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Rentokil Initial (RTO) investor relations material

Rentokil Initial H1 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2025 earnings summary31 Jul, 2025

Executive summary

  • Revenue grew 3.1% to $3.36bn, with organic growth of 1.6% and strong free cash flow conversion at 93%.

  • Adjusted profit before tax was $418m; adjusted operating profit declined 4.5% to $511m, mainly due to lower North America profitability.

  • Divestment of France Workwear is on track for completion by late Q3/early Q4, expected to enhance cash generation and focus the business.

  • North America saw improved lead flow and customer retention, with new marketing strategies and satellite branches driving growth.

  • International region delivered robust growth, especially in Europe, Asia, and MENAT, with strong colleague and customer retention.

Financial highlights

  • Adjusted operating profit: $511m (down 4.5% year-over-year); margin 15.2% (down 120bps).

  • Free cash flow: $282m (up 31.2%); conversion 93%, exceeding 80% guidance.

  • Net debt to adjusted EBITDA: 2.8x, impacted by $175m adverse FX movement.

  • Dividend per share maintained at 4.15c.

  • 18 bolt-on acquisitions completed for $68m, adding $36m in annualized revenue.

Outlook and guidance

  • Full-year performance expected in line with market expectations; outlook unchanged.

  • No change to $100m cost reduction target and North America operating margin above 20% post-2026, though full integration may extend beyond 2026.

  • FY25 M&A spend anticipated at ~$200m; capex expected at $210-220m.

  • Adjusted effective tax rate estimated at 25-26%; adjusted interest costs $200-210m.

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Frequently asked questions

Rentokil Initial plc is a global services company specializing in pest control, hygiene, and facility management solutions. The company provides pest management services to commercial and residential customers, addressing issues such as rodent, insect, and wildlife control. Its hygiene services include washroom and workplace hygiene solutions, as well as air care and hand hygiene products. The company is headquartered in Crawley, United Kingdom, and its shares are listed on the LSE (London Stock Exchange).

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