UL Solutions Inc.(ULS) - 2025 Q1 - Quarterly Results

Revenue Performance - Revenue for Q1 2025 was $705 million, a 5.2% increase from$ 670 million in Q1 2024, with organic growth of 7.6% across all segments[3] - Revenue for the three months ended March 31, 2025, was $705 million, an increase of 5.2% compared to$ 670 million in 2024[48] - Certification Testing revenue was $189 million in Q1 2025, up from$ 176 million in Q1 2024, reflecting a growth of 7.4%[35] - Ongoing Certification Services revenue increased to $245 million in Q1 2025 from$ 233 million in Q1 2024, a rise of 5.2%[35] - The Industrial segment reported revenue of $308 million, a 4.4% increase, with organic growth of 8.1%[7] - The Consumer segment achieved revenue of$ 304 million, a 6.3% increase, with adjusted EBITDA rising 37.1% to $48 million[9] - The Software and Advisory segment's revenue was$ 93 million, a 4.5% increase, with adjusted EBITDA growing 30.0% to $13 million[10] Profitability Metrics - Net income rose to$ 71 million, an 18.3% increase from $60 million in Q1 2024, resulting in a net income margin of 10.1%, up 110 basis points[4] - Net income attributable to stockholders of UL Solutions for Q1 2025 was$ 67 million, up from $56 million in Q1 2024, representing a 19.6% increase[32] - Adjusted Net Income for Q1 2025 was$ 80 million, up 31.1% from $61 million in Q1 2024[48] - The company reported a basic earnings per share of$ 0.34 for Q1 2025, compared to $0.28 for Q1 2024, marking a 21.4% increase[32] - Adjusted Diluted Earnings Per Share increased to$ 0.37 in Q1 2025, compared to $0.28 in Q1 2024, representing a growth of 32.1%[52] - The company reported a net income margin of 10.1% for Q1 2025, up from 9.0% in Q1 2024[48] Cash Flow and Capital Expenditures - Free cash flow for Q1 2025 was$ 103 million, compared to $84 million in Q1 2024[12] - Free Cash Flow for the three months ended March 31, 2025, was$ 103 million, a 22.6% increase from $84 million in 2024[55] - The company generated$ 154 million in net cash flows from operating activities in Q1 2025, compared to $141 million in Q1 2024, an increase of 9.2%[34] - Net cash provided by operating activities was$ 154 million in Q1 2025, compared to $141 million in Q1 2024, reflecting a margin of 21.8%[55] - Capital expenditures are projected to be 7% to 8% of revenue for 2025[16] Debt and Liabilities - Total debt as of March 31, 2025, was$ 657 million, a decrease from the previous quarter due to $90 million in net repayments[13] - The company reported a total liabilities of$ 1,894 million as of March 31, 2025, compared to $1,869 million at the end of 2024, an increase of 1.3%[33] Future Outlook - The company expects mid-single digit constant currency organic revenue growth and an adjusted EBITDA margin improvement to approximately 24% for the full year 2025[16] Segment Performance - Adjusted EBITDA increased by 22.9% to$ 161 million, with an adjusted EBITDA margin of 22.8%, expanding 320 basis points[6] - Adjusted EBITDA for Q1 2025 was $161 million, compared to$ 131 million in Q1 2024, reflecting a 22.8% margin versus 19.6% margin in the prior year[41] - Operating income margin for the Industrial segment improved to 26.9% in Q1 2025 from 25.4% in Q1 2024[45] - Adjusted EBITDA margin for the Consumer segment increased to 15.8% in Q1 2025, up from 12.2% in Q1 2024[45] - Segment operating income for the Consumer segment rose to $26 million in Q1 2025, compared to$ 17 million in Q1 2024[45] - The Software and Advisory segment reported revenue of $93 million in Q1 2025, a slight increase from$ 89 million in Q1 2024[45]