On July 31, 2024, UL Solutions Inc (ULS, Financial) released its 8-K filing for the second quarter ended June 30, 2024. UL Solutions, a global leader in product testing, inspection, and certification (TIC) services, reported significant financial achievements and continued growth across all segments.
Company Overview
UL Solutions Inc (ULS, Financial) specializes in a broad range of TIC services, operating globally in over 35 industries. The company’s operations are divided into two main segments: industrial and consumer, with additional offerings in software and advisory services.
Second Quarter 2024 Financial Highlights
UL Solutions Inc (ULS, Financial) reported a 6.0% increase in revenue to $730 million, with an impressive 8.4% organic growth. Net income rose to $106 million, or $0.50 per diluted share, reflecting a 7.1% increase from the same period last year. Adjusted Net Income also saw a 5.6% increase to $94 million.
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Revenue | $730 million | $689 million | 6.0% |
| Net Income | $106 million | $99 million | 7.1% |
| Adjusted Net Income | $94 million | $89 million | 5.6% |
| Adjusted EBITDA | $173 million | $155 million | 11.6% |
Segment Performance
Industrial Segment: Revenue increased by 7.5% to $314 million, with an 11.6% organic growth. Adjusted EBITDA rose by 6.6% to $97 million, driven by value pricing initiatives and increased demand for electrical products and renewable energy testing.
Consumer Segment: Revenue grew by 4.2% to $322 million, with a 6.1% organic growth. Adjusted EBITDA saw a significant increase of 17.3% to $61 million, attributed to higher demand for electromagnetic compatibility testing and improved retail demand.
Software and Advisory Segment: Revenue increased by 6.8% to $94 million, with a 5.7% organic growth. Adjusted EBITDA rose by 25.0% to $15 million, driven by increased software and sustainability advisory revenue.
Liquidity and Capital Resources
For the first six months of 2024, UL Solutions generated $244 million in net cash from operating activities, up from $220 million in the same period last year. Free Cash Flow for the first half of the year was $131 million, compared to $107 million in the previous year. The company also paid its first dividend as a public company, amounting to $25 million.
Commentary
"This is our second quarterly earnings report as a public company and I’m pleased to once again report strong results as all of our segments, regions and service lines performed well," said President and CEO Jennifer Scanlon.
"Tailwinds from a number of global trends are contributing to strong demand for our services and helped deliver another quarter of strong results that included organic revenue growth of 8.4%, Adjusted EBITDA of $173 million and Adjusted Diluted Earnings Per Share of $0.44," added Chief Financial Officer Ryan Robinson.
Analysis
UL Solutions Inc (ULS, Financial) has demonstrated robust financial performance in the second quarter of 2024, with significant revenue growth and strong profitability across all segments. The company's strategic focus on value pricing, increased laboratory capacity, and demand for renewable energy and electrical product testing has driven its success. Additionally, the company's strong cash flow and prudent capital allocation position it well for future growth and investment opportunities.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from UL Solutions Inc for further details.
