Jun 30, 2024

Rollins Q2 2024 Earnings Report

Solid revenue growth and margin improvement drove double-digit earnings growth.

Key Takeaways

Rollins reported a strong second quarter with revenue increasing by 8.7% to $892 million and organic revenues increasing 7.7%. The company saw improvement in margins, with a 140 basis point improvement in EBITDA margins. Demand for services remains strong and the acquisition pipeline is robust.

Second quarter revenues were $892 million, an increase of 8.7% over the second quarter of 2023 with organic revenues increasing 7.7%.

Quarterly operating income was $182 million, an increase of 17.8% over the second quarter of 2023. Quarterly operating margin was 20.4%, an increase of 150 basis points over the second quarter of 2023.

Adjusted EBITDA was $210 million, an increase of 15.3% over the prior year. Adjusted EBITDA margin was 23.6%, an increase of 140 basis points over the second quarter of 2023.

Quarterly EPS was $0.27 per diluted share, a 22.7% increase over the prior year EPS of $0.22.

Total Revenue
$892M
Previous year: $821M
+8.7%
EPS
$0.27
Previous year: $0.23
+17.4%
Gross Profit
$482M
Previous year: $437M
+10.4%
Cash and Equivalents
$107M
Previous year: $155M
-30.9%
Free Cash Flow
$136M
Previous year: $141M
-3.3%
Total Assets
$2.77B
Previous year: $2.6B
+6.5%

Rollins

Rollins

Forward Guidance

The company is positioned to deliver another year of healthy growth in 2024 and is focused on continuous improvement to enhance profitability across the business.

Positive Outlook

  • Demand for services remains strong.
  • Pipeline for acquisitions is robust.
  • Focus on continuous improvement to enhance profitability.
  • Strong second quarter performance with organic growth of 7.7 percent.
  • Improving margin profile.