Rentokil Initial plc (1K) | Buy | H1 preview: grinding up

研报英文原文证据摘录

Rentokil Initial plc (1K) | Buy | H1 preview: grinding up

#EarningsPreview #Positive #EstimatesRevision

Release date: 16 July 2026

Company research

BuyRentokil Initial plc

United Kingdom | Support services MCap: GBP11.1bn

Target Price: 540.00p Change in TP: 0.0 % Bloomberg: RTO LN Reuters: RTO.L

Current Price: 440.50p Change in Sales: 0.4% 26E/0.7% 27E Free float 99%

Up/downside: 22.6% Change in Adj EBIT: 1.3% 26E/1.0% 27E Avg. daily volume (GBPm) 4,293.3

YTD abs performance -1.6% Market data: 15 July 2026 Change in Adj. EPS: 1.3% 26E/0.1% 27E

52-week high/low (GBP) 506.80/340.90

H1 preview: grinding up Price performance

Why this report?

Ahead of Rentokil’s Q2/H1 results, due on 30 July, we make only minor

adjustments to our FY2026/27E estimates. The key focus for investors will

remain the pace of sequential organic improvement in North America and

whether the company continues to demonstrate that its revised operating

plan is on track. In particular, the market will look for further colour on North

America Pest Control Services momentum, volume trends, lead generation

and conversion, and the path toward margin improvement. The results will

also be important as the first formal update under new CEO Mike Duffy, who

officially took over in mid-March. We continue to expect FY2026 delivery to be

more H2-weighted, particularly at the margin level, as the annualisation of

2025 savings is complemented by further efficiency benefits through the year.

We model North America adjusted operating margin at c.18% in H1, with FY to 31/12 (USD) 12/26E 12/27E 12/28E

steady progression thereafter toward the company’s c.20% target in H2 2027. Sales 7,296 7,627 7,964

EBITDA adj. 1,730 1,882 1,948

Overall, we remain positive on the direction of travel, with the recovery EBIT adj.