Core Insights - Rollins, Inc. will hold a 2025 Sell-Side Analyst Conference on December 9, 2025, at 9 a.m. Eastern Time, where key strategic initiatives and future value creation opportunities will be discussed by the leadership team [1][2]. Company Overview - Rollins, Inc. is a premier global consumer and commercial services company providing essential pest control services to over 2.8 million customers across multiple continents, employing more than 20,000 individuals from over 800 locations [3][4]. - The company operates under various leading brands, including Orkin, Aardwolf Pestkare, and Clark Pest Control, among others [3].

Core Viewpoint - Rollins reported strong Q3 2025 earnings, with both earnings and revenues exceeding estimates, indicating a positive demand environment for its services [2][3]. Financial Performance - Adjusted earnings were 35 cents per share, surpassing the consensus estimate by 9.4% and reflecting a year-over-year increase of 20.7% [3]. - Revenues reached $1 billion, slightly beating the consensus mark and showing a 12% year-over-year improvement [3]. - Organic revenues amounted to $982.1 million, marking a 7.2% increase year over year [3]. Segment Performance - Residential revenues grew by 11.2% year over year to $476.3 million, exceeding estimates [4]. - Commercial revenues increased by 11.8% year over year to $335 million, also surpassing estimates [4]. - Termite and ancillary revenues rose by 15.2% year over year to $204.7 million, though this fell short of estimates [4]. Profitability Metrics - Adjusted EBITDA was $258.3 million, a 17.7% increase year over year, exceeding expectations [5]. - Adjusted EBITDA margin improved to 25.2%, up 120 basis points year over year [5]. Cash Flow and Financial Position - Cash and cash equivalents at the end of the quarter were $127.4 million, up from $123 million in the prior quarter [6]. - Long-term debt slightly increased to $485.7 million [6]. - The company generated $175.1 million in cash from operating activities, with free cash flow at $168 million [6]. - Dividends paid during the quarter totaled $79 million [6]. Market Sentiment and Outlook - There has been an upward trend in estimates revisions for Rollins, indicating positive market sentiment [7]. - Rollins holds a Zacks Rank 2 (Buy), suggesting expectations for above-average returns in the coming months [9].

Core Points - Rollins, Inc. announced the closing of a secondary public offering of 17,391,305 shares of its common stock at a price of $57.50 per share [1][10] - The offering included 2,608,695 shares sold due to the underwriters' full exercise of an option [1] - Rollins did not sell any shares and did not receive any proceeds from the offering [2] Offering Details - The company repurchased 3,478,260 shares for approximately $200 million at the same price as the offering [3] - The offering was conducted under a shelf registration statement filed with the SEC, which was declared effective on June 22, 2023 [4] Company Overview - Rollins, Inc. is a global consumer and commercial services company providing pest control services to over 2.8 million customers across multiple continents [6]

Core Viewpoint - Rollins, Inc. announced a secondary public offering of 17,391,305 shares at a price of $57.50 per share, expected to close on November 12, 2025 [1][2]. Offering Details - The underwriter has a 30-day option to purchase an additional 2,608,695 shares from the Selling Stockholders [2]. - Rollins will not sell any shares and will not receive any proceeds from the offering [2]. - Selling Stockholders have entered into lock-up agreements for 365 days, restricting certain transactions regarding their shares [3]. Share Repurchase - Rollins has agreed to repurchase 3,478,260 shares for approximately $200 million at the same price as the offering, with the completion expected to close concurrently with the offering [4]. Underwriter Information - Morgan Stanley is acting as the sole bookrunner for the offering [5]. Regulatory Compliance - The offering is made under a shelf registration statement previously filed with the SEC, effective since June 22, 2023 [6].

Core Viewpoint - Rollins, Inc. has announced a proposed secondary public offering of $1.0 billion of its common stock by existing stockholders LOR, Inc. and Rollins Holding Company, Inc. [1][2] Offering Details - The underwriter has a 30-day option to purchase an additional $150 million of shares from the Selling Stockholders [2] - Rollins will not sell any shares and will not receive any proceeds from the offering [2] - Each Selling Stockholder is expected to enter into a 365-day lock-up agreement from the pricing date of the offering [3] Share Repurchase - The company intends to repurchase approximately $200 million of the shares being offered at the same per share price paid by the underwriter [4] - The completion of the share repurchase is conditioned on the closing of the offering [4] Underwriter Information - Morgan Stanley is acting as the sole bookrunner for the offering [5] Regulatory Compliance - The offering is made pursuant to a shelf registration statement on Form S-3 previously filed with the SEC [6] - A preliminary prospectus supplement will be filed with the SEC, and copies can be obtained from the SEC or Morgan Stanley [6]

Third Quarter 2025 October 30, 2025 Earnings Webcast Presentation Rollins, Inc. 1 © 2025 Rollins, Inc. All rights reserved. Cautionary Statement Regarding Forward-Looking Statements balanced capital allocation strategy; and healthy dividend. This presentation as well as other written or oral statements by the Company may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current opinions, expectations ...

Core Insights - Rollins, Inc. reported strong financial performance for Q3 2025, with double-digit revenue growth leading to over 20% growth in earnings per share (EPS) and over 30% growth in cash flow [1][4][7] Financial Highlights - Revenues for Q3 2025 reached $1,026.1 million, a 12.0% increase from Q3 2024, with organic revenues growing by 7.2% [5][7] - Gross profit for the quarter was $558.7 million, reflecting a 13.0% increase year-over-year, with a gross profit margin of 54.4% [5][7] - Operating income was $225.0 million, up 17.3% from the previous year, with an operating margin of 21.9%, an increase of 100 basis points [5][7] - Net income for the quarter was $163.5 million, a 19.4% increase compared to Q3 2024, with an adjusted net income of $168.5 million, up 20.7% [5][7] - EPS for Q3 2025 was $0.34, a 21.4% increase from $0.28 in Q3 2024, while adjusted EPS was $0.35, reflecting a 20.7% increase [5][7] Cash Flow and Capital Allocation - Operating cash flow for the quarter was $191.3 million, a 30.2% increase year-over-year [5][7] - The company invested $35 million in acquisitions and $9 million in capital expenditures, while paying dividends totaling $80 million [5][7] Management Commentary - Management expressed confidence in the company's growth trajectory, emphasizing a commitment to continuous improvement and a balanced capital allocation strategy [4][7]

Core Points - Rollins, Inc. announced a quarterly cash dividend of $0.1825 per share, payable on December 10, 2025, reflecting an 11% increase from the same quarter last year [1] - The company has raised its regular dividend by over 80% since the beginning of 2022, demonstrating a commitment to returning capital to shareholders while investing in business growth [2] Company Overview - Rollins, Inc. is a global consumer and commercial services company providing pest control services to over 2.8 million customers across multiple continents, employing more than 20,000 staff from over 800 locations [3]

Financial Data and Key Metrics Changes - For the three months ending September 30, group revenue was $1.8 billion, reflecting a year-on-year growth of 4.6% [2] - Organic revenue growth was 3.4%, with North America showing an improvement to 3.4% and international businesses achieving organic growth of 3.3% [2][9] - Net debt at the end of the quarter was $3.9 billion, supported by ongoing cash generation and proceeds from disposals [9] Business Line Data and Key Metrics Changes - In North America, pest control services organic growth was 1.8%, an improvement from 0.3% in the second quarter, while business services organic revenue growth surged by 11.9% [3][4] - International revenue grew by 4.6%, with organic growth of 3.3%, particularly strong in southern European markets [8] - Pest control organic revenue growth for the group was 3.4%, driven by momentum in North America, while hygiene and well-being grew by 3% organically [8][9] Market Data and Key Metrics Changes - The UK saw improved growth in core pest control and plants businesses, while the Pacific region's growth remained below average due to adverse weather impacts [8] - The southern European markets of Spain, Portugal, and Greece sustained strong growth from the first half into the third quarter [8] Company Strategy and Development Direction - The company is focused on enhancing lead generation and customer retention in North America, with a revised strategy that includes improving digital marketing and sales operating models [4][6] - The rollout of satellite branches is on track, with 139 in operation and a target of 150 by year-end, aimed at improving local presence and lead generation [5][9] - Cost efficiency initiatives are expected to deliver $100 million in cost reductions by the end of 2026, with a goal of achieving an operating margin above 20% post-2026 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued positive trends and performance in the third quarter, with expectations to deliver financial results in line with market expectations for the full year [2][9] - The company noted that Q4 is seasonally quieter and anticipates a drag on organic growth due to the non-repeat of one-off emergency mosquito control work from the previous year [7][32] Other Important Information - The company completed three acquisitions in the quarter, bringing the total for the year to 21, with annualized revenue of approximately $39 million from these deals [9] - The company is also focusing on improving free cash flow through working capital management and capital expenditure optimization [25] Q&A Session All Questions and Answers Question: Could you talk about contract portfolio net gain improvement performance in Q3? - Management noted that the improvement in net gain was essential for achieving healthy organic growth, with both jobbing and contract portfolio showing positive trends [14][15] Question: What is the balance between lowering prices to take share and pushing through price increases? - Management indicated that pricing strategies are more sophisticated, focusing on identifying opportunities rather than a blanket approach to price increases [24] Question: Can you discuss expectations for growth in the next quarter? - Management refrained from making precise forecasts but expressed confidence in the positive momentum observed in lead flow and customer retention [31][32] Question: How is the integration of commercial branches progressing? - Management reported steady progress in the integration of commercial branches, focusing on easier conversions and ensuring cost savings and margin improvements [40][41] Question: When would it make sense to increase spend in marketing and sales? - Management emphasized the importance of demonstrable returns on marketing investments and indicated that they are getting better at measuring the effectiveness of their spending [47][49]

Financial Data and Key Metrics Changes - For Q3, the group revenue was $1.8 billion, reflecting a year-on-year growth of 4.6% and organic revenue growth of 3.4% [2][8] - North America showed organic growth of 3.4%, with pest control services growing by 1.8%, an improvement from 0.3% in Q2 [3][6] - The customer retention rate increased to 80.9%, up from the half-year stage [5] Business Line Data and Key Metrics Changes - Pest control organic revenue growth for the group was 3.4%, driven by strong performance in North America [7] - Hygiene and well-being grew by 3% organically, an improvement from 0.9% in the first half [8] - North America business services organic revenue growth was particularly strong at 11.9% in Q3 [3] Market Data and Key Metrics Changes - International revenue grew by 4.6%, with organic growth of 3.3%, particularly strong in southern European markets [7] - The Pacific region's growth remained below average due to adverse weather impacts [7] Company Strategy and Development Direction - The company is focused on enhancing lead generation and customer retention through a revised North America strategy [4] - Plans to open 150 satellite branches this year are on track, with 139 already operational [5] - Cost efficiency initiatives are expected to deliver $100 million in cost reductions by the end of 2026 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued positive trends and expects to deliver financial results for the full year in line with market expectations [2][8] - The company noted that Q4 is seasonally quieter and anticipates a 60 basis point impact on organic growth due to the non-repeat of one-off emergency mosquito control work [6][9] Other Important Information - The company completed three M&A deals in the quarter, bringing the total for the year to 21, with annualized revenue of around $39 million from these acquisitions [8] - Net debt at the end of the quarter was reported at $3.9 billion [8] Q&A Session Summary Question: Can you discuss the contract portfolio net gain improvement performance in Q3? - Management noted that both jobbing and contract portfolio growth improved, with net gain being the best seen in a while [13][14] Question: How did residential, commercial, and permit performance compare? - Improvements were seen across all areas, with termite performance particularly better in Q3 compared to H1 [15][16] Question: What is the balance between lowering prices to gain market share and pushing through price increases? - The pricing strategy is sophisticated, focusing on identifying opportunities rather than a blanket increase [22] Question: Can you discuss progress on levers to improve free cash flow? - There are opportunities in working capital and capital expenditure to drive free cash flow [24] Question: What are the expectations for growth in the next quarter? - Management refrained from making precise forecasts but expressed satisfaction with lead flow improvements [30] Question: Can you clarify the net gain calculation? - Net gain reflects customer retention, price increases, and new business, with a focus on maintaining momentum in the contract portfolio [80][82]