Rollins’ 2024 Revenues Were Up 10.3% YOY

ATLANTA – Rollins reported on Wednesday 2024 revenues of $3.4 billion, a 10.3% increase from 2023, driven by a 7.9% increase in organic revenue and a 3.1% contribution from acquisitions.

Other results included operating income rising from 12.7% to $657 million, with operating margins improving by 40 basis points to 19.4% and adjusted operating income reaching $675 million, reflecting an 11.7% increase and a 20-basis-point improvement in adjusted operating margin to 19.9%.

For the fourth quarter, Rollins posted revenues of $832 million, up 10.4% compared to the same period in 2023. This growth was driven by 8.5% organic revenue growth and 2.4% from acquisitions.

Rollins President and CEO Jerry Gahlhoff, Jr., said the team finished 2024 strong, exceeding the company’s own revenue expectations for the full year. "As we look to 2025, demand for our services is solid and our pipeline for acquisitions is robust. We invested meaningfully in our business throughout 2024 which accelerated organic growth in the second half of the year,” Gahlhoff said. “We are capitalizing on this momentum as we start 2025, while remaining focused on continuous improvement initiatives to enhance profitability across our business."

Kenneth Krause, executive vice president and CFO, Rollins, added that it was encouraging to see the strong quarterly and full year growth in revenue, cash flow and earnings. “We delivered double-digit revenue and cash flow growth, as well as a 40 basis point improvement in operating margins for 2024," he said. "While growth investments and pressure from developments on legacy auto claims that materialized in December impacted our incremental margins, our underlying operations continue to deliver incremental margins approximating thirty percent. Additionally, we continued to execute a balanced capital allocation program enabled by compounding cash flow and a strong balance sheet.”

Gahlhoff and Krause cited several reasons for optimism in 2025, including the strong underlying health of core pest control markets, along with Rollins' continued focus on operational execution, which is expected to drive another year of solid organic growth; this organic growth will further be supported by a disciplined and strategic approach to acquisitions. The pair also said a focus on pricing, modernization initiatives, and a culture of continuous improvement should contribute to healthy incremental margins.

Source: Rollins