Rollins Inc
NYSE:ROL
Rollins Inc
In the ecosystem of pest control, Rollins Inc. stands as a titan, elegantly weaving its way through the challenges and opportunities of the industry. Founded in 1948 and headquartered in Atlanta, Georgia, Rollins has crafted its identity as a leader in pest management services, with a rich legacy of providing dependable solutions. The company's flagship brand, Orkin, along with other subsidiaries like Western Pest Services and HomeTeam Pest Defense, have cemented their reputation by offering comprehensive services that target the diverse needs of both residential and commercial clients. Rollins' expertise transcends basic pest control, delving into specialized areas such as termite protection, wildlife control, and integrated pest management, which paints a picture of an organization deeply ingrained in the daily lives of its customers, solving pest-related disturbances that impact comfort and business operations.
Rollins' business model thrives on the evergreen demand for health and safety, crucial for both households and businesses. By adopting a franchising model, along with organic growth via strategic acquisitions, the company has sown a vast network that spans across the globe. The services offered are typically recurring, generating a steady stream of revenue that underscores its financial stability. Rollins has also positioned itself advantageously by embracing technological advancements, integrating digital solutions to enhance service delivery and customer interaction. This forward-thinking approach, coupled with Rollins' commitment to upholding quality and customer satisfaction, ensures not only the extermination of pests but the solidification of its standing as a pivotal player, protecting environments from the threats posed by unwanted intruders.
In the ecosystem of pest control, Rollins Inc. stands as a titan, elegantly weaving its way through the challenges and opportunities of the industry. Founded in 1948 and headquartered in Atlanta, Georgia, Rollins has crafted its identity as a leader in pest management services, with a rich legacy of providing dependable solutions. The company's flagship brand, Orkin, along with other subsidiaries like Western Pest Services and HomeTeam Pest Defense, have cemented their reputation by offering comprehensive services that target the diverse needs of both residential and commercial clients. Rollins' expertise transcends basic pest control, delving into specialized areas such as termite protection, wildlife control, and integrated pest management, which paints a picture of an organization deeply ingrained in the daily lives of its customers, solving pest-related disturbances that impact comfort and business operations.
Rollins' business model thrives on the evergreen demand for health and safety, crucial for both households and businesses. By adopting a franchising model, along with organic growth via strategic acquisitions, the company has sown a vast network that spans across the globe. The services offered are typically recurring, generating a steady stream of revenue that underscores its financial stability. Rollins has also positioned itself advantageously by embracing technological advancements, integrating digital solutions to enhance service delivery and customer interaction. This forward-thinking approach, coupled with Rollins' commitment to upholding quality and customer satisfaction, ensures not only the extermination of pests but the solidification of its standing as a pivotal player, protecting environments from the threats posed by unwanted intruders.
Revenue Growth: Rollins delivered double-digit revenue growth for 2025, reaching $3.8 billion, with full-year revenue up 11% and Q4 revenue up 9.7%.
Recurring Strength: Recurring and ancillary services, making up over 80% of revenue, grew organically at over 7%, offsetting weaker onetime business impacted by weather.
Onetime Business Weakness: Onetime revenues declined nearly 3% in Q4, mainly due to erratic winter weather in the Midwest and Northeast, though management views this as transitory.
Margin and Cash Flow: Gross margin was 51% in Q4, down 30 bps, with operating cash flow for the year at $678 million (up 11.6%) and free cash flow at $650 million (up 12.1%).
Guidance Affirmed: 2026 outlook expects 7–8% organic growth plus 2–3% from M&A, with double-digit gains anticipated in revenue, earnings, and cash flow.
Acquisition Performance: Saela contributed $16 million in Q4 revenue and $55 million year-to-date, exceeding expectations and adding $0.02 to EPS since acquisition.
Margin Tailwinds: Management expects margin improvement in 2026, citing pricing, improved retention, and less fleet headwind.
Healthy Retention: Customer and new-hire retention improved, with first-year teammate retention up about 8% in 2025.
