ROLLINS INC SEC 10-Q Report

Rollins Inc., a leading provider of pest control services, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant growth in both financial and operational metrics, driven by robust demand across all major service offerings. The company continues to demonstrate strong performance despite facing higher insurance and claims costs.

Financial Highlights

• Revenue: $999.5 million, an increase of 12.1% over the second quarter of 2024, driven by demand across all major service offerings.
• Gross Profit: $537.7 million, an increase of 11.6% compared to the same period in 2024, with a gross margin of 53.8%, slightly down by 20 basis points due to higher insurance and claims costs.
• Operating Income: $198.3 million, an increase of 8.7% over the second quarter of 2024, with an operating margin of 19.8%, a decrease of 60 basis points due to higher insurance and claims costs.
• Net Income: $141.5 million, an increase of 9.3% over the prior year, reflecting strong operational performance.
• Diluted EPS: $0.29 per share, a 7.4% increase over the prior year EPS of $0.27, indicating improved profitability.

Business Highlights

• Revenue Segments: The company reported a 12.1% increase in revenues for the quarter ended June 30, 2025, driven by demand across all major service offerings. Residential pest control revenue increased by 11.6%, commercial pest control revenue increased by 11.4%, and termite and ancillary services grew by 13.9%. Organic revenue growth was strong across service offerings, with residential growing by 4.9%, commercial by 8.4%, and termite and ancillary activity by 10.3%.
• Geographical Performance: The company experienced a foreign currency headwind of 20 basis points primarily related to the Canadian Dollar, impacting the overall revenue growth for the six months ended June 30, 2025.
• Future Outlook: The company remains focused on driving 7% to 8% organic revenue growth while adding 3% to 4% of inorganic revenue growth for 2025. Despite navigating a highly uncertain macroeconomic environment, the company believes it is well-positioned to continue delivering strong results in 2025. The demand remains favorable, and the pipeline of acquisition activity is healthy.
• Operational Efficiency: The company continues to focus on improving the efficiency of its business model while investing in programs aimed at growing its business across service offerings. This includes leveraging cost categories such as employee expenses and materials and supplies, although offset by higher insurance and claims costs and fleet expenses.
• Acquisition Impact: The acquisition of Saela Pest Control contributed to higher amortization of intangible assets, impacting depreciation and amortization expenses. The company invested $226.4 million in acquisitions during the quarter, indicating a strategic focus on expanding its service offerings and market presence.

SEC Filing: ROLLINS INC [ ROL ] - 10-Q - Jul. 24, 2025