Rollins Q2 Earnings Exceed Expectations, Revenue Increases 12.1% YOY

Rollins reported Q2 2025 earnings of 30 cents per share, beating estimates by 3.5% and increasing 11% YoY. Revenues of $999.5 million topped consensus by 2.1% and improved 12.1% YoY. The company's performance was positively impacted by a healthy demand environment for its services. Rollins shares have risen 23.5% in the past year, underperforming the 24.4% growth of the industry.

Rollins Inc. (ROL) reported its second-quarter 2025 earnings on July 24, with adjusted earnings per share (EPS) of 30 cents, exceeding the Zacks Consensus Estimate by 3.5% and increasing 11% year-over-year (YoY). The company's revenue of $999.5 million topped the consensus estimate by 2.1% and improved 12.1% YoY, driven by a healthy demand environment for its services [1].

The company's residential revenues increased 4.9% YoY to $428.5 million, while commercial revenues rose 11.4% YoY to $320.5 million. Termite and ancillary revenues grew 13.9% YoY to $211.9 million. Adjusted EBITDA of $231 million jumped 10% YoY, although the adjusted EBITDA margin decreased 50 basis points (bps) to 23.1% compared to the previous year [2].

Rollins' shares have risen 23.5% in the past year, underperforming the industry's growth of 24.4%. The company's stock closed at $55.16 on July 23, with a slight increase of 0.18% in premarket trading following the earnings release [3].

The company's strong performance was driven by organic growth and strategic acquisitions. Organic growth contributed 7.3% to the overall revenue increase, while acquisitions added another 4.8%. The company's free cash flow grew by 23.2% to $168 million, with a conversion rate of 119% [3].

Despite the strong financial results, Rollins experienced a slight compression in its adjusted EBITDA margin due to higher insurance and claims expenses, partially offset by improvements in people costs and materials and supplies [3].

Rollins' cash generation remained robust, with Q2 free cash flow of $168 million. The company's capital allocation strategy focused on strategic acquisitions, dividends, share repurchases, and capital expenditures [3].

In summary, Rollins' Q2 2025 earnings report showcased strong revenue growth and improved profitability, driven by a healthy demand environment for its services. The company's stock performance has been mixed, with shares rising 23.5% in the past year but underperforming the industry's growth. Investors should continue to monitor Rollins' earnings outlook and the company's ability to maintain its growth trajectory.

References:
[1] https://finance.yahoo.com/news/rollins-rol-q2-earnings-revenues-211503607.html
[2] https://www.nasdaq.com/articles/rollins-q2-earnings-beat-estimates-and-increase-year-over-year
[3] https://ca.investing.com/news/company-news/rollins-q2-2025-presentation-121-revenue-growth-with-strong-performance-across-all-segments-93CH-4116985