Rollins (ROL) is expected to report in-line Q2 results and reaffirm its 2025 guidance, RBC Capital Markets said in an earnings preview.

Organic growth should remain steady in the 7-8% range, driven by segment growth of 5.8% in Residential, 7.4% in Commercial, and 11% in Termite, the firm said in a note Wednesday.

The Saela acquisition is expected to contribute around $15 million in Q2 revenue and support double-digit reported revenue growth.

Incremental margins are expected to improve modestly in the second quarter to the high teens, with a more substantial increase to around 30% projected for the second half. RBC noted that, excluding strategic growth investments, margins could have already approached 30% in the first quarter.

The brokerage forecast total revenue growth of 11.4% to $994 million, slightly above the consensus of $989 million. Earnings per share are projected at $0.30, in line with the consensus. The firm also noted that foreign exchange, which was a headwind in Q1, could become a tailwind in Q2, potentially supporting upside to organic growth.

The firm has an outperform rating with a $62 price target.

Price: 55.71, Change: +0.05, Percent Change: +0.09