Testing, inspection and certification company UL Solutions reported that revenue was up 6.5% to $670 million year-on-year for the first quarter March 31 2024, reflecting continued demand for its global offering. Net income increased by 3.4% to $60 million year-on-year.
President and CEO Jennifer Scanlon stated: “All three segments [Industrial, Consumer and Software and Advisory] across all regions provided balanced contributions, highlighting how our strategy and diverse portfolio produce steady and predictable growth in our business.”
Chief Financial Officer Ryan Robinson added: “Technology advancements and market trends such as energy transition and connected technologies are driving change across the end markets we serve, as we achieved organic revenue growth of 7.5%.”
Looking ahead, the company’s full-year outlook for 2024 indicated that “mid-single digit steady” constant currency, organic revenue growth is expected to continue. “Electrification of everything” along with digitalisation and sustainability trends are fuelling growth in all segments.
Divestiture of its Industrial payments testing business will reduce revenue by approximately $40 million annually, while adjusted EBITDA margin improvement is expected from increased productivity. Capital expenditures are predicted to remain at approximately 7-8% of revenue. Tuck-in acquisition opportunities continue to be tracked.