Terminix Global Holdings, Inc. (TMX): history, ownership, mission, how it works & makes money

A Brief History of Terminix Global Holdings, Inc. (TMX)

Founding and Early Years

Terminix, originally part of the Terminix International Company, was founded in 1927 in Memphis, Tennessee. It started as a pest control service focused on termite protection. The company gained prominence for developing the first effective termite treatment in the United States.

Acquisition by ServiceMaster

In 1986, Terminix was acquired by ServiceMaster Company, which expanded its service offerings across North America. Under ServiceMaster, Terminix significantly increased its market share and client base, establishing itself as a leader in pest management.

Spin-off and Public Listing

In 2014, ServiceMaster underwent a spin-off, leading to the establishment of Terminix Global Holdings, Inc. as an independent entity. The company went public on the New York Stock Exchange under the ticker symbol TMX.

Recent Financial Performance

As of the end of 2022, Terminix reported a revenue of approximately $2.1 billion. The company's net income for the same period was around $93 million, reflecting a growth trajectory since its spin-off.

Service Offerings

• Residential pest control
• Commercial pest control
• Termite control and prevention
• Wildlife control
• Insulation services

Acquisitions and Expansion

Terminix has pursued a strategy of acquisition to expand its footprint. Notable acquisitions since its independent listing include:

Market Position and Competitors

Terminix is one of the largest pest control companies in the U.S., holding a significant share of the market. Major competitors include Rentokil Initial, Orkin, and Rollins, Inc..

Sustainability Initiatives

Terminix has committed to sustainability practices, focusing on eco-friendly pest control solutions. The company aims to reduce its environmental footprint while maintaining service efficacy.

Recent Trends and Challenges

In recent years, the pest control industry has faced challenges such as labor shortages and the increasing use of technology. Terminix has adapted by investing in employee training and digital tools to enhance service efficiency.

2023 Financial Update

As of Q2 2023, Terminix reported a revenue of approximately $1.05 billion, with an adjusted EBITDA of around $200 million. The company continues to focus on organic growth and strategic acquisitions.

A Who Owns Terminix Global Holdings, Inc. (TMX)

Corporate Ownership Structure

The majority of Terminix Global Holdings, Inc. (TMX) is owned by institutional investors and mutual funds. According to the most recent data from Q3 2023, the ownership breakdown is as follows:

Top Institutional Shareholders

The following table outlines the top institutional shareholders of Terminix as of Q3 2023:

Executive Ownership

Key executives and directors also hold significant shares within Terminix. The executive ownership as of Q3 2023 is detailed in the table below:

Recent Stock Performance

As of October 2023, the stock price of Terminix (TMX) is approximately $42.00 per share. The following financial data reflects the company's performance over the last fiscal year:

Market Trends and Investor Sentiment

The pest control industry has shown growth, with projections indicating a compound annual growth rate (CAGR) of 4.5% from 2023 to 2028. Terminix’s strategic acquisitions and expansion plans have contributed positively to market sentiment towards the company.

• Market Growth Rate: 4.5% CAGR (2023-2028)
• Industry Size (2028): Estimated at $30 billion

Investor confidence remains strong, particularly among institutional investors, given the company's robust financial health and market position.

Terminix Global Holdings, Inc. (TMX) Mission Statement

Core Mission

The mission of Terminix Global Holdings, Inc. is to provide superior pest management services by combining technology, expertise, and a commitment to customer satisfaction.

Vision Statement

Terminix aims to be the leading provider of pest control services worldwide, recognized for delivering innovative solutions that enhance the quality of life.

Strategic Objectives

• Enhance customer satisfaction by continuously improving service quality.
• Expand market share through strategic acquisitions and partnerships.
• Invest in technology and innovation to develop new pest management solutions.

Financial Overview

As of the end of 2022, Terminix reported a revenue of approximately $1.66 billion.

The company achieved a net income of $67 million for the same fiscal year.

Key Financial Metrics

Customer Commitment

Terminix is committed to exceeding customer expectations by providing effective and environmentally responsible pest control solutions.

Employee Engagement

The company recognizes that its employees are vital to achieving its mission and invests in training and development programs.

In 2022, the company had over 11,000 employees across various locations in the United States and internationally.

Environmental Responsibility

Terminix is dedicated to sustainability, utilizing eco-friendly pest control techniques and offering services that ensure a balance between pest management and environmental health.

Technology Integration

Incorporating advanced technology, such as data analytics and smart pest control systems, is crucial to Terminix's strategy for enhancing service effectiveness and operational efficiency.

Recent Developments

As of 2023, Terminix announced plans for a significant investment in technology, amounting to $50 million aimed at developing innovative pest control technologies.

Market Position

Terminix holds a strong position in the pest control industry, with a significant market share in both residential and commercial sectors.

The company continues to explore growth opportunities through acquisitions, focusing on expanding its footprint in the pest control market.

How Terminix Global Holdings, Inc. (TMX) Works

Company Overview

Terminix Global Holdings, Inc. (TMX) is a leading provider of pest control services in the United States and internationally. As of 2023, the company operates in more than 45 states and several countries, offering various solutions to residential and commercial customers.

Service Offerings

• Pest Control Services
• Termite Protection
• Wildlife Control
• Insulation Services
• Moisture Control

Financial Performance

For the full year 2022, Terminix reported a total revenue of $2.067 billion. The company experienced a revenue growth of approximately 9% compared to 2021.

In Q2 2023, Terminix achieved revenue of $513 million, reflecting a year-over-year increase of 7%.

Market Position

Terminix holds a significant market share, estimated at around 15% of the pest control industry in North America, which is valued at approximately $20 billion.

Operational Structure

Terminix operates through various divisions focused on both residential and commercial services. The company employs over 10,000 personnel, including technicians and customer service representatives.

Customer Base

The customer base for Terminix includes over 2.7 million residential customers and more than 850,000 commercial customers.

Table: Financial Overview (2022-2023)

Acquisition Strategy

Terminix actively engages in acquisitions as part of its growth strategy. In 2021, the company acquired the pest control assets of two regional firms, enhancing its market penetration and service capacity.

Innovation and Technology

Terminix invests in technology to enhance service delivery. The company utilizes advanced pest control solutions, including smart sensors and online booking systems, to improve customer experience.

Sustainability Initiatives

Terminix is committed to sustainability. The company has set a goal to reduce greenhouse gas emissions by 25% by 2025. In 2022, they reported a reduction of 10% from their baseline year of 2020.

Employee Engagement

Terminix focuses on employee training and development. In 2022, the company invested $5 million in employee training programs to enhance skills and safety.

Regulatory Compliance

Terminix adheres to various regulations concerning pest control services. The company is licensed in all states where it operates, complying with local, state, and federal guidelines.

Conclusion on Market Trends

The pest control market is experiencing growth, driven by increased awareness of health and safety. The global pest control market is expected to reach $27 billion by 2025, offering opportunities for companies like Terminix to expand.

How Terminix Global Holdings, Inc. (TMX) Makes Money

Service Revenue

Terminix generates a significant portion of its revenue from service revenue, which primarily comes from pest control and termite protection services. In 2022, Terminix reported total service revenue of approximately $1.63 billion.

Sales Distribution

The sales distribution for services includes:

• Residential Pest Control: $1.2 billion
• Commercial Pest Control: $300 million
• Termite Control Services: $130 million
• Other Services: $100 million

Ancillary Products

In addition to service revenue, Terminix also sells ancillary products such as traps, baits, and insecticides. The revenue from these products amounted to $230 million in 2022.

Recurring Revenue Model

Terminix benefits from a recurring revenue model, with approximately 75% of revenue coming from subscriptions and service contracts. This model ensures a steady income stream and customer retention.

Geographic Revenue Breakdown

The company operates in multiple regions, contributing to its diversified revenue stream. The geographic breakdown of revenue is as follows:

Customer Segments

Terminix serves various customer segments, primarily focusing on:

• Residential Customers: 65%
• Commercial Customers: 25%
• Government Contracts: 10%

Cost Structure

The cost structure of Terminix includes:

• Labor Costs: 50% of total expenses
• Materials and Supplies: 20% of total expenses
• Operational Expenses: 30% of total expenses

Profit Margin

As of 2022, Terminix reported a net profit margin of approximately 10%, translating to a net income of about $163 million.

Market Position

Terminix is one of the largest pest control companies in North America. It holds a market share of approximately 20% in the residential pest control segment.

Recent Acquisitions

To enhance its service offerings and expand its market reach, Terminix has made several strategic acquisitions. In 2022, the company acquired 3 regional pest control firms for a total consideration of $50 million.

Future Projections

Financial analysts project that Terminix's revenue will grow at a compound annual growth rate (CAGR) of 5% over the next five years, driven by increasing demand for pest control services.