Rollins beats revenue estimate as warm weather drives demand for pest control
12/02/2025 21:46
Feb 12 (Reuters) - Rollins ROL.N beat analysts'
estimate for fourth-quarter revenue on Wednesday, benefiting
from robust demand for its pest control services as customers
looked to tackle termite and insect infestations during an
unusually warm and dry period.
WHY IT'S IMPORTANT
Warm weather across the United States, continuing a streak
of extreme global temperatures, has created a favorable breeding
atmosphere for insects, resulting in the need for more pest
control at homes and businesses.
This, coupled with an increase in new home sales, has aided
demand for residential pest and termite services.
KEY QUOTE(S)
"As we look to 2025, demand for our services is solid and
our pipeline for acquisitions is robust. We invested
meaningfully in our business throughout 2024, which accelerated
organic growth in the second half of the year," CEO Jerry
Gahlhoff said.
BY THE NUMBERS
The company's fourth-quarter revenue rose 10.4% to $832.2
million, beating analysts' average estimate of $817.6 million,
according to data compiled by LSEG.
Atlanta, Georgia-based Rollins' adjusted profit per share
came in at 23 cents, in line with the estimate.
Its quarterly adjusted operating income margin fell 50 basis
points to 18.6%, owing to increased marketing and advertising
investments to bring in more customers.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by
Shilpi Majumdar)
((AnanyaMariam.Rajesh@thomsonreuters.com ; X: https://twitter.com/AnanyaMariam;))