Rollins Q1 Revenue Jumps 10.2% to $906.4M; Dividend Set at $0.1825
Rollins Inc posted Q1 net income of $107.8 million with adjusted EPS of $0.24 and revenue of $906.4 million, up 10.2% year-over-year and $11.3 million above forecasts. The board declared a dividend of $0.1825 per share payable June 10 and invested $18 million in acquisitions.
1. Q1 Financial Results
Rollins Inc posted net income of $107.8 million for the quarter, matching prior year growth of 2.5% with adjusted EPS of $0.24 per share. Total revenue reached $906.4 million, up 10.2% year over year and $11.3 million above consensus estimates.
2. Margin and Cash Flow Trends
Operating income rose 2.0% to $145 million, while adjusted operating income increased 4.0% to $153 million, even as operating margin contracted by 120 basis points to 16.1% and adjusted margin slipped 100 basis points to 16.9%. Operating cash flow declined 19.4% to $118 million and free cash flow fell 20.6% to $111 million, impacted by tax timing and semi-annual interest payments on 2035 notes.
3. Strategic Investments and M&A
During the quarter the company invested $18 million in acquisitions, including the Romex deal completed in April, and spent $7 million on capital expenditures. Management highlighted sequential improvement in March with 12% total growth and over 8% organic expansion as it prepares for peak season demand.
4. Dividend Declaration
The board approved a regular quarterly cash dividend of $0.1825 per share, payable June 10 to shareholders of record on May 11, supporting a balanced capital allocation strategy alongside investments and dividend payouts.