Rollins Inc "Color from Our Recent Checks, and Why We Couldn't Turn..."

Research evidence excerpt

Rollins Inc "Color from Our Recent Checks, and Why We Couldn't Turn..."

iness momentum remaining steady/strong. Q2E 0.34 0.34

Pricing in the industry is still largely at the same level, with some indicating Q3E 0.37 0.39

marginally lower price increases in 2026 than in 2025. Q4E 0.26 0.28

12/26E 1.21 1.25

Competitive, but landscape also largely similar. The market was described as 12/27E 1.30 1.40

competitive, but not materially changed. Customer acquisition costs have 12/28E 1.41 1.55

increased somewhat (though this isn't new), which requires companies to spend

Joshua Chan, CFA more on digital advertising. Among large competitors, there were no drastic

Analyst

changes in competitive actions. joshua.chan@ubs.com

Some softness in ancillary and one-time noted. Some of our contacts have +1-212-713 9957

noted that ancillary and one-time business has softened somewhat. These types of Karandeep Singhania

businesses are often larger-ticket and/or unplanned, and while no strong reasons Associate Analyst

were provided for the relative softness, it is natural to suspect consumer behavior karandeep.singhania@ubs.com

pressuring growth here somewhat. +1-212-713 4211

Brianna Kamdoum

The Appeal of Rollins Stock, but Why We Couldn't Turn Constructive Yet Associate Analyst

The appeal of Rollins stock. We believe Rollins is a long-term leader in the pest brianna.kamdoum@ubs.com

control industry, with the company having track record to organically outgrow the +1-212-882 5027

industry while also being a consolidator. Naturally we contemplated whether a

30%+ pullback in shares (from peak) of a high-quality compounder represented

Highlights (US$m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 3,073 3,389 3,761 4,109 4,393 4,655 4,933 5,229