UL Solutions (ULS)
NYSEIndustrialsSpecialty Business ServicesSnapshot 2026-09-04
$73.83-1.07%
Close 2026-09-04 · 1-day change
NYSEIndustrialsSpecialty Business ServicesSnapshot 2026-09-04
Broken: Primary pillar broken — Adjusted EBITDA margin near 27%: EBITDA margin 24.4% vs 27.0% target.
UL Solutions grows revenue about 7% a year. The company aims for a 27% profit margin. It targets $200 million revenue from its E&E segment in 2026. Recent earnings beats show some strength despite market pressure.
The recent sharp selloff shows investor concern. Profit margin improvement is uncertain. E&E segment revenue progress is unclear. Unauthorized marks on products could hurt reputation.
The stock trades about 11% above our fair value near $79. Analysts expect 7% revenue growth. Our fair value is 24% below the Street median, reflecting cautious optimism versus more bullish Street views.
Breaks if: Adjusted EBITDA margin falls below 25% in FY26
Focus on enhancing the adjusted EBITDA margin to approximately 27% by the end of 2026.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on steady growth. The current thesis is intact, but there are mixed signals from recent financial performance and management priorities.
The market currently reflects a neutral valuation, with a premium compared to peers. However, there is an expectations gap, indicating that investors may not fully appreciate the risks and uncertainties surrounding ULS.
Management is focused on improving adjusted EBITDA margins and achieving organic revenue growth, with some progress noted. However, there is elevated risk due to the recent earnings miss and the potential for future guidance cuts.
The thesis hinges on the performance of sector bellwethers like CTAS, CPRT, and ROL. Positive earnings and guidance from these companies could support ULS, while negative trends could pose risks.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook. Additionally, the launch of a new retail supply chain software platform reinforces the goal of mid-single digit organic revenue growth. There are no new threats to the thesis at this time.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: E&E revenue falls below $180 million in FY26
Breaks if: Organic revenue growth falls below 3% in FY26
Overall, ULS shows potential for stable growth, but investors should remain cautious of sector dynamics and management execution. Not investment advice.