Rollins Reinforces Long-Term Value Creation Strategy and Medium-Term Growth Algorithm

Rollins (NYSE: ROL) outlined its medium-term “growth algorithm” and long-term value strategy.

Rhea-AI Summary

Rollins (NYSE: ROL) outlined its medium-term “growth algorithm” and long-term value strategy. Management targets 7-8% organic growth, 2-3% M&A growth, 30-35% incremental margins, and free cash flow conversion above 100%, aiming for consistent double-digit revenue, earnings, and cash-flow growth.

Rollins highlighted 25 consecutive years of revenue and adjusted EBITDA growth, nearly 100 straight quarters of revenue growth, a capital-light, recurring-revenue model, and cash flow compounding in the mid-teens in a pest control market estimated above $20 billion.

Positive

• Track record of 25 consecutive years of revenue and adjusted EBITDA growth
• Approaching 100 consecutive quarters of revenue growth
• Targeted 7-8% medium-term organic revenue growth
• Targeted 2-3% annual revenue growth from M&A
• Planned 30-35% incremental margin from core business
• Objective of free cash flow conversion above 100%

Negative

• None.

Key Figures

Pest control market size: over $20 billion Revenue growth streak: 25 consecutive years Revenue growth quarters: approaching 100 quarters +5 more

Pest control market size

over $20 billion

Estimated size of global pest control market

Revenue growth streak

25 consecutive years

Revenue and adjusted EBITDA growth track record

Revenue growth quarters

approaching 100 quarters

Consecutive quarters of revenue growth

Organic growth target

7-8%

Medium-term organic growth goal

M&A growth target

2-3%

Annual growth targeted from acquisitions

Incremental margin

30-35%

Targeted incremental margin from core business

Free cash flow conversion

above 100%

Objective for free cash flow conversion

Price vs 52-week low

1.67%

Distance above 52-week low before this news

Historical Context

5 past events · Latest: May 07

5 events

1. May 07

   Investor day notice

   24h Move

   -1.0%

   Announcement of 2026 Investor and Analyst Conference and webcast details.

2. May 05

   Marketing/brand update

   24h Move

   -0.1%

   Orkin’s 2026 Mosquito Cities List highlighting nationwide mosquito activity trends.

3. Apr 22

   Q1 2026 earnings

   24h Move

   +3.0%

   Double‑digit revenue growth with solid organic expansion and detailed cash flow metrics.

4. Apr 22

   Dividend declaration

   24h Move

   +0.1%

   Regular quarterly cash dividend of $0.1825 per share with specified dates.

5. Apr 07

   Earnings call scheduling

   24h Move

   +1.9%

   Planned Q1 2026 results release and conference call with webcast and replay.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, m&a, free cash flow, non-gaap, +1 more

5 terms

adjusted ebitda financial

"including 25 consecutive years of revenue and adjusted EBITDA growth"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

m&a financial

"disciplined M&A, and a balanced approach to capital allocation."

M&A, short for mergers and acquisitions, involves one company combining with or purchasing another company to grow, streamline operations, or gain competitive advantages. For investors, M&A activity can signal potential for increased value, new opportunities, or changes in market dynamics, making it an important factor to watch in the business landscape.

View in glossary

free cash flow financial

"reiterated its objective to convert free cash flow above 100%."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

non-gaap financial

"See the Company's SEC filings for definitions of our non-GAAP metrics"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

incremental margins financial

"focus on strong incremental margins and sustainable double-digit earnings growth"

Incremental margins measure how much profit a company makes on each additional dollar of sales, calculated as the change in profit divided by the change in revenue from extra sales or production. Think of it like baking one more batch of cookies and comparing the extra money you take in to the extra ingredients and oven time you spend; high incremental margins mean growth is profitable, low or negative margins mean extra sales may erode overall earnings, which matters to investors evaluating whether expansion or new contracts will really boost value.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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ATLANTA, May 14, 2026 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL) ("Rollins" or the "Company"), a premier global consumer and commercial services company, today highlighted its strategy for driving sustainable, long-term value creation through a resilient, capital-light business model, a durable organic growth engine, disciplined M&A, and a balanced approach to capital allocation.

The Company emphasized its track record of consistent performance across economic cycles, including 25 consecutive years of revenue and adjusted EBITDA growth and approaching its 100th consecutive quarter of revenue growth, supported by recurring customer relationships and ongoing investments in modernization and operating discipline.

Strong market with expansion opportunities

• Rollins operates in a highly attractive pest control market estimated at over $20 billion, supported by a number of secular tailwinds and evolving consumer preferences with the opportunity for continued growth as adoption expands.

Durable organic growth engine to drive 7-8% organic growth

• Management reiterated its medium-term goal of 7-8% organic growth, supported by five primary drivers: market growth, pricing, recurring revenue, commercial growth, and ancillary services.

M&A opportunity of 2-3% with upside potential

• Rollins views M&A as an important complement to organic growth and is targeting 2-3% annual growth from acquisitions, with upside potential supported by a large, fragmented market and an expanding pipeline of opportunities.

Margin and earnings power

• Management reaffirmed a focus on strong incremental margins and sustainable double-digit earnings growth, supported by multiple operating levers alongside continued revenue expansion.

Cash flow compounding in the mid-teens and balanced capital allocation

• Rollins emphasized its capital-light model and strong cash generation and reiterated its objective to convert free cash flow above 100%.

Medium-term outlook

• The Company reiterated its growth algorithm of 7-8% organic growth, 2-3% growth from M&A, 30-35% incremental margin from the core business, and free cash flow conversion above 100% aimed at delivering consistent double-digit revenue, earnings, and cash-flow growth.

See the Company's SEC filings for definitions of our non-GAAP metrics, how they are calculated, and reconciliations to their most directly comparable GAAP metric.

Executive Commentary

"Our company compounds cash flow by acquiring and growing market-leading pest control businesses. We find the very best stand-alone businesses, fund their growth, and generate attractive returns on our investments. We do this with a people-first, customer-centric mindset that is the foundation on which our financial engine is built. This is what we've done for decades and what we will continue to do as we live out the next chapter in our Company's success story," said Jerry Gahlhoff, President and Chief Executive Officer.

"With a highly recurring, capital-light model and a proven track record of consistent performance through multiple economic cycles, we believe our value creation algorithm remains both compelling and sustainable," said Ken Krause, Executive Vice President and Chief Financial Officer.

Forward-Looking Statements

This release 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, intentions, beliefs, plans, objectives, assumptions and projections about future events and financial trends affecting the operating results and financial condition of our business. Although we believe that these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions, or expectations. Generally, statements that do not relate to historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. The words "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "should," "will," "would," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

Forward-looking statements in this release include, but are not limited to, statements regarding: expectations with respect to our financial and business performance; expectations related to acquisitions, including expected M&A revenue growth contribution of 2–3%; our expected growth, including medium-term targets for organic revenue growth of 7–8%, adjusted incremental EBITDA margins of approximately 30–35%, free cash flow conversion in excess of 100%, and double-digit earnings and free cash flow growth; expectations regarding market growth; focus on margins supported by operating levers and continued revenue expansion; a balanced capital allocation strategy. These forward-looking statements, including the medium-term targets discussed herein, are objectives and targets only and should not be regarded as representations or guarantees that such results will be achieved. Actual results may differ materially from these targets. 

These forward-looking statements are based on information available as of the date of this presentation, and current expectations, forecasts, and assumptions, and involve a number of judgments, risks and uncertainties. Important factors could cause actual results to differ materially from those indicated or implied by forward-looking statements including, but not limited to, those set forth in the sections entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and may also be described from time to time in our future reports filed with the SEC.

Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as maybe required by law.

The Company has not reconciled its forward-looking adjusted incremental EBITDA margin, free cash flow conversion, or other forward-looking non-GAAP financial measures to the most directly comparable GAAP measures because the Company cannot predict with reasonable certainty the ultimate outcome or timing of certain significant items without unreasonable effort. These items include, but are not limited to, acquisition-related expenses, adjustments to the fair value of contingent consideration, restructuring charges, gains or losses on the disposition of assets or businesses, and other unusual or infrequent items. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the applicable periods. A reconciliation of these forward-looking non-GAAP measures is therefore not available without unreasonable effort.

About Rollins, Inc.

Rollins, Inc. (ROL) is a premier global consumer and commercial services company. Through its family of leading brands, the Company and its franchises provide essential pest control services and protection against termite damage, rodents, and insects to more than 2.8 million customers in North America, South America, Europe, Asia, Africa, and Australia, approximately 22,000 employees from more than 850 locations. Rollins is parent to Aardwolf Pestkare, Clark Pest Control, Crane Pest Control, Critter Control, Fox Pest Control, HomeTeam Pest Defense, Industrial Fumigant Company, McCall Service, MissQuito, Northwest Exterminating, OPC Pest Services, Orkin, Orkin Australia, Orkin Canada, PermaTreat, Safeguard, Saela Pest Control, Trutech, Waltham Services, Western Pest Services, and more. You can learn more about Rollins and its subsidiaries by visiting www.rollins.com.

Investor Contact:
InvestorRelations@rollins.com  
(404) 888-2000

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SOURCE Rollins, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What growth algorithm did Rollins (NYSE:ROL) present on May 14, 2026?

Rollins outlined a medium-term growth algorithm focused on organic expansion, acquisitions, margins, and cash flow. According to Rollins, the plan targets 7-8% organic growth, 2-3% M&A growth, 30-35% incremental margins, and free cash flow conversion above 100% to support double-digit growth.

What are Rollins' organic and M&A growth targets for the medium term (ROL)?

Rollins is targeting 7-8% organic growth and 2-3% growth from acquisitions over the medium term. According to Rollins, organic gains are driven by market growth, pricing, recurring revenue, commercial expansion, and ancillary services, with M&A adding scale in a fragmented pest control market.

How strong is Rollins' historical revenue and EBITDA growth track record (ROL)?

Rollins reports 25 consecutive years of revenue and adjusted EBITDA growth, indicating long-term consistency. According to Rollins, the company is also nearing its 100th consecutive quarter of revenue growth, supported by recurring customer relationships, modernization efforts, and disciplined operations across economic cycles.

What free cash flow objectives did Rollins (ROL) highlight in its May 2026 update?

Rollins aims to convert free cash flow at a rate above 100% while compounding cash flow in the mid-teens. According to Rollins, this objective is supported by its capital-light business model, strong cash generation, and a balanced capital allocation strategy across growth investments and shareholder returns.

How large is the pest control market targeted by Rollins (NYSE:ROL)?

Rollins operates in a pest control market estimated at over $20 billion, offering significant expansion potential. According to Rollins, the market benefits from secular tailwinds, evolving consumer preferences, and growing adoption, which support the company’s plans for sustained organic and acquisition-driven growth.

How does Rollins plan to sustain double-digit earnings growth for ROL shareholders?

Rollins plans to sustain double-digit earnings growth through organic expansion, disciplined M&A, and strong incremental margins. According to Rollins, its capital-light, recurring-revenue model and focus on 30-35% incremental margins are key levers alongside the targeted 7-8% organic and 2-3% M&A growth.