On Wednesday, July 23, the Rollins Inc. $ROL (+0,06%) announced its Q2 2025 results published - and the figures are impressive.

📊 Q2 2025 at a glance

• Non-GAAP EPS: USD 0.30 → in line with expectations
• GAAP EPS: USD 0.29 → +7.4 % compared to Q2 2024
• Sales: USD 1bn → +12.1% YoY, exceeds estimates by USD 11.54m
• Organic sales growth: 7.3% → sign of solid operating performance

The acquisition of Saela Holdings in April contributed approx. USD 15 million to turnover.

For the year as a whole synergies of USD 45-50 million are expected.

💼 Operating result

• Operating income: USD 198 million → +8.7 %
• Adjusted operating income: USD 206 million → +10.3 %
• Operating margin: 20.6 % → Decrease of 30 basis points

🧩 Segment performance

According to the Q2 presentation, all business segments performed strongly:

• Residential: USD 455.6m → +11.6% YoY
• Commercial: USD 320.5m → +11% YoY
• Termite & Ancillary: USD 211m → +14% YoY

Every division recorded double-digit growth - a clear sign of the strength of the business model.

📈 Conclusion

Rollins delivers a solid quarter with broad sales growth and stable profitability. Despite the strong figures, the share price did not move much - a possible sign that expectations were already priced in.

I will continue to monitor Rollins, particularly with regard to the integration of Saela and the development of margins.

My Youtube channel for stock analysis: www.youtube.com/@Verstehdieaktie

I would prefer to sell everything and put it into say 3-5 ETFs, but due to a mixture of different feelings I can't take this step. At least not overnight. Today I was able to part with the following positions (a big step for me, a small step for my portfolio).

$COST (+0,21%) -3% may not have been the best time to sell, but I'm no longer convinced in the long term, or rather it doesn't fit my investment idea

$PG (-0,08%) -8% stinks of opportunity cost. It may be that there is a good entry point for a solid dividend stock at the moment, but I would rather continue to build up the broadly diversified ETF.

$ROL (+0,06%) -4% ditch or not, we won't see the big fast percentages here.

$RMS (+0,11%) +25% I would not buy again today at the current price and find the valuation excessively high.

Reallocated to $VWRL (+0,14%) 🥱 and $EQQQ (+0,3%) 😎

(Thanks to a mini crash from 17:00, I also got a lot of shares)

Atlas Copco $ATCO B (+0,09%)

BAE Systems $BA. (-1,39%)

Rollins $ROL (+0,06%)

Cintas $CTAS (+0,79%)

Waste Management $WM (+0,17%)

Parker Han$PH (+0,02%)

Which companies do you see as particularly promising for a long-term investment?

$ROL (+0,06%) 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.

$ROL (+0,06%) Rollins, a global provider of consumer and business services with a market capitalization of $23.5 billion, has announced a 10 percent increase in its regular quarterly cash dividend. The dividend, which has been raised to $0.165 per share, is scheduled to be paid on March 10, 2025 to shareholders of record on February 25, 2025. According to data from InvestingPro, this marks the 22nd consecutive year that the company has increased its dividend, which is a remarkable track record of increasing shareholder returns.

This increase represents a significant increase over the dividend paid in the same quarter last year and brings the current dividend yield to 1.36 percent. Rollins, Inc. known for its extensive portfolio of pest control services, operates under a number of brands that include household names such as Orkin and HomeTeam Pest Defense. The company employs over 20,000 people and serves more than 2.8 million customers across multiple continents, including North America, South America, Europe, Asia, Africa and Australia. With impressive gross profit margins of 52.6 percent and sales growth of 11.1 percent over the last twelve months, Rollins demonstrates strong operational efficiency.

Rollins' network includes more than 800 locations and its services are critical for termite damage, rodent and insect protection. The company's growth and consistent dividend payments reflect its position in the market and its commitment to creating value for its shareholders.

Rollins 🪳🪤🐁

Pests such as termites, rodents, mosquitoes and other insects form the basis of Rollins' business. Rollins is an international specialist in pest control.

Founded in 1948, the company has a 20% market share in North America and serves 2.8 million customers. The business model sounds boring, but it is lucrative.

Sales have grown by an average of 10% per year in recent years. Since over 80% of sales are recurring and pests need to be controlled in both good and bad times, the business appears to be very solid.

The dividend yield is 1.24%. Rollins manages the feat of a steadily growing dividend. It pays a dividend 4 times a year. The payout months are March, June, September and December. Unfortunately, just paying attention to the dividend is not enough.

With a P/E ratio of 51.9, the share is anything but cheap, but given the business model and sales figures, it is an interesting opportunity for a long-term investment.

Is the share valued too high or is it still worth buying in?

$ROL (+0,06%)

This month, 3 new positions will be added to the children's portfolio.

Unfortunately, my savings plans will not be executed until the middle of the month. Tr asked for this because otherwise @Simpson are otherwise overwhelmed. He executes his savings plans at the beginning of the month.

The new additions are

$DIS (+0,27%)

$BRK.B (-0,01%)

$ROL (+0,06%)

What do you think of the selection?

Basically, the Kinderdepot is about dividends.

Some people will say why... Growth stocks make much more sense.

It may be anything. Berkshire will be the third non-dividend-paying stock alongside Gold and Drone Shield 😉.

But I just love dividends 😉

⚠️⚠️⚠️Breaking News⚠️⚠️⚠️

ATTENTION to all who have a deposit with Trade Republic, today more than 100 savings plans will be executed with me, the real offensive starts at 15.30 and can take up to 4 hours, as there may well be "massive" "failures" and "delays" during this time, I ask you to keep calm, take a deep breath and not to bombard Trade Republic customer support with inquiries. Thank you very much 😁

As far as the Ultimate Homer "ETF" is concerned, many new stocks were added in September 😁

In since September 2

🇺🇸Chipotle $CMG (+0,08%)

🇺🇸Costco $COST (+0,21%)

🇺🇸Domino's Pizza's $DPZ (+0,14%)

🇺🇸Texas Roadhouse $TXRH (+0,86%)

🇺🇸TransDigm $TDG (+0,13%)

Newly launched today

🇺🇸Booz Allen Hamilton Holding
$BAH (+0,43%)

🇺🇸Blackstone $BX (+0,46%)

🇺🇸KKR & Co
$KKR (+0,81%)

🇺🇸Vulcan Materials
$VMC (-0,4%)

🇺🇸CSX $CSX (-0,38%)

🇺🇸Carrier Global $CARR (-0,24%)

🇺🇸Hilton Worldwide $HLT (+0,04%)

🇺🇸Merck & Co $MRK (-0,13%)

🇺🇸Moodys $MCO (-0,16%)

🇺🇸Rollins $ROL (+0,06%)

🇺🇸Toll Brothers $TOL (+0,06%)

🇺🇸Watsco $WSO (+0,06%)

🇺🇸Cardinal Health $CAH (+2,3%)

🇺🇸Colgate Palmolive $CL (-0,32%)

🇺🇸Emerson Electric $EMR (+0,09%)

🇺🇸Nordson $NDSN (+0,05%)

🇬🇧BAE Systems
$BA. (-1,39%)

🇬🇧RELX
$REL (+1,36%)

🇬🇧Bunzl
$BNZL (+0,04%)

$ROL (+0,06%)

Figures for the 2nd quarter just ended

Key highlights

• Second quarter revenue amounted to 892 million dollars, an increase of 8.7% compared to Q2 2023, with organic revenue* increasing by 7.7%.

• Quarterly operating income was $182 million, an increase of 17.8% compared to the second quarter of 2023. Quarterly operating margin was 20.4%, an increase of 150 basis points compared to the second quarter of 2023. Adjusted operating income* was $187 million, an increase of 16.6% compared to the prior year. Adjusted operating profit margin* was 20.9%, an increase of 140 basis points year-over-year.

• Adjusted EBITDA amounted to 210 million dollars, an increase of 15.3% compared to the previous year. Adjusted EBITDA margin* was 23.6%, an increase of 140 basis points compared to the second quarter of 2023

• Quarterly net income amounted to 129 million dollars, an increase of 17.5% compared to the previous year Adjusted net income* amounted to 132 million dollars, an increase of 16.7% compared to the previous year

• Quarterly EPS was $0.27 per diluted share, an increase of 22.7% over prior year EPS of $0.22. Adjusted EPS* was $0.27 per diluted share, an increase of 17.4% over the prior year.

• Operating cash flow for the quarter was $145 million. The company invested $35 million in acquisitions, $9 million in capital expenditures and paid dividends totaling $73 million.

Management Comment

"Our team delivered a strong second quarter with organic growth of 7.7 percent and an improved margin profile," said Jerry Gahlhoff, Jr, President and CEO. "Demand for our services remains strong and our pipeline for acquisitions is robust. Our results in the first six months of the year position us to deliver another year of healthy growth in 2024, and we are focused on continuous improvement to drive profitability across our organization. I would like to thank our team for their continued commitment to our customers," added Mr. Gahlhoff.

"It was encouraging to see a solid revenue and profitability performance in the quarter," said Kenneth Krause, Executive Vice President and CFO. "In addition to the growth Jerry mentioned, our team delivered strong margin improvement with a 140 basis point improvement in EBITDA margins and strong incremental EBITDA margin performance. We continue to invest in our team and other resources aimed at capitalizing on a healthy market environment to drive further growth in our business," concluded Mr. Krause.

$ROL (+0,06%)

Just had a pest control service here to have a wasp nest removed (again). The good man didn't come from Rollins, but he backed up my investment case in conversation anyway:

• strong increase in orders, especially in the last 10 years
• at the moment they could work 24/7 and still not be able to take on all orders
• ongoing urbanization and population growth will lead to even more orders
• extremely high demand has driven up prices for services enormously

All in all, it is simply a growth market as it is written in the book and there seems to be no end in sight.