New York, Feb 20, 2026, 08:53 EST — Premarket.
- UL Solutions ended the previous session up almost 16%, finishing at $82.64.
- The company bumped up its quarterly dividend 11.5% and set out a margin target for 2026.
- A planned sale of an employee health and safety software unit is getting attention from investors.
Shares of UL Solutions Inc shot up almost 16% to close at $82.64 in the prior session, following the safety-testing firm’s upbeat quarterly results and a boost to its dividend.
The company, newly public in 2024, is making its case to investors that its testing and certification business will generate cash even as cycles shift.
On Thursday, it wasn’t just about the quarter. UL attached numbers to its 2026 margin goals and flagged a portfolio cut—moves that can quickly recalibrate short-term expectations for a stock fresh to public markets.
UL posted a 6.8% gain in fourth-quarter revenue, bringing in $789 million, while adjusted EBITDA reached $217 million, pushing the margin to 27.5%. But net income dropped to $71 million after taking a $37 million pre-tax restructuring charge, the company said in its earnings release filed with the SEC.
Jennifer Scanlon, the chief executive, described results as “exceed[ed] guidance” and highlighted hitting $3 billion in revenue—a milestone for the company. She cited energy transition and “AI-fueled digitalization” as driving demand. Finance chief Ryan Robinson credited improved lab productivity and changes to the company’s footprint for stronger margins. UL Solutions
UL is targeting mid-single digit organic revenue growth on a constant-currency basis in 2026, with an adjusted EBITDA margin moving up to between 26.5% and 27.0%. The company’s board bumped the quarterly dividend up by 11.5%, bringing it to $0.145 per share. UL also said it reached a definitive deal on Feb. 12 to divest its employee health and safety software unit, expecting that sale to close in the second quarter.
The Wall Street Journal, citing a source close to the situation, reported that private-equity player Peak Rock Capital has struck a deal to acquire the software division for north of $200 million. After the sale wraps up, the unit will take on the name PureEHS, according to the Journal.
UL handed in its earnings release to the SEC via an 8-K on Thursday, according to a filing.
Baird’s Andrew Wittmann shaved his price target down to $96 from $97 after the results landed Friday, but stuck with his Outperform rating, pointing to the company’s 2026 outlook.
But here’s the snag: the rally’s built on hopes that certification and compliance work keeps humming along, even if product launches get delayed. All this assumes margin improvements from restructuring actually stick, despite ongoing spending on new labs and capacity.
Now, investors are waiting to hear when the software business will be sold and how much UL expects to bring in, alongside any signals about hitting that 2026 margin target. The company’s bumped-up dividend goes out March 12, with March 2 as the record date.
