Dec 31, 2024

Rollins Q4 2024 Earnings Report

Key Takeaways

Rollins, Inc. reported strong revenue growth of 10.4% YoY in Q4 2024, reaching $832,169,000. However, net income declined by 2.9% due to increased expenses. Operating margin remained stable at 18.1%, while adjusted EPS grew 9.5% to $0.23.

Total Revenue
$832M
Previous year: $754M
+10.4%
EPS
$0.23
Previous year: $0.21
+9.5%
Operating Margin
18.1%
Previous year: 18.4%
-1.6%
Adjusted EBITDA
$181M
Previous year: $167M
+8.7%
Gross Profit
$427M
Previous year: $384M
+11.2%
Cash and Equivalents
$89.6M
Previous year: $104M
-13.7%
Free Cash Flow
$184M
Previous year: $142M
+29.9%
Total Assets
$2.82B
Previous year: $2.6B
+8.6%

Rollins

Rollins

Rollins Revenue by Segment

Forward Guidance

Rollins expects continued strong organic growth in 2025, supported by pricing initiatives, operational improvements, and acquisitions. The company anticipates stable margins and a balanced capital allocation strategy.

Positive Outlook

  • Strong organic growth expected in core pest control markets.
  • Pricing and modernization initiatives to drive incremental margins.
  • Robust acquisition pipeline to complement organic expansion.
  • Compounding cash flow supports strategic investments and dividends.
  • Ongoing operational improvements to enhance profitability.

Challenges Ahead

  • Potential cost pressures could impact incremental margins.
  • Higher insurance and claims expenses remain a concern.
  • Macroeconomic uncertainties may affect consumer spending.
  • Foreign currency fluctuations could impact international revenue.
  • Competitive pressures in key markets may challenge pricing strategies.

Revenue & Expenses

Visualization of income flow from segment revenue to net income