John Yoo

John Yoo asked about the drivers behind the upswing in the advisory business within the Software and Advisory segment, noting its historical lumpiness. He also inquired about the opportunity for inorganic growth, specifically if exiting non-strategic service lines increases appetite for M&A in core growth areas, and why there was no M&A activity in Q3.

Answer

CEO Jennifer Scanlon attributed the advisory upswing to the renewables advisory business supporting financial decisions for projects, while commercial real estate's impact on healthy buildings advisory remains a headwind. She stated that UL Solutions is disciplined and active in M&A, continuously involved in conversations for appropriate inorganic growth opportunities, with timing and quality being key factors for activity.

John Yoo asked about the Software and Advisory segment, specifically why the advisory component, which had been a drag, saw a significant upswing in Q3. He also inquired about inorganic opportunities, asking if the exit of non-strategic service lines would increase appetite for M&A in core growth areas, and why there was no M&A activity in the quarter.

Answer

CEO Jennifer Scanlon attributed the upswing in advisory to the renewables advisory business, which supports financial decisions for projects, while noting continued headwinds in other advisory areas like healthy buildings due to commercial real estate. Regarding M&A, Ms. Scanlon stated that UL Solutions is disciplined and active, constantly engaging in conversations about acquisition opportunities in the product tech space, with timing often being capricious.