Rollins, Inc.

Strong First Quarter Performance: Rollins reported a revenue growth of 9.9% year-over-year, with organic growth at 7.4%. This was achieved despite a headwind from foreign currency and one less business day in the quarter. Notably, gross margin improved to 51.4%, the highest first-quarter gross margin in recent history, signaling operational efficiency.

Acquisition of Saela Pest Control: The company closed the acquisition of Saela, expected to add $45 million to $50 million in revenue in 2025. Saela's residential revenue is approximately 95% of its business, providing strong synergies in high-demand regions, aiding Rollins' multi-brand strategy. The deal is anticipated to be accretive to earnings in the first full year.

Increased Investment Spending: Rollins continued to invest heavily in sales staffing and marketing as pest season approaches, which has tempered EBITDA margins but is expected to yield positive results as the year progresses. Management anticipates improved margin profiles in the back half of the year.