UL Solutions Inc.ULS
UL Solutions Inc. Segments Disclosure
Segment Information
ASC Topic 280, Segment Reporting (“ASC 280”) establishes the standards for reporting information about segments in financial statements. The Company has determined that it is organized, managed and internally grouped into three segments: Industrial, Consumer and Software and Advisory. UL Solutions segments provide common goods and services to their customers, which provides for efficient sharing of the segments’ resources as needed. Segment information is reported on the basis used for reporting to the Chief Executive Officer, who serves as the Company’s chief operating decision maker (“CODM”) and evaluates each segment’s performance using a variety of measures, including operating income, which is the measure most consistent with amounts included in the Company’s consolidated financial statements. The CODM uses operating income, amongst other measures, to evaluate each segment’s performance and allocate resources, including employees and capital, considering budget-to-actual variances to review operating trends in the annual budgeting and quarterly forecasting processes.
The following is a brief description of the Company’s segments:
Industrial: The Industrial segment provides testing, inspection and certification (“TIC”) services to help ensure customers’ industrial products meet or exceed international standards for product safety, performance and sustainability. The Industrial segment provides services that address needs across a number of end markets, including energy, industrial automation, engineered materials (plastics and wire and cable) and built environment, and across a variety of stakeholders, including manufacturers, building and asset owners, end users and regulators. The Company believes the products it tests, certifies and inspects in this segment generally represent very high cost of failure components, which in turn drives customers in this segment to choose UL Solutions based on its deep technical expertise, consistency and quality of service.
Consumer: The Consumer segment provides a variety of global product market acceptance and risk mitigation services for customers in the consumer products end market, including consumer electronics, medical devices, information technologies, appliances, HVAC, lighting, retail (softlines and hardlines) and emerging consumer applications, including new mobility, smart products and 5G. The primary services offered by this segment include safety certification testing, ongoing certification, global market access, testing for connectivity, performance and quality and critical systems advisory and training.
Software and Advisory: The Software and Advisory segment provides complementary software and advisory solutions that extend the value proposition of TIC services the Company offers. The software and technical advisory offerings enable the Company’s customers to manage complex regulatory requirements, deliver supply chain transparency and operationalize sustainability.
The accounting policies applied to the segments are the same as those applied by the Company to the consolidated financial statements. The Company prepared the financial results of the segments on a basis that is consistent with the manner in which management internally disaggregates financial information to assist in making internal operating decisions. The Company manages income taxes and certain treasury related items, such as interest income and expense, on a global basis within corporate.
The Company allocates among segments certain common costs and expenses not specifically identifiable to the segments differently than the Company would for stand-alone financial information prepared in accordance with US GAAP. These include certain costs and expenses of the Company’s corporate functions, such as executive, finance, legal, human resources and information technology. Allocations are calculated primarily based on segment expenses proportionate to consolidated expenses.
The following table provides revenue, significant segment expenses and operating income, by segment for the years ended December 31, 2025, 2024 and 2023:
| Industrial | Consumer | Software and Advisory | Total | ||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||
| Revenue | $ | 1,341 | $ | 1,254 | $ | 1,146 | $ | 1,319 | $ | 1,238 | $ | 1,172 | $ | 393 | $ | 378 | $ | 360 | $ | 3,053 | $ | 2,870 | $ | 2,678 | |||||||||||||||||||||||
Employee compensation(a) | 609 | 595 | 555 | 745 | 715 | 691 | 261 | 255 | 240 | 1,615 | 1,565 | 1,486 | |||||||||||||||||||||||||||||||||||
| Services and materials | 283 | 274 | 244 | 345 | 331 | 322 | 65 | 67 | 63 | 693 | 672 | 629 | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 56 | 47 | 38 | 81 | 79 | 75 | 51 | 46 | 41 | 188 | 172 | 154 | |||||||||||||||||||||||||||||||||||
| Goodwill impairment | — | — | — | — | — | 37 | — | — | — | — | — | 37 | |||||||||||||||||||||||||||||||||||
Restructuring(a) | 7 | — | 1 | 26 | (1) | 2 | 2 | — | 1 | 35 | (1) | 4 | |||||||||||||||||||||||||||||||||||
| Operating income | $ | 386 | $ | 338 | $ | 308 | $ | 122 | $ | 114 | $ | 45 | $ | 14 | $ | 10 | $ | 15 | $ | 522 | $ | 462 | $ | 368 | |||||||||||||||||||||||
__________
(a)The Company has reclassified the amounts presented for the years ended December 31, 2024 and 2023 to conform to the current period’s presentation.
Capital expenditures of the Company’s segments were as follows for the years ended December 31:
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Industrial | $ | 49 | $ | 96 | $ | 56 | |||||||||||
| Consumer | 37 | 34 | 52 | ||||||||||||||
| Software and Advisory | 32 | 31 | 39 | ||||||||||||||
| Total segments | 118 | 161 | 147 | ||||||||||||||
| Corporate | 79 | 76 | 68 | ||||||||||||||
| Total | $ | 197 | $ | 237 | $ | 215 | |||||||||||
Assets by segment are not disclosed as the Company does not allocate assets to segments for internal reporting presentations provided to the CODM.
Geographic Information
Revenue by major geographic region based on the location of the Company’s customers was as follows for the years ended December 31:
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| United States | $ | 1,253 | $ | 1,178 | $ | 1,117 | |||||||||||
China(a) | 761 | 710 | 632 | ||||||||||||||
| Asia Pacific | 398 | 375 | 346 | ||||||||||||||
| Europe, Middle East and Africa | 529 | 496 | 474 | ||||||||||||||
| Other Americas | 112 | 111 | 109 | ||||||||||||||
| Total | $ | 3,053 | $ | 2,870 | $ | 2,678 | |||||||||||
__________
(a)Represents revenue from Greater China - mainland China, Hong Kong and Taiwan.
The following table provides a summary of long-lived assets, excluding financial instruments and tax assets, classified by major geographic region as of December 31:
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| United States | $ | 481 | $ | 437 | $ | 327 | |||||||||||
China(a) | 129 | 136 | 127 | ||||||||||||||
| Asia Pacific | 132 | 109 | 119 | ||||||||||||||
| Europe, Middle East and Africa | 111 | 109 | 101 | ||||||||||||||
| Other Americas | 25 | 26 | 32 | ||||||||||||||
| Total | $ | 878 | $ | 817 | $ | 706 | |||||||||||
__________
(a)Represents long-lived assets from Greater China - mainland China, Hong Kong and Taiwan.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.