Question · Q3 2025
Jenny Lee asked about the strength and acceleration in termite and ancillary services, its drivers, the sales environment, and the sustainability of this momentum. She also inquired if similar or stronger margin expansion could be expected in Q4, given vehicle sale gains becoming less of a headwind and stable insurance/claims.
Answer
Jerry Gahlhoff (President and CEO) attributed the strong termite and ancillary performance to a healthy residential consumer willing to spend on essential services, driven by investments in people and effective cross-selling to existing customers. Ken Krause (EVP and CFO) noted that while Q4 will still see some vehicle gain headwinds (though less than Q3), the focus remains on improving margins and achieving double-digit revenue and earnings growth, emphasizing that the business is short-cycle and susceptible to weather impacts.