Rentokil Initial: 1H26 results: headlines in-line, details mixed

研报英文原文证据摘录

Rentokil Initial: 1H26 results: headlines in-line, details mixed

C A Z E N O V E Europe Equity Research

30 July 2026

Rentokil Initial Overweight

RTO.L, RTO LN

1H26 results: headlines in-line, details mixed Price (29 Jul 26):443p

Price Target (Dec-27):477p

Our Take: Rentokil’s 1H results are in-line with Bloomberg consensus organic European Business Services

ACgrowth and company-compiled consensus EBITA; expected delivery in line with Jane L Sparrow

current FY consensus is confirmed. Below the in-line headlines however, there is (44-20) 3493-7101

a lot to digest, notable features include: (i) the organic growth acceleration in 2Q jane.sparrow@jpmorgan.com

vs 1Q (3.8% vs 3.4%) was driven by International with North America slowing, J.P. Morgan Securities plc

including North America Pest slowing from 2.8% to 2.4% - with pricing continuing Victoria K Chang

to track above inflation, this implies continued negative volumes; (ii) 2027 North (44-20) 7134-5439

victoria.kx.chang@jpmorgan.com

America margin target of 20% has been abandoned with the focus on “volume J.P. Morgan Securities plc

growth over short-term margin expansion”; (iii) North America residential

Ankit Khandelwal

leadflow weakened towards the end of 2Q and into July (the opposite of Rollins (91-22) 6157-5167

who last week reported a weak May followed by improving trends into late June ankit.khandelwal@jpmchase.com

and early July). (iv) Updated technical guidance includes an additional c$60m of J.P. Morgan India Private Limited

cash outflows driven largely by higher termite provision payments and

transformation costs. (v) Initial strategic comments from the new CEO point to

portfolio simplification and an increased focus on investing in North America

(further strategic details to be revealed in Feb 2027).