Rollins Inc at JPMorgan U.S. All Stars Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Cameron Kissel - JPMorgan - Analyst : And I guess just starting from a pretty high level, what we're seeing on the economic front is a very peculiar labor picture. Immigration is impacting job numbers a lot. Just wondering how that's impacting you guys in the front line because I guess the juxtaposition as all of the correlated growth indicators are still very strong for us. So we still see a strong economy. At the same time, labor is giving us a really peculiar picture. So just wondering what you guys are seeing on the demand side. And just what do you see on the front lines?

Question: Cameron Kissel - JPMorgan - Analyst : And then, I guess, if I just kind of walk through the algorithm, so just curse look back over the last nearly quarter of Sentry, revenues have gone from $600 million, $700 million to more like $3.8 billion. Margins are up over 800 basis points. Free cash flow conversions at very high, 100%-plus. On the growth side, if you kind of look at -- organic tends to be seven or eight, you get a couple of points of M&A. How do we break down that organic side between price and volume? This is just kind of bigger picture, but just wondering what you're seeing on the pricing side as you delineate --

Question: Cameron Kissel - JPMorgan - Analyst : Maybe just to follow up on this. You mentioned commercial ramping. Maybe just -- I know the B2B sales cycle is longer, residential ramps faster. So the investment in commercial takes longer to come through. At the same time, that's what's happening. It's resonating now. How do we think through the mix between the 2? And maybe what's happening competitively? And obviously, I guess, we contract that we might get housing news today on rates and the housing market sort of the block. But just how do you guys think about commercial versus resi as that commercial ramps?

Question: Cameron Kissel - JPMorgan - Analyst : And I guess maybe just following up on the commercial side, fewer competitors, feels like you've really been successful taking share. Is there anything that you're noting competitively? There's Obviously, a local player who also competes in that market and shareholders share we've seen them, some of their challenges and just wondering what that's -- what you guys are seeing on the front lines competitively?

Question: Cameron Kissel - JPMorgan - Analyst : Yes. So is it safe to say, we will get to inorganic growth in me, but the organic growth investments that you guys made and you're sort of benefiting from now. There's not more of that to come near term or sort of where you need to be. It's just more of a catch-up or opportunity to do this once every few years. How do we -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 17, 2025 / 8:00AM, ROL.N - Rollins Inc at JPMorgan U.S. All Stars Conference

Question: Cameron Kissel - JPMorgan - Analyst : And what does that mean numerically for incremental margins as we start to leverage some of those people costs?

Question: Cameron Kissel - JPMorgan - Analyst : And maybe, I guess, just a follow-up of leveraging people and arming them with additional services to sell. I came across this term creative selling in one of the transcripts, which obviously sounds a bit like cross-selling. But just maybe a holistic view on your approach to new products and services and arming your people with additional products to sell.

Question: Cameron Kissel - JPMorgan - Analyst : And then just, I guess, back to M&A. The last time I interviewed you guys two years ago, we were digesting the Fox deal, big acquisition, big implications. And now you guys have just finished the sale deal, you do a ton of M&A all the time. Maybe just learnings from those two, any nuances to relay. And then what you're seeing competitively as the backdrop changed at all? And higher rate environment? Or is it just kind of business as usual? And maybe just to follow on, sorry, several questions here, but are there new regions or geographies that you sort of strategize around that you might want to lean into?

Question: Cameron Kissel - JPMorgan - Analyst : And maybe just going back to customers. One of the fall-in and price I wanted to ask was, can you elaborate on this term or how you think about rollbacks? I think this is where maybe price increases are pushed back by the customer?

Question: Cameron Kissel - JPMorgan - Analyst : And just, I guess, back to the US market overall in different regional cohorts. How do we -- any update or a way to think about in your core markets where you're seeing different trends? Or I know you guys have kind of committed to specific areas you want to invest in, but any you could say about specific areas being healthier or less healthier?

Question: Cameron Kissel - JPMorgan - Analyst : Such as -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 17, 2025 / 8:00AM, ROL.N - Rollins Inc at JPMorgan U.S. All Stars Conference

Question: Cameron Kissel - JPMorgan - Analyst : And maybe just a follow-on there. We talked last time ever you do about the holistic global trend, weather, radical weather events, extremely hot weather, different pockets of the US becoming harder than normal. That all feels like it's still coming your way? It still feels like a tailwind for all.

Question: Cameron Kissel - JPMorgan - Analyst : Here we enjoyed the best British summer in two decades as a father of a 10 to 12-year old not worried about was. Just shifting gears, I guess I wanted to think about advertising and any impact from AI. I guess, in an old world, we would have talked about the enhanced digital piece. You mentioned slain the door-to-door approach. Just wondering about ROIs and lead times as AI has sort of hit flight, are you -- how do you guys think about it? How should we think about it as it relates to advertising and leads in new business front?

Question: Cameron Kissel - JPMorgan - Analyst : And I guess I wanted to go back to resi and home building. Obviously, the -- we've had several other meetings with businesses tied to that around here. We're right on the cusp of a new rate cycle, maybe. But as you guys have looked at other just from a macro perspective, how do you think about the housing market as it relates to your business? It's sort of been honestly for a while for a lot of really well-understood reasons that might be on the custom of changing, but might that unlock a different three to four years ahead of us on the resi side.

Question: Cameron Kissel - JPMorgan - Analyst : I was looking through one of the presentations from last autumn, and it was a look back at your business characterizing different periods and showing financial metrics during this period. So for example, great financial crisis. Revenues were sort of mid- to high singles. It shows that you guys deliver Raynochein, which is the point. And the second category was industrial or time frame was industrial slowdown 2015, 2016. Everybody who went through that period, remember some of the implications. And that was a similar revenue profile and then the third was the COVID pandemic. Obviously, revenue growth more likely doubled and then there are some real labor challenges coming out of it. There's a question here, which is as we look back at what we've been through now in the last three years? What will that be marked by from your perspective? And how will you frame the puts and takes of that period? Will it be around a lack of labor coming out of COVID and some challenges on that front? Will it be a reacceleration of commercial? Or how do we think about how you will define the last few years?

Question: Cameron Kissel - JPMorgan - Analyst : I -- we've got about five minutes left. That was a thorough answer. I appreciate it. And I know there are some holders in the audience. So I'll keep going, but I just thought I might turn it over to see if anybody wants to ask a question. Please, Sami. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 17, 2025 / 8:00AM, ROL.N - Rollins Inc at JPMorgan U.S. All Stars Conference Unidentified Participant Just on the competitive side, Rentokil have had their issues much like yourself over the last few years, and they've been looking to write that. Are you seeing any change in competitive behavior from them at all? Are you noticing M&A markets or in the market simply big enough for revenue to succeed?

Question: Cameron Kissel - JPMorgan - Analyst : James, please. Is there a microphone there? Unidentified Participant Yes. This was a great business 10 years ago. You guys are making even better today. You talked about some of the growth programs. Could you elaborate a little bit on the ones that you think might be the most material? And then from a kind of a commercial pitch standpoint, are there any ingredients that you could bring into a commercial pitch that others just simply can't match?

Question: Cameron Kissel - JPMorgan - Analyst : That's great. We are just running out of time. I think we -- not perfectly time was. Gentlemen, thank you very much. Thank you really appreciate it. Thanks.