Slide 1: First Quarter 2025 Earnings Webcast Presentation
First Quarter 2025 Earnings Webcast Presentation Rollins, Inc. April 24, 2025 1 © 2024 Rollins, Inc. All rights reserved.
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation as well as other written or oral statements by the Company may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our cu
Slide 3: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the mos
Slide 4: First Quarter 2025 Results: Q1 Highlights
First Quarter 2025 Results Other Q1 Highlights Revenue $823M up 9.9% • Strong growth across all major service lines • Organic growth of 7.4%, $0.22 10.0% acquisitions drove remaining growth Adjusted up EPS1 • Gross margin improvement of 20 bps as we leveraged pricing to offset expense growth $140M 1
Slide 5: Q1 Revenue Growth
Q1 Revenue Growth (in millions) +7.4% organic1 +11.1% organic1 +2.1% acquisition1 +2.5% acquisition1 +7.4% organic1 +9.9% total +2.8% acquisition1 +13.2% total +5.7% organic1 +10.2% total +2.5% acquisition1 $20 $1 $823 +8.2% total $26 $27 $17M organic1 $3M acquisition1 $748 $19M organic1 $7M acquisi
Slide 6: Q1 Adjusted EBITDA Margin
Q1 Adjusted EBITDA Margin1 HIGHLIGHTS Adj. SG&A(1) -80 bps Gross Profit • Gross margin 51.4% • Positive on the price cost equation • Improvements in margins associated 0.2% -60 bps with people costs, materials and 0.2% 21.5% supplies, and insurance and claims 20.9% were somewhat offset by higher fle
Slide 7: Acquisition of Saela Pest Control
Acquisition of Saela Pest Control Saela Branch Locations Strong culture focused on people; delivers exceptional service Scaled business with solid track record; focus on operational execution Saela Branch Presence in key geographies; highly complementary to Rollins portfolio of brands Well-Aligned t
Slide 8: Free Cash Flow and Capital Allocation
Free Cash Flow and Capital Allocation Q1 2025 Free Cash Flow1 Q1 2025 Uses of Cash Flow Capex $7M +16.5% Share Repurchases $15M $140M $120M M&A $27M Dividends $80M Q1 2024 Q1 2025 127% 133% Cash Generation Acquisitions • Q1 Free Cash Flow1 Conversion was 133% • Completed 4 acquisitions in Q1 • Stron
Slide 9: Unabated Long-Term Financial Performance
UNABATED LONG-TERM FINANCIAL PERFORMANCE 20+ Years of 75%+ Recurring 90+% Domestic Anticipate Limited Consecutive Revenue Revenue Tariff Exposure Growth COVID Pandemic Industrial Slowdown 12% Revenue Growth 6% Revenue 14% Adj. EBITDA1 $3,389 Growth $3,073 Growth Great Financial Crisis 8% Adj. $2,696
Slide 10: Key Takeaways
Key Takeaways Focus on Modernization Exceptional Performance Margins Remain a Focus Balance Sheet Provides Flexibility Hiring key talent across the Q1 organic growth1 of 7.4% Focus on pricing and Healthy balance sheet positions organization to accelerate despite headwinds from FX and productivity ha
Slide 11: Growth Algorithm
Growth Algorithm Last 3 Years 2025E Medium-Term Outlook Above-Market ~7% to 8% Organic Revenue Growth 12% ~3% to 4% M&A Organic Growth + M&A Adj. Incremental Approaching 24% ~30-35% EBITDA Margin1 ~30% FCF Conversion1 119% >100% >100% 11 1 These amounts are non-GAAP numbers (See Appendix). © 2024 Ro
Slide 12: © 2024 Rollins, Inc. All rights reserved.
12 © 2024 Rollins, Inc. All rights reserved.
Slide 13: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Set below are reconciliations of non-GAAP financial measures used in this investor presentation, and our earnings release and conference call with their most directly comparable GAAP measures. (1) Consists of expenses resulting from the amortiza
Slide 14: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Set below are reconciliations of non-GAAP financial measures used in this investor presentation, and our earnings release and conference call with their most directly comparable GAAP measures. (1) Consists of expenses resulting from the amortiza
Slide 15: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Set below are reconciliations of non-GAAP financial measures used in this investor presentation, and our earnings release and conference call with their most directly comparable GAAP measures. 15 © 2024 Rollins, Inc. All rights reserved.
Slide 16: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Set below are reconciliations of non-GAAP financial measures used in this investor presentation, and our earnings release and conference call with their most directly comparable GAAP measures. 16 © 2024 Rollins, Inc. All rights reserved.
Slide 17: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Set below are reconciliations of non-GAAP financial measures used in this investor presentation, and our earnings release and conference call with their most directly comparable GAAP measures. (1) As of March 31, 2025, the Company had outstandin
Slide 18: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Set below are reconciliations of non-GAAP financial measures used in this investor presentation, and our earnings release and conference call with their most directly comparable GAAP measures. (1) Consists of expenses resulting from adjustments