WS Investor
05 Mar 2026, 18:47
Rentokil Initial reported 2025 revenue of $6.9 billion, up 4.4% year-over-year, with adjusted operating profit rising 5.4% to $1.07 billion and operating margin improving to 15.5%.
Free cash flow increased 24.5% to $615 million with a strong 98% conversion rate, while net debt declined to $3.65 billion, reducing leverage to 2.6× EBITDA. The company recommended a final dividend of 8.24 cents, bringing the total 2025 dividend to 12.39 cents per share.
Performance improved during the year, with organic revenue growth accelerating to 3.5% in the second half compared with 1.6% in the first half. North America saw stronger momentum, including pest control services growth improving to 2.6% in the fourth quarter.
Strategically, Rentokil is restructuring its North American operations by focusing on around 30 retained brands and expanding its branch network to about 800 locations by 2026 to increase customer proximity. The company also continued investing in AI tools and data systems to improve sales efficiency and operational productivity.
Cost efficiency initiatives are progressing toward a targeted $100 million cost reduction by 2027, with North American operating margins expected to exceed 20% by that year. For 2026, Rentokil expects performance to remain in line with market expectations as it continues executing its growth and integration strategy.
Free cash flow increased 24.5% to $615 million with a strong 98% conversion rate, while net debt declined to $3.65 billion, reducing leverage to 2.6× EBITDA. The company recommended a final dividend of 8.24 cents, bringing the total 2025 dividend to 12.39 cents per share.
Performance improved during the year, with organic revenue growth accelerating to 3.5% in the second half compared with 1.6% in the first half. North America saw stronger momentum, including pest control services growth improving to 2.6% in the fourth quarter.
Strategically, Rentokil is restructuring its North American operations by focusing on around 30 retained brands and expanding its branch network to about 800 locations by 2026 to increase customer proximity. The company also continued investing in AI tools and data systems to improve sales efficiency and operational productivity.
Cost efficiency initiatives are progressing toward a targeted $100 million cost reduction by 2027, with North American operating margins expected to exceed 20% by that year. For 2026, Rentokil expects performance to remain in line with market expectations as it continues executing its growth and integration strategy.