1H26 in line, US pest growth slower. FY26 unchanged.

Research evidence excerpt

1H26 in line, US pest growth slower. FY26 unchanged.

Update

July 30, 2026 07:04 AM GMT

Morgan Stanley & Co. International plc+MRentokil Initial PLC | Europe Annelies Vermeulen

Equity Analyst

1H26 in line, US pest growth Annelies.Vermeulen@morganstanley.comZachariah Al-Qaryooti +44 20 7425-4367

Zach.Al-Qaryooti@morganstanley.com +44 20 7425-2400

slower. FY26 unchanged. Remi Grenu

Remi.Grenu@morganstanley.com +44 20 7425-0552

AlphaSignals Earnings Reaction

Rentokil Initial PLC (RTO.L, RTO LN)

Unchanged In-line Largely unchanged

Business Services | United Kingdom

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Stock Rating Overweight

Source: Company data, Morgan Stanley Research Industry View Attractive

Price target 570p

Shr price, close (Jul 29, 2026) 443p

Key Takeaways 52-WeekMkt cap, currRange(mn) US$14,967507-343p

Net debt (12/26e) (mn)* US$3,435

2Q US pest control services organic growth slowed to 2.4% in 2Q vs 2.8% in 1Q, EV, curr (mn)* US$18,777

driven by Commercial. RTO also flagged weaker lead flow at end-2Q & into July.

* = GAAP or approximated based on GAAP

Qualitative FY26 expectations unchanged, and we would not expect material

changes to consensus following today's update.

Rentokil has scrapped the 20% North America margin target for 2027, given

additional investments being made into the business.

While slower organic growth is not entirely unexpected given peer ROL's print,

growth is below expectations in our view; we expect the shares to see pressure

today.

Conference call 9.30am UKt today.

1H26 headline results broadly in line: 1H26 revenue of $3,589m is 1% above

consensus of $3,547m, with 1H organic growth of +3.6% above consensus of 3.2%

and implying 2Q group organic growth of 3.8% (stronger vs.