ROL: ROL Investor Day Takeaways: Industry Tailwinds and Internal Improvements Create a Strong Runway for Growth

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ROL: ROL Investor Day Takeaways: Industry Tailwinds and Internal Improvements Create a Strong Runway for Growth

Equity Research

Price Target Change — May 14, 2026

Business & Information Services

Rollins, Inc.

ROL Investor Day Takeaways: Industry Tailwinds and Equal Weight

Internal Improvements Create a Strong Runway for Growth Price Target: $55.00

Notable Changes

Our Call $ (Dec) Current Prior % Chg

ROL reiterated its medium-term guidance and expects industry tailwinds, internal Price Target $55.00 $58.00 -5.2%

efficiencies, and a robust M&A pipeline to drive healthy growth. Ancillary maintains a

strong runway for cross-selling, and culture remains at the forefront. Ticker ROL

Upside/(Downside) to Target 3.0%

ROL reiterated its medium-term annual growth targets, including 7-8% organic revenue Price (05/14/2026) $53.42

growth, 2-3% M&A revenue growth, >100% FCF conversion, DD EPS growth, and DD FCF 52 Week Range $51.95 - 66.14

growth. This is supported by its CPI+ pricing model, 75%+ recurring revenue, and strong Market Cap (MM) $25,716

cross-sell opportunity within Ancillary with <5% penetration but 10x the ticket price of an

Average Daily Value (MM) $163

annual residential contract. Strong secular tailwinds, such as rising outdoor living and less

pest DIY is expected to continue to drive ~6% market growth. Dividend Yield 1.2%

$ (Dec) Q1 Q2 Q3 Q4 FY

ROL reiterated its ~30-35% incremental EBITDA margin target. Mgmt. sees a 30-40bp

EPSannual margin opportunity from reductions in teammate turnover, 15-25bp from

synergies in purchasing materials, and 10-20bp from fleet cost improvements. In SG&A, 2026E 0.24 A 0.34 E 0.38 E 0.28 E 1.24 E

mgmt. sees a 100-200bp opportunity from continued back-office modernization and 2027E 0.24 E 0.38 E 0.42 E 0.31 E 1.36 E