Rollins Inc (ROL) 2025 Q3 法說會逐字稿

Greetings, and welcome to the Rollins, Inc., third quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

各位好，歡迎參加 Rollins, Inc. 2025 年第三季財報電話會議。（操作說明）提醒各位，本次會議正在錄音。

It is now my pleasure to introduce your host, Lyndsey Burton. Thank you. You may begin.

現在我很榮幸地向大家介紹主持人林賽伯頓。謝謝。你可以開始了。

Thank you, and good morning, everyone. In addition to the earnings release that we issued yesterday, the company has also prepared a supporting slide presentation. The earnings release and presentation are available on our website at rollins.com.

謝謝大家，大家早安。除了昨天發布的獲利報告外，該公司還準備了一份配套的幻燈片簡報。收益報告和簡報可在我們的網站 rollins.com 上查看。

We have included certain non-GAAP financial measures as part of our discussion this morning. The non-GAAP reconciliations are available in the appendix of today's presentation as well as in our earnings release.

在今天上午的討論中，我們納入了一些非GAAP財務指標。非GAAP財務指標調整表可在今天簡報的附錄以及我們的獲利報告中查閱。

The company's earnings release discusses the business outlook and contains certain forward-looking statements. These particular forward-looking statements and all other statements that have been made on this call, excluding historical facts, are subject to a number of risks and uncertainties, and actual results may differ materially from any statement we make today. Please refer to yesterday's press release and the company's SEC filings, including the Risk Factors section of our Form 10-K for the year ended December 31, 2024.

該公司發布的盈利報告討論了業務前景，並包含一些前瞻性陳述。這些前瞻性陳述以及本次電話會議中所做的所有其他陳述（歷史事實除外）均受諸多風險和不確定性的影響，實際結果可能與我們今天所做的任何陳述有重大差異。請參閱昨天的新聞稿和公司向美國證券交易委員會提交的文件，包括截至 2024 年 12 月 31 日止年度的 10-K 表格中的「風險因素」部分。

On the line with me today and speaking are Jerry Gahlhoff, President and Chief Executive Officer; and Ken Krause, Executive Vice President and Chief Financial Officer. Management will make some opening remarks, and then we'll open the line for your questions.

今天和我連線並發言的是總裁兼執行長傑瑞·加爾霍夫，以及執行副總裁兼財務長肯·克勞斯。管理階層將作開場致辭，之後我們將開放提問環節。

Jerry, would you like to begin?

傑瑞，你想開始嗎？

Thank you, Lyndsey. Good morning, everyone. I'm pleased to report Rollins delivered exceptional third-quarter results. Overall, we continue to see solid growth across all major service lines with total revenue growth of 12% and organic growth of 7.2%. Growth from acquisitions was bolstered by the performance of Saela, which continues to exceed our expectations. The integration of Saela has progressed very smoothly, thanks to the efforts of our collective teams.

謝謝你，林賽。各位早安。我很高興地報告，羅林斯公司第三季業績表現出色。整體而言，我們所有主要服務線均持續保持穩健成長，總收入成長 12%，有機成長 7.2%。Saela 的出色表現進一步推動了收購帶來的成長，其業績持續超越我們的預期。由於我們團隊的共同努力，Saela 的整合工作進展得非常順利。

As you know, we believe in the combination of Orkin, and our strong group of regional brands is a competitive differentiator for Rollins, giving us multiple bites at the apple with potential customers while also providing some balance and diversification with respect to customer acquisition. The addition of Saela further strengthens these competitive advantages for us.

如您所知，我們相信 Orkin 與我們強大的區域品牌組合相結合，是 Rollins 的競爭優勢，使我們能夠多次接觸潛在客戶，同時在客戶獲取方面提供一定的平衡和多元化。Saela的加入進一步增強了我們的這些競爭優勢。

Our investments in strategic M&A opportunities are also complemented by ongoing investments to drive organic growth. We've made a number of investments on the Commercial side of the business and remain encouraged by the momentum we are seeing as a result.

我們在策略併購機會方面的投資，也輔以持續的投資來推動內生成長。我們在商業領域進行了一些投資，並且對由此產生的良好勢頭感到鼓舞。

Over the last year, we have strategically added resources to support our dedicated Commercial division within Orkin. These resources are paying off as Orkin Commercial delivered double-digit recurring growth in the third quarter. As a reminder, while Commercial takes a little more upfront investment to drive growth, it's also the highest retention business amongst our service lines, making the lifetime value of these customer relationships very attractive. Beyond growth, our dedication to operational efficiency and continuous improvement is an important part of our strategy and culture.

過去一年，我們策略性地增加了資源，以支持 Orkin 內部專門的商業部門。這些投入正在取得成效，Orkin Commercial 在第三季實現了兩季的經常性成長。需要提醒的是，雖然商業業務需要更多的前期投資才能推動成長，但它也是我們所有服務線中客戶留存率最高的業務，因此這些客戶關係的終身價值非常有吸引力。除了成長之外，我們對營運效率和持續改善的執著也是我們策略和文化的重要組成部分。

Ken will discuss in more detail, but we are pleased with our margin performance in the quarter, which was supported by some favorability related to insurance and claims as well as leverage in other key cost areas. Encouragingly, we continue to see tremendous improvements in teammate retention as a result of our ongoing initiatives, which benefits us from a people cost perspective. We also leveraged sales and marketing expenses despite ongoing investments we continue to make in support of long-term growth objectives.

Ken 將會進行更詳細的討論，但我們對本季的利潤率表現感到滿意，這得益於保險和索賠方面的一些利好因素，以及其他關鍵成本領域的槓桿作用。令人鼓舞的是，由於我們持續推進各項舉措，團隊成員的留任率不斷大幅提高，這從人力成本的角度來看對我們有利。儘管我們持續進行投資以支持長期成長目標，但我們也利用了銷售和行銷費用。

We're also proud of the significant investments we're making in our people to support the future growth of our company and establish consistent leadership behaviors across the enterprise. Our talent and development team has designed a program called the [Collab], a 3.5-day experience for all people managers. Our teammates meet in cross-branded groups for best practice sharing and networking. Servant leadership is the foundation of these sessions, which are designed to help leaders enhance skills for personal development, team development, and business growth. After the initial session, leaders participate in additional guided practice, peer coaching, and ongoing learning.

我們也為在員工方面進行的巨大投資感到自豪，這些投資旨在支持公司的未來發展，並在整個企業中建立一致的領導行為。我們的人才發展團隊設計了一個名為 [Collab] 的項目，這是一個為期 3.5 天的體驗，面向所有人事經理。我們的團隊成員會以跨品牌小組的形式進行交流，分享最佳實踐並建立人脈。僕人式領導是這些課程的基礎，這些課程旨在幫助領導者提升個人發展、團隊發展和業務成長的技能。首次培訓結束後，領導者將參加額外的指導練習、同儕輔導和持續學習。

Our efforts here are intended to create a marketplace of cross-brand, cross-functional talent, where teammates can seamlessly transfer between brands, divisions, our home office, and field operations. This will further enhance career opportunities for our teammates and create a robust pipeline of future leaders that will not only sustain our growth, but also help us reach our full potential. The [Collab] initiative began this summer and will continue well into next year as we put over 2,000 additional people leaders through this development experience.

我們在此所做的努力旨在創造一個跨品牌、跨職能的人才市場，讓團隊成員能夠在品牌、部門、總部和現場營運之間無縫調動。這將進一步提升我們團隊成員的職涯發展機會，並打造一支強大的未來領導者隊伍，這不僅能維持我們的成長，還能幫助我們充分發揮潛力。[協作]計劃於今年夏天啟動，並將持續到明年，我們將讓 2000 多名領導者參與這項發展體驗。

In closing, we're excited about where our business stands today. As we look to close out 2025, we remain well positioned for continued growth, both organically and through acquisitions, and are focused on continuous improvement initiatives to develop our people and enhance profitability throughout our business. I want to thank each of our teammates for their ongoing commitment to their customers.

最後，我們對公司目前的業務發展狀況感到非常興奮。展望 2025 年，我們依然處於有利地位，能夠透過內生成長和收購實現持續成長，並專注於持續改善舉措，以培養我們的員工並提高我們整個業務的獲利能力。我要感謝我們每一位團隊成員對客戶的持續付出。

I'll now turn the call over to Ken. Ken?

現在我將把電話交給肯。肯？

Thanks, Jerry, and good morning, everyone. The third quarter reflects continued strong execution by our team. The team delivered exceptional financial performance throughout.

謝謝你，傑瑞，大家早安。第三季業績反映了我們團隊持續強勁的執行力。該團隊在整個過程中都取得了卓越的財務表現。

A few highlights to start. Growth was robust again this quarter. We delivered revenue growth of 12% year over year with organic growth of 7.2% versus last year across our service offerings. Adjusted EBITDA margin improved 120 basis points to 25.2%, driven by leverage across the P&L with incremental margins of approximately 35%.

先列舉幾個重點。本季成長依然強勁。我們實現了同比增長 12% 的收入增長，其中各項服務產品的有機增長率為 7.2%。經調整的 EBITDA 利潤率提高了 120 個基點，達到 25.2%，這主要得益於損益表中各環節的槓桿作用，利潤率提高了約 35%。

Our GAAP earnings were up over 21% to $0.34 per share. And excluding certain purchase accounting expenses, primarily associated with larger acquisitions like Fox from 2023 and Saela of this year; earnings were $0.35 per share. And finally, we delivered over 30% improvement in operating cash flow, while free cash flow was up 31% versus the same period a year ago. This is enabling another strong increase in our dividend here in the fourth quarter.

我們的GAAP收益成長超過21%，達到每股0.34美元。除去某些購買會計費用（主要與 2023 年收購 Fox 和今年收購 Saela 等大型收購有關），每股收益為 0.35 美元。最後，我們的經營現金流改善了 30% 以上，而自由現金流與去年同期相比成長了 31%。這將使我們在第四季度再次大幅提高股息。

Diving further into the quarter, we saw double-digit growth across each of our service offerings. In the third quarter, Residential revenues increased 11.2%. Commercial pest control rose 11.8%. And Termite and Ancillary increased by 15.2%.

深入分析本季度，我們發現所有服務產品均實現了兩位數的成長。第三季度，住宅收入成長了11.2%。商業害蟲防治業務成長了11.8%。白蟻及相關業務成長了 15.2%。

Organic growth was also healthy across the portfolio with growth of 5.2% in Residential, 8.3% in Commercial and 10.8% in Termite and Ancillary. Organic growth remained healthy in the quarter across our service offerings with growth rates that were in line or ahead of the first half. We finished with a strong September and are heading into Q4 with a healthy backlog.

整個投資組合的有機成長也十分健康，其中住宅業務成長 5.2%，商業業務成長 8.3%，白蟻防治及輔助業務成長 10.8%。本季度，我們各項服務產品的自然成長保持良好勢頭，成長率與上半年持平或高於上半年。九月業績表現強勁，進入第四季時，我們有充足的訂單儲備。

Turning to profitability. Our gross margins were healthy at 54.4%, a 40 basis point increase versus last year. We saw improvements in materials and supplies, insurance and claims, and fleet expenses, excluding vehicle gains, while people costs were neutral. People costs were negatively impacted by increased reserves for medical-related claims compared to a year ago.

轉向盈利。我們的毛利率健康，達到 54.4%，比去年增長了 40 個基點。我們看到材料和供應、保險和索賠以及車隊費用（不包括車輛收益）均有所改善，而人力成本則保持不變。與一年前相比，醫療相關索賠準備金的增加對人力成本產生了負面影響。

Quarterly SG&A costs as a percentage of revenue improved by 60 basis points versus last year. We saw leverage across most key cost categories, including sales and marketing, administrative costs and insurance and claims, while fleet was neutral.

季度銷售、管理及行政費用佔收入的百分比比去年同期下降了 60 個基點。我們看到大多數關鍵成本類別都出現了槓桿效應，包括銷售和行銷、管理成本以及保險和索賠，而車隊成本則保持中立。

Third-quarter GAAP operating income was $225 million, up 17.3% year over year. Adjusted operating income was $232.1 million, up 18.4% versus prior year. Third-quarter EBITDA was $257.6 million, up 17.1% and representing a 25.1% margin. Our adjusted EBITDA was $258.3 million, up just under 18% and representing a 25.2% margin.

第三季 GAAP 營業收入為 2.25 億美元，較去年同期成長 17.3%。經調整後的營業收入為 2.321 億美元，比上年增長 18.4%。第三季 EBITDA 為 2.576 億美元，成長 17.1%，利潤率為 25.1%。我們調整後的 EBITDA 為 2.583 億美元，成長近 18%，利潤率為 25.2%。

Incremental margins were 35.4% for the quarter, driven by our direct cost leverage, as previously mentioned. We benefited from a net $5 million of favorable adjustments related to auto- and medical-related claims. Excluding these adjustments, incremental margins still approximated 31%.

如前所述，本季增量利潤率為 35.4%，這主要得益於我們的直接成本槓桿作用。我們從與汽車和醫療相關的索賠中獲得了 500 萬美元的有利調整。不計這些調整，增量利潤率仍約為 31%。

As we previously discussed, we expected to see an improvement in the second half of the year. As a result of the improved performance in Q3, year-to-date incremental margins are now approaching 25%. The effective tax rate was 24.8% in the quarter, below our rate a year ago of 26.1%. Our tax planning efforts are paying off and are helping reduce our effective rate. We expect our effective rate -- effective tax rate to continue to benefit from this longer term.

正如我們之前討論過的，我們預計下半年情況會有所改善。由於第三季業績改善，今年迄今的增量利潤率已接近 25%。本季實際稅率為 24.8%，低於一年前的 26.1%。我們的稅務規劃工作正在取得成效，並有助於降低我們的實際稅率。我們預計，從長遠來看，我們的實際稅率將繼續受益於此。

Quarterly GAAP net income was $163.5 million or $0.34 per share, increasing from $0.28 per share in the same period a year ago. For the third quarter, we had non-GAAP pretax adjustments primarily associated with the Fox and Saela acquisition-related items, totaling approximately $7 million of pretax expense in the quarter. Accounting for these expenses, adjusted net income for the quarter was $168.5 million or $0.35 per share, increasing over 20% from the same period a year ago.

以美國通用會計準則計算，季度淨收入為 1.635 億美元，即每股 0.34 美元，高於去年同期每股 0.28 美元。第三季度，我們有一些非GAAP稅前調整，主要與收購Fox和Saela相關的項目有關，該季度稅前支出總計約700萬美元。在計入這些費用後，該季度調整後的淨收入為 1.685 億美元，即每股 0.35 美元，比去年同期增長超過 20%。

Turning to cash flow and the balance sheet. Operating cash flow increased 30% to $191 million. We generated $183 million of free cash flow, increasing approximately 31%. Cash flow conversion, the percent of income that was converted into operating cash flow was strong at 112% for the quarter. And for the nine months -- first nine months of the year, we converted 120% of income into operating cash flow.

接下來我們來看現金流量表和資產負債表。經營現金流成長30%，達到1.91億美元。我們產生了 1.83 億美元的自由現金流，成長了約 31%。本季現金流轉換率（即營收轉化為經營現金流的百分比）表現強勁，達到 112%。而在這九個月裡——也就是今年的前九個月，我們將 120% 的收入轉化為經營現金流。

We made acquisitions totaling $35 million, and we paid $80 million in dividends in the quarter. Dividend payments increased 10% from the prior year and are at a healthy and sustainable rate at approximately 44% of free cash flow in Q3 and 49% of free cash flow year to date.

本季我們進行了總額達 3,500 萬美元的收購，並支付了 8,000 萬美元的股息。股息支付較上年增長 10%，目前處於健康且可持續的水平，第三季度約佔自由現金流的 44%，年初至今約佔自由現金流的 49%。

We also just announced another 11% increase to our quarterly cash dividend earlier this week. Including this recent increase, we have raised our regular dividend by more than 80% since the beginning of 2022. Year to date, we have made acquisitions of almost $300 million. We paid dividends of approximately $250 million. We've invested in CapEx of almost $25 million and have only borrowed approximately $100 million. Cash flow performance has been exceptional this year and is enabling a very attractive and balanced approach to capital allocation.

本週早些時候，我們也宣布將季度現金股利再次提高 11%。包括最近這次的增幅在內，自 2022 年初以來，我們的常規股息已經提高了 80% 以上。今年迄今為止，我們已經完成了近 3 億美元的收購案。我們支付了約 2.5 億美元的股息。我們已投入近 2,500 萬美元的資本支出，而藉款額僅約 1 億美元。今年的現金流表現非常出色，這使得公司能夠採取極具吸引力且平衡的資本配置方式。

As part of our modernization efforts, we accessed the public debt markets earlier this year and established a $1 billion commercial paper program. Despite higher debt balances associated with the Saela acquisition, our interest costs have declined by approximately 7% on a year-to-date basis. Our leverage ratio stands at 0.8 times.

作為現代化努力的一部分，我們在今年稍早進入公共債務市場，並設立了 10 億美元的商業票據計畫。儘管收購 Saela 導致債務餘額增加，但今年迄今為止，我們的利息成本已下降約 7%。我們的槓桿率為0.8倍。

We are positioned well and have access to cost-efficient capital to grow our business. This enables us to continue to execute our balanced approach to capital allocation, reinvest in the business, grow our dividend as earnings and cash flow compound, and pursue share repurchases opportunistically.

我們擁有良好的市場地位，並能獲得成本效益高的資金來發展業務。這使我們能夠繼續執行平衡的資本配置方法，對業務進行再投資，隨著收益和現金流的複合增長而提高股息，並伺機進行股票回購。

As Jerry mentioned, we closed the Saela acquisition earlier in April and are excited about the strategic growth opportunities this acquisition provides us. Saela has performed exceptionally well since the acquisition, growing double digits year-to-date versus last year, while margins were accretive to our margin profile and slightly accretive to EPS on a GAAP basis.

正如 Jerry 所提到的，我們已在 4 月初完成了對 Saela 的收購，並對此次收購帶來的策略成長機會感到興奮。自收購以來，Saela 的表現非常出色，今年迄今與去年相比實現了兩位數的成長，同時利潤率提高了我們的利潤率，並且按 GAAP 計算，每股收益略有提高。

As we look to the remainder of 2025, we remain encouraged by the strength of our markets, our opportunities for growth, and the execution of our teams. We are seeing healthy levels of growth. Margins are expanding. Our tax rate is improving, while earnings and cash flow continues to compound at very healthy rates.

展望 2025 年剩餘時間，我們對市場的強勁勢頭、成長機會以及團隊的執行力仍然充滿信心。我們看到成長處於健康水平。利潤率正在擴大。我們的稅率正在改善，同時收益和現金流繼續以非常健康的速度成長。

We are positioned extremely well to deliver on our financial objectives and continue to expect organic growth in the 7% to 8% range for the year with growth from M&A of 3% to 4%. We remain focused on driving double-digit growth in earnings, improving our incremental margin profile while investing in growth opportunities. And we anticipate that cash flow will continue to convert at a rate that is above 100% for 2025.

我們已做好充分準備，實現財務目標，並繼續預計今年有機成長率將達到 7% 至 8%，併購成長將達到 3% 至 4%。我們將繼續專注於實現兩位數的獲利成長，提高利潤率，同時投資於成長機會。我們預計到 2025 年，現金流轉換率將持續維持在 100% 以上。

With that, I'll turn the call back over to Jerry.

這樣，我就把電話轉回給傑瑞了。

Thank you, Ken. We're happy to take any questions at this time.

謝謝你，肯。我們很樂意回答大家現在提出的任何問題。

(Operator Instructions) Tim Mulrooney, William Blair.

（操作說明）蒂姆·穆爾魯尼，威廉·布萊爾。

Congrats on a nice quarter. I wanted to just talk about the performance in Residential. You talked about accelerating trends coming out of June and into July. Was that momentum largely sustained through the rest of the quarter? And can you talk about how things look in October?

恭喜你本季業績出色。我只想談談住宅方面的表現。你談到了6月到7月以來不斷加速的趨勢。這一成長動能是否在本季剩餘時間內基本得以維持？能談談十月份的情況嗎？

Yeah. We exited well when we go back to Q2, Tim, and we continue to execute well throughout the quarter. In fact, we actually saw even more improvement here in the month of September. It's too early to tell in October.

是的。提姆，回到第二季度，我們收官階段表現良好，而且我們整個季度都繼續保持良好的執行力。事實上，我們在九月看到了更大的進步。十月下結論還為時過早。

Early indications are that it continues to be a healthy pace of growth. But we feel really good about that 5.2% Residential revenue number because when you unpack that number and you look at the more recurring business that we have, it's approaching 6%. And those are really good metrics. Those are metrics that will enable us to continue to deliver on our financial commitments.

初步跡象表明，成長速度依然保持健康。但我們對 5.2% 的住宅收入數字感到非常滿意，因為當你仔細分析這個數字，看看我們更頻繁的業務時，它接近 6%。這些都是非常好的指標。這些指標將使我們能夠繼續履行我們的財務承諾。

Got it. Yeah, that recurring piece being at 6% is -- that does sound healthy. So that's good to hear. I also -- I wanted to switch gears real quick and just ask about Saela.

知道了。是的，那部分經常性支出佔 6%——聽起來確實很健康。聽到這個消息真是太好了。我還想趕緊換個話題，問問關於Saela的事。

I heard you say that the business is performing ahead of your expectations. I was hoping you could dig into that in just a little more detail here, what that actually means. Like are they growing faster than you expected? Or did they have a stronger summer selling season than what you expected when you acquired them this past April? Or were the margins higher than what you were expecting? Is it just a smoother integration? Like what is it about this acquisition that's made it so accretive to EPS so quickly?

我聽您說過，公司的表現超出了您的預期。我希望你能在這裡更詳細地探討一下，這到底是什麼意思。它們的成長速度是否比你預期的還要快？或者說，它們的夏季銷售旺季表現比您在今年四月收購它們時預期的要好？還是利潤率高於您的預期？只是更流暢的整合嗎？這項收購究竟有何特別之處，使其能夠如此迅速地提升每股盈餘？

Yeah. So Tim, when we did our analysis of the Saela transaction, we actually expected revenue in the first 12 months of ownership to be in the probably mid-60 range, and they're outpacing that really well. They're probably, year one, looking in the mid-70s kind of range instead of the mid-60s. So we're really happy with what they've done.

是的。所以提姆，當我們對 Saela 的交易進行分析時，我們實際上預計收購後的前 12 個月的收入可能在 60 左右，而他們目前的業績遠遠超過了預期。他們第一年的預期價格可能在 70 多美元左右，而不是 60 多美元。所以我們對他們的工作成果非常滿意。

And yeah, it's everything that you just talked about. We bought a really good business. They are firing on all cylinders. They also like -- we talk about the diversity amongst our brands. They acquire customers different ways as well. While they do some door-to-door, they're not reliant on door-to-door. Only about a third of their growth comes from the door-to-door segment. The others like us comes from cross-selling their existing customers, additional pest and termite and ancillary services. And then they also do some digital marketing in the markets that they're in.

是的，就是你剛才說的那些。我們收購了一家非常好的公司。他們火力全開。他們也喜歡——我們談論我們品牌之間的多樣性。他們獲取客戶的方式也各不相同。雖然他們也會挨家挨戶推銷，但他們並不依賴挨家挨戶推銷。他們的成長只有大約三分之一來自上門推銷環節。其他和我們一樣的客戶都是透過向現有客戶交叉銷售額外的害蟲和白蟻防治以及其他輔助服務而來的。然後，他們還會在他們所處的市場進行一些數位行銷。

So they, like our overall portfolio, have a very balanced approach in terms of how they grow the business. And they were really excited about the opportunity to be part of Rollins, and we give them the freedom and autonomy to execute and do their jobs.

因此，與我們整體的投資組合一樣，他們在業務成長方面採取了非常平衡的方法。他們對有機會成為羅林斯的一份子感到非常興奮，我們給予他們自由和自主權去執行和完成他們的工作。

And when we talk about integration, there's not a lot of "aside from maybe some back-office stuff" with things like maybe helping them with some HRIS systems and things like that. We're not interfering with the day-to-day operations of the business. We want to let them run, and we want to let them go.

當我們談到整合時，除了可能一些後台工作之外，並沒有太多其他內容，例如幫助他們使用一些人力資源資訊系統之類的。我們不會幹預企業的日常營運。我們想讓他們奔跑，我們想讓他們離開。

And that's our approach to -- when you buy good businesses, that's exactly what you want out of them. And that's exactly what we're getting out of the team at Saela. They've done a great job.

這就是我們收購優秀企業時所秉持的理念——這正是你想要從它們身上獲得的。而這正是我們從Saela團隊所得到的。他們做得很好。

The only thing I would add, Jerry, to that is that the Saela and Fox acquisitions are giving us some new geographies and exposure to very favorable regions of the country. And we're seeing really good benefits associated with that, one.

傑瑞，我唯一要補充的是，收購 Saela 和 Fox 為我們帶來了新的地域優勢，並讓我們有機會接觸到國內一些非常有利的地區。我們看到這帶來了非常好的好處，第一點。

Two, when you think about earnings accretion, to have an acquisition to be neutral or slightly accretive to GAAP earnings in the first 6 months is really very uncommon these days with the cost of borrowing around 4%. And so it's really good to see that. The margin profile is really strong. We're not seeing any significant changes in churn, churn is healthy. And so we feel like we've got a really good business with a great team, and we're excited about the future.

第二，考慮到獲利成長，如今借貸成本約為 4%，收購在前 6 個月內對 GAAP 獲利產生中性或略微成長的情況非常罕見。所以看到這一點真的很好。利潤率非常強勁。我們沒有看到客戶流失率有任何顯著變化，客戶流失是健康的。因此，我們感覺我們擁有一個非常好的企業和一支優秀的團隊，我們對未來充滿期待。

All sounds great. Thanks for the color, guys.

聽起來都很棒。謝謝你們提供的色彩。

Manav Patnaik, Barclays.

馬納夫·帕特奈克，巴克萊銀行。

This is Ronan Kennedy on for Manav. Can you please talk about the investments in Commercial and further elaborate on the timing of an impact to the demand drivers? I think you had alluded to double-digit recurring in Orkin. And then anything to note on competitive dynamics within the Commercial space, please?

這裡是羅南甘迺迪，為您報道馬納夫。請您談談商業領域的投資情況，並進一步闡述這些投資對需求驅動因素的影響時間？我想你之前提到過Orkin公司兩位數的重複收費。那麼，關於商業領域的競爭動態，您還有什麼需要注意的嗎？

Yeah. We continue to see good results there. We've made investments. If you go back to our Investor Day in 2024 in the spring, we had talked about Commercial being an area of focus. And Scott and the team are doing exceptional. We've made significant investments. We've pulled Commercial branches out of Residential branches. We've placed a disproportionate focus on that business, and we've made investments with feet on the street and other sorts of areas. And it's helping us drive very strong levels of growth.

是的。我們持續看到那裡取得良好的成果。我們已經進行了投資。回顧我們在 2024 年春季的投資者日，我們曾討論過商業領域是我們的重點關注方向。斯科特和他的團隊表現非常出色。我們進行了大量投資。我們已將商業分支機構從住宅分支機構中分離出來。我們對這項業務給予了不成比例的關注，並且透過實地考察和其他類型的領域進行了投資。它幫助我們實現了非常強勁的成長。

For the quarter, we were just north of 8%. It accelerated from where it was in the second quarter and in the first half and also from where it finished last year. And so we feel really good about the investments we're making. We're getting productivity from the investments. We're seeing benefits, and we're continuing to grow in a very attractive space.

本季度，我們的成長率略高於 8%。它比第二季和上半年的水平，以及去年的收官水準都加速成長。因此，我們對正在進行的投資感到非常滿意。我們正在從投資中獲得生產力提升。我們看到了成效，並且在一個極具吸引力的領域中持續發展壯大。

Yeah. So one of the investments we made about a year ago was continuing to ramp up in the Commercial sales side. And when you do that, there's training time, it's a longer sales process in Commercial compared to Residential. So those are -- those kinds of investments take a little longer to pan out. But we're seeing some of that leverage when we talk about getting leverage in the sales side this quarter is because productivity of those additional staff is ramping up, we're getting the benefits of that.

是的。因此，我們大約一年前進行的投資之一就是繼續增加對商業銷售的投資。而且，這樣做需要訓練時間，商業不動產的銷售流程比住宅房產還要長。所以，這類投資要更長時間才能見效。但我們看到，本季我們在銷售方面獲得優勢，是因為這些額外員工的生產力正在提高，我們正在從中受益。

We have -- particularly at Orkin, where I mentioned growing double-digit recurring revenue growth in that side. That is being driven by feet on the street, getting our marketing teams aligned to help those salespeople be successful in their jobs. And that's just really going and all the engines are firing or all the cylinders in the engine are firing and they're just doing a great job there.

我們有—尤其是在 Orkin，我提到過，該領域的經常性收入實​​現了兩位數的成長。這是由第一線銷售人員推動的，他們讓我們的行銷團隊與銷售團隊保持一致，幫助銷售人員在工作中取得成功。現在引擎運轉非常順利，所有引擎都在工作，或者說引擎中的所有汽缸都在工作，它們表現得非常出色。

And that's what we said -- it's interesting, Ronan, last year when we finished and even the first half of this year, we talked about incremental margins. And we said that we needed some time for those folks to become more productive. And that's exactly what we've seen here.

我們當時就是這麼說的——羅南，很有意思，去年我們結束的時候，甚至今年上半年，我們都在討論增量利潤。我們說我們需要一些時間讓這些人提高工作效率。而這正是我們在這裡看到的。

As we start the third quarter, we finished the third quarter and start the fourth quarter; incremental margins coming in well above 30% is indicative of what we had indicated would happen. And so it's really good to see the margin profile inflecting higher here in the second half.

隨著我們進入第三季度，我們結束了第三季度，並開始了第四季度；增量利潤率遠高於 30%，這表明我們之前預測的情況將會如此。因此，很高興看到下半年利潤率上升。

And there's still room for improvement.

還有改進的空間。

Right.

正確的。

And that's a good segue to my second question. Just to unpack the incremental margin a little further, please, I think 31% ex insurance, auto, and medical. You just touched on it now. Can you just dive a little deeper on whether it's pricing or productivity, where you are seeing the greatest leverage across SG&A categories? And how we should think about how that will trend in the trajectory over the coming quarters, please?

這正好引出了我的第二個問題。為了更詳細地解釋一下增量利潤率，我認為是 31%，不包括保險、汽車和醫療費用。你剛才已經稍微提到了這一點。您能否更深入探討一下，在銷售、一般及行政費用類別中，您認為最具槓桿效應的因素是定價還是生產力？那麼，我們該如何看待未來幾季的發展趨勢呢？

Certainly. Pricing and productivity are both having a part. Pricing always has a part in the incremental margin and the margin improvement. We are positive on price cost across the business. And so that's certainly helping. But the productivity is certainly paying off as well when you start to see leverage across all -- substantially all aspects of SG&A.

當然。定價和生產力都發揮了作用。定價始終在利潤增量和利潤率提升中發揮作用。我們對整個業務的價格成本持樂觀態度。所以這肯定有所幫助。但當你開始看到 SG&A 的所有面向（幾乎是所有方面）都得到有效利用時，生產力的提升也確實帶來了回報。

When you think about the business, and I've talked about it a few times, but incremental gross margin, when you're in the high 50s like we are this quarter to 58% incremental gross margin, you expect to deliver a 30%-plus sort of profile because you're getting productivity, you're getting leverage on SG&A, and the incremental SG&A is only roughly 23% or so. So you're seeing really good performance up and down the P&L from price cost, from productivity, and it's paying off in both gross and SG&A.

當你思考業務時，我已經談過幾次了，增量毛利率，當你的增量毛利率像我們本季度一樣達到 50% 到 58% 時，你會期望實現 30% 以上的利潤率，因為你提高了生產力，你提高了銷售、一般及行政費用的槓桿作用，而增量銷售、一般及行政費用僅佔 23% 左右。因此，從價格成本到生產力，損益表各方面都表現出色，並且在毛利潤和銷售、管理及行政費用方面都取得了回報。

Thanks very much. Appreciate it.

非常感謝。謝謝。

Toni Kaplan, Morgan Stanley.

東尼卡普蘭，摩根士丹利。

This is Yehuda Silverman on the line for Toni Kaplan. Just had a question about how conversations with customers have been going regarding pricing heading into next year. Have some customers been more or less willing to accept any price increases? And do you see typically an increase more or less in one segment versus another? Thanks.

這是耶胡達·西爾弗曼替托尼·卡普蘭上場。我只是想問一下，關於明年定價方面，我們和客戶的溝通進度如何。顧客對價格上漲的接受度是否有差異？通常情況下，您認為某個細分市場的成長幅度會比其他細分市場更大還是更小？謝謝。

I think the -- when you look at pricing, we are currently meeting right now, we've been meeting for the last month or two internally, looking at all of the data that we benefit from. We feel like our pricing strategy is working, and we feel like it will continue to work as we head into 2026.

我認為——當你審視定價時，我們目前正在開會，過去一兩個月我們一直在內部開會，研究所有我們從中受益的數據。我們感覺我們的定價策略是有效的，而且我們感覺它在進入 2026 年時也會繼續有效。

Our focus, we've said it consistently, it's consumer price inflation plus, so CPI plus. And that's kind of what we're targeting, and we're thinking about how -- as we go into next year. And so this year, it's at 3% to 4%, and we're evaluating that same sort of level as we go into next year. We're not ready to talk about exactly what level, but we feel like it will continue to be a contributor to margins as we think about 2026.

我們一直強調，我們的重點是消費者物價通膨率加上CPI。這就是我們努力的目標，也是我們正在思考如何實現的目標——展望明年。因此，今年的比例在 3% 到 4% 之間，我們預計明年也會維持在這個水準。我們現在還不方便討論具體水平，但我們認為，展望 2026 年，它將繼續對利潤率產生影響。

Got it. And just a quick follow-up on like lead conversion. I was curious, how you're focusing on targeting this younger demographic of customer base and just an update on if you've been able to convert leads faster than a typical season or if it's going as expected with this newer staff you brought on?

知道了。最後再快速跟進一下潛在客戶轉換率的情況。我很好奇，你們是如何專注於吸引年輕客戶群的？另外，能否告知一下，你們的潛在客戶轉換速度是否比往年更快？或者，你們新招的員工是否達到了預期效果？

Yeah. Our lead closure is up. So we're very, very happy with the performance, whether it's on the Residential side through the call center, creative leads, those kinds of things. So it's a testament to not only good sales processes, the training, everything that we invest in ramping up our new teammates that we add to our brands.

是的。我們的銷售線索已完成。所以我們對業績非常非常滿意，無論是住宅方面的呼叫中心服務，還是創意線索等等。這不僅證明了良好的銷售流程、培訓，也證明了我們為提升新加入品牌的團隊成員的能力所投入的一切努力。

If you take a look at what Orkin does and the messaging, the marketing, where they place their ads, the way our media look, who we're trying to appeal to is exactly that. We're looking at how do we target the 30-something year-old, possibly first-time homebuyer, maybe they're the second-time homebuyer that's in the 40- to 45-year range.

如果你看看 Orkin 的業務內容、宣傳訊息、行銷策略、廣告投放地點、媒體宣傳方式，你會發現我們想要吸引的目標受眾正是如此。我們正在研究如何鎖定 30 多歲的人群，他們可能是首次購房者，也可能是 40 到 45 歲之間的第二次購房者。

So when you look at how we design our ads, the messages that we are portraying and where we place those ads, whether it's on TikTok and Facebook and those kinds of things, we're 100% targeted towards those kinds of folks because we know that those are the folks that are buying homes and will need pest control in the future. And rather than doing it themselves, we know they're also the ones that want to use a professional. So we hope to make sure that we're positioned to fulfill that need for them.

所以，當你觀察我們設計廣告的方式、我們傳達的訊息以及我們投放廣告的地點，無論是在 TikTok 還是 Facebook 等平台上，我們 100% 的目標受眾都是這類人群，因為我們知道這些人會買房，將來需要害蟲防治服務。而且我們知道，他們寧願聘請專業人士，也不願自己動手。所以我們希望確保我們能夠滿足他們的這項需求。

Thank you.

謝謝。

George Tong, Goldman Sachs.

喬治唐，高盛集團。

As you look at exit rates and comps from the prior year, can you discuss which segments have the most opportunity for organic growth acceleration in 4Q and what the primary drivers are?

在查看退出率和前一年的比較數據時，您能否討論一下哪些細分市場在第四季度最有潛力實現有機成長加速，以及主要驅動因素是什麼？

Thanks for the question, George. This is Ken. We feel good about our exit rate with respect to our business. We're reluctant to talk too much about Q4 just yet. But what I would say is we feel really good about how we left the quarter from two fronts: one, backlog, really good demand level, especially in some of the Termite and Ancillary business, but also in some of the other areas; and then just general growth. I commented earlier around the recurring revenue in Residential, and we exited Q3 very strongly there as well.

謝謝你的提問，喬治。這是肯。我們對公司的退出率感到滿意。我們現在還不願多談論第四季的情況。但我想說的是，我們對本季末的表現感到非常滿意，主要體現在兩個方面：一是積壓訂單，需求水準非常好，尤其是在白蟻防治和輔助業務方面，其他一些領域也是如此；二是整體成長。我之前評論過住宅業務的經常性收入，我們第三季在該領域的表現也非常強勁。

So all fronts, we feel really good about it as we start the fourth quarter and really excited as we think about all the opportunities we have ahead of us.

所以，從各個方面來看，我們進入第四季時都感覺非常好，想到我們面前的所有機會，我們感到非常興奮。

Got it. That's helpful. And then you mentioned several areas of the business that surprised the upside in the quarter relative to expectations. Were there any parts of the business that perhaps surprised to the downside compared to what you were expecting heading into the quarter?

知道了。那很有幫助。然後您提到，公司有幾個業務領域在本季度都超出了預期，取得了令人驚訝的成長。與本季初的預期相比，業務的哪些方面出現了意料之外的下滑？

Ken, I can't think of anything that we -- it was -- look, it was a really great quarter. I'm super proud of our team's performance. I think they knocked it out of the park.

肯，我想不出有什麼我們——那真是——你看，那真是一個非常棒的季度。我為我們團隊的表現感到無比自豪。我覺得他們做得非常好。

So all that said, though, there's still opportunities that we have to continuously improve and make things better. So I wouldn't think there was any expense issues that were there. Fleet, overall, still continues to be a little bit of a tailwind when you factor in the vehicle gains. But we're continuing to make some strides there.

儘管如此，我們仍然有機會不斷改進和完善事物。所以我認為不存在任何費用問題。總體而言，考慮到車輛數量的成長，車隊規模仍然會帶來一定的推動作用。但我們在這方面正不斷取得進展。

So I feel really good, George, about the quarter. Four numbers I always point to here in the quarter, 7, 12, 20 and 30. 7% organic plus organic growth, 12% total growth, 20% earnings growth and 30% cash flow growth, really exceptional. And not only do you see that type of growth, but we still see opportunities from a price-cost perspective, we see opportunities on the SG&A front as we benchmark that.

喬治，我對這個季度的情況感覺非常好。在這個季度，我總是會提到四個數字：7、12、20 和 30。7% 的有機成長加上有機成長，12% 的總成長，20% 的獲利成長和 30% 的現金流成長，真是非常出色。不僅如此，從價格成本的角度來看，我們也看到了機會，在對標銷售、一般及行政費用時，我們也看到了機會。

And now you can't help but notice the tax rate. And all the things that our tax team is doing at really driving improvements in our tax -- effective tax rate. It's down 120, 130 basis points in the quarter. We're hopeful that we'll start to see that more long term and coming through. And we think there's a plan there.

現在你一定會注意到稅率。我們稅務團隊所做的一切，都真正推動了我們稅收——實際稅率——的改善。本季下降了120至130個基點。我們希望從長遠來看，這種情況能夠逐漸改善並最終實現。我們認為這其中必有緣由。

So there's just a lot that we feel good about. And there's very little -- Jerry talked about the headwind on fleet with respect to vehicle gains. We feel like that's transitory, it's temporary. We're not seeing that impact our business longer term. So we feel good about where we sit exiting Q3.

所以有很多事情讓我們感到欣慰。而且幾乎沒有什麼——傑瑞談到了車隊在車輛成長方面面臨的不利因素。我們覺得這只是暫時的，是暫時的。我們認為這不會對我們的業務產生長期影響。因此，我們對第三季末的財務狀況感到滿意。

Very helpful. Thank you.

很有幫助。謝謝。

Tomo Sano, JPMorgan.

Tomo Sano，摩根大通。

Could you provide an update on the current competitive landscape in the pest control industry? How have your modernization efforts helped to differentiate Rollins from competitors? And what are your expectations for these initiatives and maintaining or expanding your market position going forward, please?

能否介紹一下目前害蟲防治產業的競爭格局？您的現代化舉措如何幫助羅林斯公司從競爭對手中脫穎而出？那麼，您對這些舉措以及未來維持或擴大市場地位有何預期？

So this is Jerry. We've got a very healthy competitive landscape. And I wouldn't say anything has changed materially in that regard over the last couple of years. We still have large regional competitors that do a fantastic job and make us all better and as well as local, call them, mom-and-pops, there's lots of them in our -- in this really healthy industry. So not much there has changed.

這位是傑瑞。我們擁有非常健康的競爭環境。而且，我認為在過去的幾年裡，這方面並沒有什麼實質的改變。我們仍然有一些大型的區域性競爭對手，他們做得非常出色，讓我們所有人都變得更好。此外，還有一些本地的、可以稱之為「夫妻店」的小企業，在這個非常健康的行業裡，這樣的企業有很多。所以，情況並沒有太大變化。

We are continually trying to take share. Our approach is to do that through our multiple brands, multiple bites at the apple, lots of different ways to acquire new customers, whether it's HomeTeam acquiring through the builder channel or a Fox heavy and door-to-door or Orkin and the power of their brand name and doing performance marketing to supplement that.

我們一直在努力爭取市場佔有率。我們的方法是透過我們的多個品牌、多次嘗試、多種不同的方式獲取新客戶，無論是 HomeTeam 透過建築商管道獲取客戶，或是 Fox 的重型上門推銷，或是 Orkin 及其品牌的力量，並進行效果行銷來補充這些。

So we have those strategies for ensuring that we continue to grow our business units. And I think that's reflected in our numbers at the end of the day. You see the power of our brands. You see the power of our business model, what we're able to do. To me, it speaks for itself. Ken?

因此，我們制定了這些策略來確保我們的業務部門能夠持續成長。我認為最終這會反映在我們的數據中。您看到了我們品牌的強大影響力。你看到了我們商業模式的力量，看到了我們能夠做到的事。對我來說，這本身就說明了一切。肯？

I would agree. I was at PestWorld last week, and it's an honor to represent the company in that setting because I really do feel we have a great competitive landscape and competitor set. It's great to interact with all of the various competitors that we have out there. But it's great also to be a leader in growth and really helping set the tone and all the teammates we have around our business. I feel great about it. I feel great about our position and excited to be a part of this team.

我同意。我上週參加了 PestWorld 展會，能夠代表公司出席這樣的場合我感到非常榮幸，因為我真的覺得我們擁有非常強大的競爭環境和競爭對手。能與各種各樣的競爭對手交流真是太好了。但能夠成為成長的領導者，真正幫助定下基調，並與我們公司的所有團隊成員相處融洽，這也很棒。我對此感覺很棒。我對我們目前的處境感到非常滿意，也很興奮能成為這個團隊的一份子。

Thank you, Jerry and Ken. Congrats on the quarter.

謝謝傑瑞和​​肯。恭喜你本季取得佳績。

Peter Keith, Piper Sandler.

彼得·基思，派珀·桑德勒。

Nice results, guys. I wanted to dig into the cash flow, which the accelerating growth is rather impressive. And I was hoping you could just unpack the drivers to that improvement? And are those drivers sustainable?

成績不錯，夥伴們。我想深入了解現金流情況，其加速成長的勢頭相當驚人。我希望您能詳細解釋一下導致這種改進的驅動因素？這些驅動因素是否可持續？

Yeah. Thanks for the question, Peter. It's Ken. When we look at the growth in free cash flow, I think it's around 24% year-to-date. There are some benefits there. And when you look at the cash paid for taxes, for example, that's down about $20 million, $22 million.

是的。謝謝你的提問，彼得。是肯。從自由現金流的成長來看，我認為今年迄今的成長約為 24%。這樣做有一些好處。例如，看看用於繳稅的現金，就會發現減少了大約 2000 萬美元到 2200 萬美元。

If you set that aside, we still are growing cash flow, and it's compounding at roughly 18%. What we're seeing there is a better focus on receivables Receivables aren't growing nearly as fast as maybe they were a year ago. And so as a result, that's certainly having some benefit in the portfolio and in the cash flow results.

如果把這一點排除在外，我們的現金流仍在成長，並且以大約 18% 的速度複利成長。我們看到的是，企業更重視應收帳款。應收帳款的成長速度遠不如一年前那麼快。因此，這無疑對投資組合和現金流結果產生了一定的好處。

We feel though -- we certainly feel like a mid-teens sort of growth in cash flow and compounding cash flow are not out of the question. We're continuing to do more around that. But that level of growth is, I think, sustainable. It gives us the opportunity to continue to invest in our business for the dividend, participate in share repurchase from time to time, and grow the business.

不過我們覺得──我們當然覺得現金流達到十幾個百分點的成長以及現金流的複利成長並非不可能。我們正在繼續在這方面投入更多精力。但我認為，這種成長水準是可持續的。這讓我們有機會繼續投資我們的業務以獲取股息，不時參與股票回購，並發展業務。

Okay. Very good. And then I wanted to follow up on an earlier question regarding the incremental margin. So it was quite impressive in Q3, particularly with the quantification that was 31% when you adjust for the claims. So it seems like you've had a step-up as you've moved past the growth investments from the last 12 months. I guess the heart of my question is, you've kind of guided for a range of 25% to 30%, and you've stair stepped up above 30%. Is this something you think is now sustainable for at least the foreseeable future?

好的。非常好。然後，我想就先前提出的關於增量利潤率的問題進行補充說明。因此，第三季的表現相當令人印象深刻，特別是考慮到調整理賠金額後，量化結果達到了 31%。看來，隨著過去 12 個月的成長投資結束，你的發展已經取得了進步。我想問的核心問題是，你給的指導範圍是 25% 到 30%，而超過 30% 時，你的指導範圍是逐步擴大的。你認為這種情況至少在可預見的未來是可持續的嗎？

I think when you're post the 35% number, it validates what the business can do. I don't know that the business is going to do that every quarter. We're going to make investments. We're a growth business, and our focus is growing double-digit revenue and growing double-digit earnings, converting that into compounding cash flow at the pace I just mentioned.

我認為，當你公佈 35% 這個數字時，就證明了這家企業的能力。我不知道公司是否會每季都這樣做。我們將進行投資。我們是一家成長型企業，我們的重點是實現兩位數的收入成長和兩位數的利潤成長，並以我剛才提到的速度將其轉化為複合現金流。

And so you're going to see that jump around from time to time, but we do certainly focus on expanding margins. This year, we've talked about 25% to 30% incremental margin targets for the year. We're approaching that year-to-date. And so 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.

因此，你會看到利潤率不時波動，但我們確實致力於擴大利潤率。今年，我們討論了全年25%至30%的利潤率成長目標。我們即將達到今年迄今的累積數字。因此，在第四季度，我們將繼續評估這一點，但我們對目前的增量利潤率水準感到滿意。

Okay. Very helpful. Thanks so much.

好的。很有幫助。非常感謝。

Jason Haas, Wells Fargo.

傑森‧哈斯，富國銀行。

This is [Jean] on for Jason Haas. Maybe we can talk about the strength in Termite and Ancillary. You saw a bit of an acceleration there on an organic basis, and it was on a tougher comp as well. So curious if there's anything driving that momentum, what the sales environment is like and if that momentum is sustainable? Thank you.

這是[Jean]替補Jason Haas上場。或許我們可以談談白蟻和附屬物的優勢。你可以看到，在自然而然的基礎上，成績有所提升，而且比賽的競爭也更加激烈。我很好奇是什麼因素推動了這種成長勢頭，銷售環境如何，以及這種成長動能是否可持續？謝謝。

This is Jerry. So I think that's the performance that we continue to see in Termite and Ancillary is also a sign that the Residential consumer is healthy, and they're willing to buy and spend for these types of essential services. And they're both preventative services as well as oftentimes termite is preventative. Some maybe exclusion work is preventative. And sometimes it's also remedial treatments that need to be done. So that continues to go well.

這是傑瑞。所以我認為，我們在白蟻防治和輔助服務領域持續看到的這種表現也表明，住宅消費者的健康狀況良好，他們願意購買和消費這些類型的基本服務。它們都是預防性服務，白蟻防治通常也是預防性的。有些排除措施或許具有預防作用。有時也需要補救治療。所以一切進展順利。

Again, those investments we make in people, adding people and cross-selling to our existing customer base is one of the least expensive, if you call it lead-gen opportunities that you have is cross-selling to your existing customers. We know that when they have more than one service with us, they're stickier and they're more loyal to the brand. So it's just such a wonderful business model, a great opportunity. And when we look at allocating capital to grow our business, that's an area that makes all the sense in the world to keep driving.

再說一遍，我們對人才的投資，增加人手，以及向現有客戶群進行交叉銷售，是成本最低的潛在客戶開發機會之一，如果你稱之為向現有客戶進行交叉銷售的話。我們知道，當客戶在我們這裡享受不只一項服務時，他們的黏性會更強，對品牌的忠誠度也會更高。所以這真是一個絕妙的商業模式，一個絕佳的機會。當我們考慮如何分配資金來發展業務時，這絕對是一個值得我們繼續投入的領域。

Great. And you guys lapped over some vehicle sale gains this quarter, which you guys called out would be a peak headwind in 3Q, and that should alleviate a bit in 4Q. So assuming insurance and claims hold up, could we see similar, if not stronger margin expansion in 4Q? Or is that not how we should think about it?

偉大的。你們本季實現了汽車銷售成長，而你們先前指出，第三季汽車銷售成長將是一個最大的阻力，這種情況應該會在第四季有所緩解。假設保險和理賠情況良好，我們能否在第四季度看到類似的甚至更強勁的利潤率成長？或者我們不應該這樣想嗎？

Yeah. It's hard to say we're going to see stronger margin expansion in Q4 than 35%-plus or so incremental margins. Our focus is to improve margins. We'll continue to focus on that as we go forward. We still see a little bit of vehicle gains coming through the P&L in Q4, maybe not at the same level as Q3, but we certainly still see some of that headwind in the P&L

是的。很難說第四季利潤率的成長幅度會超過 35% 左右。我們的目標是提高利潤率。我們將繼續關注這一點。我們預期第四季損益表中仍會有一些車輛銷售成長，或許不如第三季那麼顯著，但我們肯定仍會看到一些不利因素的影響。

But the focus is growing revenue, as I said earlier, double-digit revenue, double-digit earnings growth. And so that's the focus as we think about this business. And we are -- we also do feel like the price that we're charging is providing the opportunity to get some leverage to the P&L.

但正如我之前所說，重點是提高收入，實現兩位數的收入和兩位數的獲利成長。所以，這就是我們在思考這項業務時的重點。而且我們也覺得，我們收取的價格能為損益表帶來一些槓桿作用。

And just remember, this is a short-cycle business, especially on the Residential side, alright? That Commercial side is a little less vulnerable to that. But when you look at weather impacts, early storms, hurricanes, all those kinds of things can affect our business in the short cycle.

記住，這是一個短週期產業，尤其是在住宅領域，懂嗎？商業方面受此影響較小。但是，從天氣影響來看，早期風暴、颶風等等，所有這些都可能在短期內影響我們的業務。

Usually, it doesn't affect it for a long term. Usually, there's a recovery. And we tend to recover quickly from those types of events. You just never know what can happen. So I want to temper any of your thoughts because we just never know what can happen, especially this time of year while you're still in hurricane season.

通常情況下，這不會造成長期影響。通常情況下，情況會好轉。而我們往往能很快從這類事件中恢復過來。你永遠無法預料會發生什麼事。所以我想提醒大家不要過度擔憂，因為我們永遠無法預測會發生什麼，尤其是在每年的這個時候，颶風季節仍然很嚴峻。

Got it. Thank you.

知道了。謝謝。

Stephanie Moore, Jefferies.

Stephanie Moore，傑富瑞集團。

I wanted to touch on the M&A pipeline and the overall environment. If you could talk a little bit about your current pipeline and expectations kind of to end 2025 and into 2026, but also if you could just touch on maybe the competitiveness of the M&A environment, especially as we look at -- I think there's -- within pest, some opportunities, whether it's door-to-door and some other interesting aspects to the industry that have emerged and if you're seeing any increased competition within some of those certain aspects. Thanks.

我想談談併購流程和整體環境。如果您能談談您目前的業務拓展計劃以及對 2025 年底和 2026 年的預期，那就太好了。另外，如果您也能談談併購環境的競爭情況，尤其是在我們審視害蟲防治領域時——我認為——存在一些機遇，無論是上門服務還是其他一些行業中湧現出的有趣方面，以及您是否看到這些特定方面競爭加劇。謝謝。

So as evidenced by our performance in the third quarter, and we closed -- was it seven deals in the third quarter, Ken, and that's following Saela. Usually, we slow down a little bit after a large deal. We actually didn't. So that I think that's a testament that the pipeline is still strong, there's still opportunities out there.

從我們第三季的業績可以看出，我們在第三季完成了——是七筆交易嗎，肯？而且這還是在 Saela 之後。通常情況下，在完成一筆大交易後，我們會稍微放慢速度。實際上我們並沒有。所以我認為這證明了人才儲備依然充足，仍然有很多機會。

Certainly, there are more PE entrants into the market space and more people interested in that, which is fine. And we've always had a number of competitors out there looking for similar opportunities as we are. But keep in mind, what's there, 19,000 pest control companies in North America. So there's still a lot out there. There's still a lot of opportunity to continue both on the tuck-in side as well as the platform side. So we see lots of opportunities out there.

當然，進入私募股權市場的人越來越多，對私募股權有興趣的人也越來越多，這很好。一直以來，有許多競爭對手和我們一樣，在尋找類似的機會。但請記住，北美有 19,000 家害蟲防治公司。所以還有很多東西等著我們去發掘。無論是在幕後還是台前，都還有很多機會繼續發展。所以我們看到了很多機會。

We also recognize that as we grow, we talk about how do we continue to get 2% to 3% of revenue from M&A. And that means as we grow, we're going to have to build some capacity to do more deals over time. So we're working on our own infrastructure so that we can process deals, do pro formas quickly, analyze them, choose the best ones that are the best fit for us, and go into our portfolio well.

我們也意識到，隨著公司的發展，我們會討論如何繼續從併購中獲得 2% 到 3% 的收入。這意味著隨著我們的發展，我們將不得不逐步建立完成更多交易的能力。因此，我們正在努力建立自己的基礎設施，以便能夠處理交易、快速進行財務預測、分析交易、選擇最適合我們的交易，並將其很好地納入我們的投資組合。

So we -- that's an investment that we've been making in our business over the last 12 months and are going to continue to do so to build that capacity so that we're even more competitive in that space as we grow.

所以，這是我們在過去 12 個月中對業務的投資，我們將繼續這樣做，以增強這種能力，從而隨著我們的發展，在這個領域更具競爭力。

And what I would add, Stephanie, as we've talked about a number of times, it is competitive, it's an incredibly attractive market and space. But what we enjoy is being the acquirer of choice oftentimes because of our willingness to pay a fair price, but also to take care of the employees and the teammates we're acquiring, the brands we're acquiring. And so that's a really important part of the equation and has helped us compete and successfully closed the number of the deals that we've closed so far and expect to close going forward.

史蒂芬妮，我還要補充一點，正如我們多次討論過的，這個市場競爭非常激烈，是一個極具吸引力的市場和領域。但我們樂於成為首選收購方，這通常是因為我們願意支付合理的價格，同時也因為我們願意照顧我們收購的員工和團隊成員，以及我們收購的品牌。因此，這是等式中非常重要的一部分，它幫助我們參與競爭，並成功完成了迄今為止已經完成和預計未來將完成的交易數量。

Recent deals with Fox and Saela are perfect examples of continuing to build our reputation as an acquirer of choice.

最近與 Fox 和 Saela 達成的交易，完美地詮釋了我們如何持續鞏固自己作為首選收購者的聲譽。

Exactly.

確切地。

I just had one -- thank you. That's very helpful. I had one question when it comes to just overall investments in customer acquisitions, various forms of marketing expenses. One aspect that I know gets utilized would be search engine optimization and I think just the obvious kind of being at the top of the list when it comes to within search engines.

我剛剛吃了一口——謝謝。那很有幫助。關於客戶獲取方面的整體投資以及各種形式的行銷費用，我有一個問題。我知道其中一個會被利用的方面是搜尋引擎優化，我認為最顯而易見的就是在搜尋引擎結果中名列前茅。

Have you seen any impact to your business just from some of these AI initiatives, where you're starting to see AI kind of take over in the search engine optimization and seeing less clicks or maybe less conversion within the search engine optimizations? I don't know if that was clear or not.

您是否看到這些人工智慧舉措對您的業務產生了影響？例如，您是否開始看到人工智慧在搜尋引擎優化方面佔據主導地位，導致點擊量減少或搜尋引擎優化轉換率下降？我不知道我這樣說是否清楚。

Yeah. No, it's a common question that we get, especially our marketing teams get. And sure, it has caused some disruption in that space. Early this year, we saw that shift impact more. But as I mentioned earlier, we talked about close rates being higher. Our close rates are higher because we're actually getting higher-quality leads, fewer window shoppers coming in, looking around price shopping, things like that. So our close rate has gone -- has actually improved.

是的。不，這是我們經常被問到的問題，尤其是我們的行銷團隊經常被問到的問題。當然，這確實為這個領域帶來了一些混亂。今年年初，我們看到這種轉變的影響更加顯著。但正如我之前提到的，我們討論的是成交率會更高。我們的成交率更高，因為我們獲得了更高品質的潛在客戶，減少了只是隨便看看、比較價格的顧客等等。所以我們的成交率——實際上已經提高了。

Our marketing team continues to make adjustments for the AI side and -- whether it's Google's AI agent and those kinds of things, we're continuing to make adjustments so that we can hopefully capitalize on those things. Every once in a while, the game changes there, and we're in amidst another one of those game changers where we're having to make adjustments.

我們的行銷團隊持續對人工智慧方面進行調整，無論是Google的人工智慧代理商還是其他類似的東西，我們都在不斷進行調整，以便能夠充分利用這些優勢。那裡的遊戲規則時不時會發生變化，而我們正處於另一個遊戲規則改變之中，我們不得不做出調整。

But also keep in mind that it still goes back to -- we don't ever want all our eggs in the performance marketing basket. Our differentiated kind of broad-based methods of acquiring customers means that we don't have to be beholden just to Google or just some search only that we can acquire customers and allocate dollars to different streams of generating new customer growth, whether that's, as I mentioned, Termite and Ancillary cross-selling or devoting resources more to Commercial. So we're looking at all those opportunities and deciding where it makes sense for us to allocate our marketing dollars across the business and where we can get the biggest bang for our buck in that regard.

但也要記住，歸根結底——我們永遠不應該把所有的雞蛋都放在效果行銷的籃子裡。我們差異化的、廣泛的客戶獲取方式意味著我們不必僅僅依賴於谷歌或某些搜索，我們可以獲取客戶並將資金分配到不同的新客戶增長渠道，無論是像我提到的那樣，白蟻防治和輔助產品的交叉銷售，還是將更多資源投入到商業領域。所以我們正在研究所有這些機會，並決定如何合理地分配我們的行銷預算，以及如何在這方面獲得最大的回報。

Jerry, I think that's the most important part of this business, is the diversification we have in the brands and the ability to acquire customers, especially in an era that we're in with the changing dynamics around AI and technology, to be able to pivot into different areas is certainly paying off and driving significant results for our business.

傑瑞，我認為這家企業最重要的部分在於我們品牌的多元化以及獲取客戶的能力，尤其是在我們所處的這個人工智慧和技術動態不斷變化的時代，能夠轉向不同的領域肯定會帶來回報，並為我們的業務帶來顯著的成果。

Super. And just thank you, guys. Appreciate it.

極好的。謝謝大家。謝謝。

Brian McNamara, Canaccord Genuity.

Brian McNamara，Canaccord Genuity。

This is Madison Callinan on for Brian. A large competitor of yours in North America appears to be finally finding its footing with a new strategy, but their volumes remain negative. At the same time, this is the smallest gap we've seen in terms of your relative outperformance in a while. I know in earlier question, you mentioned the current competitive intensity in North America, but does this change anything you're doing? If this revival has legs, who would you expect to lose share in that scenario?

這裡是麥迪遜·卡利南替布萊恩報道。您在北美的一家大型競爭對手似乎終於憑藉一項新策略站穩了腳跟，但他們的銷量仍然為負。同時，這是我們一段時間以來看到的你相對超額收益差距最小的一次。我知道你在之前的問題中提到了北美目前的競爭激烈程度，但這會改變你正在做的事情嗎？如果這波復甦勢頭能夠持續，你認為在這種情況下誰會失去市場份額？

We feel really good about our business. We are delivering in excess of 7% organic revenue growth. It's not changing. In fact, it's getting better in Q3. Commercial is up. Termite and Ancillary is up. Residential is hanging in there. So we feel really good about our position. We enjoy a very favorable position across the landscape. We don't see any shifts in share impacting us, and we're focused on executing our strategy, which has worked for the last two or three decades.

我們對我們的業務感到非常滿意。我們實現了超過7%的有機收入成長。情況沒有改變。事實上，第三季情況正在好轉。商業廣告已上線。白蟻及相關服務已上線。住宅市場依然堅挺。所以我們對自己的處境感到非常滿意。我們在地形上佔據了非常有利的位置。我們認為市場佔有率的任何變化都不會對我們產生影響，我們專注於執行我們的策略，該策略在過去二三十年中一直行之有效。

Yeah. We are internally focused on what we do, how we do it, how we go to market. And I would -- and this has been true for Rollins for many, many years. We're not reactive to what one competitor does, much less a whole bunch of them. So we have a very experienced management team in the field that know this industry, know this market, and we are -- they're empowered to run the business the way we know how.

是的。我們專注於內部，關注我們做什麼、怎麼做、如何進入市場。我會的——而且多年來，羅林斯一直都是這樣。我們不會對一個競爭對手的舉動做出反應，更不用說對一大群競爭對手的舉動做出反應了。因此，我們擁有一支經驗豐富的管理團隊，他們了解這個行業，了解這個市場，而且我們——他們被授權按照我們所知的方式經營業務。

Great. Thank you.

偉大的。謝謝。

Josh Chan, UBS.

瑞銀集團的 Josh Chan。

This is (inaudible) on for Josh. Can you just touch a little bit on maybe what you're seeing on the cost inflation side? What are you seeing just across the board with material and equipment, but especially with labor? And any thoughts and expectations for 2026 as well?

這是（聽不清楚）給喬希的。能否簡單談談您觀察到的成本通膨情況？您觀察到的材料和設備，特別是勞動力方面的整體情況如何？對2026年有什麼想法和期望嗎？

Yeah. We're not seeing any really significant changes with inflation on materials and supplies, people, or other cost inputs. Our 3% to 4% pricing is paying off. Our CPI plus focus is paying off. We're getting leverage through the P&L. And so it's not as big of an issue as maybe it was a year or two ago.

是的。我們沒有看到材料和供應品、人力或其他成本投入方面的通貨膨脹發生任何真正重大的變化。我們3%到4%的定價策略正在發揮成效。我們以消費者物價指數（CPI）為重點的策略正在發揮成效。我們正透過損益表獲得優勢。所以，這已經不像一兩年前那樣是個大問題了。

And we're seeing -- if anything, you're seeing inflation moderate slightly here across the economy. And that's kind of what you saw most recently in some of the Fed statements that were made around inflation. And so we continue to see at 3% to 4% price, we continue to expect to get margin improvement.

我們看到，整個經濟領域的通膨正在略微放緩。而這基本上就是聯準會最近就通膨問題發表的一些聲明中所體現的。因此，我們預計在 3% 到 4% 的價格水平上，利潤率將繼續提高。

And the only thing that's the hardest for us to control is likely fleet, right, if gas prices move up or down or next year, the price of a vehicle or something like that or something changes at the auction market for vehicles. But other than that, things appear to be relatively stable.

我們唯一最難控制的可能就是車隊了，對吧？如果汽油價格上漲或下跌，或明年車輛價格或類似的東西在車輛拍賣市場上發生變化，都會影響車隊。但除此之外，其他方面似乎都比較穩定。

Got it. That's helpful. And maybe as my follow-up, I think you kind of alluded to this in one of your previous answers, but just curious on your plans for sales and marketing investment going into Q4 and in 2026 as well. I know that you've generated around like 10 basis points of leverage for two consecutive quarters now. So just wondering if like more room for leverage over there going forward.

知道了。那很有幫助。或許我可以接著問一個問題，我覺得您在之前的某個回答中已經暗示過這一點，但我很好奇您在第四季度以及 2026 年的銷售和市場營銷投資計劃。我知道你們已經連續兩個季度獲得了大約 10 個基點的槓桿。所以我想知道，未來那邊是否有更大的談判空間。

I think your question was around marketing investments and selling investments and leverage there, if I heard you correctly. But I think what we're seeing is we're seeing leverage in -- across the portfolio with some of those investments we made in the past. We're going to continue to evaluate making additional investments. Again, as I said earlier, we're in a growth market. We're seeing great growth.

如果我理解正確的話，我認為你的問題是關於投資行銷、投資銷售以及槓桿作用的。但我認為我們現在看到的是，我們正在利用過去一些投資在整個投資組合中產生的槓桿效應。我們將繼續評估是否進行額外投資。正如我之前所說，我們正處於一個成長型市場。我們看到了強勁的成長。

Getting high single-digit sort of growth organically on a constant currency basis is really hard to come by for a lot of folks, but we're continuing to execute in a market where we can get that kind of growth. And so we're going to continue to make investments to go out and acquire customers and grow our share and improve our position.

對於許多人來說，以固定匯率計算實現接近兩位數的有機成長非常困難，但我們仍在能夠實現這種成長的市場中繼續努力。因此，我們將持續投資，拓展客戶，擴大市場份額，提升市場地位。

I would add, Ken, that from a marketing standpoint, as I've said over the years, is we'll continue to spend our marketing dollars. We allocate a budget for it. We use those dollars. And then based on what we know, what we know about the market, we allocate those dollars appropriately. So we will typically tend to spend into the marketing channel and continue to invest there as we plan as a kind of the range of a percent of revenue.

肯，我還要補充一點，從行銷的角度來看，正如我多年來一直說的，我們將繼續投入行銷資金。我們為此撥出了預算。我們使用這些美元。然後，根據我們對市場的了解，我們會合理分配這些資金。因此，我們通常傾向於在行銷管道上投入資金，並按照計劃繼續投資，投入金額約為收入的百分之幾。

Where we find the most leverage opportunities is really in productivity on the sales side. So when you look at SG&A, it's the S part of that, the selling productivity as you make those investments.,that's where occasionally, we'll go through some cycles where as productivity rises, we have to then weigh well, what's the next level of investment that we need to make.

我們發現最具突破性的機會其實在於提升銷售方面的效率。所以，當你檢視銷售、一般及行政費用時，重點在於其中的「S」部分，也就是銷售效率，以及你進行這些投資的過程。有時，我們會經歷一些週期，隨著效率的提高，我們必須認真權衡，我們需要進行的下一階段投資是什麼。

And that may cause some short-term challenges with -- on the S side. But then long term, we also know that, that pays off through accelerated growth in a relatively high -- a nice margin business. So that's the balancing act that we're constantly evaluating.

這可能會給 S 方面帶來一些短期挑戰。但從長遠來看，我們也知道，這可以透過在利潤相對較高的行業中加速成長來獲得回報。所以，這就是我們一直在評估的平衡之道。

Right. But as you produce incremental gross margins of 58% or so, high 50s, you get leverage on the G&A, you want to make those investments. You want to go out and grow. And that's exactly -- that's our focus. I think as Jerry and I are completely aligned that we want to continue to invest in the business and grow the business and growth is fun.

正確的。但是，當你的毛利率增量達到 58% 左右，甚至接近 50% 時，你就能在管理費用方面獲得槓桿作用，你會想要進行這些投資。你想走出去，去發展。而這正是──這就是我們的重點。我認為我和傑瑞的想法完全一致，我們都想繼續投資這項業務，發展壯大這項業務，而發展壯大本身就是一件很有趣的事情。

Makes sense. Very helpful. Thank you.

有道理。很有幫助。謝謝。

Thank you. And we have reached the end of the question-and-answer session. I would like to turn the floor back to management for closing remarks.

謝謝。問答環節到此結束。我謹將發言權交還給管理階層，請他們作總結發言。

Thank you, everyone, for joining us today. We appreciate your interest in our company and look forward to speaking with you on our Q4 earnings call.

謝謝各位今天蒞臨。感謝您對我們公司的關注，期待在第四季財報電話會議上與您交流。

Thank you. And this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束，您可以斷開線路了。感謝您的參與。