Rollins Earnings: Execution Remained Impeccable in Late 2024; Outlook for 2025 Is Upbeat

Wide-moat Rollins closed out 2024 with strength. Fourth-quarter organic sales growth of 8.5% was once again solidly above our long-term market estimates for the US pest control market—evidencing excellent execution in late 2024. Full-year 2024 revenue of $3.4 billion reflected organic sales growth of 7.9%, broadly according with our expectations. However, full-year EBIT of $657 million was slightly short of our estimates, with operational leverage proving elusive in the final quarter of 2024. Still, Rollins’ EBIT margin strengthened some 40 basis points in 2024 to 19.4%, benefiting from the operating leverage afforded by the strong organic growth achieved during the year.