UL Solutions Illuminates Hydrogen's Future with New Report
London, Wednesday, 13 August 2025.
In 2025, UL Solutions uncovers the paths and pitfalls in the hydrogen economy, underscoring essential infrastructure innovations. Stakeholders are advised how to seize opportunities despite margin pressures.
Hydrogen’s Expanding Frontier
In 2025, UL Solutions highlights the rapid advances in the hydrogen economy, emphasising the need for significant infrastructure development. Despite the challenges, stakeholders are encouraged to embrace the unique opportunities that hydrogen presents in industrial applications, particularly with UL Solutions’ role in certifying Ohmium International’s industrial hydrogen generators under the new UL 2264A safety standard. This move sets a precedent in safety and reliability for water electrolysis systems, critical for hydrogen production [1].
Economic Pressures and Opportunities
UL Solutions faces economic challenges, such as a 12.5% drop in net income margin from the previous year due to increased R&D costs and investments in employee compensation. Meanwhile, their Industrial segment shows resilience with a 34.6% adjusted EBITDA margin and a 20.6% growth in adjusted EBITDA, signalling solid long-term growth potential. The company’s performance reflects both the pressures and potentials of the hydrogen market in 2025 [1].
Technological and Regulatory Leadership
By championing technologies like the ULTRUS™ platform for compliance and sustainability tracking in hydrogen projects, UL Solutions cements its position as a leader in navigating complex global standards. Their participation in international standards-setting initiatives, particularly concerning hydrogen embrittlement and cryogenic storage testing, shows commitment to overcoming the technical challenges of hydrogen adoption. This work supports the broader global shift toward cleaner energy sources [1].
Realising the Benefits
Despite margin pressures, UL Solutions generated $208 million in free cash flow in the first half of 2025. This financial cushion provides stability amid the volatile landscape of the hydrogen economy. Investors keen on this sector should pay attention to key metrics such as adjusted EBITDA margins and R&D expenditure in hydrogen projects, as these factors significantly impact future growth and adoption rates in regions such as North America and Europe [1].