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UL Solutions (ULS) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 6, 2025
UL Solutions (ULS) reported revenue of $705M for the first quarter 2025 (Q1 2025), +5% from a year earlier and -5% from the quarter before. Operating margin was 15.5%, net earnings $67.0M (9.5% of revenue).
UL Solutions, Q1 2025: revenue $705M (+5% year over year), operating margin 15.5%, net earnings $67.0M, operating cash flow $154M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $705M | -5% | +5% |
| Operating profit | $109M | -5% | +20% |
| Net earnings | $67.0M | -17% | +20% |
| Operating cash flow | $154M | +18% | +9% |
| Free cash flow | $103M | +43% | +23% |
What changed
Revenue was $705.0M in Q1 2025, up 5% year over year and down 5% from the previous quarter. Ongoing Certification Services was the largest line at 35% of revenue. Certification Testing added $13.0M year over year (up 7%), 37% of the total change.
Operating profit was $109.0M, a 15.5% margin (up 1.9 points year over year). Of the extra revenue versus a year earlier, 51% reached operating profit, above the 14% margin then. Total costs grew 3% against revenue growth of 5%. Net earnings were $67.0M, up 20% year over year. The effective tax rate was 24.5%.
Operating cash flow was $154.0M (up 9% year over year), 217% of net income including minority interests. Non-cash charges added back $45.0M of depreciation and amortization and $8.0M of share-based compensation. Working capital and other items added $30.0M. Capital expenditures of $51.0M left free cash flow of $103.0M.
Questions
What was UL Solutions' revenue in the first quarter 2025?
UL Solutions (ULS) reported revenue of $705M for the first quarter 2025 (Q1 2025), +5% from a year earlier and -5% from the quarter before.
Was UL Solutions profitable in the first quarter 2025?
Operating profit was $109M (15.5% of revenue) and net earnings $67.0M.
Source: UL Solutions 10-Q on SEC EDGAR.