UL Solutions Inc. reported significant financial growth for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Revenue for Q3 2024 reached $731 million, an increase of 8.1% from $676 million in Q3 2023. For the nine-month period, revenue rose to $2,131 million, up 6.9% from $1,994 million in the prior year. The growth was primarily driven by strong performance in the Industrial and Consumer segments, particularly in Certification Testing and Ongoing Certification Services.
Operating income for Q3 2024 was $130 million, representing a margin of 17.8%, compared to $89 million (13.2% margin) in Q3 2023. For the nine months, operating income increased to $347 million (16.3% margin), up from $282 million (14.1% margin) in the previous year. Net income for Q3 2024 was $94 million, or 12.9% of revenue, compared to $57 million (8.4% margin) in Q3 2023. For the nine months, net income totaled $260 million (12.2% margin), up from $214 million (10.7% margin) in 2023.
The company’s cost of revenue for Q3 2024 was $373 million, an increase from $344 million in Q3 2023, primarily due to higher compensation and depreciation expenses. Selling, general, and administrative expenses also rose by 10.7% to $227 million, driven by increased compensation costs.
Strategically, UL Solutions made several acquisitions, including TesTneT Engineering GmbH for approximately $19 million and Batterielngenieure GmbH for about $11 million, both aimed at enhancing its Industrial segment. The company also divested its payments testing business for $30 million, resulting in a pre-tax gain of $24 million.
As of September 30, 2024, UL Solutions had total assets of $2,877 million, up from $2,736 million at the end of 2023, while total liabilities decreased to $1,981 million from $2,058 million. The company reported cash and cash equivalents of $327 million, a slight increase from $315 million at the end of 2023.
The company’s effective tax rate for Q3 2024 was 19.0%, down from 24.0% in the same period last year, influenced by earnings in lower tax jurisdictions. UL Solutions also completed an initial public offering in April 2024 and a follow-on offering in September 2024, although it did not receive any proceeds from these offerings.
Overall, UL Solutions demonstrated robust financial performance and strategic growth through acquisitions and divestitures, positioning itself favorably in the market.
About UL Solutions Inc.
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