$ROL (+0,33%) has announced its financial results for the fourth quarter and full year 2024.
Highlights of the fourth quarter of 2024
(All comparisons with the fourth quarter of 2023, unless otherwise stated)
- Sales amounted to USD 832 million, an increase of 10.4 % compared to the previous year. Organic sales* increased by 8.5 % and acquisition-related sales* by 2.4 %.
- The operating result amounted to USD 151 million, an increase of 8.3 % compared to the previous year. The operating margin amounted to 18.1 %, unchanged from the previous year. Adjusted operating profit* amounted to USD 155 million, an increase of 7.3% compared to the previous year. Adjusted operating profit margin* was 18.6%, a decrease of 50 basis points from the prior year.
- Adjusted EBITDA* amounted to USD 181 million, an increase of 9.0% compared to the previous year. The adjusted EBITDA margin* amounted to 21.8%, a decrease of 20 basis points compared to the previous year.
- Net profit amounted to USD 106 million, a decrease of 2.9% compared to the previous year. Adjusted net income* amounted to USD 109 million, an increase of 8.0% compared to the previous year.
- GAAP earnings per share amounted to USD 0.22 per diluted share, unchanged from the previous year. Adjusted earnings per share* amounted to USD 0.23 per diluted share, up 9.5% on the previous year.
- Operating cash flow amounted to USD 188 million, an increase of 23.1 % compared to the previous year. The company invested USD 52 million in acquisitions, USD 4 million in property, plant and equipment and paid dividends totaling USD 80 million.
Highlights for the full year 2024
- Sales amounted to USD 3.4 billion, which corresponds to an increase of 10.3 % compared to the previous year. Organic sales* increased by 7.9% and acquisition-related sales* by 3.1%.
- The operating result amounted to USD 657 million, an increase of 12.7 % compared to the previous year. The operating margin amounted to 19.4%, an increase of 40 basis points compared to the previous year. Adjusted operating profit* amounted to USD 675 million, an increase of 11.7% compared to the previous year. Adjusted operating profit margin* amounted to 19.9%, an increase of 20 basis points compared to the previous year.
- Adjusted EBITDA* amounted to USD 771 million, an increase of 11.6% compared to the previous year. The adjusted EBITDA margin* amounted to 22.8%, an increase of 30 basis points compared to the previous year.
- Net profit amounted to USD 466 million, an increase of 7.2% compared to the previous year. Adjusted net income* amounted to USD 479 million, an increase of 10.4% compared to the previous year.
- GAAP earnings per share were $0.96 per diluted share, an increase of 7.9% over the prior year. Adjusted earnings per share* were $0.99 per diluted share, an increase of 11.2% over the prior year.
- Operating cash flow amounted to USD 608 million, an increase of 15.0% compared to the previous year. The company invested USD 157 million in acquisitions, USD 28 million in property, plant and equipment and paid dividends totaling USD 298 million.
Outlook 2025
- The underlying health of core pest control markets and Rollins' continued commitment to operational execution should enable another year of strong organic growth, complemented by a strategic and disciplined approach to acquisitions.
- A focus on pricing, ongoing modernization efforts and a culture of continuous improvement should support healthy incremental margins.
- Increasing cash flow and a strong balance sheet should continue to enable a balanced capital allocation strategy.
Management commentary
"Our team finished the year with strong results, exceeding our own revenue expectations and delivering healthy earnings growth for the full year," said Jerry Gahlhoff, Jr, President and CEO. "Looking ahead to 2025, demand for our services is solid and our pipeline for acquisitions is robust. We made significant investments in our business in 2024, which accelerated organic growth in the second half of the year. We are leveraging this momentum as we enter 2025 and continue to focus on continuous improvement initiatives to drive profitability across our business," added Mr. Gahlhoff.
"It was encouraging to see the strong growth in sales, cash flow and profit in the quarter and full year. We delivered double-digit revenue and cash flow growth and a 40 basis point improvement in operating margins for 2024," said Kenneth Krause, Executive Vice President and CFO. "While growth investments and pressure from legacy automotive developments that occurred in December impacted our incremental margins, our underlying businesses continue to deliver incremental margins of approximately thirty percent. In addition, we have continued to implement a balanced capital allocation program enabled by compounded cash flow and a strong balance sheet," concluded Mr. Krause.