UL Solutions Inc. has reported strong financial results for the fourth quarter and full year of 2025, with a 6.8% increase in revenue to $789 million for the fourth quarter and a 6.4% increase to $3,053 million for the full year. Net income for the fourth quarter was $71 million, including a $37 million pre-tax restructuring charge, marking a 16.5% decrease, while adjusted net income increased by 11.8% to $114 million. For the full year, net income remained unchanged at $345 million, including a $35 million restructuring charge, while adjusted net income increased by 17.2% to $423 million.
Adjusted EBITDA for the fourth quarter increased by 28.4% to $217 million, with a margin expansion of 460 basis points to 27.5%. For the full year, adjusted EBITDA increased by 20.7% to $792 million, with a margin expansion of 300 basis points to 25.9%. The company also achieved a record net cash flow from operating activities of $600 million.
The company's revenue growth was led by the consumer and industrial segments, which experienced organic growth of 5.7% and 6.1%, respectively, in the fourth quarter. The industrial segment's revenue increased by 7.3% to $352 million, while the consumer segment's revenue increased by 8.4% to $335 million.
UL Solutions Inc. announced an 11.5% increase in its quarterly dividend to $0.145 per share for the first quarter of 2026. The company also provided an outlook for 2026, expecting mid-single digit constant currency organic revenue growth, adjusted EBITDA margin improvement to between 26.5% and 27.0%, and a capital expenditure between 7% and 8% of revenue.
Furthermore, the company signed a definitive agreement to sell its employee health and safety software business, allowing it to focus on its core UltrusTM software portfolio. The transaction is expected to close in the second quarter of 2026.
UL Solutions Inc. continues to make strategic capital investments to meet increased demand and drive greater productivity. Capital expenditures for the year ended December 31, 2025, were $197 million, compared to $237 million for the same period in 2024, resulting in free cash flow of $403 million, compared to $287 million for the same period in 2024.
The company's board of directors has indicated its intent to routinely announce material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts, and the UL Solutions investor relations website.
UL Solutions will host a conference call to discuss its financial results and outlook, which can be accessed through the UL Solutions investor relations website. The company encourages investors, the media, and others interested in UL Solutions to review the information shared on its investor relations website and to regularly follow its social media accounts for updates. Today the company's shares have moved -2.76% to a price of $75.00. For the full picture, make sure to review UL Solutions's 8-K report.
