Picture of Rentokil Initial logo

RTO — Rentokil Initial News Story

0.000.00%
gb flag iconLast trade - 00:00
IndustrialsAdventurousLarge CapNeutral

UK's Rentokil Initial 2025 prelim revenue up 3.8% on North America performance

Overview

UK pest control firm's 2025 prelim revenue up 3.8%, missing analyst expectations

Adjusted EBITDA for 2025 missed analyst expectations

Adjusted pretax profit slightly beat analyst expectations

Outlook

Rentokil expects 2026 results to align with market expectations despite uncertainties

Company aims for $100 mln cost reduction in North America by 2027

Rentokil plans to expand to 800 branches by end of 2026

Result Drivers

ORGANIC REVENUE GROWTH - Improved performance in North America with pest control services showing sequential growth, reaching 2.6% in Q4

COST EFFICIENCY - Cost efficiency initiatives contributed to a 5.4% increase in adjusted operating profit

BRANCH EXPANSION - Expansion of branch network and retention of local brands to enhance customer proximity and market penetration

Company press release: ID:nRSE4090Va

Key Details

MetricBeat/MissActualConsensus Estimate
FY RevenueMiss$6.91 bln$7.61 bln (18 Analysts)
FY Adjusted EBITDAMiss$1.43 bln$1.58 bln (18 Analysts)
FY Adjusted Pretax ProfitSlight Beat*$876 mln$874.004 mln (14 Analysts)
*Applies to a deviation of less than 1%; not applicable for per-share numbers. Analyst Coverage The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell" The average consensus recommendation for the business support services peer group is "buy" Wall Street's median 12-month price target for Rentokil Initial PLC is GBp500.00, about 17.5% above its March 4 closing price of GBp425.50 The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com. (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Recent news on Rentokil Initial

See all news