Rollins earnings date
Rollins (RLS) Q3 2026 Earnings Report
DE:RLS Q3 2026 EPS Results
- Actual EPS
- EUR 0.30
- Consensus EPS
- EUR 0.31
- Beat/Miss
- Missed by -EUR 0.00
- One Year Ago EPS
- EUR 0.30
DE:RLS Q3 2026 Revenue Results
- Actual Revenue
- EUR 975.64M
- Expected Revenue
- EUR 989.66M
- Beat/Miss
- Missed by -EUR 14.02M
- YoY Revenue Growth
- +6.19%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/21/2026
- Time
- After Close
- Conference Call
- Wednesday, October 21, 2026
Rollins's next earnings date is estimated for February 17, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call reflected significant near-term challenges, including weaker residential lead flow, a reduction in full-year organic growth guidance, lower profitability and continued uncertainty from AI-driven changes in customer discovery. These concerns were partly offset by healthy recurring customer trends, strong cash generation, a solid balance sheet, resilient door-to-door and commercial channels, active corrective initiatives and confidence in the long-term growth opportunity. Overall, the positive structural strengths and remediation efforts were balanced by meaningful current operating pressure.
For 2026, Rollins now expects organic growth of 4% to 6% and corresponding incremental margins ranging from slightly positive to 10%; the midpoint of approximately 5% growth assumes lead volumes remain below the prior year but stabilize at Q3 levels, the low end of 4% assumes lead trends deteriorate further from Q3 levels, and the high end of 6% assumes lead volumes meaningfully improve from Q3 levels. The company’s expectation for 2% to 3% of growth from acquisitions and cash flow conversion at a rate above 100% remain unchanged for the year, while full year ETR is expected to come in under 25%, down approximately 100 basis points from historical levels, fuel costs are expected to remain below 2% of sales for 2026, and the company expects to be positive on price/cost for the year. Longer term, Rollins believes the business has the potential to return to the organic growth algorithm of 7% to 8% and achieve incremental margins in the 30% to 35% range over time.
- Revenue Growth Across SegmentsThird-quarter total revenue increased 6.2%, including organic growth of 4.4%. Residential revenue increased 4.9%, commercial pest control increased 7.7%, and termite and ancillary revenue increased 6.5%. Organic growth was 2.3% in residential, 6.6% in commercial, and 5.3% in termite and ancillary.
- Healthy Recurring Customer BaseThe recurring residential customer base remained healthy, with customer count continuing to grow in the third quarter and retention remaining strong. Management said recurring residential performance remained in line with historical trends and was better than one-time business.
- Strong Performance from Relationship-Driven ChannelsBrands using direct sales, door-to-door marketing and homebuilder partnerships delivered stronger organic growth than the overall company. HomeTeam and Fox continued to perform well, with Fox delivering double-digit growth and no sign of weakness in these channels.
- Commercial Orkin GrowthOrkin's commercial business continued to grow at a high-single-digit rate, and management later characterized core Orkin commercial growth as over 8%, reflecting investments in expanded commercial capabilities.
- Early Improvement in September Digital IndicatorsOrganic website traffic improved from a 13% year-over-year decline in August to a 4% decline in September. Organic search leads improved 5% since July, providing early but still inconsistent signs of progress.
- Targeted Customer-Acquisition StrategyManagement outlined three priorities: improving brand visibility across traditional and LLM-driven search, making service differentiation clearer through local content and pricing transparency, and continuously testing, learning and reallocating resources toward channels that generate qualified leads and stronger returns.
- Rapid Improvements in AI Search VisibilityThe company added pricing transparency to Orkin's online information and said the change was implemented within weeks and was subsequently picked up by LLMs. Management also reported that messaging around same-day and next-day availability, service offerings and local content appeared to generate faster improvements.
- Expansion into Paid AI AdvertisingRollins has begun testing paid advertising opportunities on AI search platforms, including ChatGPT and Google Gemini, as those platforms begin pilots that allow advertising monetization.
- Pricing Remains SupportiveManagement continues to view Rollins as a CPI-plus business, with pricing expected to be approximately 3% to 4% across the portfolio, more heavily weighted toward commercial than residential. Customer response to the recent price increase was favorable, and the company expects to be positive on price/cost for the year.
- Strong Cash GenerationThird-quarter operating cash flow was $242 million and free cash flow was $235 million. Free cash flow conversion was 149%, or 109% excluding the $63 million tax refund received during the quarter. Management said cash flow is expected to continue converting at a rate above 100% for the year.
- Balance Sheet and Capital Allocation FlexibilityThe leverage ratio was 1x and management said the balance sheet remained strong. During the quarter, Rollins completed seven acquisitions totaling $27 million, paid $87 million in dividends and repurchased $120 million of shares.
- Dividend IncreaseThe company announced another 10% increase in its quarterly cash dividend. Management said the regular dividend has now doubled since the beginning of 2022.
- Tax Rate OutlookAlthough the third-quarter effective tax rate increased to 25.7% from 24.8% a year ago, management continues to expect the full-year effective tax rate to be under 25%, approximately 100 basis points below historical levels.
- Long-Term Growth and Margin PotentialManagement maintained that the business has the potential to return to its 7% to 8% organic growth algorithm and achieve incremental margins of 30% to 35% over time. The company said its recurring model, diversified portfolio, scale, financial flexibility and customer relationships support that long-term opportunity.
- M&A Pipeline Remains ActiveManagement said it has a strong pipeline of M&A opportunities and will continue pursuing accretive businesses that are better than the company's existing operations and support longer-term organic growth. The current customer-acquisition disruption has not changed its M&A philosophy.
- Noncompete Matter Described as a NoneventManagement said the FTC matter involving noncompete clauses had been a nonissue for the business. Rollins rolled back noncompetes in parts of the business where they remained, and management said the agreements had never been enforced or were very rarely enforced.
DE:RLS Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 17, 2027 | 2026 (Q4) | 0.23- | 0.21 | ― | ― |
| Oct 21, 2026 | 2026 (Q3) | 0.310.30 | 0.3 | 0.00% (+0.00) | |
| Jul 22, 2026 | 2026 (Q2) | 0.300.27 | 0.26 | 3.45% (+0.01) | |
| Apr 22, 2026 | 2026 (Q1) | 0.210.20 | 0.2 | 0.00% (+0.00) | |
| Feb 11, 2026 | 2025 (Q4) | 0.240.21 | 0.2 | 9.09% (+0.02) | |
| Oct 29, 2025 | 2025 (Q3) | 0.290.30 | 0.25 | 21.43% (+0.05) | |
| Jul 23, 2025 | 2025 (Q2) | 0.270.26 | 0.24 | 7.41% (+0.02) | |
| Apr 23, 2025 | 2025 (Q1) | 0.200.20 | 0.17 | 15.79% (+0.03) | |
| Feb 12, 2025 | 2024 (Q4) | 0.210.20 | 0.2 | 0.00% (+0.00) | |
| Oct 23, 2024 | 2024 (Q3) | 0.270.25 | 0.23 | 7.69% (+0.02) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
