UL Solutions Inc. (ULS) Presents at J.P. Morgan 2025 Ultimate Services Investor Conference Transcript

At JPMorgan’s Ultimate Services conference UL Solutions CEO Jennifer Scanlon framed the company as a leading player in the testing, inspection and certification (TIC) sector, noting UL has two businesses across three segments and that about 33% of revenue is recurring from inspection and certification services, which she described as a steady engine for the business; the discussion underscored growing investor appreciation for TIC as a high-quality business-services subsector and emphasized the strategic and cash-flow stability benefits of the inspection/certification franchise.

Analysis

UL Solutions (ULS) presented at JPMorgan’s Ultimate Services conference (Nov. 18, 2025) where CEO Jennifer Scanlon and CFO Ryan Robinson highlighted the company’s position in the Testing, Inspection and Certification (TIC) industry, operating two businesses across three segments. Management quantified that roughly 33% of ULS’s revenue is recurring, primarily from inspection and certification services, and described that recurring mix as a steady ‘‘engine’’ for the business.

The management commentary frames the inspection/certification franchise as a source of cash-flow stability and supports the view that TIC is increasingly appreciated by investors as a high-quality business-services subsector; the article’s sentiment score is mildly positive (0.25). The combination of a one‑third recurring base and active product-testing services suggests a partial insulation from cyclicality but leaves two-thirds of revenue exposed to transactional demand.

Key risks and near-term monitoring items from the presentation include the limited scope of disclosed guidance (no detailed growth or margin targets in the excerpt), the potential for volatility in the non-recurring testing/services mix, and the need to track management’s execution on growing the recurring portion and any M&A or organic initiatives that could shift the revenue mix or valuation dynamics.

Key Decisions for Investors

• Consider a selective overweight to ULS to capture the stability of the 33% recurring inspection/certification revenue while limiting position size because 67% of revenue remains transaction-driven
• Monitor upcoming quarterly disclosures for trends in recurring revenue share, management commentary on growth initiatives across the two businesses and three segments, and any changes to margins or guidance before increasing exposure
• Implement downside protection or reduce exposure if the recurring-revenue percentage declines or if management signals weaker demand in testing/transactional services given the potential for revenue volatility