Rentokil Initial Delivers Steady Q1 Growth as New CEO Sets Direction

Rentokil Initial (LSE:RTO) reported revenue of $1.68 billion for the first quarter of 2026, marking a 4.3% increase at constant currency, with organic growth of 3.4%. Performance was largely supported by its North American pest control division alongside solid contributions from international markets. Newly appointed CEO Mike Duffy pointed to strong workforce engagement and expressed confidence that the group remains on course to meet full-year expectations despite geopolitical headwinds.

North America generated $995 million in revenue, delivering 3.9% organic growth. This was underpinned by effective pricing strategies, improved sales execution, and early seasonal demand within Business Services. Employee retention improved throughout the period, while customer retention levels held steady. Internationally, revenue rose 4.1% at constant currency, with 2.8% organic growth. Gains across Europe, Latin America, and the UK & Sub-Saharan Africa helped offset weaker conditions in the Pacific and MENAT regions. The company also remained active on acquisitions, completing nine smaller deals that together contributed around $19 million in annualised revenue prior to acquisition.

The group’s outlook is supported by consistent revenue expansion, solid free cash flow generation, and improving leverage, alongside guidance focused on margin improvement through operational efficiencies. However, this is balanced by a relatively elevated valuation, reflected in a high price-to-earnings ratio, and mixed short-term technical signals, including a negative MACD despite a broader upward trend.

More about Rentokil Initial

Rentokil Initial is a global provider of pest control, hygiene, and wellbeing services, with a major presence in North America and a broad international footprint spanning Europe, Latin America, the UK & Sub-Saharan Africa, the Pacific, and MENAT regions. The company focuses on recurring service contracts across both commercial and residential markets, delivering pest management and hygiene solutions as part of its core offering.