Rentokil Initial

Rentokil Initial is one of the largest pest control companies in the world. It also sells hygiene and wellbeing services, such as washroom care and office plants. It employs about 63,400 people in 90 countries, and it reports in US dollars.

North America is its largest division, and it gave about 59% of revenue in Q1 2026. Rentokil bought Terminix in 2022, which made it a large residential and commercial pest control company in the US. Most revenue comes from service contracts that customers renew each year, and price rises add to growth.

In H1 2026, revenue was $3,589 million and adjusted operating profit was $556 million. In Q3 2026, revenue was $1,890 million. The shares trade in London, and American Depositary Shares trade on the NYSE.

The market prices Rentokil as a company that has not made the Terminix purchase work. In H1 2026, organic revenue growth was 3.6%, and North America Pest Control Services grew only 2.6%. In Q3 2026, this business grew only 2.4%. On July 30, 2026, the new CEO, Mike Duffy, retired the target of a 20% North America margin in 2027, because he will put savings back into growth.

Residential lead flow weakened in July and August 2026, and it recovered only to a decline of about 1% in September. Investors also fear more competition from private equity owned pest control companies. For the gap to close, four things must be true. North America Pest Control Services organic growth must rise above the 2.6% of H1 2026.

Residential leads must grow again, and the new split of the US residential and commercial businesses must stop the fall in commercial growth. Free cash flow conversion must stay above 80%, as guided for 2026. Net debt must stay within 2 to 2.5 times adjusted EBITDA while Rentokil sells non-core businesses such as SOLitude. The Q3 trading update on October 22, 2026 kept the full-year profit outlook, but North America growth did not improve yet.

The CEO will give detailed plans with the full-year results on February 25, 2027. The Q1 2027 trading update on April 22, 2027 shows the first effect of the split of the US residential and commercial businesses. The CEO said that the restructuring can take two years, so the gap can close slowly, over 2027 and 2028.

1. Oct 22, 2026Passed

   Q3 2026 trading update: North America growthNorth America Pest Control Services organic growth near or above the 2.6% of H1 2026 and a full-year profit outlook in line with expectations pass; slower growth or a lower outlook fails.Outcome: North America Pest Control Services organic growth was 2.4%, near the 2.6% of H1 2026, and Rentokil kept its full-year profit outlook in line with market expectations.
2. Feb 25, 2027Pending

   FY 2026 results and the CEO's detailed planA clear plan with growth and margin targets, free cash flow conversion above 80% and net debt within 2 to 2.5 times EBITDA pass; no targets, or leverage above the range, fails.
3. Apr 22, 2027Pending

   Q1 2027 trading update: residential and commercial splitFaster US commercial growth after the split of the residential and commercial businesses passes; a further slowdown in commercial or residential growth fails.

Every passed and failed checkpoint across all picks

• October 22, 2026Rentokil reported its Q3 2026 trading update. Revenue was $1,890 million, up 4.0%, and organic growth was 3.4%. North America Pest Control Services organic growth was 2.4%, and International Pest Control organic growth was 5.7%. Residential lead flow recovered to a decline of about 1% in September, after a weak July and August. Rentokil expects FY 2026 profit in line with market expectations. The Board approved a $200 million share buyback, which started on October 27, 2026 and ends no later than February 24, 2027. Rentokil now expects acquisition spending of about $100 million in 2026.
• October 22, 2026Rentokil said that its Chief Financial Officer, Paul Edgecliffe-Johnson, will retire and leave the Board on January 31, 2027, for family health reasons. He will stay as a senior adviser. The Board started a search for a successor. If no successor starts by then, Sarah Sergeant, the Group Financial Controller, will be interim Chief Financial Officer from February 1, 2027.
• September 29, 2026Morgan Stanley said that private equity owned companies now have more than 16% of the revenue of the top 100 US pest control companies, up from 1% ten years ago.

Last earnings

October 22, 2026

Next earnings

February 25, 2027, as the company confirmed.

• 20-FAnnual report for the period ended Dec 31, 2025Filed March 25, 2026 · rto-20251231x20f
• 20-FAnnual report for the period ended Dec 31, 2024Filed March 26, 2025 · rto-20241231x20f

Every filing on SEC EDGAR (CIK 930157)

• North America Pest Control Services grows slowly. Organic growth was 2.6% in H1 2026 and 2.4% in Q3 2026. Commercial growth slowed in Q2, and residential leads weakened in July and August 2026 and recovered only to a decline of about 1% in September. If the new leaders cannot fix this, the turnaround takes longer.
• Competition in US pest control increases. Private equity owned companies grow faster and pay more for acquisitions, and Rentokil cut its 2026 acquisition spending to about $100 million. Morgan Stanley also found that AI search tools recommend independent local companies more often than Rentokil.
• Termite damage claims from the Terminix business cost cash. The provision was $392 million at June 30, 2026, after an additional $47 million in H1 2026. Rentokil expects $115 million to $125 million of cash use of provisions in 2026, mostly for termite claims.
• The CEO, the North America CEO and the Chair are all new in 2026. The Chief Financial Officer will retire on January 31, 2027, and the Board searches for a successor. The CEO retired the 2027 margin target, and he will give a new plan in February 2027. Restructuring can cost more, or take longer, than planned.
• Securities class actions filed in the US allege false statements about the Terminix acquisition and its integration. Rentokil said that it will defend the suits.

Rentokil funds itself mostly with unsecured bonds that Rentokil Initial plc and its finance subsidiaries issue. At June 30, 2026, bond debt was $4,567 million, of which $969 million was due within 12 months. Read more

Yield at the current rate

2.7% (current annual rate, at today’s price)

Dividend yield

2.7% (last 12 months, at today’s price of $23.59)

Paid per share

$0.636 in the last 12 months (2 payments)

Current annual rate

$0.636 (the last two payments)

Latest ex-dividend date

August 14, 2026, $0.224 per share

Dividends per share by year

From 2015 to 2025, the dividend grew by about 12.4% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.