Electrification Set to Drive Outlook for UL Solutions After IPO

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(Bloomberg) — The energy transition that’s boosting power demand for everything from cars to data centers will fuel earnings for UL Solutions Inc., the owner of the iconic UL-in-a-circle certification mark stamped on electronic products around the world.

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In its first earnings report after going public, the Northbrook, Illinois-based company posted first-quarter organic revenue growth of 7.5%, beating the average long-term trend of 6.9% a year since 2011, Chief Executive Officer Jennifer Scanlon said in an interview on Monday. Overall revenue also topped analyst estimates.

UL Solutions went public in April and its shares surged more than 30% since then. Scanlon shrugged off concerns about the US elections, which could change policies including President Joe Biden’s Inflation Reduction Act, the country’s largest investment in energy and climate. 

“Safety isn’t really politically driven,” she said, adding that customers can choose where they place their research and development investments. “As long as they’re looking to get their products safely into markets all over the world, we see opportunities for growth.”

The IRA, Biden’s signature climate law that’s set to provide an estimated $1.2 trillion of incentives by 2032, offers tax incentives for the deployment of technologies including solar farms, wind turbines and green hydrogen. It also offers tax credits for electric cars, heat pumps and other technologies.

Donald Trump has criticized the measure on the campaign trail, and his advisers have said he would move to roll it back if he wins the election this year.

UL Solutions, which went public in May, reported revenue of $670 million in the first quarter, slightly higher than the $668 million expected by analysts surveyed by Bloomberg. Earnings of 28 cents per share for the period were in line with estimates.