Rollins (ROL) Q1 2026 earnings summary

Executive summary

• First quarter 2026 revenues grew 10.2% year-over-year to $906 million, with organic revenue up 6.6%.

• Operating income increased 2.0% to $145 million, while net income rose 2.5% to $108 million.

• Adjusted EPS climbed 9.1% to $0.24 per diluted share, reflecting improved profitability on a non-GAAP basis.

• Sequential growth accelerated in March, with total growth of 12% and organic growth over 8%.

• Management highlighted resilience, operational excellence, and strategic M&A, including the Romex acquisition.

Financial highlights

• Gross profit increased 9.1% year-over-year to $461 million, with a gross margin of 50.8% (down 60 bps).

• Adjusted operating income was $153 million (+4.0%), and adjusted EBITDA reached $179 million (+4.4%).

• Operating margin declined 120 bps to 16.1%; adjusted operating margin fell 100 bps to 16.9%.

• Free cash flow was $111 million, down 20.6% year-over-year, impacted by tax payment timing and interest expense.

• Dividends paid totaled $88 million, and $18 million was invested in acquisitions.

Outlook and guidance

• Management anticipates improved profitability as the company enters peak season.

• Focus remains on organic demand generation, pricing, and operational efficiency.

• Continued balanced capital allocation is expected, supported by strong cash flow and a robust balance sheet.