SCHEDULE: FMR LLC & Abigail Johnson Disclose 3.2% Stake in UL Solutions

FMR LLC and Abigail P. Johnson have disclosed a passive 3.2% beneficial ownership stake in UL Solutions Inc.'s Class A Common Stock.

Summary

• FMR LLC and Abigail P. Johnson reported beneficial ownership of 2,016,294 shares of UL Solutions Inc. Class A Common Stock.
• This represents 3.2% of the total outstanding Class A Common Stock.
• The shares are held for investment purposes in the ordinary course of business, not to influence control of UL Solutions Inc.
• FMR LLC, a Delaware-organized entity, holds sole voting power over 2,008,004 shares and sole dispositive power over 2,016,294 shares.
• Abigail P. Johnson, a U.S. citizen, holds sole dispositive power over 2,016,294 shares, with no sole or shared voting power directly attributed to her in this filing.
• The filing is an Amendment No. 2 to a Schedule 13G, indicating an update to a previous ownership disclosure.
• Several FMR LLC subsidiaries and affiliates, including FIAM LLC, Fidelity Management & Research Company LLC, Fidelity Management Trust Company, FMR Investment Management (UK) Limited, and Strategic Advisers LLC, are identified as entities beneficially owning shares.

Sentiment

Score: 6

Explanation: The filing indicates a significant institutional investor, FMR LLC, holds a passive stake in UL Solutions Inc., which is generally a neutral to slightly positive signal for the company. The investment is stated to be in the ordinary course of business and not for the purpose of influencing control.

Positives

• A significant institutional investor, FMR LLC (Fidelity), holds a stake, which can be seen as a vote of confidence in UL Solutions Inc.
• The investment is passive, indicating FMR LLC is not seeking to disrupt current management or strategy.

Future Outlook

This filing does not contain any forward-looking statements or guidance regarding UL Solutions Inc.'s future outlook.

Industry Context

This filing reflects a standard disclosure of passive institutional ownership and does not provide specific insights into broader industry trends or competitive landscape for UL Solutions Inc.

Related Party Transactions

• Abigail P. Johnson, a reporting person, is the Director, Chairman, and CEO of FMR LLC, the other reporting person. She is also part of the Johnson family, who are predominant owners of FMR LLC, forming a controlling group. This establishes a related party relationship between the two reporting entities.
• The filing clarifies that FMR LLC holds shares on behalf of various clients and funds, and no single client's interest exceeds 5% of UL Solutions Inc.'s Class A Common Stock.

Stakeholder Impact

• Shareholders: Provides transparency regarding a significant institutional holder's passive stake, potentially offering some reassurance regarding institutional interest.
• Management: No direct impact as the investment is passive and not intended to influence control.

Key Dates

Recommendation

This Schedule 13G filing primarily serves as a disclosure of a passive ownership stake by FMR LLC and Abigail P. Johnson in UL Solutions Inc. While the presence of a major institutional investor like FMR LLC can be seen as a positive signal of confidence, the filing itself does not provide new financial performance data, strategic updates, or changes in company fundamentals that would warrant a 'buy' or 'sell' recommendation. The investment is explicitly stated as passive, not intended to influence control. Therefore, based solely on this filing, a 'hold' recommendation is appropriate, as it confirms institutional interest without providing new catalysts for a change in investment thesis.

Keywords

UL Solutions Inc., FMR LLC, Abigail P. Johnson, Schedule 13G, Beneficial Ownership, Class A Common Stock, Institutional Investor, Passive Investment, Fidelity