Rollins: Revenue Climbs, Margin Slips
Rollins outperformed revenue expectations in its Q4 2024 earnings, though net income saw a slight decline due to increased operational costs.
Rollins (NYSE:ROL), a pest control services provider operating globally under well-known brands like Orkin, reported its Q4 and fiscal year 2024 earnings on Feb. 12, 2025. The headline from this release was the revenue topping estimates at $832 million against the expected $817 million, marking a 10.4% increase compared to Q4 2023's $754 million. Although adjusted earnings per share (EPS) came in as expected at $0.23, it presented a notable 9.5% growth year-over-year. The period painted a mixed picture: strong revenue growth and adjusted EBITDA increase did not entirely translate to operational efficiency, as the operating margin dipped to 18.6%. The overall quarter depicted a robust yet pressured operating environment.
Source: Analyst estimates for the quarter provided by FactSet
Rollins operates in the pest control industry, offering services to more than 2 million customers across more than 70 countries. The company thrives on a recurring revenue model, which ensures stable cash flows from its contracted pest control services to residential and commercial clients. This model provides financial predictability, customer loyalty, and a solid foundation for future growth.
