UL Solutions Inc. Reports 6.3% Revenue Growth to $776 Million in Q2 2025

UL Solutions Inc. reported a revenue increase of $46 million, or 6.3%, for the second quarter of 2025, reaching $776 million compared to $730 million in the same period of 2024. The growth was driven by organic revenue growth of $40 million, primarily from the Industrial and Consumer segments, alongside a $7 million positive impact from foreign exchange rates. For the first half of 2025, total revenue rose to $1.481 billion, an increase of $81 million, or 5.8%, from $1.400 billion in the prior year. The company’s net income for the second quarter was $97 million, down from $106 million a year earlier, while net income for the first half was $168 million, slightly up from $166 million.

The company’s operating income for the second quarter increased to $139 million, a 10.3% rise from $126 million in the same quarter of 2024. This was attributed to a combination of increased revenue and controlled costs, with selling, general, and administrative expenses rising only marginally by $4 million. The effective tax rate for the second quarter was 22.4%, higher than the previous year’s 20.9%, primarily due to foreign tax effects and new corporate tax regulations. Earnings per share for the second quarter were $0.45, down from $0.51 in the prior year.

Strategically, UL Solutions has made significant acquisitions, including the purchase of TesTneT Engineering GmbH and BatterieIngenieure GmbH, which are expected to enhance its capabilities in testing services for hydrogen storage systems and battery testing, respectively. The company also divested its payments testing business, which contributed to a pre-tax gain of $24 million. These strategic moves are aimed at expanding UL Solutions' service offerings and market reach, particularly in the Industrial segment.

Operationally, the company reported a total employee headcount of 4,500 as of June 30, 2025, reflecting a slight increase from the previous year. The Industrial segment generated $338 million in revenue for the second quarter, a 7.6% increase year-over-year, while the Consumer segment saw a 5.6% increase to $340 million. The Software and Advisory segment also experienced growth, with revenue rising 4.3% to $98 million. The company anticipates continued growth driven by demand for its services, although it acknowledges potential risks from geopolitical uncertainties and market conditions.

Looking ahead, UL Solutions expects to maintain its growth trajectory, supported by its recent acquisitions and ongoing demand for its testing and certification services. The company plans to continue investing in its capabilities and expanding its geographic footprint, while also navigating the challenges posed by the current macroeconomic environment. The management remains optimistic about the future, emphasizing a commitment to enhancing operational efficiency and delivering value to shareholders.