ROLLINS (ROL) Company Report

Rollins achieved its 24th consecutive year of revenue growth and 97th straight quarter of revenue gains; Q4 recurring revenues held up but the one-time services segment declined due to erratic winter weather in the Midwest and Northeast.
One-time pest control jobs carry >70% gross margins and offer high incremental EBITDA, with management expecting quick rebound as weather normalizes.
The company reaffirmed its targets of 7–8% organic growth and 2–3% M&A contribution, driven by cross-brand collaboration, ancillary service penetration, and reduced customer churn.
Cost-saving initiatives include $5–10 m in 2025 from lower short-tenure technician turnover, a 12–18-month Workday EPM rollout to streamline SG&A, and a 100 bp reduction in the effective tax rate to below 25%.

Feb 18, 2026, 6:50 PM

Transcript

Rollins outlines weather impact and modernization initiatives

ROL

M&A

Share Buyback

Board Change

Conference detailed Q4 and Q1 headwinds, as erratic weather in the Midwest and Northeast drove a decline in one-time pest-control services while recurring contract revenues remained healthy; one-time work carries approximately 70% gross margin and can be quickly recouped.
The company extended its record to 97 consecutive quarters of revenue growth and 24 years of annual revenue growth, delivering double-digit revenue, earnings, and cash flow growth for the third straight year.
Operational improvements target growth and margins via cross-brand collaboration to expand ancillary services, reducing short-term technician turnover (saving $5–10 million in 2025) through enhanced onboarding, and standardizing procurement and fleet management.
Back-office upgrades include a 12–18 month Workday EPM rollout for improved decision support, a reduction in the effective tax rate from 26% to below 25% (100+ bps improvement), and a sustained 2–3% annual M&A pipeline with AI-enabled deal sourcing.

Feb 18, 2026, 6:50 PM

Transcript

Rollins discusses weather impact, growth targets and modernization

ROL

Guidance Update

M&A

Share Buyback

Q4 weather pressures: One-time residential/commercial services declined due to erratic weather in the Midwest and Northeast, while recurring contract services held growth and ancillary services grew ~15–16%; management expects to recover volume in the Q1 peak season.
Organic growth target maintained at 7–8%, driven by cross-brand collaboration, untapped ancillary service penetration (<5% of Orkin customers) and improved churn management across its portfolio.
High-margin one-time work (~70%+ gross margin) and labor turnover reduction initiatives saved $5–10 million in 2025 by addressing first-year technician attrition among ~15,000 field techs.
Back-office modernization underway with a Workday EPM rollout (12–18 months) to enhance reporting, controls and process efficiency, laying groundwork for future ERP upgrades.
Capital allocation: targeting 2–3% annual M&A (50+ deals) with a strong pipeline; evaluating systematic share buybacks after $200 million deployed; effective tax rate reduced by 100 bps to <25%.

Feb 18, 2026, 6:50 PM

Transcript

Rollins reports Q4 2025 results

ROL

Earnings

M&A

Guidance Update

Fiscal 2025 revenue reached $3.8 billion, up 11% year-over-year (organic +6.9%), with adjusted EBITDA of $854 million, operating cash flow of $678 million and free cash flow of $650 million.
Q4 2025 revenue grew 9.7% (organic +5.7%), driven by >7% growth in recurring and ancillary services versus a ~3% decline in one-time revenues due to early winter weather; quarterly EBITDA was $194 million (21.2% margin) and adjusted EPS was $0.25, up ~9%.
Completed acquisition of Saela (added $16 million in Q4 revenue, $55 million YTD, ~2¢ EPS accretion) and 26 tuck-ins in 2025; M&A pipeline supports at least 2%–3% revenue growth in 2026.
Q4 capital returns included $88 million in dividends (up 11%, regular dividend +80% since 2022) and $200 million in share repurchases; leverage ratio stood at 0.9×.
2026 outlook: targeting 7%–8% organic growth, 2%–3% growth from M&A, double-digit revenue/earnings/cash flow growth, margin expansion to 25%–30%, and >100% free cash flow conversion.

Feb 12, 2026, 1:30 PM

Transcript

Rollins reports Q4 and full-year 2025 results

ROL

Earnings

Guidance Update

M&A

Full-year 2025 revenue grew 11% with 6.9% organic growth; Adjusted EBITDA rose 10.8% to $854 million; operating cash flow was $678 million and free cash flow $650 million, up 12.1%.
Q4 2025 revenue increased 9.7% (organic 5.7%); Residential +9.7%, Commercial +8.7%, Termite & Ancillary +11.9%; recurring & ancillary services (>80% of business) grew >7% organically, while one-time work declined ~3%.
Q4 adjusted EBITDA margin was 21.2% ($194 million); adjusted EPS was $0.25; effective tax rate improved to 24.7% from 27.3% a year ago.
In 2025, Rollins deployed >$880 million in capital (acquisitions, dividends, share repurchases), increased dividends 11% in Q4 and 80%+ since 2022, repurchased ~$200 million of stock, and ended the year with 0.9x leverage.
2026 outlook: targeting 7%-8% organic growth, 2%-3% revenue from M&A, double-digit top- and bottom-line growth, >100% cash flow conversion, and continued margin improvement.

Feb 12, 2026, 1:30 PM

Transcript

Rollins reports Q4 and FY 2025 results

ROL

Earnings

Guidance Update

Share Buyback

FY 2025 revenue of $3.8 billion (+11% YoY) with organic growth of 6.9%, adjusted EBITDA up 10.8% to $854 million; operating cash flow of $678 million and free cash flow of $650 million
Q4 2025 revenue rose 9.7%, with organic growth of 5.7%; recurring and ancillary services grew over 7% organically, while one-time services declined ~3% due to early winter weather
Q4 2025 GAAP operating income of $160 million (+6.3%), adjusted operating income of $167 million (+8.1%); GAAP net income of $116 million ($0.24/share) and adjusted net income of $121 million ($0.25/share)
Achieved 137% free cash flow conversion in Q4; deployed $88 million in dividends (+11% YoY) and ~$200 million in share repurchases, maintaining leverage at 0.9×
2026 outlook: targeting 7–8% organic growth, 2–3% M&A-driven growth, cash flow conversion above 100%, and continued margin expansion with balanced capital allocation

Feb 12, 2026, 1:30 PM

Transcript

Rollins reports Q4 2025 results

ROL

Earnings

Dividends

M&A

Q4 revenue was $912.9 M, up 9.7% year-over-year, driven by 5.7% organic growth and 4.0% acquisition growth.
Q4 adjusted EPS was $0.25, up 8.7%, while adjusted EBITDA margin declined 60 bps to 21.2% due to lower one-time revenues and timing impacts.
Q4 free cash flow was $159.0 M, down 13.6%, with free cash flow conversion at 136.6%.
For FY 2025, full-year revenue was $3.8 B, up 11.0%, with adjusted EPS of $1.12 (+13.1%) and 6.9% organic growth.
Executed balanced capital deployment—over $880 M invested—and completed 26 acquisitions; dividend increased 11% and leverage ratio stood at 0.9× at year-end.

Feb 12, 2026, 1:30 PM

Presentation

Rollins reports Q4 and full-year 2025 results

ROL

Earnings

Guidance Update

In Q4 2025, Rollins generated $913 million in revenue, up 9.7% year-over-year, driven by 5.7% organic growth and 4.0% acquisition-related growth.
Full-year 2025 revenues reached $3.8 billion, an 11.0% increase, with organic revenues up 6.9% and acquisitions contributing 4.1%.
Q4 net income was $116 million (+10.2%), yielding GAAP EPS of $0.24 (+9.1%); for the full year, net income was $527 million (+12.9%) with EPS of $1.09 (+13.5%).
Operating cash flow totaled $165 million in Q4 (−12.4%) and $678 million for the year (+11.6%), supporting $310 million of acquisitions, $28 million of capex, and $328 million of dividends in 2025.
For 2026, the company expects continued organic growth, margin improvement via pricing and modernization, and a disciplined approach to acquisitions.

Feb 11, 2026, 9:07 PM

8-K

Rollins reports Q4 and FY 2025 results

ROL

Earnings

Guidance Update

Rollins delivered Q4 2025 revenues of $913 million (up 9.7%) and FY 2025 revenues of $3.8 billion (up 11.0%).
Q4 GAAP EPS was $0.24 (up 9.1%), and FY 2025 GAAP EPS was $1.09 (up 13.5%).
FY 2025 operating cash flow was $678 million (up 11.6%); Q4 operating cash flow was $165 million, down 12.4%.
For 2026, the company expects continued organic growth, improving margins through pricing and modernization, and strong cash flow to support balanced capital allocation.

Feb 11, 2026, 9:05 PM

Press Release

Rollins outlines growth and capital strategy at Baird Global Industrial Conference

ROL

Debt Issuance

Share Buyback

M&A

CFO Kenneth Krause reported 12% Q3 revenue growth, 20%+ earnings growth, and 30%+ cash flow growth, driven by above-7% organic growth and 35% incremental margins.
The company executed a $1.2 B equity sell-down, completed its first-ever bond offering securing an investment-grade rating, and used its commercial paper program to repurchase $200 M of shares.
Modernization efforts include hiring new finance leadership, implementing CPI+ pricing, shared services, AI-enabled call center training, and back-office system standardization.
M&A strategy targets 2%–3% of annual revenue from acquisitions (2025 expected ~4%), focusing on tuck-ins that outgrow Rollins’ organic growth rate.
The dividend has been increased 82% over three years, including an 11% recent hike, with payout maintained below 50% of operating cash flow.

Nov 13, 2025, 7:45 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for ROLLINS.

Q4 2025

Feb 12, 2026

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Q3 2025

Oct 30, 2025

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Q2 2025

Jul 24, 2025

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ROLLINS (ROL)

Analyst Earnings Quarterly Reports

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Executives

Jerry E. Gahlhoff, Jr.

Elizabeth B. Chandler

Gary W. Rollins

John F. Wilson

Kenneth D. Krause

Thomas D. Tesh

Board Members

Dale E. Jones

Donald P. Carson

Gregory B. Morrison

Louise S. Sams

P. Russell Hardin

Pamela R. Rollins

Patrick J. Gunning

Paul D. Donahue

Susan R. Bell

Analyst Coverage

George Tong

Jason Haas

Timothy Mulrooney

Ashish Sabadra

Joshua Chan

Peter Keith

Stephanie Moore

Brian McNamara

Manav Patnaik

Ronan Kennedy

Toni Kaplan

Aadit Shrestha

Gregory Parrish

Josh Chan

Tim Mulrooney

Tomo Sano

Ananya Das

David Paige

David Paige Papadogonas

Harold Antor

Jenny Lee

Keen Fai Tong

Madison Callinan

Oliver Davies

Tomohiko Sano

Yehuda Selberman

Yehuda Silverman

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Earnings Transcripts

Q4 2025

Q3 2025

Q2 2025

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