Q2 2024 UL Solutions Inc Earnings Call Transcript
Key Points
- UL Solutions Inc (ULS) reported strong organic growth of 8.4% in the second quarter, with revenues reaching $730 million.
- The company achieved an adjusted EBITDA growth of 11.6% and expanded its adjusted EBITDA margin by 120 basis points.
- UL Solutions Inc (ULS) completed two strategic acquisitions in the Industrial segment, enhancing its capabilities in battery and hydrogen component testing.
- The company maintained a robust cash flow, generating $131 million of free cash flow in the first six months of the year.
- UL Solutions Inc (ULS) declared its first regular quarterly dividend as a public company, demonstrating a commitment to returning capital to shareholders.
- The Industrial segment experienced a slight decline in adjusted EBITDA margin by 30 basis points due to increased compensation costs and M&A expenses.
- The company faced $5 million of additional pretax interest expense, impacting adjusted net income growth.
- UL Solutions Inc (ULS) is anticipating more challenging year-over-year comparisons in the second half of the year, potentially affecting growth rates.
- The company incurred a $9 million pretax expense related to the conversion of cash-settled appreciation rights (CSARs) following its IPO.
- Foreign exchange impacts posed a $2 million headwind to operating income and adjusted EBITDA in both the Industrial and Consumer segments.
Greetings. Welcome to the UL Solutions second quarter 2024 earnings call. (Operator Instructions)
I will now turn the conference over to your host, Mitchell Ji, Senior Vice President of Corporate Finance. You may begin.
Thank you. Welcome, everyone, to our second-quarter 2024 earnings call. Joining me today are Jenny Scanlon, our Chief Executive Officer; and Ryan Robinson, our Chief Financial Officer.
During the discussion today, we will be referring to our earnings presentation, which is available on the Investor Relations section of our website at ul.com. Our earnings release is also available on the IR section of our website.
I would like to remind everyone that on today's call, we may discuss forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, among other things statements about UL Solutions results of operations and estimates and
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