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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.
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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