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Rollins, Inc. Reports Strong Financial Results for 2024

On February 12, 2025, Rollins, Inc. (NYSE:ROL), a leading global provider of consumer and commercial pest control services, announced its financial results for the fourth quarter and full year of 2024. The company experienced a significant uptick in revenue and profitability compared to the previous year, marking a positive trajectory for its operations.

Q4 2024 Financial Highlights

The fourth quarter of 2024 saw Rollins achieve impressive revenue figures, reaching $832 million, which reflects a 10.4% increase from the same quarter in 2023. The rise in revenues was aided by an organic growth rate of 8.5% as well as a 2.4% contribution from acquisitions. Rollins' operating income for the quarter totaled $151 million, up 8.3% year-over-year, resulting in an operating margin of 18.1%.

Despite these positive results, the net income for the quarter decreased slightly by 2.9%, settling at $106 million. However, adjusted net income illustrated growth, increasing by 8.0% to reach $109 million. Rollins also reported adjusted EBITDA of $181 million, an 11.6% increase year-over-year.

Full Year Performance

For the entire year of 2024, Rollins' performance was equally strong, with annual revenues climbing to $3.4 billion, up by 10.3% compared to 2023. The company recorded an operating income of $657 million for the year, marking a 12.7% increase and an improved operating margin of 19.4%. Adjusted EBITDA was impressive, reaching $771 million, which represents an 11.6% increase over the previous year.

Notably, net income for the entire year stood at $466 million, reflecting a year-over-year growth of 7.2%. Furthermore, Rollins reported adjusted EPS of $0.99, an 11.2% increase, demonstrating the company's healthy financial standing.

Cash Flow and Investment

Rollins showcased an excellent cash flow performance, generating $608 million from operating activities, an increase of 15.0% year-over-year. The company made strategic investments total around $157 million in acquisitions and $28 million in capital expenditures while also returning substantial capital to shareholders with dividends totaling $298 million.

Outlook for 2025

Looking ahead, Rollins remains optimistic for 2025 due to robust demand in core pest control markets along with ongoing commitments to operational excellence. The management team emphasizes the importance of strategic acquisitions and continuous improvement efforts that will further bolster profitability.

President and CEO Jerry Gahlhoff stated, "Our team delivered a strong finish to the year, exceeding our own revenue expectations and delivering healthy earnings growth for the full year. Demand for our services is solid, and our pipeline for acquisitions is robust. We are capitalizing on this momentum as we start 2025."

The company plans to maintain a balance between growth investments and careful capital allocation, leveraging its solid cash flow to ensure sustainable development in the years to come.

Conclusion

Rollins, Inc.'s performance during 2024 signals not only effective operational strategies but also a promising future as they navigate the pest control market. With strong revenues, earnings growth, and a strategic outlook for 2025, Rollins stands poised for continued success in the global market.