Rollins (ROL) Barclays 43rd Annual Industrial Select Conference summary

Recent performance and weather impact

• Achieved third consecutive year of double-digit revenue, earnings, and cash flow growth, with 24 years of annual revenue growth and 97 consecutive quarters of revenue growth.

• 75% of business is recurring contracts, 10% ancillary, and 15% one-time; recurring and ancillary segments remained strong, but one-time business declined due to severe weather in Q4, especially in the Midwest and Northeast.

• Weather disruptions in late Q4 and early Q1 limited technician access and reduced one-time service calls, but recovery is expected as peak season begins in late Q1.

• One-time business, though impacted, is highly profitable with gross margins above 70%.

• Confident in maintaining 7%-8% organic growth and 2%-3% M&A-driven growth going forward.

Strategic and operational highlights

• Achieved 11.0% revenue growth in FY 2025, with double-digit increases across all major service lines and 6.9% organic growth; acquisitions contributed 4.1%.

• Added 26 new businesses, including Saela, and executed a balanced capital allocation program deploying over $880M.

• Maintained high recurring revenue (~75%) and strong customer retention, with recurring and ancillary service revenue growth above 7%.

• Continued investments in workforce and leadership development, improving retention among new teammates.

• Focused on pricing and productivity to support margin expansion, despite people cost pressures from increased hiring.

Growth and modernization initiatives

• Growth initiatives include cross-brand collaboration, expanding ancillary services, and reducing customer churn by sharing leads among brands.

• Process improvements and technology upgrades, including sharing best practices and back-office modernization, are underway to drive efficiency.

• Significant opportunity exists in leveraging procurement and supply chain across brands for cost savings.

• Modernization of financial systems is in progress, starting with EPM implementation, aiming for better data synthesis and decision-making within 12-18 months.

• Family ownership remains supportive of modernization and growth strategies.