UL Solutions Inc. reported strong financial results for the third quarter ended September 30, 2024, with total revenue reaching $731 million, an 8.1% increase compared to $676 million in Q3 2023. Organic growth was particularly robust at 9.3% across all segments, driven by the Industrial and Consumer sectors.
Profitability saw significant improvement, with net income rising 64.9% to $94 million, expanding the net income margin to 12.9% from 8.4% in the prior year. Adjusted EBITDA increased by 12.3% to $183 million, resulting in an Adjusted EBITDA margin of 25.0%, up 90 basis points, primarily due to higher revenue and expense management.
The Industrial segment's revenue grew 9.3% (11.7% organic) to $317 million, with an Adjusted EBITDA margin of 33.4%. The Consumer segment saw revenue increase 8.8% (9.2% organic) to $321 million, with an Adjusted EBITDA margin of 19.3%. The Software and Advisory segment's revenue increased 2.2% (2.2% organic) to $93 million, though Adjusted EBITDA decreased 11.8% to $15 million due to higher compensation expenses.
Cash flow generation remained strong, with net cash provided by operating activities at $394 million for the first nine months of 2024, an increase from $341 million in the same period of 2023. Free Cash Flow for the first nine months was $215 million, up from $185 million.
The company's total debt stood at $802 million as of September 30, 2024, a decrease from December 31, 2023, due to $110 million of net repayments on its revolving credit facility. UL Solutions also ended the quarter with $327 million in cash and cash-equivalents.
Management strengthened its full-year 2024 financial outlook, reflecting confidence in continued momentum. Strategic investments included the August opening of a large-scale industrial and EV battery testing facility in Auburn Hills, Michigan, and plans for a new Advanced Automotive and Battery Testing Center in Pyeongtaek, Korea.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.