by Industrial and Consumer segments.
Net income of $85 million compared to $62 million in the fourth
quarter of 2023, an increase of 37.1%. Net income margin of 11.5%
compared to 9.1% in the fourth quarter of 2023, an increase of 240
basis points. The margin expansion resulted from higher revenue and
improved operating leverage, led by the Industrial segment.
Adjusted Net Income of $102 million compared to $62 million in
the fourth quarter of 2023, an increase of 64.5%. Adjusted Net
Income margin of 13.8% compared to 9.1% in the fourth quarter of
2023, an increase of 470 basis points.
Diluted earnings per share of $0.40 compared to $0.29 in the
fourth quarter of 2023, an increase of $0.11. Adjusted Diluted
Earnings Per Share of $0.49 compared to $0.29 in the fourth quarter
of 2023, an increase of $0.20.
Adjusted EBITDA of $169 million compared to $133 million in the
fourth quarter of 2023, an increase of 27.1%. Adjusted EBITDA
margin of 22.9% compared to 19.4% in the fourth quarter of 2023, an
increase of 350 basis points. The margin expansion resulted from
higher revenue and improved operating leverage, led by the
Industrial segment.
Fourth Quarter 2024 Segment Performance
Industrial Segment Results
Industrial revenue of $328 million compared to $294 million in
the fourth quarter of 2023, an increase of 11.6%, or 13.9% on an
organic basis. Operating income of $88 million compared to $66
million in the fourth quarter of 2023. Operating income margin of
26.8% compared to 22.4% in the fourth quarter of 2023. Adjusted
EBITDA of $105 million compared to $79 million in the fourth
quarter of 2023, an increase of 32.9%. Adjusted EBITDA margin of
32.0% compared to 26.9% in the fourth quarter of 2023. Revenue
gains were driven by continued demand related to electrical
products, renewable energy and component certification testing and
services, as well as increased laboratory capacity. Adjusted EBITDA
gains and margin improvement were driven primarily by higher
revenue and improved operating leverage.
Consumer Segment Results
Consumer revenue of $309 million compared to $293 million in the
fourth quarter of 2023, an increase of 5.5%, or 6.5% on an organic
basis. Operating income of $22 million compared to $14 million in
the fourth quarter of 2023. Operating income margin of 7.1%
compared to 4.8% in the fourth quarter of 2023. Adjusted EBITDA of
$45 million compared to $36 million in the fourth quarter of 2023,
an increase of 25.0%. Adjusted EBITDA margin of 14.6% compared to
12.3% in the fourth quarter of 2023. Revenue and Adjusted EBITDA
gains were driven by retail and consumer technology. Margin
improvement was driven by both higher revenue and improved
operational efficiency.
Software and Advisory Segment Results
Software and Advisory revenue of $102 million compared to $97
million in the fourth quarter of 2023, an increase of 5.2% on a
total and organic basis. Operating income of $5 million compared to
$6 million in the fourth quarter of 2023. Operating income margin
of 4.9% compared to 6.2% in fourth quarter of 2023. Adjusted EBITDA
of $19 million compared to $18 million in the fourth quarter of
2023, a increase of 5.6%. Adjusted EBITDA margin of 18.6% was flat
compared to the fourth quarter of 2023. Revenue gains were driven
by increased software revenue. Margins were flat, primarily driven
by higher services and materials expenses associated with
professional fees.
Liquidity and Capital Resources
For the year ended December 31, 2024, the Company generated $524
million of net cash provided by operating activities, an increase
from $467 million for the same period in 2023. Net cash provided by
operating activities for the year ended December 31, 2024 was
impacted by lower payments related to the Company’s cash-settled
stock appreciation rights.
The Company continues to make strategic capital investments in
energy transition opportunities to meet increased demand, and
capital expenditures were $237 million, an increase from $215
million for the same period in 2023. Free Cash Flow for the year
ended December 31, 2024 was $287 million, compared to $252 million
for the same period in 2023.
The Company paid a dividend of $25 million during the three
months ended December 31, 2024.
As of December 31, 2024, total debt was $747 million, prior to
unamortized debt issuance costs, a decrease from December 31, 2023
due to $165 million of net repayments on the Company's revolving
credit facility and term loan.
The Company ended the quarter with cash and cash-equivalents of
$298 million compared to $315 million at December 31, 2023.
Full-Year 2025 Outlook
The Company’s key points on 2025 outlook include:
- Mid single digit constant currency organic revenue growth
- Adjusted EBITDA margin organic improvement to approximately
24%, in line with long term target
- 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.
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 844-825-9789 or 412-317-5180. 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.
transforms safety, security and sustainability challenges into
opportunities for customers in more than 100 countries. UL
Solutions Inc. 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
Certain statements in this press release, which are not
historical facts, are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
include statements regarding management’s objectives and the
Company’s plans, strategy, outlook and future financial
performance. In some cases, you can identify forward-looking
statements by the use of words such as “may,” “could,” “seek,”
“guidance,” “predict,” “potential,” “likely,” “believe,” “will,”
“expect,” “anticipate,” “estimate,” “plan,” “intend,” “forecast,”
“aim,” “objectives,” “target,” “outlook,” “guidance” and
variations, or the negative, of these terms and similar
expressions. Such forward-looking statements are necessarily based
upon estimates and assumptions that, while management considers
reasonable, are inherently uncertain.
There are many risks, uncertainties and other factors that could
cause 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:
falsification of or tampering with our reports or certificates;
increases in self-certification of products in industries in which
we provide services or corresponding decreases in third-party
certifications; any conflict of interest or perceived conflict of
interest between our testing, inspection and certification services
and our enterprise and advisory services; increased competition in
industries in which we participate; ineffectiveness of our
portfolio management techniques and strategies; adverse market
conditions or adverse changes in the political, social or legal
condition in the markets in which we operate; failure to
effectively implement our growth strategies and initiatives;
increased government regulation of industries in which we operate;
adverse government actions in respect of our operations, including
enforcement actions related to environmental, health and safety
matters; failure to retain and increase capacity at our existing
facilities or build new facilities in a timely and cost-effective
manner; failure to comply with applicable laws and regulations in
each jurisdiction in which we operate, including environmental laws
and regulations; fluctuations in foreign currency exchange rates;
imposition of or increases in customs duties and other tariffs;
deterioration of relations between the United States and countries
in which we operate, including China; changes in labor regulations
in jurisdictions in which we operate; changes in labor relations
and unionization efforts by our employees; failure to recruit,
attract and retain key employees, including through the
implementation of diversity, equity and inclusion initiatives, and
the succession of senior management; failure to recruit, attract
and retain sufficient qualified personnel to meet our customers’
needs; past and future acquisitions, joint ventures, investments
and other strategic initiatives; increases in raw material prices,
fuel prices and other operating costs; changes in services we
deliver or products we use; inability to develop new solutions or
the occurrence of defects, failures or delay with new and existing
solutions; increase in uninsured losses; ineffectiveness of
deficiencies in our enterprise risk management program; volatility
in credit markets or changes in our credit rating; actions of our
employees, agents, subcontractors, vendors and other business
partners; failure to maintain relationships with our customers,
vendors and business partners; consolidation of our customers and
vendors; disruptions in our global supply chain; changes in access
to data from external sources; pending and future litigation,
including in respect of our testing, inspection and certification
services; allegations concerning our failure to properly perform
our offered services; changes in the regulatory environment for our
industry or the industries of our customers; delays in obtaining,
failure to obtain or the withdrawal or revocation of our licenses,
approvals or other authorizations; changes in our accreditations,
approvals, permits or delegations of authority; issues with the
integrity of our data or the databases upon which we rely; failure
to manage our SaaS hosting network infrastructure capacity or
disruptions in such infrastructure; cybersecurity incidents and
other technology disruptions; risks associated with intellectual
property, including potential infringement; compliance with
agreements and instruments governing our indebtedness and the
incurrence of new indebtedness; interest rate increases; volatility
in the price of our Class A common stock; actions taken by, and
control exercised by, ULSE Inc., our parent and controlling
stockholder; ineffectiveness in, or failure to maintain, our
internal control over financial reporting; negative publicity or
changes in industry reputation; changes in tax laws and
regulations, resolution of tax disputes or imposition of audit
examinations; failure to generate sufficient cash to service our
indebtedness; constraints imposed on our ability to operate our
business or make necessary capital investments due to our
outstanding indebtedness; natural disasters and other catastrophic
events, including pandemics and the rapid spread of contagious
illnesses; and other risks discussed in our filings with the
Securities and Exchange Commission (the “SEC”), including those set
forth under Item 1A of our Annual Report on Form 10-K, as well as
other factors described from time to time in our filings with the
SEC.
All forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
the cautionary statements set forth above. We caution you not to
place undue reliance on any forward-looking statements, which are
made only as of the date of this press release. We do not undertake
or assume any obligation to update publicly any of these
forward-looking statements to reflect actual results, new
information or future events, changes in assumptions or changes in
other factors affecting such forward-looking statements, except to
the extent required by law. If we update one or more
forward-looking statements, no inference should be drawn that we
will make additional updates with respect to those or other
forward-looking statements.
Non-GAAP Measures
In addition to financial measures based on accounting principles
generally accepted in the United States of America (“GAAP”), this
press release includes supplemental non-GAAP financial information,
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 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 measures reflect results in a manner that enables, in some
instances, more meaningful analysis of trends and facilitates
comparison of results across periods. These non-GAAP financial
measures have no standardized meaning presented in U.S. GAAP and
may not be comparable to other similarly titled measures used by
other companies due to potential differences between the companies
in calculations. The use of these non-GAAP measures has
limitations, and they should not be considered as substitutes for
measures of financial performance and financial position as
prepared in accordance with GAAP. See “Non-GAAP Financial Measures”
below for definitions of these non-GAAP 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
December 31,
Year Ended December
31,
(in millions,
except per share data)
2024
2023
2024
2023
Revenue
$
739
$
684
$
2,870
$
2,678
Cost of revenue
389
367
1,477
1,398
Selling, general and administrative
expenses
235
231
931
875
Goodwill impairment
—
—
—
37
Operating income
115
86
462
368
Interest expense
(13
)
(12
)
(55
)
(35
)
Other income (expense), net
(10
)
5
8
13
Income before income taxes
92
79
415
346
Income tax expense
7
17
70
70
Net income
85
62
345
276
Less: net income attributable to
non-controlling interests
4
4
19
16
Net income attributable to stockholders
of UL Solutions
$
81
$
58
$
326
$
260
Earnings per common share:
Basic
$
0.41
$
0.29
$
1.63
$
1.30
Diluted
$
0.40
$
0.29
$
1.62
$
1.30
Weighted average common shares
outstanding:
Basic
200
200
200
200
Diluted
202
200
201
200
UL Solutions Inc. Condensed Consolidated Balance
Sheets (Unaudited)
(in millions,
except per share data)
December 31, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
298
$
315
Accounts receivable, net
380
362
Contract assets, net
182
179
Other current assets
61
97
Total current assets
921
953
Property, plant and equipment, net
631
555
Goodwill
633
623
Intangible assets, net
58
72
Operating lease right-of-use assets
186
151
Deferred income taxes
108
110
Capitalized software, net
127
139
Other assets
136
133
Total Assets
$
2,800
$
2,736
Liabilities and Stockholders’
Equity
Current liabilities:
Current portion of long-term debt
$
50
$
—
Accounts payable
182
169
Accrued compensation and benefits
254
281
Operating lease liabilities - current
38
39
Contract liabilities
162
162
Other current liabilities
54
58
Total current liabilities
740
709
Long-term debt
692
904
Pension and postretirement benefit
plans
196
232
Operating lease liabilities
155
120
Other liabilities
86
93
Total Liabilities
1,869
2,058
Total Stockholders’ Equity
931
678
Total Liabilities and Stockholders’
Equity
$
2,800
$
2,736
UL Solutions Inc.
Condensed Consolidated Statements of
Cash Flows
(Unaudited)
Year Ended December
31,
(in
millions)
2024
2023
Operating activities
Net cash flows provided by operating
activities
$
524
$
467
Investing activities
Capital expenditures
(237
)
(215
)
Acquisitions, net of cash acquired
(26
)
(18
)
Proceeds from divestitures
29
4
Sales of investments, net
—
49
Other investing activities, net
—
5
Net cash flows used in investing
activities
(234
)
(175
)
Financing activities
(Repayments of) proceeds from long-term
debt, net
(165
)
410
Dividends to stockholders of UL
Solutions
(100
)
(680
)
Dividends to non-controlling interest
(15
)
(14
)
Other financing activities, net
(4
)
(10
)
Net cash flows used in financing
activities
(284
)
(294
)
Effect of exchange rate changes on cash
and cash equivalents
(23
)
(5
)
Net decrease in cash and cash
equivalents
(17
)
(7
)
Cash and cash equivalents
Beginning of period
315
322
End of period
$
298
$
315
UL Solutions Inc. Supplemental
Financial Information Revenue by Major Service Category and Revenue
Growth Components (Unaudited)
Revenue by Major Service
Category
Three Months Ended
December 31,
Year Ended December
31,
(in
millions)
2024
2023
2024
2023
Certification Testing
$
199
$
187
$
784
$
718
Ongoing Certification Services
248
221
953
874
Non-certification Testing and Other
Services
221
207
860
812
Software
71
69
273
274
Total
$
739
$
684
$
2,870
$
2,678
Revenue Change Components
Three Months Ended December
31, 2024
(in
millions)
Organic1
Acquisition /
Divestiture2
FX3
Total
Organic %
Change
Total % Change
Revenue change
Industrial
$
41
$
(6
)
$
(1
)
$
34
13.9%
11.6%
Consumer
19
—
(3
)
16
6.5%
5.5%
Software and Advisory
5
—
—
5
5.2%
5.2%
Total
$
65
$
(6
)
$
(4
)
$
55
9.5%
8.0%
Revenue Change Components
Year Ended December 31,
2024
(in
millions)
Organic1
Acquisition /
Divestiture2
FX3
Total
Organic % Change
Total % Change
Revenue change
Industrial
$
136
$
(18
)
$
(10
)
$
108
11.9%
9.4%
Consumer
81
(1
)
(14
)
66
6.9%
5.6%
Software and Advisory
16
2
—
18
4.4%
5.0%
Total
$
233
$
(17
)
$
(24
)
$
192
8.7%
7.2%
_________
- 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)
Non-GAAP Financial Measures
In addition to financial measures determined in accordance with
GAAP, the Company considers a variety of financial and operating
measures in assessing the performance of its business. The key
non-GAAP measures the Company uses are 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, which management believes provide useful information
to investors. 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.
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 and provide a basis for comparing the
Company’s performance to that of other peer companies using similar
measures. 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 (income) 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 (income)
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 regarding the definitions of
these non-GAAP financial measures and reconciliations of each
non-GAAP financial measure to its most directly comparable GAAP
measure.
The table below reconciles net income to Adjusted EBITDA.
Three Months Ended
December 31,
Year Ended December
31,
(in millions,
unless otherwise stated)
2024
2023
2024
2023
Net income
$
85
$
62
$
345
$
276
Depreciation and amortization expense
47
43
172
154
Interest expense
13
12
55
35
Other (income) expense, net
10
(5
)
(8
)
(13
)
Income tax expense
7
17
70
70
Stock-based compensation
7
—
23
—
Goodwill impairment
—
—
—
37
Restructuring
—
4
(1
)
4
Adjusted EBITDA1
$
169
$
133
$
656
$
563
Revenue
$
739
$
684
$
2,870
$
2,678
Net income margin
11.5
%
9.1
%
12.0
%
10.3
%
Adjusted EBITDA margin2
22.9
%
19.4
%
22.9
%
21.0
%
__________
- The Company defines Adjusted EBITDA as net income adjusted for
depreciation and amortization expense, interest expense, other
(income) 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 (income) 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
December 31,
Year Ended December
31,
(in millions,
unless otherwise stated)
2024
2023
2024
2023
Industrial
Segment operating income
$
88
$
66
$
338
$
308
Depreciation and amortization expense
14
12
47
38
Stock-based compensation
3
—
9
—
Restructuring
—
1
—
1
Adjusted EBITDA1
$
105
$
79
$
394
$
347
Revenue
$
328
$
294
$
1,254
$
1,146
Operating income margin
26.8
%
22.4
%
27.0
%
26.9
%
Adjusted EBITDA margin2
32.0
%
26.9
%
31.4
%
30.3
%
Consumer
Segment operating income
$
22
$
14
$
114
$
45
Depreciation and amortization expense
20
20
79
75
Stock-based compensation
3
—
11
—
Goodwill impairment
—
—
—
37
Restructuring
—
2
(1
)
2
Adjusted EBITDA1
$
45
$
36
$
203
$
159
Revenue
$
309
$
293
$
1,238
$
1,172
Operating income margin
7.1
%
4.8
%
9.2
%
3.8
%
Adjusted EBITDA margin2
14.6
%
12.3
%
16.4
%
13.6
%
Software and Advisory
Segment operating income
$
5
$
6
$
10
$
15
Depreciation and amortization expense
13
11
46
41
Stock-based compensation
1
—
3
—
Restructuring
—
1
—
1
Adjusted EBITDA1
$
19
$
18
$
59
$
57
Revenue
$
102
$
97
$
378
$
360
Operating income margin
4.9
%
6.2
%
2.6
%
4.2
%
Adjusted EBITDA margin2
18.6
%
18.6
%
15.6
%
15.8
%
Adjusted EBITDA1
$
169
$
133
$
656
$
563
__________
- See definition on previous page.
- See definition on previous page.
The table below reconciles net income to Adjusted Net
Income.
Three Months Ended
December 31,
Year Ended December
31,
(in millions,
unless otherwise stated)
2024
2023
2024
2023
Net income
$
85
$
62
$
345
$
276
Other (income) expense, net
10
(5
)
(8
)
(13
)
Stock-based compensation
7
—
23
—
Goodwill impairment
—
—
—
37
Restructuring
—
4
(1
)
4
Tax effect of adjustments3
—
1
2
—
Adjusted Net Income1
$
102
$
62
$
361
$
304
Revenue
$
739
$
684
$
2,870
$
2,678
Net income margin
11.5
%
9.1
%
12.0
%
10.3
%
Adjusted Net Income margin2
13.8
%
9.1
%
12.6
%
11.4
%
__________
- The Company defines Adjusted Net Income as net income adjusted
for other (income) 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 (income)
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
December 31,
Year Ended December
31,
2024
2023
2024
2023
Diluted earnings per share
$
0.40
$
0.29
$
1.62
$
1.30
Other (income) expense, net
0.05
(0.03
)
(0.04
)
(0.07
)
Stock-based compensation
0.04
—
0.12
—
Goodwill impairment
—
—
—
0.19
Restructuring
—
0.02
(0.01
)
0.02
Tax effect of adjustments2
—
0.01
0.01
—
Adjusted Diluted Earnings Per Share1
$
0.49
$
0.29
$
1.70
$
1.44
__________
- The Company defines Adjusted Diluted Earnings Per Share as
diluted earnings per share attributable to stockholders of UL
Solutions adjusted for other (income) 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
(income) 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.
Year Ended December 31,
2024
(in
millions)
2024
2023
Net cash provided by operating
activities
$
524
$
467
Capital expenditures
(237
)
(215
)
Free Cash Flow1
$
287
$
252
Revenue
$
2,870
$
2,678
Net cash provided by operating activities
margin
18.3
%
17.4
%
Free Cash Flow margin2
10.0
%
9.4
%
__________
- 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250220616414/en/
Media: Kathy Fieweger Senior Vice President -
Communications Kathy.Fieweger@ul.com +1 312-852-5156
Investors: Dan Scott / Rodny Nacier, ICR Inc. IR@ul.com
UL Solutions (NYSE:ULS)
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부터 1월(1) 2025 으로 2월(2) 2025
UL Solutions (NYSE:ULS)
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부터 2월(2) 2024 으로 2월(2) 2025
