Rentokil Initial (RTO) H2 2025 earnings summary

Executive summary

• Group revenue grew 3.8% to $6.9 billion in 2025, with organic revenue growth of 2.6%.

• Adjusted operating profit rose 5.4% to just over $1 billion, with a margin of 15.5%.

• North America and International regions delivered improved performance, with North America showing organic growth and cost efficiencies, and International achieving accelerated organic revenue and profit growth.

• Strategic focus on expanding local branches, multi-brand strategy, and leveraging AI for operational efficiency and digital enablement.

• Continued operational execution, simplification, and strong execution of strategic initiatives.

Financial highlights

• Revenue up 3.8% year-over-year to $6.9 billion; organic growth 2.6%.

• Adjusted operating profit up 5.4% to $1,070 million; margin increased 30bps to 15.5%.

• Adjusted basic EPS up 2.4% to $0.2591; free cash flow grew 24.5% to $615 million; conversion rate 98%.

• Net debt reduced to $3.65 billion; leverage ratio improved to 2.6x.

• Dividend per share: $0.1239, up 3%.

Outlook and guidance

• Targeting North America net operating margin above 20% by 2027; $100 million cost reduction target on track.

• Plans to expand to 30 regional/local brands and 220 small local branches in North America in 2026.

• Free cash flow conversion expected to remain above 80%.

• FY26 gross capex guidance of $190–$200 million; one-off transformation costs of $100 million expected.

• Confidence in delivering results in line with market expectations for 2026, despite some weather-related disruption in January.