Rentokil Initial sees sales and profits jump, shares rally

(Sharecast News) - Rentokil Initial reaffirmed guidance on Thursday, sending shares sharply higher, following a strong finish to the year. The pest control and hygiene specialist posted a 3.8% improvement in 2025 revenues to $6.9bn, on a constant currency basis, supported by strengthening organic growth. In the first half, revenues grew by 1.6%, but by 3.5% in the final six months.

Annual operating profits rose 5.4% to $1.1bn.

In North America, Rentokil's biggest market, organic revenues sparked 2.3% at $4.3bn. The firm said cost efficiency initiatives remained on track to deliver cost reductions of around $100m in 2027.

"Initiatives include streamlining and simplifying the business through global capacity centres, outsourcing, procurement and digital enablement," it noted.

Outgoing chief executive Andy Ransom called it a year of "encouraging progress".

He said: "It is encouraging to see the strategic initiatives we put in place at the start of this year driving an improved performance. There is still more to do, building on this progress to fully realise the potential of this business.

"Our leading positions in the North American pest market, and other key global markets, provide a solid foundation and we are well-placed to capitalise on strong industry forecasts for the coming years.

"In the short term, while recent geopolitical events create uncertainty, our plans to further increase growth and margins give us confidence in delivering a 2026 performance in line with market expectations."

As at 0830 GMT, the stock had rallied 11% at 473.9p.

Ransom announced last year plans to retire after 12 years at the helm. He is being replaced by Mike Duffy, the former head of US logistics firm OnTrac, who joined last month ahead of taking on the role on 16 March.

Rentokil also announced on Thursday that long-standing chair Richard Solomons, 64, was stepping down. The search for his successor his now underway, the blue chip confirmed. Solomons has held the role since 2019.