Rollins (ROL) investor relations material

Market position and growth

• Operates in a large, fragmented, and growing market with over 30,000 competitors, but is a growth leader with strong organic growth and M&A opportunities.

• Achieved 12% revenue growth, 20%+ earnings growth, and 30%+ cash flow growth in the recent quarter, with double-digit growth across major service lines.

• Revenue has compounded at 7% since 2000, EBITDA at 14%, and operating cash flow at 18%, with average annual TSR over 20%.

• Recent years have seen revenue growth above 10%, earnings growth in line with historical averages, and cash flow in the 15%-20% range.

• Maintains a premium valuation, with stock up nearly 70% and dividend up over 80% in the last three years.

Financial strategy and capital allocation

• Completed two equity deals in two years, including a $1.2 billion sell-down and a $3 billion equity issuance since 2023.

• Issued first-ever bond in February, achieving investment-grade credit rating and access to commercial paper markets.

• Dividend increased by 82% over three years, now representing less than 50% of cash flow, with $1 billion allocated to dividends and $1 billion to growth investments and M&A.

• Share buybacks have totaled $500 million, with recent repurchases at minimal discount and immediate price recovery.

• Business remains capital-light, allowing for continued leverage and predictable recurring revenue.

Modernization and operational improvements

• Significant restructuring and new leadership have driven modernization, including new hires in accounting, tax, IR, and treasury.

• Implemented shared services and process improvements to enhance acquisition integration and operational efficiency.

• Leveraging AI in call centers and focusing on reducing technician turnover to improve productivity and customer retention.

• Investments in route optimization and software (BOSS system for Orkin) are ongoing, with plans to standardize technology across brands.

• Achieved sustainable improvement in effective tax rate through credits and new tax strategies.