stockrowWhat it does
UL Solutions helps companies assess whether products meet safety, performance and other requirements. It tests and inspects products, certifies those that meet applicable requirements, and provides software and advice for managing compliance and supply-chain information.
A manufacturer developing a product may use UL Solutions to test it against a standard or a regulatory requirement. If the product qualifies, the company may authorize use of a certification mark, including the UL Mark, on the product, its packaging or marketing materials. To retain that right, the customer must meet ongoing program requirements, which can include inspections, audits and sample testing.
The company also performs tests that do not necessarily lead to certification. These can assess characteristics such as energy efficiency, wireless compatibility, chemical content or reliability. Its software helps customers manage regulatory information, supply chains and sustainability programs.
Customers include manufacturers of industrial equipment, electronics, medical devices, appliances and other products, as well as retailers and building owners. UL Solutions operates a global laboratory network and serves customers in markets with different standards and regulatory requirements.
Founded in 1894, the company is headquartered in Northbrook, Illinois. Jenny Scanlon is its chief executive officer. UL Standards & Engagement controls the majority of the voting power of its common stock.
How it makes money
UL Solutions earns revenue from certification testing, ongoing certification services, other testing and services, and software. In the third quarter of 2026, consolidated revenue was $823 million, including organic revenue growth of 7%.
Certification testing evaluates products and components against standards, regulations and specifications. This work generally follows customers’ new-product development cycles. A successful certification can lead to ongoing services: customers must comply with program requirements to keep using the company’s marks. Those services can include factory inspections, audits, sample testing and label usage; their frequency depends on factors such as product type and production volume.
In FY2025, ongoing certification services generated $1.0 billion, or 33.0% of revenue. The company describes this as a contractually recurring revenue stream. Non-certification work includes testing requested by customers even when a regulation does not require it or the work does not result in certification. Software is sold through software-as-a-service and license arrangements, with associated implementation and training services.
Through the end of 2025, UL Solutions reported Industrial, Consumer, and Software and Advisory segments. Industrial served markets including energy, automation and building products; Consumer served markets including electronics, appliances and medical devices. Software and Advisory supplied regulatory, supply-chain and sustainability tools. The company reorganized its segments beginning in the first quarter of 2026; its later reporting includes a Risk and Compliance Software segment.
UL Solutions continues to develop its pricing processes, including customer relationship and quoting tools. It said both price and volume contributed to revenue growth, with volume contributing slightly more in the third quarter of 2026.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Ongoing Certification Services | $1.0 billion | 33.0% | 5.56% |
| Non-certification Testing and Other Services | $911.0 million | 29.8% | 5.93% |
| Certification Testing | $851.0 million | 27.9% | 8.55% |
| Software | $285.0 million | 9.34% | 4.40% |
Customers and how it sells
UL Solutions served more than 80,000 customers across over 110 countries in 2025. It works with manufacturers, building and asset owners, retailers and other organizations seeking product testing, certification or help with regulatory requirements.
Industrial customers use its services for products in energy, automation, engineered materials and the built environment. Consumer-market work covers electronics, medical devices, information technology, appliances, HVAC, lighting and retail products. Customers may use the company for an initial product evaluation and return for inspections and monitoring needed to maintain certification.
UL Solutions works with more than 60% of the Fortune 500. It has recognized Honeywell Technologies, Eaton and Schneider Electric as long-standing customers. The company also sells software and advisory services alongside its testing work: in 2025, approximately 65% of its global and strategic accounts cross-purchased software and advisory solutions.
The U.S. accounted for 41.0% of FY2025 revenue, mainland China for 24.9%, and Europe, Middle East and Africa for 17.3%. UL Solutions operates laboratories across regions to serve customers seeking access to different markets. Its Chinese operations include UL-CCIC, in which UL Solutions owns 70%; the remaining 30% is held by CCIC, a Chinese state-owned enterprise.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| U.S. | $1.3 billion | 41.0% | 6.37% |
| Mainland China | $761.0 million | 24.9% | 7.18% |
| Europe, Middle East and Africa | $529.0 million | 17.3% | 6.65% |
| Asia Pacific | $398.0 million | 13.0% | 6.13% |
| Other Americas | $112.0 million | 3.67% | 0.90% |
Suppliers and costs
UL Solutions delivers services through employees, laboratories, equipment and information technology rather than manufacturing the products it tests. At the end of FY2025, it had 14,851 employees, including a technical team of approximately 9,900 scientists, engineers and other specialists.
Employee compensation is a cost of providing services. Profitability also depends on how effectively the company deploys employees, including whether it has people with the right skills available when customers need them. Training, business development and other activities that cannot be charged to customers use employee time.
Laboratory capacity and software investments add depreciation and amortization costs. In FY2025, the Industrial segment’s organic depreciation and amortization increased as additional laboratory capacity was completed. Technology costs also increased, primarily in connection with cloud computing arrangements. The company uses commercial software technologies from Oracle, Microsoft and Salesforce in its internal operations.
The company invests in laboratories and service-delivery systems to expand capacity and capabilities. It also incurs costs for maintaining credentials, complying with regulations and managing environmental, health and safety requirements.
- Revenue$3.1B
- Cost of revenue−$1.5B
- Selling, general and administrative−$953.0M
- Other operating costs−$35.0M
- Operating income$522.0M
Competitive position
UL Solutions competes in a fragmented global testing, inspection and certification industry. Its rivals include large public and private firms, smaller companies and new entrants. In software and advisory, it also faces providers focused on individual solutions. No competing company is named in the available evidence.
UL Solutions identifies its capabilities, geographic reach, laboratories, equipment, reputation and operating record as factors customers consider. It has more than 650 technical accreditations and can test and certify against over 4,000 global standards. Some credentials are needed to provide conformity assessments in regulated sectors or markets and must be renewed or otherwise maintained.
Our reading: Accreditations and technical expertise can create a meaningful barrier because providers must demonstrate competence and maintain the credentials needed to serve regulated customers. Their protection is not absolute, since other firms can also obtain credentials.
The UL Mark appears on products worldwide, and customers must meet ongoing program requirements to retain the right to use it. Our reading: The mark and associated inspection relationships support repeat business, though their value depends on the company protecting its reputation and the integrity of its certifications.
Our reading: The laboratory network offers a practical advantage for serving customers across markets, but maintaining capacity and using it efficiently also requires investment.
Growth opportunities
UL Solutions plans to expand its core services, sell additional offerings to existing customers, enter new industry areas and use acquisitions to add capabilities. It also aims to improve service delivery and operating efficiency through technology and process changes.
The company links demand for outsourced testing to changing safety requirements, new technologies and product development. Its certification testing can lead to ongoing certification work after a product enters production. In the third quarter of 2026, certification testing revenue increased nearly 11%, while ongoing certification services grew over 7%.
UL Solutions launched three certification programs during that quarter for data-center power distribution, power conversion and liquid cooling. It also expanded its HVAC Center of Excellence in Plano, Texas, to test advanced cooling technologies and expanded retail testing capabilities in Europe and the United States.
The company completed its acquisition of Eurofins’ electrical and electronics business on October 1, 2026, adding capabilities and laboratory capacity to its Consumer segment. It expects back-office integration to be substantially complete in 2027 and go-to-market and laboratory-utilization synergies to be largely realized by the end of 2028.
UL Solutions is also reshaping its software portfolio around product and supply-chain compliance. It sold its employee health and safety software business in April 2026 and acquired Evnia Consulting Firm in July 2026 to add environmental compliance capabilities.
- $2.5BFY2021
- $2.5BFY2022
- $2.7BFY2023
- $2.9BFY2024
- $3.1BFY2025
Structural risks
- Brand and certification integrity: UL Solutions depends on its reputation and brand. Adverse publicity, damage to the UL Mark or a loss of confidence in its work could reduce demand or erode market share.
- Employee utilization: Service profitability depends partly on deploying employees with the right skills in line with demand. Hiring, training, attrition and time spent on non-chargeable activities can affect utilization.
- International operations: Trade policy, tariffs, currency fluctuations and changing regulations can affect the business. In China, laws and regulations can evolve with little notice and may be interpreted or enforced inconsistently.
- Acquisitions: Integrating acquired facilities, personnel, systems and customers may interrupt operations or divert management attention. UL Solutions may not achieve expected synergies or retain important relationships.
- Technology and data: Cyberattacks, system outages or failures to protect data could cause liability and reputational harm. Software implementation and integration can also present challenges.
- Customer spending: Geopolitical and economic uncertainty may cause customers to modify, delay or cancel purchases of services. UL Solutions has also experienced challenges in advisory work related to U.S. renewable energy and commercial real estate.
Bottom line
Our reading
UL Solutions combines project-based product testing with recurring inspections tied to customers’ continued use of its certification marks. Its technical credentials, laboratory network and brand support that model, while demand still depends on customers developing products and maintaining certification. The business must also protect its reputation, use specialized staff and lab capacity efficiently, and manage regulatory exposure across markets including China.