Rentokil Initial (RTO) investor relations material

Executive summary

• Q3 group revenue reached $1.8 billion, up 4.6% year-over-year, with organic revenue growth of 3.4% driven by improved performance in North America and international markets.

• North America saw improved sales execution, digital marketing, and cost efficiency, with 139 satellite branches operational and 150 expected by year-end.

• International segment revenue grew 4.6%, with strong performance in the UK and Southern Europe, and improved results in Property Services.

• Customer retention in North America increased to 80.9%, with 11 consecutive quarters of improved colleague retention.

• The door-to-door sales pilot is set for expansion in 2026.

Financial highlights

• Group revenue for Q3 was $1.8 billion, up 4.6% year-over-year, with organic growth of 3.4%.

• North America revenue grew 4.6% (3.4% organic), with Pest Control Services organic growth at 1.8% and Business Services at 11.9%.

• International segment revenue increased 4.6% (3.3% organic), led by Pest Control (3.8% organic) and Hygiene & Wellbeing (2.6% organic).

• Net debt at quarter-end was $3.9 billion, aided by proceeds from the France workwear sale.

• Three M&A deals completed in Q3, totaling 21 for the year, with $39 million in annualized pre-acquisition revenue.

Outlook and guidance

• Full-year financial results are expected to be in line with market expectations.

• Q4 organic growth will be impacted by the non-repeat of last year’s emergency mosquito control work, reducing growth by about 60 basis points.

• Cost efficiency initiatives are on track to deliver $100 million in cost reductions by end of 2026, with a target of over 20% operating margin in North America post-2026.