Rollins, Inc. reported a strong financial performance for the second quarter of 2026, with revenues reaching $1.08 billion, a 7.9% increase from $999.5 million in the same period last year. The company attributed this growth to a combination of organic revenue growth of 5.7% and contributions from acquisitions, including the recently acquired Romex Pest Control, which added $10.2 million in revenue. Net income for the quarter was $143.9 million, reflecting a 1.7% increase from $141.5 million in the prior year, while earnings per share rose to $0.30 from $0.29.

In comparison to the previous fiscal period, Rollins saw notable changes in its financial metrics. Operating income increased by 1.5% to $201.4 million, although the operating margin decreased by 110 basis points to 18.7%. The company’s gross profit also grew to $569.9 million, but the gross margin fell to 52.8% from 53.8% due to rising employee and material costs. For the first half of 2026, total revenues were $2.0 billion, an 8.9% increase from $1.8 billion in the same period of 2025, with net income rising to $251.7 million.

Strategically, Rollins has been active in expanding its portfolio through acquisitions. The company completed the acquisition of Romex Pest Control for $95.7 million on April 1, 2026, which is expected to enhance its market presence and drive long-term value. Additionally, Rollins made eight other acquisitions during the first half of 2026, totaling approximately $56.3 million. These acquisitions are anticipated to contribute positively to the company’s revenue and operational capabilities.

Operationally, Rollins reported a total customer count increase, with residential pest control revenues growing by 6.6% and commercial pest control revenues increasing by 8.6%. The company’s international operations accounted for about 7% of total revenues, indicating a stable geographic presence. Employee headcount has also increased, reflecting the company’s commitment to supporting its expanding operations. However, the company noted challenges in organic growth due to a decline in lead volume in certain residential service areas, which it aims to address through improved execution and resource alignment.

Looking ahead, Rollins has updated its full-year outlook, projecting at least 6% organic revenue growth and 2% to 3% inorganic revenue growth. The company expects an adjusted incremental EBITDA margin of at least 10% and free cash flow conversion exceeding 100% for 2026. Despite facing economic challenges such as inflation and supply chain disruptions, Rollins remains optimistic about its growth trajectory and the strategic benefits of its recent acquisitions.

About ROLLINS INC

Rollins, Inc. is a global pest and wildlife control company offering essential residential and commercial services, including termite protection, rodent, and insect management. Operating through leading brands like Orkin, it serves over two million customers across approximately 70 countries. Its business model relies on recurring contracts, a broad franchise network, proprietary technology, and a focus on customer service, growth, and operational efficiency.

This description was generated via AI from an annual report. Updated about 1 year ago.

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