Rentokil Initial Reports H1 2026 Growth and Debt Reduction

The Tip Desk · July 30, 2026 · 2 min read

The company saw revenue rise to $3.589 billion and reduced its net debt to EBITDA ratio to 2.4x, while maintaining its full-year profit outlook despite recent weakness in North American residential leads.

Rentokil Initial Plc reported revenue of $3.589 billion for the first half of 2026, a 6.7% increase from $3.364 billion in H1 2025. Group organic revenue growth was 3.6%, with Q2 organic growth accelerating to 3.8%. Adjusted operating profit rose 6.6% to $556 million, with the adjusted operating margin increasing by 0.3 percentage points to 15.5% [10, 17].

Performance varied by segment. International revenue grew 6.0% to $1.392 billion, with organic growth of 3.5% [1, 11]. Hygiene & Wellbeing revenue increased 8.8% to $621 million, with organic growth of 2.6% [1, 12]. In North America, organic revenue growth was 3.7%, supported by 10.6% growth in Business Services.

The company acquired 14 businesses for $37 million during the period, including nine in Pest Control and five in Hygiene & Wellbeing [1, 9]. Rentokil Initial expects to spend approximately $120 million on acquisitions throughout 2026 [9, 16].

Free cash flow increased 12.8% to $318 million, representing a conversion rate of 96% [10, 13, 14]. The company reduced its net debt to EBITDA ratio to 2.4x, entering its target range of 2-2.5x for the first time since the Terminix acquisition [13, 14]. The board declared an interim dividend of 4.48 cents per share, an 8.0% increase [10, 13].

Regarding liabilities, the company made an additional $47 million provision for termite damage claims, with a closing provision of $392 million. Estimated cash outflows for these claims in 2026 are between $115 million and $125 million.

Looking forward, the company expects to deliver FY 2026 profit in line with current market expectations, despite observing weakness in North America Residential lead flow toward the end of Q2 and into July [16, 17].