Rentokil Initial (RTO) Q2 2026 earnings summary

Executive summary

• Revenue grew 4.5% to $3,589 million in H1 2026, with organic growth of 3.6% and operating profit up 6.6%, driven by strong North America and International performance.

• North America and International segments delivered revenue and profit growth, with margin improvements from efficiency initiatives.

• Free cash flow conversion was strong at 96%, and leverage reduced to 2.4x, within target range.

• Strategic focus on customer-centricity, operational excellence, and business simplification to drive sustainable organic growth.

• Leadership changes and new roles introduced to support transformation and growth, especially in North America.

Financial highlights

• Revenue rose to $3,589m from $3,364m year-over-year; organic revenue growth 3.6%; operating profit increased to $556m from $511m.

• Operating profit margin improved to 15.5% (up 30bps); EPS grew 8.3% year-over-year.

• Free cash flow grew 12.8% to $318m; net debt reduced to $3,575m; leverage at 2.4x.

• Interim dividend increased by 8% to 4.48 cents per share.

• Profit before tax up 9.8% to $459m.

Outlook and guidance

• Full-year profit expected in line with current market expectations.

• Free cash flow conversion guidance reaffirmed at above 80% for the full year.

• Growth in H2 expected to moderate, with full-year growth rate in low double digits.

• M&A spend for 2026 anticipated at ~$120m; capex guidance of $190–200m.

• North America 2027 cost saving target to be met, with margin target retired to prioritize growth investments.