Revenue: Up Despite Housing Woes

Revenue from termite control services is on the upswing.

More than half (52 percent) of pest management professionals (PMPs) said termite revenue increased somewhat or significantly at company locations over the last three years, according to the 2025 PCT State of the Termite Control Market survey.

On average, termite services generated 24.6 percent of overall revenue at company locations.

That’s good given the sluggish housing market. Inspections for real estate transactions, which lead to termite work, were down considerably last year, reported PMPs in follow-up interviews.

“The housing market was dead. We just didn’t get a lot of that housing market business — refinancing and people selling their homes,” said Bill Cowley, co-owner of Cowleys Pest Services, Farmingdale, N.J.

Atlantic Pest Control, Baltimore, Md., saw demand for wood-destroying insect (WDI) inspections drop significantly as mortgage interest rates increased. But instead of dropping the price of inspections, the company raised them.

“We are one of the few reputable inspectors in town, so we decided to start targeting a premium,” said Phil Libby, vice president of Atlantic Pest Control.

In greater Los Angeles, drywood termite work fizzled out in the fourth quarter of 2024.

“We’ve seen a pretty good decline in termite business. The demand is there, and people are still getting inspections. It feels like people are a little more apprehensive to spend money, especially on big ticket items if they don’t absolutely need to,” said Trevor Jones, general manager, Admiral Pest Control.

Nearly 17 percent of termite-related revenue came from termite renewal fees, the PCT survey found.

“We’re still seeing modest growth with our renewals. We’re looking to see an increase from last year. It’s not going to be drastic by any means, but we’re seeing improvement, which is always nice,” said Libby.

Pre-construction treatments for new homes helped Team Pest USA, Loganville, Ga., grow termite revenue.

“The housing market is still growing. It’s been a good thing for our business,” said Alan Harlan, company vice president of service and quality control. Termite services account for about 60 percent of the company’s overall revenue.

In north Houston, the arrival of Formosan termites helped Fullscope Pest Control boost revenue by 12 percent from 2023. “That’s a significant increase for us,” said Camille Landry, co-owner and entomologist.

She likened the spread of Formosan termites in her market over the past seven years to an invasion. “Every year they just become more and more common. It’s a little shocking how aggressive and how quickly they’re doing extensive damage to people’s homes.”

Fullscope dealt with three major Formosan infestations last year. “We’ve been in people’s attics where the rafters are covered in mud from termites,” said Landry, citing the pests’ industriousness. “They’re hard workers. You’ve got to give them props for that.”

The PCT survey found 85 percent of pest management companies offered termite control services last year.