UL Solutions Inc. Jefferies Global Industrials Conference 2026

Thanks, Stephanie. It's always nice to be here. I recognize some of you, and some of you I don't, so we thought it would be useful to give a very brief history of UL Solutions and then jump to the fireside chat. Let's just start with grounding in who we are. We're newly public. We went public in April of 2024, but we are not newly profitable, and we're not a new company. We've been a global leader in product testing, inspection, and certification for 132 years. There's five messages that underpin our outstanding performance. The first is we are grounded in our mission. Our mission is working for a safer world, and we are grounded in that mission by focusing on product testing, inspection, and certification, which is a very fragmented industry that is a growth industry.

Our claim to fame, our focus is our dedication to safety and science, and that dedication is reflected in our leadership. We like to say customers call us first when they have a new product innovation that has a thorny safety issue because we employ the technical leaders, the scientists, and the engineers who understand safety science and apply that to every new innovation. The third is that our customer relationships are long and deep. Prior to me joining UL in 2019, I led a building products manufacturer as CEO. We had been a customer of UL since 1913, and that company continues to be today. We support our long-term customers with a very disciplined approach to account management.

We have a global and strategic accounts team, and the reason why we're so valuable, why those long-term relationships exist, is the iconic UL mark, the UL in a circle, and we'll flash that on the next slide. But it's very important for customers to have that mark to get their products into global markets. That also gives us operating leverage, and then that trickles down to a very healthy balance sheet with robust cash flow and a disciplined capital allocation strategy. The next slide, we're just going to flash the mark. Once you see it, you'll see it everywhere. When we launched our IPO, one of the analysts had their kids do a scavenger hunt in the house, and I think they found 68 UL marks in their house in one afternoon. It is a premium mark.

When you go to the next slide, what you see is that mark, and our safety science leadership and our dedication to our mission leads us to outstanding financials. We were, last year, $3.1 billion in revenue globally. That was 6.2% organic growth, and we do this through two businesses, three segments. Our two businesses are the actual product testing, inspection, and certification, and those two segments are industrial, where our customers tend to be B2B, and consumer, where our customers tend to be B2C.

In the risk and compliance software segment, which is our second business, this is where we take the power of our data, the data that we have about the billions of products that we've tested across the 80,000 customers that we have, and use that data to help our customers respond to all of the risk and regulatory compliance requirements that they have all over the world. This includes the types of sustainability requirements that continue to proliferate around the world. If you jump then to our megatrend slide, this is why we believe fervently in our growth trajectory. There are thorny safety issues that are presented by these incredible megatrends that are affecting every one of our customers' decisions around product innovation, research and development, and growth.

The energy transition underpinned by this new energy landscape, how are we going to have enough energy to power all of the innovations that are happening, in particular around data centers? But even prior to ChatGPT launching onto the horizon in 2023, the predictions were the amount of energy that we needed for the electrification of everything was either going to double or triple by 2050, depending on which source you believed. Now you can extend that to this new energy landscape and the energy transition required because of digitalization and AI, which is a very important megatrend on this page. New mobility, the ways in which vehicles, both cars, but larger scale, as well as you get into robotics and other movement, is a very important megatrend.

Sustainability, as I mentioned, is something that we're focused on for our risk and compliance software, helping our customers identify what's in their products, scope 2, scope 3. But it's also an important driver when you think about the types of chemicals that are in products that are being regulated, the reuse and recycling, second life regulations, so disposal of products, extended producer responsibility, a lot of pieces in there that we're focused on. All of that also is underpinned by shifts in supply chain, and when you swap out a raw material in a product, swap out a component, change a location for where you're manufacturing, that frequently requires retesting. So these supply chain risks can also be a tailwind for us as we help our customers maneuver through constantly changing regulations. Quite frankly, those have been shifting since 2017, 2018, and they continue to shift.

It's become a new normal for our customers, but it is a daily requirement, and then that leads to the regulatory compliance. I want to wrap up just really quickly with slide 15, which is, as I said, we went public in 2024, but our progression started long before that. We've had an almost 7% CAGR, 6.9%. We've had steady progression in margin expansion and we are excited and bullish about where this trajectory will continue. With that, I'm going to open it up for Stephanie.

Yeah, absolutely. AI and digitalization is extremely important. By the way, I didn't talk about the four ways that we generate revenue. There's certification testing, which is getting the UL mark onto a product. There's ongoing certification services, which is recurring revenue, where we inspect any factory that's producing that product four times a year typically, and charge our customers to do that. There's non-certification testing, which is still product testing, but doesn't lead to that mark and that ongoing certification services. Then there's the software. The reason why I raise this is back on the mega trends, a lot of that innovation that we're seeing that's being driven by AI and data centers, and then also the new energy landscape requires certification.

The evidence, if you were to open up our 10-Q, is to look at the growth in certification testing, which then leads to ongoing certification services, and we're 10.9% year to date growth in that certification testing. The areas where we're seeing it the most though, it's been double-digit growth in our power and automation testing and in our wire and cable. You think about the amount of wire and cable that goes into a data center, but also goes into all sorts of industrial equipment or an autonomous vehicle. That has been significant growth. That's in our industrial business. In the consumer business, where we're seeing it show up is in our CTech and in our appliances, HVAC, and lighting sectors, in particular, in that cooling and chillers.

But we're also seeing really strong growth within our risk and compliance software in that supply chain transparency and in the supply chain insights modules that we offer in our ULTRUS software platform.