Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Rollins (NYSE: ROL) and its peers.

Many environmental and facility services are non-discretionary (sports stadiums need to be cleaned after events), recurring, and performed through longer-term contracts. This makes for more predictable and stickier revenue streams. Additionally, there has been an increasing focus on emissions and water conservation over the last decade, driving innovation in the sector and demand for new services. Despite these tailwinds, environmental and facility services companies are still at the whim of economic cycles. Interest rates, for example, can greatly impact commercial construction projects that drive incremental demand for these services.

The 13 environmental and facilities services stocks we track reported a slower Q2. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 2.1% on average since the latest earnings results.

Rollins (NYSE: ROL)

Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE: ROL) provides pest and wildlife control services to residential and commercial customers.

Rollins reported revenues of $999.5 million, up 12.1% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company with EBITDA in line with analysts’ estimates.

Interestingly, the stock is up 5.8% since reporting and currently trades at $58.38.

Is now the time to buy Rollins? Access our full analysis of the earnings results here, it’s free.

Best Q2: Montrose (NYSE: MEG)

Founded to protect a tree-lined two-lane road, Montrose (NYSE: MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.

Montrose reported revenues of $234.5 million, up 35.3% year on year, outperforming analysts’ expectations by 24.4%. The business had an incredible quarter with a solid beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates.

Montrose scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 24.2% since reporting. It currently trades at $28.08.

Is now the time to buy Montrose? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Enviri (NYSE: NVRI)

Cooling America’s first indoor ice rink in the 19th century, Enviri (NYSE: NVRI) offers steel and waste handling services.

Enviri reported revenues of $562.3 million, down 7.8% year on year, falling short of analysts’ expectations by 2.5%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.

Interestingly, the stock is up 16.3% since the results and currently trades at $10.08.

Read our full analysis of Enviri’s results here.

Perma-Fix (NASDAQ: PESI)

Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ: PESI) provides environmental waste treatment services.

Perma-Fix reported revenues of $14.59 million, up 4.3% year on year. This print came in 11.1% below analysts' expectations. It was a softer quarter as it also produced a miss of analysts’ EBITDA estimates.

The stock is up 7.7% since reporting and currently trades at $11.99.

Read our full, actionable report on Perma-Fix here, it’s free.

Veralto (NYSE: VLTO)

Spun off from Danaher in 2023, Veralto (NYSE: VLTO) provides water analytics and treatment solutions.

Veralto reported revenues of $1.37 billion, up 6.4% year on year. This number surpassed analysts’ expectations by 2%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EBITDA estimates.

The stock is up 4.4% since reporting and currently trades at $107.67.

Read our full, actionable report on Veralto here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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