Rollins: 2Q First Take: 99th Consecutive Quarter of Organic Growth, But a Miss: Premium Put to the Test

研报英文原文证据摘录

Rollins: 2Q First Take: 99th Consecutive Quarter of Organic Growth, But a Miss: Premium Put to the Test

J P M O R G A N North America Equity Research

22 July 2026

Rollins Overweight

ROL, ROL US

2Q First Take: 99th Consecutive Quarter of Organic Price (22 Jul 26):$43.47

Growth, But a Miss: Premium Put to the Test

North America Small and Mid Cap

Rollins posted a soft 2Q, with adjusted EPS of $0.32 versus $0.34 consensus and Industrials

revenue of $1,079M versus $1,094M. The company missed Street expectations Tomohiko Sano AC

across segments, while the shortfall versus management’s plan was most (1-212) 622-1099

pronounced in Residential brands tied to consumer‑initiated demand (search, tomohiko.sano@jpmorgan.com

digital media, inbound calls) as lead volumes softened. Commercial and Termite/ Ethan Coyle

Ancillary still showed momentum but came in below expectations. Compounding (1-212) 270-0613

ethan.coyle@jpmchase.com

the demand softness, costs were positioned for a stronger peak season that failed

Brendan Shea, CFA

to materialize, driving roughly 120 bps of YoY margin contraction. Management

(1-212) 622-0770

noted leads improved late June into early July, although we expect near‑term brendan.shea@jpmorgan.com

pressure on the shares. Thursday’s call will be a key premium test to assess if this J.P. Morgan Securities LLC

was primarily industry-driven or points to share loss/execution issues.

• Top-Line Miss, EPS Short: Lead Volume Weakness Weighs: Rollins

missed expectations across the board in 2Q26, with revenue of $1,079M (vs.

$1,094M consensus; +7.9% YoY) and adjusted EPS of $0.32 (vs. $0.34).

Organic growth was 5.7%, with acquisitions contributing 2.2%. Residential

revenue of $486M rose 6.6% YoY but only 3.6% organically (vs. 5.8%