UL Solutions Inc. reported strong financial results for the first quarter ended March 31, 2025, with total revenue reaching $705 million, a 5.2% increase compared to $670 million in Q1 2024. Organic growth was robust at 7.6% across all segments, led by the Industrial and Consumer sectors.
Profitability saw significant improvement, with net income rising 18.3% to $71 million, expanding the net income margin to 10.1% from 9.0% in the prior year. Adjusted EBITDA increased by 22.9% to $161 million, resulting in an Adjusted EBITDA margin of 22.8%, up 320 basis points, driven by higher revenue and operating leverage.
Diluted earnings per share increased by $0.05 to $0.33, and Adjusted Diluted Earnings Per Share rose by $0.09 to $0.37. The Industrial segment's revenue grew 4.4% (8.1% organic) to $308 million, with an Adjusted EBITDA margin of 32.5%. The Consumer segment saw revenue increase 6.3% (7.7% organic) to $304 million, with an Adjusted EBITDA margin of 15.8%.
The Software and Advisory segment's revenue increased 4.5% (5.6% organic) to $93 million, with an Adjusted EBITDA margin of 14.0%. Cash flow generation remained strong, with net cash provided by operating activities at $154 million for Q1 2025, an increase from $141 million in the same period of 2024.
Free Cash Flow for the first three months was $103 million, up from $84 million. Total debt as of March 31, 2025, was $657 million, a decrease from December 31, 2024, due to $90 million of net repayments. The company also paid a dividend of $0.13 per share, totaling $26 million.
UL Solutions affirmed its full-year 2025 outlook, projecting consolidated organic revenue growth in the mid-single digits and further Adjusted EBITDA margin expansion to approximately 24%. This reinforces confidence in the company's strategic focus on high-growth markets and ongoing operational excellence.
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