UK's Rentokil Initial 2025 prelim revenue up 3.8% on North America performance

Reuters15:13
UK's Rentokil Initial 2025 prelim revenue up 3.8% on North America performance

Overview

  • UK pest control firm's 2025 prelim revenue up 3.8%, missing analyst expectations

  • Adjusted EBITDA for 2025 missed analyst expectations

  • Adjusted pretax profit slightly beat analyst expectations

Outlook

  • Rentokil expects 2026 results to align with market expectations despite uncertainties

  • Company aims for $100 mln cost reduction in North America by 2027

  • Rentokil plans to expand to 800 branches by end of 2026

Result Drivers

  • ORGANIC REVENUE GROWTH - Improved performance in North America with pest control services showing sequential growth, reaching 2.6% in Q4

  • COST EFFICIENCY - Cost efficiency initiatives contributed to a 5.4% increase in adjusted operating profit

  • BRANCH EXPANSION - Expansion of branch network and retention of local brands to enhance customer proximity and market penetration

Company press release: ID:nRSE4090Va

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

FY Revenue

Miss

$6.91 bln

$7.61 bln (18 Analysts)

FY Adjusted EBITDA

Miss

$1.43 bln

$1.58 bln (18 Analysts)

FY Adjusted Pretax Profit

Slight Beat*

$876 mln

$874.004 mln (14 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy"

  • Wall Street's median 12-month price target for Rentokil Initial PLC is GBp500.00, about 17.5% above its March 4 closing price of GBp425.50

  • The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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