UL Solutions Inc.

UL Solutions Inc. is a global safety-science company — the largest testing, inspection and certification (TIC) provider headquartered in North America — that tests products against more than 4,000 global standards for more than 80,000 customers in over 110 countries and owns the UL Mark, the certification badge that appears on billions of electrical and electronic products. It reported $3,053 million of revenue in fiscal 2025, roughly a third of which comes from recurring factory inspections that customers must keep buying to retain the right to use that mark.

UL Solutions sits in an unusual spot for an industrial company: its revenue rises with the number of new products its customers design, not with the number they sell, and about a third of it repeats every year regardless of the economic cycle. That model has produced steady growth and, since the company's April 2024 carve-out IPO, a sharp margin improvement — adjusted EBITDA margin climbed from 21.0% in 2023 to 25.9% in 2025, and management guides to roughly 27% for 2026. The shares, though, have de-rated hard from a May 2026 peak, and the file turns on a single question: whether that de-rating is an opportunity or a warning. Can a business that grows with innovation rather than gross domestic product keep compounding mid-single-digit organic growth and push margins into the high 20s, and does the current multiple already assume it can?