Rentokil Initial Plc Misses Earnings Estimates: What Analysts Forecast for 2025
ByAinvest
Sunday, Aug 3, 2025 3:43 am ET1min read
RTO--
The company's organic growth was 1.6%, with the international region showing strong performance with a 5.1% increase in revenue and 2.7% organic growth. However, the company faced cost pressures, leading to a decrease in the adjusted operating margin from 17.2% to 15.2%, a decline of 120 basis points [2]. North America's adjusted operating profit fell by 7.3%, with cost inflation and lower volumes impacting margins.
Rentokil Initial has expanded its satellite branches from 36 to 100, with plans to reach 150 by year-end. The door-to-door sales pilot generated approximately $12 million in annualized sales, showing promising early results. However, the hygiene and well-being segment experienced slower growth, with organic growth at only 0.4% in Q2, and there is a challenge in growing the contract portfolio, with a slight decline in contract revenue by 0.2% year-on-year [2].
The termite warranty claims provision increased from $236 million to $276 million due to higher costs of complex claims. The company expects this provision to remain volatile but is focused on managing it effectively. Analysts expect revenues of £5.36bn in 2025, a 3.1% decline from last year, and EPS of £0.12, a 28% surge. The consensus price target remains at £4.23 [1].
References:
[1] https://www.marketscreener.com/news/rentokil-initial-plc-reports-earnings-results-for-the-half-year-ended-june-30-2025-ce7c5fdcd08bf520
[2] https://ca.finance.yahoo.com/news/rentokil-initial-plc-rklif-q2-230034718.html
Rentokil Initial plc missed analyst estimates in its latest half-yearly results, with revenues in line but statutory earnings per share 18% below expectations. Analysts expect revenues of £5.36bn in 2025, a 3.1% decline from last year, and EPS of £0.12, a 28% surge. The consensus price target remains at £4.23, with a narrow range of analyst estimates.
Rentokil Initial plc reported its earnings results for the half-year ended June 30, 2025. The company reported sales of GBP 3,364 million, a 3.1% increase compared to the previous year's GBP 3,266 million. However, net income fell to GBP 188 million, down from GBP 248 million a year ago, reflecting a 28% decrease in statutory earnings per share (EPS) from GBP 0.0909 to GBP 0.0649 [1].The company's organic growth was 1.6%, with the international region showing strong performance with a 5.1% increase in revenue and 2.7% organic growth. However, the company faced cost pressures, leading to a decrease in the adjusted operating margin from 17.2% to 15.2%, a decline of 120 basis points [2]. North America's adjusted operating profit fell by 7.3%, with cost inflation and lower volumes impacting margins.
Rentokil Initial has expanded its satellite branches from 36 to 100, with plans to reach 150 by year-end. The door-to-door sales pilot generated approximately $12 million in annualized sales, showing promising early results. However, the hygiene and well-being segment experienced slower growth, with organic growth at only 0.4% in Q2, and there is a challenge in growing the contract portfolio, with a slight decline in contract revenue by 0.2% year-on-year [2].
The termite warranty claims provision increased from $236 million to $276 million due to higher costs of complex claims. The company expects this provision to remain volatile but is focused on managing it effectively. Analysts expect revenues of £5.36bn in 2025, a 3.1% decline from last year, and EPS of £0.12, a 28% surge. The consensus price target remains at £4.23 [1].
References:
[1] https://www.marketscreener.com/news/rentokil-initial-plc-reports-earnings-results-for-the-half-year-ended-june-30-2025-ce7c5fdcd08bf520
[2] https://ca.finance.yahoo.com/news/rentokil-initial-plc-rklif-q2-230034718.html
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet