Rollins Inc. (ROL) official guidance

We continue to expect M&A to contribute 2%-3% of revenue growth for 2026.

Our expectation for 2%-3% of growth from acquisitions, as well as our expectation that cash flow will continue to convert at a rate above 100%, remain unchanged for the year.

We expect the timing-related headwinds to cash flow growth that we have experienced year-to-date to reverse as we move through the remainder of the year, particularly in the fourth quarter, resulting in a neutral impact on full-year cash flow growth.

We expect our effective tax rate to come in under 25% for the year, down approximately 100 basis points from historical levels.

Fuel costs represented approximately 1.8% of sales in the second quarter and are expected to remain below 2% of sales for 2026.

We now expect organic growth of at least 6% for the year and incremental margins of at least 10% for 2026, with implied margin improvement in the back half of the year to be Q4-weighted.

We now expect organic growth of at least 6% for the year and incremental margins of at least 10% for 2026, with implied margin improvement in the back half of the year to be Q4-weighted.

We now expect organic growth of at least 6% for the year and incremental margins of at least 10% for 2026, with implied margin improvement in the back half of the year to be Q4-weighted.

Customer response to our recent price increase has been favorable, and we continue to expect to be positive on price costs for the year.

With that said, we are still holding strong to our incremental margin profile and as well as our ability to grow earnings in that double-digit range.

For the full year, that mid-teen sort of growth rate in cash is something that we continue to target and have a lot of confidence in delivering.

Considering those 2 or 3 points, I think it gives us a lot of confidence that Q2, Q3, and Q4, we should see improvements in the margin profile to get us back into that range that we're targeting.

We're seeing good receptivity on our recent price increase and expect price to contribute 3%-4% of growth for the year ahead of CPI, and we expect to be positive on price cost for the year at that level of price realization.

While margin performance was muted by pressures from insurance and claims, as well as deleverage from people costs and selling investments on lower volume early in the quarter, we anticipate improving profitability in our underlying operations as we enter peak season.

We are encouraged as we look to 2026 and are focused on delivering another year of double-digit revenue, earnings, and cash flow growth.

A focus on pricing, ongoing modernization efforts, and a culture of continuous improvement should support an improving margin profile.

We are positioned extremely well to deliver on our financial objectives and continue to expect organic growth in the 7%-8% range for the year with growth from M&A of 3%-4%.

We remain focused on driving double digit growth in earnings, improving our incremental margin profile while investing in growth opportunities, and we anticipate the cash flow will continue to convert at a rate that is above 100% for 2025.

This year we've talked about 25%-30% incremental margin targets for the year. We're approaching that year-to-date. As we go through the fourth quarter, we'll continue to evaluate that, but we feel good about where our current level of incremental margins are.

We are positioned extremely well to deliver on our financial objectives and continue to expect organic growth in the 7%-8% range for the year with growth from M&A of 3%-4%.