A CENTURY OF SERVICE. DELIVERING EVERY DAY.
Rentokil Initial plc
Annual Report 2025
Protecting People. Enhancing Lives. Preserving our Planet.
Contents
Letter from the Chief Executive
See pages 10 to 13
Our Businesses
See pages 26 to 33
Our Regions
See pages 34 to 37
Strategic Report
03 Introduction
04 Group Highlights
06 Our Business at a Glance
08 Chair's Statement
10 Letter from the Chief Executive
14 Reasons to Invest
16 Our Strategy and Business Model
20 Capital Allocation
22 Key Performance Indicators
26 Our Businesses
34 Our Regions
38 Financial Review
42 Use of Non-IFRS Measures
48 Responsible Business
66 Section 172(1) Statement
67 Non-Financial and Sustainability Information Statement
68 Risks and Uncertainties
76 Viability Statement
Corporate Governance
78 Chair's Governance Overview
80 Board of Directors
82 Executive Leadership Team
84 Our Governance
95 Our Stakeholders
99 Audit Committee Report
107 Nomination Committee Report 113 Directors' Remuneration Report 140 Independent Auditors' Report
Financial Statements
148 Consolidated Financial Statements
153 Notes to the Consolidated Financial Statements
193 Related Undertakings
201 Parent Company Financial Statements
203 Notes to the Parent Company Financial Statements
Other Information
207 Management's Discussion and Analysis
221 Directors' Report
225 Additional Shareholder Information
227 Glossary
Non-IFRS Measures The Group uses a number of non-IFRS measures to present the financial performance of the business. These are not measures as defined under IFRS, but management believes that these measures provide valuable additional information for users of the Financial Statements, in order to better understand the underlying trading performance in the year. See pages 42 to 47 for more information.
The content of this Annual Report reflects the views, opinions and status of the Company as at 5 March 2026.
02
Rentokil Initial plc Annual Report 2025
Strategic Report
Corporate Governance
Financial Statements
Other Information
After a century of service, we continue to build a higher-quality company for the next 100 years with investments in engaged colleagues, satisfied customers, leading brands, emerging technology and innovative products.
The strategy we have executed in 2025 has delivered an encouraging performance.
03
Rentokil Initial plc Annual Report 2025
Group Highlights
A year of encouraging progress
Financial highlights
Revenue1
$6,908m +3.8%
2024: $6,617m
Organic Revenue Growth1
+2.6%
2024: +2.6%
North America Organic Revenue Growth1
+2.3%
2024: +1.5%
International Organic Revenue Growth1
+3.0%
2024: +4.4%
Adjusted Operating Profit1
$1,070m +5.4%
2024: $1,008m
Profit before tax
$390m
2024: $462m
Basic EPS
11.49¢
2024: 13.72¢
Adjusted Basic EPS
25.91¢ +2.4%
2024: 25.31¢
Net Cash Flows from Operating Activities
$972m
2024: $868m
Free Cash Flow
$615m +24.5%
2024: $494m
All figures stated as continuing operations.
1. Growth rate stated at constant currency.
Find out more
on pages 38 to 41
04
Rentokil Initial plc Annual Report 2025
KPIs, see page 24
Strategic Report
Corporate Governance
Financial Statements
Other Information
Operational highlights
Our businesses Our regions
Our Pest Control business is the largest operator in North America, the world's biggest pest control market, and a leading player globally. Our Hygiene & Wellbeing business is a leader in the provision of hygiene and wellbeing services across our International markets.
Rentokil Initial operates regionally and reports performance across two regions - North America and International. The International region covers
88 countries worldwide, in Europe, the United Kingdom, Asia, the Pacific, Latin America, MENAT and
Sub-Saharan Africa.
Revenue split Revenue split
83
Pest Control
%
17
Hygiene & Wellbeing
%
North America
62
%
38
International
%
Find out more
on pages 26 to 33
Find out more
on pages 34 to 37
Non-financial highlights
Lost Time Accident (LTA)1
0.28 +3.4%
2024: 0.29
Total customer retention
82.6% +50bps
2024: 82.1%
Total colleague retention
87.4% +110bps
2024: 86.3%
Customer satisfaction (CVC)
60.6 +2.8pts
2024: 57.8
1. Includes the performance of France Workwear.
Find out more
on pages 50 to 52
KPIs, see pages 22 and 23
05
Rentokil Initial plc Annual Report 2025
Our Business at a Glance
A global leader in pest control and hygiene and wellbeing services
Our company
We provide essential services which protect people from the dangers of pest-borne disease and the risks of poor hygiene.
ENGAGED COLLEAGUES
GLOBAL OPERATIONS
With c.63,400 colleagues, we are a people and values-based organisation focused on the service expertise of our teams and technicians.
With two regions and two businesses across 90 countries, we are a multi-local organisation with local branches and local sales and service teams, serving millions of customers.
POWER BRANDS
LEADERS IN INNOVATION
SERVICE EXCELLENCE
RESPONSIBLE BUSINESS
Our power brands are Rentokil (global), Terminix (US residential and termite), Initial (global),
and Ambius (global). Alongside these are strong regional and local brands.
We have a strong track record of differentiated innovation
in both Pest Control, such as AI-enabled connected
technologies, and Hygiene & Wellbeing. We are building our expertise in digital and AI
to drive real business outcomes.
We perform over 34 million service visits per year - from the largest multinational companies to local shops, restaurants, and homes, and enjoy high levels of customer satisfaction.
We are committed to doing business responsibly with a focus on safety, colleague training and engagement, protecting the environment and adding value
to our communities.
North America International
Our culture
Our vision is to be a world-class services company and our culture is critical to our success. At Rentokil Initial, our colleagues are our brand. They are our experts, focused on delivering a great service for our customers. We live our values every day through our culture, and the professional standards we set.
Our culture model
OUR MISSION
Protecting People. Enhancing Lives. Preserving our Planet.
OUR VALUES
Service
We are passionate about delivering excellent customer service to every customer.
Relationships
We value long-lasting relationships with our colleagues and customers.
Teamwork
Our business is
about great teamwork - getting it right, for our colleagues and customers.
Responsibility
A duty of care to each other, our customers, the communities in which we live and work, and the planet.
OUR CULTURE
Customer focused
Firstly, we're a service company. We strive to meet our customers' needs and our people go the extra mile to do so. We work hard to support our customers and each other. When things
go wrong, we put them right.
Commercial
We employ smart people to help the company grow by making good decisions that benefit our customers. We constantly seek out new opportunities for growth and ways to work more effectively.
Belonging
We value everyone's talents and abilities and strive to attract, recruit and retain the best people from the widest possible pool of talent. We value equal opportunities as part of our way of working.
Down to earth
We don't like big egos. People who succeed with us are friendly, down-to-earth,
straightforward, and constantly seeking to improve. We work hard to deliver great results for our customers and colleagues.
Innovative
We use the latest advancements to build an innovation pipeline that sets us apart from the competition. We embrace digital technologies that help create new products and make us more efficient.
Chair's Statement
Delivering for our stakeholders
After a challenging year in 2024, we are encouraged by the improving performance through 2025. We remain focused on executing our strategy in a way that meets the needs of all our stakeholders including customers, colleagues and shareholders.
Richard Solomons
Chair
Introduction
Rentokil Initial is a global leader in pest control and hygiene and wellbeing services, two industries characterised by strong underlying growth drivers. Our strategy leverages the benefits of our global scale to win locally through strong brands and highly-engaged colleagues delivering great customer service with an innovative range of products and services. The North America region has continued to be the main area of focus and challenge for the Board in 2025 and therefore we have been encouraged by the improving performance, although there is still much to do to reach our full potential.
Chief Executive succession
2025 marked the beginning of a transition for Rentokil Initial, with the announcement in May 2025 of the retirement of our Chief Executive, Andy Ransom, ahead of our AGM in May 2026.
On behalf of the Board, I want to express our gratitude to Andy for his enormous contributions and commitment to the Company for 18 years and especially during his successful tenure as CEO, steering Rentokil Initial to become one of the world's leading services businesses.
Since Andy became Chief Executive, Total Shareholder Return has risen over 400%. He has also been fundamental in embedding the culture we have in the organisation to fulfil our mission of Protecting People, Enhancing Lives and Preserving our Planet. We wish him all the very best for the future.
Following a rigorous global selection process, which you can read more about on pages 94 and 109, we were delighted to appoint
Mike Duffy to succeed Andy as our new Chief Executive.
Mike joined the business as CEO Designate on 16 February 2026 and will become Chief Executive on 16 March 2026. Andy will continue to be available until May 2026 for a smooth and well-managed leadership
transition.
Mike brings over 25 years of leadership experience with large US businesses with similar characteristics to Rentokil Initial - complex multi-site businesses with route-based operations. He has experience of both commercial and consumer industries and throughout his career
he has delivered successful business transformations through initiatives to improve the customer experience, colleague engagement and financial returns.
Mike's energy, ambition, operational experience and clarity of strategic thinking stood out during the selection process. He is a dynamic, growth-oriented leader with deep commercial, technology and operational expertise. He shares our values and our ambition
and has a strong track record of strategy execution.
Mike has begun his onboarding programme and the Board and I look forward to working with him as we accelerate our strategy and continue to deliver value for all our stakeholders.
Mike Duffy
CEO Designate
There is an exciting opportunity ahead to build upon the strong foundations in place to drive operational excellence, improved financial performance and incremental value for shareholders.
Performance
2025 has been a year of encouraging performance for the Group. There were early signs of an improvement in performance in North America, where Organic Revenue Growth reached 3.5% in the second half of the year compared to 1.1% in the first half. While this level of growth continues to underperform the market, this remains the primary focus of the Board and the North America leadership team.
A disciplined focus on costs and cash delivered 5.4% growth in Operating Profit and 98% Free Cash Flow Conversion. Given this performance, and in line with our progressive dividend policy, the Board is recommending a final dividend of 8.24 cents per share for 2025, bringing the dividend for the year to 12.39 cents per share, up 3.0%.
Strategy
Throughout the year, the Board has regularly considered the Group's performance against our strategy, including examining post-integration reviews of M&A. The Board received comprehensive updates from
our regional leadership teams on strategy and performance, with
a particular focus this year on the execution of our evolved strategy for North America and our plans for 2026. The annual two-day Board
strategy session also provided a key opportunity for the Board to reflect and review the Group's strategic priorities, with a primary focus on organic growth.
In line with our capital allocation framework, after investment in the business to drive organic growth, we have continued to execute
high-quality bolt-on M&A, focused on Growth and Emerging markets, with 36 businesses acquired in 2025. Further details on our strategy, and the progress that we have made on our strategic priorities in the year, can be found on pages 16 to 19.
Safety, health and environment
Our mission - Protecting People, Enhancing Lives, and Preserving our Planet - is at the centre of everything we do. The Board considers
safety, health, and environment (SHE) performance at every scheduled meeting, and we are pleased to report sustained high levels of colleague safety performance.
The Board also received updates on the Company's sustainability strategy and the progress made against our sustainability initiatives over the year. More information can be found in the Responsible Business section on pages 48 to 65, and in our standalone Responsible Business Report, which can be found at
rentokil-initial.com/responsible-delivery.
People
We believe that it is our colleagues who make Rentokil Initial what it is, and the Board is grateful to the hard-working teams of colleagues that we have around the world.
The Group has continued in its investment in being a world-class Employer of Choice, and is pleased to see that our colleague retention continues to rise. During the year, we delivered 2.2m training sessions and created 540 new training items. We currently have 137 customer service apprentices and over 100 participants in our graduate scheme.
The Board aims to engage with a broad range of colleagues, through attendance at meetings, site visits and colleague events. In 2025, we joined colleagues to celebrate 100 years of Rentokil. We also receive regular colleague updates, including key themes such as colleague recruitment and retention, through the Chief Executive report at each meeting.
The Board is aided in monitoring the culture of the Company through an annual deep dive on culture, and a comprehensive review of the results of our confidential all-colleague survey, Your Voice Counts.
It was particularly encouraging to see the results for safety, line manager performance, equal opportunities, customer service and innovation remaining very strong. The Board also received a deep dive on workforce engagement during the year.
Board composition
We welcomed Leanne Sheraton and Sam Mitchell as Non-Executive Directors in June 2025. Leanne was previously Chief Marketing Officer for PayPal Holdings, Inc., a global leader in fintech. She brings to
the Board deep expertise in brand building, consumer marketing and digital customer acquisition. Sam was the former Chief Executive of Valvoline Inc., the North American leader in automotive maintenance.
He strengthens the Board by adding recent leadership experience in a North American multi-site business-to-business and
business-to-consumer company. Their full biographies can be found on page 81.
Sarosh Mistry stepped down as a Non-Executive Director on 31 July 2025, and Linda Yueh will step down as a Non-Executive Director at the conclusion of the Annual General Meeting (AGM) on 7 May 2026.
On behalf of the Board, I offer my sincere thanks to Linda and Sarosh
for their commitment and dedication to Rentokil Initial, and their valuable advice and counsel during their time on the Board.
Board effectiveness
In 2025, we undertook an internal Board effectiveness review, including individual Director and Committee reviews. The findings concluded that the Board and Board Committees continue to operate effectively, and individual Directors continue to contribute meaningfully to the Board.
Information on this year's Board performance review, including the themes and actions we will be taking over 2026, and the progress made against the actions from the 2024 internal review, can be found on page 90.
Looking ahead
It was with mixed emotions that I informed the Board of my intention to retire as Chair of Rentokil Initial, once a successor has been appointed. That search is now underway, and until then I will continue to lead the Board and ensure a smooth transition.
With a strong and resilient business model and platform for growth there are substantial opportunities for value creation across the Group. The Board will work with our new Chief Executive, Mike Duffy, to fully capitalise on these opportunities with the core priority to continue to improve organic growth in North America.
In closing, I would like to extend my thanks and appreciation to the leaders and teams across Rentokil Initial for their enthusiasm and commitment to exceptional customer service throughout the year, and to our shareholders for their continued support.
Richard Solomons
Chair
Letter from the Chief Executive
Executing our strategy
2025 was a year of encouraging progress for the Group. We have strengthened our position in North America driven by the relentless execution of our strategy and our commitment to high quality service and efficiency. Globally we continue to deliver sustainable growth with revenues increasing by 3.8%, supported by 36 bolt-on acquisitions, many in emerging markets.
Andy Ransom
Chief Executive
Introduction
2025 has been an important year as we celebrated 100 years of Rentokil, a milestone that brings into the spotlight the strong foundations that have underpinned our growth into the global leader in pest control.
Rentokil was born from innovation when Harold Maxwell-Lefroy formulated the first treatment which eradicated a deathwatch beetle infestation from Westminster Hall, the largest medieval timber roof in northern Europe.
From this success, Harold founded a company built on science and innovation, a desire to protect people, and an unwavering commitment to provide customers with the best products and services possible.
A truly customer-centric organisation puts colleagues first, something that is ever-present across Rentokil Initial as we invest in colleague engagement, training and culture to deliver exceptional service and meet, and, wherever possible, exceed the needs of our customers.
What is clear from the centenary celebrations is the immense pride throughout the organisation in our rich heritage and the significant progress we have made in the year.
Leading in resilient long-term growth markets
Our success is underpinned by the resilient long-term growth markets of pest control and hygiene and wellbeing in which we operate, and the strength of our position in the 90 countries where we do business.
The global pest control market is continuously evolving, with urbanisation and climate change creating a more favourable environment for pests, and public health concerns and stricter regulation driving up demand for control services.
The global hygiene market is also an attractive industry. Like pest control, hygiene and wellbeing is an essential, non-discretionary business where growth is benefiting from a heightened focus on hand, air and surface hygiene, growing health consciousness afforded by higher disposable incomes, tightening hygiene and sanitation regulations and greater emphasis on health and wellbeing in the workplace.
We are executing our strategy to capture these opportunities to deliver sustainable growth. Our markets are also characterised as highly fragmented - which favours the operators of scale where our market leadership positions and investment in product development, innovation and digital technology continue to ensure that we differentiate our global brands, support our customers' needs to grow our market share and build competitive advantages to drive consolidation.
Find out more
on pages 27 and 33
Building sustainable growth - a year of progress
2025 was a year of encouraging progress for the Group, particularly in the second half, where, in North America, we began to see clear evidence that the initiatives we put in place at the start of the year are delivering results and improved momentum.
For the year, we reported Organic Revenue Growth of 2.6%, with 1.6% in the first half and 3.5% in the second half. This acceleration in the second half of the year was particularly evident in North America, with good progress in both Pest Control Services and Business Services.
Globally, we continue to benefit from our strong footprint in attractive markets. In 2025, our International business grew Revenue 4.8%.
Organic Revenue Growth was 3.0% which included Organic Growth in Pest Control of 3.7% and Hygiene & Wellbeing of 2.0%.
Balancing investment in growth and cost efficiency, we converted 3.8% Revenue growth into 5.4% Adjusted Operating Profit Growth and improved our margins by 0.3%pts to 15.5%.
This was also a year of progress on cash flow, with Free Cash Flow increasing 24.5% and a Free Cash Flow Conversion rate of 97.6%, ahead of our target at the start of the year, and allowing us to reduce leverage to 2.6x.
North America
We have responded to the evolving digital landscape with increased investment in our brand websites to ensure their positioning is optimised for
AI-generated search answers
Smaller, local branches now total
>150
to improve customer proximity
customer retention
80.5%
up 0.4%pts in 2025
30
Retaining 30 national,
regional and local pest brands
c.800
Target branch network
by end of 2026
Focus on execution in North America
We are a strong leader in pest control in the US, a market where around half of the world's pest control takes place and which is growing at c.6%, positioning us well for long-term growth.
In 2025, our focus has been on growth and bringing together the complementary strengths of Rentokil and Terminix. We were encouraged to see the improving performance in the second half of the year when the initiatives we put in place supported Organic Revenue Growth of 3.5%, compared to 1.1% in the first half.
At the start of the year, we outlined a comprehensive overhaul of how we were growing the business, informed by our learnings in 2024.
Our growth plan focused on improving lead flow and we have been winning new business at accelerating rates supported by enhanced digital marketing to realise the benefits from better organic lead generation and high-quality, lower-cost paid-for leads. We have responded to the evolving digital landscape with increased investment in our brand websites to ensure their positioning is optimised for
AI-generated search answers. In an industry where business is won locally, city by city, we have continued the roll-out of smaller, local branches through our satellite programme, to a total of over 150 to improve customer proximity and presence in the community.
Alongside marketing initiatives, we've reorganised our local field sales operations back to branch managers to drive more accountability and visibility of results - which we can see in improvements in our core sales metrics which target improved speed from lead to inspection and proposal. In 2025, we also ran a successful pilot of door-to-door residential contract sales through the peak summer season.
As well as winning new customers, in a business where the key to sustainable growth is continuing to grow the value of the contract portfolio, we also implemented a range of initiatives to improve customer retention, including investment in a customer saves team
to proactively encourage terminating customers to stay and improved billing and customer communications. Customer retention now stands at 80.5% in North America, up 0.4%pts in 2025, and our Net Promoter Score from Customer Voice Counts (CVC) surveys now stands at 61.5, up 2.5pts year-on-year.
Looking back on our progress since the acquisition of Terminix, we have achieved a great deal, creating a single North American organisation using aligned back-office technology. We have continued to invest
in enhancing the capabilities of the combined organisation with meaningful investments in 2025 in the leadership and newly formed teams supporting pricing and data science. To fuel this investment and drive further improvements in profitability we have increasingly focused on efficiency with enhanced procurement and utilisation of outsourcing.
Looking forward to 2026, we are continuing to execute our evolved marketing and multibrand strategy. Informed by the strong growth in leads from our regional brand strategy, we are planning to retain 30 pest brands - powerful national, regional and local brands -
representing over 90% of our revenues across a revised target branch network of around 800, including around 220 smaller, local
branches. Retaining more brands and branches, combined with an enhanced and streamlined approach to systems migration, simplifies the remaining integration.
Find out more
All of this puts us in a strong position to deliver on the margin enhancement and revenue growth required to achieve our target of above 20% operating margins in our North America business in 2027.
on pages 34 to 36
Letter from the Chief Executive
continued
SPOTLIGHT ON:
INNOVATION AND TECHNOLOGY
AI PRODUCTIVITY
AI EFFICIENCY AI SERVICE INNOVATION
COLLEAGUES, CUSTOMERS AND AICore AI integration
Rentokil Initial is actively integrating AI, particularly Gemini AI, into its operations. This strategic adoption aims to enhance efficiency and productivity across the business.
We launched Google Gemini AI as an integrated tool within email and documents, and as a standalone app to enable further efficiencies. By the end of 2025, all colleagues worldwide had access to Gemini AI, demonstrating a strong commitment to digital transformation, with North America the largest user region.
Outcomes-driven AI agents and chatbots
We have also developed and begun to roll-out a proprietary AI Portal to create company-specific AI agents. This provides a single, secure repository of multiple industry-standard Large Language Models (LLMs), allowing colleagues to choose the right model for different tasks, and includes custom-made
AI chatbots and agents. To date, around 100 AI agents and chatbots are in development across areas such as technician training, HR queries, IT support, national accounts support, sales entry, brand compliance, SOX and cash allocation.
AI service innovation
Rentokil Initial has also deployed AI in its latest service innovation, PestConnect Optix for rodent control. Motion-detection cameras at customer sites capture and transmit images back to Rentokil technicians and, so far this year, 4.1 million images have been processed and analysed by Rentokil's AI model, enabling a faster response to potential infestations. The Optix service has now been launched in five countries.
Delivering the opportunity for growth in our International region
In 2025, we also made progress simplifying our International region with the divestment of France Workwear, leaving this region focused
on our two core business lines of Pest Control and Hygiene & Wellbeing.
These businesses have similar characteristics being route-based, primarily contract businesses with a colleague-centric approach ensuring high levels of customer satisfaction and a commitment to enhancing profitability through operational excellence and leveraging shared services across the two business lines.
Across these two businesses in our International region, we continue
to build on a strong base. Excellent colleague retention scores of 90.3% have been sustained from last year. We have been focused on customer service and retention, pricing and leveraging innovation, allowing us to sell more products to our established customers. Our M&A strategy
to build density in existing markets and penetrate new cities with high growth potential has led to 24 acquisitions in 2025. Following success in North America, we will use 2026 to explore more potential opportunities for cost efficiencies in our International businesses.
Find out more on page 37
Differentiation with innovation and digital
We have continued to leverage the benefits of our scale and expertise to invest in innovation and differentiate us from the competition. During 2025, we made great strides forward in our data capabilities, elevating the use of data and AI through the organisation down to the branch level to support decision making with the roll-out of Gemini for Google Workspace to our c.63,400 global workforce.
In just six months, colleagues used Gemini AI on over one million occasions to support their work and we have launched our own
in-house AI platform, known internally as RatGPT, which currently has over 100 AI agents in development to help us grow and become more efficient. We're committed to embedding digital transformation across the organisation, and we're actively using AI to drive real business outcomes.
We continue to invest in technology innovation in both Pest Control and Hygiene & Wellbeing with exciting opportunities ahead. These include investments in field-based technology such as in-field camera optics in our rodent traps, generative AI to support our customers and to lower our costs, and maximising our routes to market through optimised AI search.
Find out more
on pages 29 to 31
Investing in our people and building our culture
We have always seen a clear link between colleague retention and customer retention - by retaining our people we also build deeper relationships with our customers. Our colleague retention in 2025 has risen again to 87.4%. We listen carefully to our colleagues globally through our Your Voice Counts survey, a very detailed, confidential survey which provides every colleague the chance to give feedback on topics including culture, leadership and their line manager. We had record participation this year, with results that benchmark very highly for enablement and engagement.
Find out more
on pages 50 and 51
c.63,400Colleagues have access
to Gemini AI
>100AI agents and chatbots
in development
SPOTLIGHT ON:
CULTURE
100 AND COUNTING...
Rentokil's centenary year has been a remarkable milestone -an opportunity to reflect on our history but also celebrating the extraordinary commitment, generosity, and passion
of our colleagues. We focused the celebrations on giving back and connecting our Rentokil family, and the response was phenomenal.
Our initial goal was to support at least 100 charities and communities globally, but thanks to colleagues' enthusiasm
we ultimately supported more than 180 worldwide, far exceeding our target. These charities covered a wide range of causes,
with particular emphasis on Health, Hospice and Cancer Support, and Children, Youth and Education. Colleagues across the globe engaged with their local communities, delivering environmental initiatives such as litter picks, tree planting and river restoration.
Colleagues also came together at more than 100 local events during the year, with many teams forming the number 100 -captured by drones - as a powerful symbol of Rentokil's people and passion. A comprehensive marketing and social media campaign ran alongside these activities, ensuring Rentokil's centenary was recognised and celebrated across the world.
180
Charities and communities
supported
Focus on efficiency and disciplined capital allocation
We have progressed plans to simplify our business in North America and build a more efficient organisation, moving some of our support functions to Global Capability Centres and investing in automation. We have a target to deliver a cost reduction in North America of c.$100m in 2027 compared to an inflation-adjusted 2024 base and deliver operating margins above 20% in 2027 - our progress in 2025 gives us confidence we are on track to deliver against these targets.
As we increase cost efficiency and focus on cash, we are driving up our Free Cash Flow growth and Free Cash Flow Conversion. This fuels
our capital allocation model, which balances growing the business both organically and inorganically and returning capital to shareholders through sustainable growth in the ordinary dividend, and then through additional returns to shareholders, whilst maintaining leverage within
a target range of 2.0 to 2.5x.
Find out more
on pages 20 and 21
Rentokil Initial - the next 100 years
In May 2025, I announced my plan to retire. It has been a privilege
to lead this company as CEO for the last 12 years and as I look back I am immensely proud of what we have achieved and the business we have built based on the solid foundations of people, culture, colleague engagement, commitment to customer service, innovation and leading technology which have been the bedrock of this company for 100 years and will be the cornerstone of its future success.
In the last 10 years we have grown Revenue and profit at a compound annual growth rate of 14% and 17% respectively and we have delivered a 6%pt improvement in colleague engagement and an 11%pt improvement in colleague enablement.
Our global Pest Control and Hygiene & Wellbeing businesses enjoy highly resilient demand with strong structural growth drivers. We have
a strong global presence, with market leadership in dozens of countries. This unique footprint affords significant competitive advantages, leveraging our scale to invest in global capabilities and executing to win locally right down to the individual branch level. We continue to invest in value-creating M&A across the highly fragmented markets that we operate in. Our disciplined capital allocation model and an increasing focus on business simplification and cash discipline is delivering value for shareholders. In 2025, we have made good progress executing our strategies to drive profitable growth in North America and across our International region, and we have started 2026 with pace as we continue to build a powerhouse in pest control in North America.
It has been a pleasure to welcome Mike Duffy, as Rentokil Initial's new CEO, into this industry. He brings a wealth of leadership experience, customer focus, operational rigour, and care for colleagues and is well-placed to take Rentokil Initial forward on its next chapter of sustainable growth and long-term shareholder value creation.
I would like to express my thanks to all our colleagues who have been part of this journey and for what they do every day to contribute to the company's success. I look forward to watching Rentokil Initial continue to go from strength to strength.
Andy Ransom
Chief Executive
Rentokil 100
Watch the video
Reasons to Invest
A compelling investment opportunity of long-term compounding growth
Where we play
Attractive markets Leading global positions
A Highly attractive, fragmented and resilient markets
Rentokil Initial operates in highly attractive, global markets and in industries which have benefited from strong growth drivers. Our markets are characterised as resilient growth markets with long-term attractive fundamentals, including increasing awareness and demand for our services.
Within pest control, the forecast global market CAGR1 to 2035 is 6.2% with untapped opportunities across our regions and markets.
The highly fragmented industries of pest control and hygiene and wellbeing support inorganic growth and consolidation of our market share. Our bolt-on M&A programme has enabled us to expand into new, higher-growth markets as well as consolidate our position in our existing markets.
A Favourable tailwinds supporting organic growth Across our markets we continue to benefit from favourable market tailwinds underpinned by positive macro trends, which support ongoing strong organic growth.
Growth in the pest control market is driven by a number of factors, from climate change and urbanisation to technological advances, stricter regulations and demand for sustainable solutions.
In hygiene and wellbeing, positive market drivers include urbanisation, rising disposable incomes, a heightened awareness of hygiene risks and increasing regulation.
A Global leader with strong positions in fast-growing global markets
We have a track record of strong organic growth in Pest Control and Hygiene & Wellbeing, benefiting from our diversified global footprint, which extends across 90 countries, with market-leading positions in a number of them. Our strong and growing market positions allow us to serve all segments of the markets in which we operate - commercial, residential and termite - for both contracted and one-off services.
A Strong brand awareness
Our power brands of Rentokil, Initial, Terminix and Ambius enjoy strong brand awareness and high levels of brand trust, with a reputation for expertise and high-quality delivery.
Investment in brand awareness helps us retain existing customers and win new customers. Alongside our power brands, our investment in regional brands in North America, our largest market, is helping us keep close to our customers in a diverse marketplace.
A Clear benefits of scale to drive performance
As a global leader in pest control and hygiene and wellbeing, our scale advantage comes from our global presence and diverse service portfolio and customer base. This allows us to address the varied needs of residential consumers, small
businesses and large corporations, and to maximise customer relationships by managing locally, regionally and globally.
Leveraging our scale to invest in brands, people, innovation, technology and operational expertise, we are well placed
to meet and exceed customer expectations.
tl9bnPest control global
market size1
6.l%Pest control forecast global
market CAGR to 20351
l.6%Organic Revenue
Growth
90Global footprint
in 90 countries
1. Market data sources: Allied Markets (Global), The Strategic Analysis of the US Structural Pest Control Industry, Speciality Consultants LLC, QuinceMarket Insights and Company internal revenue data.
14
Rentokil Initial plc Annual Report 2025
Strategic Report
Corporate Governance
Financial Statements
Other Information
How we win
Investing for growth Business model creating value
A Investing in people, service, innovation and operations
Employer of Choice
We have a long-term commitment to invest in colleagues, inclusion and safety. This strong ethos enables us to attract and develop talent and expertise, and supports improvements in colleague retention.
High-performance culture
Putting people first leads to better recruitment, retention and customer service. Development opportunities are promoted so colleagues see Rentokil Initial as a place to grow, driving engagement and high performance.
Innovation
Our investment in innovation and our digital pipeline strengthens our brand and differentiates us from our competitors as we continue to enhance our reputation as global experts in our field. It also helps us provide
an enhanced service to customers seeking more efficient and cost-effective solutions - for example, through
our penetration of connected devices and monitoring, increasingly incorporating AI - improving our ability to upsell additional products and service lines.
Operational excellence
Operational excellence underpins our business model, driving route density and efficient service, and enabling margin growth. We operate a proven, repeatable,
route-based, low-cost business model across both our main business areas. Investments in data and technology are key drivers of performance and informing actions in key focus areas like customer retention.
A Long-term track record of financial performance Our track record of growing revenue and profits has generated high total returns, strong cash flow, and a strong credit rating. We have a consistent strategy centred on market consolidation, operational efficiency and customer service excellence.
A High recurring revenues
Both Pest Control and Hygiene & Wellbeing are largely subscription-based businesses, where customers pay for regular inspections, treatments or servicing over a defined contract period. This enables steady, predictable revenue streams, and a low level of exposure to economic cycles.
A Strong Free Cash Flow
Strong Free Cash Flow Conversion underpins our approach to capital allocation. We prioritise investing in Organic Growth, supporting inorganic growth through targeted bolt-on M&A, and driving sustainable growth in the ordinary dividend.
Any excess capital will be used to reduce leverage to our target range of 2.0x to 2.5x, with any surplus capital returned to shareholders at the appropriate time.
A Reinvesting for growth
We reinvest for growth through both organic investment in the business and inorganic growth via M&A, increasing our density, improving gross margins and strengthening our competitive advantage. Our business model creates a virtuous circle: our low-cost operating model delivers profitable growth and sustainable Free Cash Flow that we
reinvest into the business, our people, M&A, brands and R&D.
87.4%Colleague retention
l4Patents granted in 2025
70%Contracted revenue
97.6%Free Cash Flow Conversion
15
Rentokil Initial plc Annual Report 2025
Our Strategy and Business Model
Creating value for all stakeholders
We have a proven, resilient business model operating across our global operations, supported by a highly diversified portfolio of product and service lines. Our strategic priorities, which drive the in-year execution of our plans, together with our business model, remain a key determinant of the strength and resilience
of our long-term performance.
Our strategic priorities
The Group's strategic priorities centre on driving profitable growth in North America, while using innovation, digital tools, and disciplined M&A to strengthen our global Pest Control and Hygiene & Wellbeing businesses. Our continuing drive for sustainable growth is underpinned by an increased focus on operational excellence and efficiencies and disciplined financial management.
1 4
North America Accelerate profitable growth in North America.
Find out more, pages 34 to 36
M&A
Accelerate growth through targeted M&A.
Find out more, page 21
2
International Pest Control
Invest in innovation and digital to
grow International Pest Control.
Find out more, pages 30 and 31
5
Organisation
Build a high-quality service company through investment in colleagues
and technology.
Find out more, pages 12 and 15
3
Hygiene & Wellbeing Deliver operational excellence in global Hygiene & Wellbeing.
6
Financial
Focus on efficiency, cash flow and disciplined capital allocation.
Find out more, pages 32 and 33
Find out more, pages 20, 21 and 38
Our strategic enablers
Our four strategic enablers are the key resources and capabilities that support and facilitate the successful implementation of our strategy. They are fundamental to our business model, enabling alignment between goals and execution of our strategic priorities.
87.4%
Colleague retention
rate
98.4%
State of Service
Be an Employer of Choice
We are committed to being a world-class Employer of Choice everywhere we operate. Above everything, our colleagues' safety comes first - we want to ensure that everyone goes home safely at the end of their working day. Our market-leading practices, together with our training and development programmes, help us to attract, hire and retain the best people. We believe in diversity, ensuring that everyone has an equal opportunity to succeed based on merit.
Provide excellent customer service
Providing outstanding customer service is a key component of our business model. We serve customers ranging from the largest multinational pharmaceutical, industrial and food production companies to local shops, restaurants and
residential customers, and we are passionate about the level of service we deliver to every one of them. As a services business, we know that brand trust and identity matter,
and we endeavour to fully understand our customers' needs so that we can provide the solutions they require.
Find out more, pages 22, 50 and 51
c.4,000
PestConnect Optix
cameras in operation
Find out more, page 23
l1.8%
Improvement in
emissions intensity -meeting our target of 20% by the end
of 2025
Create value through innovation and digital applications
Innovation is integral to our business. Our differentiated solutions provide customers with more efficient products and services while ensuring our operations remain as sustainable as possible. We are incorporating AI to improve how we deliver services and to do so more efficiently. Our scale enables us
to invest in new digital technologies that enhance service in a customer-centric way. Digital technologies and AI are
increasingly deployed across our businesses to enhance our colleagues' experience, further improving efficiency and insight.
Find out more, pages 29 to 31
Manage a responsible business
Being a responsible business means supporting our communities and environment effectively.
We are committed to improving our carbon efficiency, achieving our target to reduce our emissions intensity by 20% by the end of 2025. Our Group target is to achieve net zero carbon emissions by the end of 2040. We aim to make a meaningful contribution to the local economy and support the communities where we operate, through charitable donations and local projects.
Find out more, pages 56 and 57
Our Strategy and Business Model
continued
Our business model
Within our business model, each cog is related to the others and measured regularly at Group, business, region, country and branch level. By focusing on executing our model, we create long-term value for colleagues, customers, shareholders and society.
Impact on society
Shareholder value
Dividend
M&A
Cash
Employer of Choice
Health & safety
Great service
Leading brands
Customer retention
Organic Revenue Growth
Profit growth
Low-cost model
U
S
E
Density Innovation & digital
New business
Additional services to customers
Price
T
N
E
C
R
U
O
Y
B
D
E
N
N
I
P
R
E
D
N
S
S
E
C
O
R
P
D
N
A
S
E
I
C
I
L
O
P
L
A
R
Colleagues
Success in our service businesses starts with our colleagues. Delivering our Employer of Choice programme is the responsibility of all leaders and managers. We have common people management and safety policies and processes across the Group.
Growth
We generate organic growth by targeting new customers, selling additional services or products to existing customers and expanding into new markets. Our customer contracts enable us to increase prices for most customers and provide protection
in high-inflationary environments. Sales colleague engagement and retention is
an important factor in driving sales success.
Capital allocation
We maintain a disciplined capital allocation framework that prioritises the effective use of cash, while retaining the flexibility to adjust as business needs evolve or market opportunities arise. Our framework is built around five key priorities designed to balance growth, shareholder returns and financial resilience. We aim to invest in the business, fund a progressive dividend and return any surplus to shareholders.
Customers
70% of our customer revenues are recurring, through annual contracts, with the balance made up of one-time revenue. High levels
of service and customer satisfaction support retention, while a broad-spectrum customer base reflects our wide range of services.
Profit and margins
We have built a proven low-cost operating model where each country team leads integrated, multi-local and multi-service operations, using combined back-office functions underpinned by shared systems and processes. We focus on route density to grow margins.
Responsible business
Socially and environmentally responsible business practices support the attraction and retention of colleagues and customers. Our innovation pipeline is focused on more sustainable solutions and reducing the use of chemicals.
Our operating model
We operate a low-cost density-driven operating model, which, combined with our cash compounding subscription model with 70% of revenue from customers on single or multi-year contracts, generates free cash flow to fund investment in growth and shareholder returns.
Our low-cost, route-based operating model
We run a low-cost model across Pest Control and Hygiene & Wellbeing, with a route-based, high-density service network that spreads fixed costs over recurring service contracts. This makes scheduling more predictable and routes more efficient and supports strong margins. The model is designed to maximise technician productivity and local scale, so each additional customer on a route costs relatively little to serve. By combining a shared global platform (finance, HR) with dense local branch networks, branches capture scale benefits. Our M&A programme supports this route-density approach, using bolt-on acquisitions to 'fill in' territories, increase customer density and capture cost synergies from overlapping routes and branches.
High levels of contracted, recurring revenue
Across our business we are growing contracted, recurring revenues, currently 70%, reflecting our service excellence, expertise in our field and our innovation.
In Pest Control, most Commercial customers, and a proportion
of Residential and Termite customers, are on annual or multi-year contracts, supporting high retention and enabling regular price increases, which strengthens revenue resilience and cash generation. PestConnect customers in our largest markets typically sign three-year contracts, and this segment is expanding as the service rolls out across regions. While some Residential and Termite customers use annual contracts, many buy on a
per-job or per-incident basis.
In Hygiene & Wellbeing, 81% of revenue is contracted, predominantly with Commercial and Public Sector customers.
Revenue: Contracted versus one-time revenue
70%
Contracted revenue
C0%
One-time revenue1
Increasing our contract portfolio value
In our primarily contract-based business, a key measure of success and how we drive value is the increase in the annual value of our contract portfolio, which indicates future secured revenue and supports stronger top-line growth over time.
67%
Pest Control
contracted revenue
81%
Hygiene & Wellbeing
contracted revenue
We increase this value by winning new business and retaining existing customers, supported by pricing discipline. To enhance portfolio growth further, we are focused on driving higher volumes of new customer leads, improving conversion rates, and steadily increasing customer retention through a focus on excellent service.
1. One-time revenue is a combination of job work and also the sale of goods primarily through our product distribution business.
Cash compounding subscription model generating value for colleagues, customers, shareholders and our communities.
t61Lh
Free Cash Flow
Capital Allocation
Investing for value creation and sustainable growth
Our capital allocation framework
Our disciplined capital allocation model balances investing for sustainable growth, shareholder returns and maintaining financial strength through an appropriate capital structure for the Group.
Invest for growth organically
Funding organic investment in digital technology, operational infrastructure and innovation to enhance efficiency, service quality and market competitiveness.
Invest for growth through bolt-on M&A
Targeted bolt-on acquisitions that enhance capabilities, strengthen our market position or accelerate growth.
Grow a sustainable ordinary dividend
Maintaining a sustainable progressive dividend policy that ensures dividends grow over time.
Return excess capital to shareholders
Keeping under review options to return surplus cash beyond our reinvestment needs to shareholders at the appropriate time.
Maintain a strong balance sheet
Strengthening financial health by reducing debt through surplus cash
Achieving our target Net Debt to Adjusted EBITDA ratio of 2.0-2.5x under normalised conditions
Maintaining our BBB investment grade credit rating
We maintain a disciplined capital allocation framework that prioritises the effective use of cash, with the flexibility to adjust our allocation as business needs evolve or market opportunities arise. Our framework, outlined above, is built around five key priorities designed to balance growth, shareholder returns and financial resilience.
As we execute our strategy, we are focused on delivering against
an attractive growth algorithm, driving revenue through both organic
l.6x
Net Debt to
Adjusted EBITDA
1l.C9¢
Full year dividend
+3.0%
expansion and strategic acquisitions while improving margins by enhancing operational efficiencies and leveraging our scalable cost base, generating surplus cash which is allocated according to this framework to reinvest at attractive returns and return excess to shareholders.
Dividends1 (¢)
11.1%
14 10-year CAGR
Our framework is underpinned by maintaining an appropriate capital structure, with a target net debt to Adjusted EBITDA range of
2.0-2.5x, and a strong balance sheet consistent with an investment grade credit rating. We remain a highly cash-generative business and are comfortable with our current leverage position, which is aligned with our policy to maintain an investment grade credit rating.
12
10
8
6
4 4.32 4.39
2
0
5.22
5.82
1.86
7.60
8.16
9.30
10.85
12.04 12.39
2015
2016
2017
2018
20192
2020
2021
2022
2023
2024
2025
USD figures to 2024 are translated from GBP using the payment-date spot rate.
2019 final dividend withdrawn due to COVID.
Disciplined investment for growth
Guided by our strategic priorities and strategic enablers, we have consistently invested both organically, to support the long-term growth of the business, and through bolt-on acquisitions, to expand our position in attractive markets globally, supporting long-term value creation and a more efficient organisation.
Allocating capital to inorganic growth alongside operational investment is a key foundation of our growth strategy. It drives organic and inorganic growth, improves our gross margins and generates strong profits and cash flow.
Our acquisitions programme extends globally and is focused on bolt-on density building in Pest Control and Hygiene & Wellbeing and expanding in Cities of the Future. In 2025 we have spent $115m successfully acquiring 36 businesses, representing revenues of $63m in the year prior to acquisition.
Pest Control bolt-on density building
Hygiene & Wellbeing
Cities of the Future
Acquisitions are a core part of our Pest Control growth strategy to build scale and density, increase competitive positioning and improve our ability to service customers.
Building on existing footprint
Focus on urban areas and existing routes
Blend capabilities, customers and people
Building density in UAE
Kendah Pest Control is a leading operator in the UAE. The acquisition has integrated with existing teams in our dense routes in Dubai and added to less dense routes in Abu Dhabi and Fujairah, alongside bringing Rentokil's commercial focus and opportunities for cost synergies.
l17
Acquisitions completed
since 2021
Hygiene & Wellbeing continues to present a growth opportunity through M&A, focused on building city density and supporting specialist extension areas that we have defined as part of our growth plans.
Bolt-ons
Capability extension
e.g. mould, medical gas
Urban expansion in Chile
The acquisition of Mauco Ambienta consolidated our position in the Chile Washroom Hygiene market, building on our current business operating in the larger urban areas. Mauco benefited by leveraging Rentokil Initial's operational capabilities and commercial processes.
t714h
Total revenue in the year prior to purchase
for the 217 acquisitions since 2021
Cities of the Future is our M&A strategy targeting expansion in cities where we expect to see even higher growth levels over future decades, particularly in Asia, Latin America and the Middle East.
Focus on entry platforms for target cities and then bolt-ons
Use Rentokil Initial methods to improve e.g. sales and financial discipline
Cities of the Future in Indonesia Our acquisition of pest operator PT Reliance enables us to leverage its Termite capabilities and creates opportunities for Hygiene cross
selling into their loyal hotel and leisure customer base, while also building our position in large cities such as Jakarta and Surabaya.
t1.4bn
Spend on acquisitions
since 2021
Key Performance Indicators
Monitoring our progress
The Group monitors several key metrics to track the financial and non-financial performance of the business. These measures were selected because we believe they provide additional useful information on underlying trends. All figures provided for 2023 onwards include the performance of Terminix, and unless otherwise stated, all figures for 2024 onwards exclude the performance of France Workwear.
Colleagues
Ensuring everyone goes home safely
Lost Time Accident (LTA) rate
Link to strategy
As a service organisation, our people make our Company what
0.28
it is. Our priority is ensuring every colleague goes home safely.
+3.4% improvement
on 2024
2025 0.28
2024 0.29
2023 0.31
2022 0.39
2021 0.38
Health and safety is the first agenda item in senior management meetings (including Executive Leadership Team and Board).
Link to remuneration
Both LTA and WDL rates are part of the personal objectives
of the Chief Executive and have an impact on the level of annual bonus achieved.
Commentary on performance
Working Days Lost (WDL) rate
2025
5.65
2024
6.25
+9.6% improvement
2023
7.05
2022
7.90
2021
8.71
5.65
on 2024
LTA rate defined as number of Lost Time Accidents per 100,000 standard working hours.
WDL rate defined as number of Working Days Lost as a result of LTAs per 100,000 standard working hours.
These measures are shown including the performance of France Workwear.
In 2025, we continued to improve our high level of colleague safety, setting performance records for both LTA and WDL.
In 2025, our LTA rate improved by 3.4% to 0.28 (2024: 0.29).
WDL also improved, by 9.6%, reducing WDL to 5.65.
There were no work-related colleague fatalities in 2025 (2024: one fatality).
Employer of Choice
87.4
points
2025
87.4
2024
86.3
2023
84.2
2022
79.5
2021
84.4
Total colleague retention
Link to strategy
By retaining our people, we also retain and build deeper relationships
with our customers, which underpins our organic growth.
%
+1.1 percentage
82.1%
+0.7 percentage points
2025
2024
2023
2022
2021
82.1
81.4
77.4
76.3
82.9
Sales colleague retention
87.0%
+1.5 percentage points
2025
2024
2023
2022
2021
87.0
85.5
83.3
77.6
82.4
Service colleague retention
Retaining more colleagues reduces the cost of recruitment, as well
as driving productivity improvement and allowing new recruits the time to be trained and gain experience.
We invest in training and development to ensure that our colleagues' expertise is unrivalled.
We recruit, appoint and promote on merit and, where possible, from within the organisation.
Link to remuneration
Colleague retention is a Performance Share Plan (PSP) performance measure and is included in annual bonus personal objectives.
Commentary on performance
Colleague retention improved by 1.1 percentage point to 87.4%.
Total colleague retention in North America increased 2.8 percentage points to 82.2% (2024: 79.4%), while in the International business colleague retention was stable year-on-year at over 90%.
Sales colleague retention increased to 82.1% up 0.7 percentage points on 2024 (81.4%).
Service colleague retention was up year-on-year, rising by
1.5 percentage points to 87.0% (2024: 85.5%), driven by a strong performance in North America, up 3.9 percentage points.
Colleague retention is defined as total colleagues retained in-year as a percentage of average headcount throughout the year. Colleague retention is measured on a rolling 12-month basis.
Find out more
Responsible Business, pages 50 and 51
Customers
Delivering outstanding customer service
98.4%
+0.1 percentage points
2025
2024
2023
2022
2021
98.4
98.3
97.8
95.9
92.9
State of Service
Defined as total number of service visits performed as a percentage of total number of visits due.
Link to strategy
We are passionate about delivering excellent service to our customers and keeping our promises to them.
Excellent service helps us retain customers and build deeper relationships with them.
Commentary on performance
State of Service performance remained high, up 0.1 percentage points to 98.4% (2024: 98.3%).
Our North America region delivered an excellent 99.0% State of Service, up 0.5 percentage points on 2024. The International region was stable on 2024, at 98.3%.
Keeping promises to customers
60.6
2025
60.6
2024
57.8
2023
50.8
2022
50.9
2021
52.1
Net Promoter Score - Customer Voice Counts (CVC)
Link to strategy
Our business model depends on servicing the needs of our customers
in line with internal high standards and to levels agreed in contracts.
Strong performance on CVC is linked to retention and sales of additional services to customers.
+2.8 points
Net Promoter Score: Measured by the implementation of an average Net Promoter Score across branches participating in the CVC programme.
CVC score represents the net balance of Promoters (customers who advocate for our service) minus Detractors (those unhappy with our service), expressed as a numerical value.
Net Promoter Scores range from -100 to +100; according to the Bain & Company NPS principles, a score above 0 is classed as 'Good,' and a score between 50-80 is 'Excellent,' indicating strong customer loyalty.
CVC scores are based on both telephone and digital survey channels. Global and regional scores have been weighted based on the portfolio value of the market.
Measuring customer satisfaction allows us to identify unhappy customers, reduce customer attrition, and increase revenue, profit and cash.
Link to remuneration
Improving CVC is one of the performance conditions of the PSP, which covers over 1,300 colleagues across the Group.
Commentary on performance
Our CVC Net Promoter Score was up at 60.6, an increase of 2.8 points.
Pest Control remained our highest-rated category, at 61.2, an increase of 2.2 points on last year.
Hygiene & Wellbeing scored 57.9 points, up 4.8 points year-on-year.
Retaining our customers
Customer retention
Link to strategy
Customer retention is crucial to our long-term success.
• Benefits include: increased purchasing and cross-selling, lower
+0.5 percentage points
2023
2022
2021
82.3
82.4
85.4
82.6
2025
82.6
terminations, greater willingness to accept price increases, positive
2024
82.1
customer recommendations and a strengthened unique selling point.
%
Defined as total portfolio value of customers retained as a percentage of opening portfolio.
Commentary on performance
Overall customer retention was up 0.5 percentage points at 82.6%.
In North America, customer retention rates improved by 0.4 percentage points to 80.5% and our International region delivered a 0.6 percentage point increase to 85.7%.
More than 5.7 million post-service customer surveys were undertaken during the year with an average score in excess of 4.9 out of 5.
Customer reviews of our UK Pest businesses on Trustpilot.com remained at 'world-class' levels, with 90% five-star reviews from more than 10,900 customers.
Find out more
Customer service and retention, page 52
Key Performance Indicators
continued
Shareholders
Driving higher revenue
Revenue growth (at AER)
4.4%
2025
2024
2023
2022
2021
4.4
3.6
44.7
25.6
5.5
Revenue growth (at CER)
2025
3.8
Executive Directors and managers across the Group, and they have
%
2024
3.8
an impact on the level of annual bonus achieved.
3.8
2023
45.8
2022
19.4
2021
9.5
Achieving greater profitability
Adjusted Operating Profit Growth (at AER)
2025
6.2
growth initiatives.
2024
(5.3)
- Our International business delivered 4.8% Revenue growth,
2023
57.1
reflecting good volumes and a strong demand and pricing
6.2%
2022
2021
29.4
15.0
Adjusted Operating Profit Growth (at CER)
2025
5.4
2024
(4.9)
2023
57.0
2022
23.3
2021
19.6
5.4%
Delivering sustainable Free Cash Flow
Cash Conversion
2025
300.7
2024
214.7
2023
193.2
2022
258.6
2021
214.1
300.7%
97.6%
2025
2024
2023
2022
2021
97.6
81.2
89.7
91.8
108.3
Adjusted Free Cash Flow Conversion (at AER)
Link to strategy
We aim to drive shareholder value through higher revenues from our Pest Control and Hygiene & Wellbeing businesses, supported by M&A investment. Our objective is to deliver sustainable profit growth by growing Group revenues.
We are a highly cash-generative business and, after dividend and interest payments have been made, we reinvest our cash into the business for future growth through people, technology and M&A.
Link to remuneration
Revenue, Profit and Organic Growth targets are one of the Company's performance elements of the annual bonus, which covers the
Free Cash Flow is also a target for the annual bonus, which covers the Executive Directors and managers across the Group.
Commentary on performance
Revenue at AER was up 4.4% to $6,908m and at CER was up 3.8%. - Organic Revenue Growth of 2.6% reflects a strong performance in
the second half, with Organic Revenue Growth of 3.5% compared to 1.6% in the first half.
In North America, Revenue grew by 3.2% with growth of 3.1% in Pest Control. Organic Revenue Growth in North America was 2.3% with an improving performance through the year driven by our strategic
environment across the UK, Southern European markets and the faster growing economies of Indonesia and India. Organic Revenue Growth was up 3.0%.
Pest Control Organic Revenue Growth was 2.6% and Hygiene & Wellbeing was 2.3%.
Adjusted Operating Profit at AER was up 6.2% and at CER was up 5.4% with Adjusted Operating Profit margin of 15.5%, an increase of 0.3%pts.
In North America Adjusted Operating Profit increased by 5.1% and Adjusted Operating Profit margin increased 0.3%pts to 17.4% reflecting some early benefit from cost efficiency initiatives.
In International, Adjusted Operating Profit increased by 5.7% and Adjusted Operating Profit margin increased 0.3%pts to 19.8%.
Adjusted Operating Profit margin was 18.3% in Pest Control and 18.6% in Hygiene & Wellbeing.
The cash conversion metric reflects statutory 'net cash flow from operating activities' expressed as a percentage of 'profit after tax' as a measure of overall conversion of profits into cash.
Adjusted Free Cash Flow Conversion at AER was 97.6%, ahead of our target at the start of the year due to real estate sales and some one-off benefits within the overall working capital improvement.
- Free Cash Flow of $615m was up 24.5% ($121m) on FY24, predominantly due to an improved performance in trading and working capital.
Find out more
Financial Review, pages 38 to 41
Responsible business
Emissions intensity
Absolute values of energy and fuel-derived emissions
Commentary on performance
(21.8)%
2025
2024
2023
2022
2021
(21.8)
(17.9)
(15.3)
(12.1)
(9.8)
By the end of 2025, we successfully achieved our target of a 20% reduction in emissions intensity against a 2019 baseline, reducing our emissions intensity by 21.8%.
This milestone reflects the progress of our ongoing group-wide actions to embed more sustainable practices into all our operations.
Find out more, page 56
Commentary on performance
On an absolute basis, emissions reduced by 1% year-on-year.
• In 2025, our total energy and fuel-related emissions remained broadly
381,219
tCO2e
2025 381,219
2024 385,175
2023 383,098
2022 270,023
2021 232,219
consistent with prior years, despite continued acquisitions and organic growth. This reflects the effectiveness of our Environmental Plan and demonstrates our ability to deliver sustainable growth in line with our purpose of Protecting the Planet, while continuing to create value.
See page 57 for further details on our roll out of lower emission vehicles and our use of renewable energy.
Find out more, page 64
Group global energy consumption
Commentary on performance
In 2025, global energy consumption was 1,272,374 MWh, broadly in
line with prior year. Our strategy to reduce emissions from purchased
1,272,374
MWh
2025 1,272,374
2024 1,282,571
2023 1,275,106
electricity focuses on transitioning our owned buildings to renewable energy and renewable tariffs.
Despite cost and availability constraints in some markets, 2025 saw further progress with an additional four countries implementing new renewable electricity contracts.
Lower emission vehicles
Commentary on performance
1,479
ULEVs
2025
2024
2023
2022
2021
1,479
1,018
666
330
195
We continue to move towards a more sustainable fleet.
Our Lower Emission Vehicle fleet of 3,620 vehicles now represents 9.5% of our global fleet.
In the UK and Europe, we now have 1,053 Ultra-Low Emission Vehicles (ULEVs), or 12.5% of fleet, surpassing the 2025 target of 10%.
Find out more, page 57
2,141
Hybrid vehicles
2025
2024
2023
2022
2021
2,141
1,718
1,630
1,334
728
These measures are shown excluding the performance of France Workwear.
Find out more
Responsible Business, pages 56 and 57
Our Businesses
Pest Control
Our strategic focus for Pest Control is to accelerate Our performance profitable growth in North America, pursue value-added M&A in attractive markets and increase momentum across our International businesses. | 2025 | 2024 | Change (reported) | Change currency) | Organic | |
$m | $m | % | % | Growth | ||
What we do | Revenue | 5,703 | 5,481 | 4.1% | 3.7% | 2.6% |
We are a leading global pest control company and the largest operator | Operating Profit | 635 | 715 | (11.2)% | (12.1)% | |
in North America. Our core business is identifying, treating and Adjusted Operating Profit 1,043 987 5.7% 4.9% preventing pests to protect the safety and hygiene of our customers' premises. Adjusted Operating Margin 18.3% 18.0% 0.3%pts 0.2%pts | ||||||
(constant
Our pest control specialists, operating primarily under the Rentokil brand and under the Terminix brand in North America, protect people, homes and businesses through pest management solutions across our Commercial, Residential and Termite markets.
We are an innovation leader in pest control, developing proprietary, connected, digitally enabled and energy-efficient services and, wherever possible, using non-toxic, sustainable products. By combining preventative and responsive strategies, we provide holistic, integrated and connected pest management programmes that strengthen protection for our customers.
Where we operate
Our Pest Control business operates across two regions - North America and International - with operations spanning 89 countries and 98 of the world's 100 largest cities by GDP. We serve three distinct customer segments across a broad range of industries, spanning food and beverage processing and outlets, leisure and retail, hospitality, facilities management, offices and administrative services, logistics and warehousing, and homes.
Our revenue model
As an essential service, Pest Control operates a subscription-based model with a high level of recurring contracted revenue, as customers seek to protect their people, businesses and properties. Contracts are in place across the vast majority of Commercial customers, as well as a significant proportion of residential and termite customers. Commercial customers mainly contract on an annual basis, with PestConnect customers generally contracting on a three-year basis.
A key measure of success and how we drive value is our ability to
Organic Growth | Q1 | Q2 | Q3 | Q4 | Full Year |
Pest Control | 1.7% | 1.9% | 3.4% | 3.4% | 2.6% |
Pest Control Revenue increased by 4.1% to $5,703m (FY24: $5,481m) and by 3.7% at constant currency. Organic Revenue Growth was 2.6%.
Within the North America business, good revenue growth of 3.1% included 2.1% in Pest Control Services and 8.7% in Business Services supported by a robust pricing environment and a particularly strong performance from Target Specialty Products in Business Services. Organic Revenue Growth was 2.2%, with 1.1% in Pest Control Services and 8.9% in Business Services.
Within the International business, good revenue growth of 5.4% was driven principally by strong performances in Europe, the UK and Asia & MENAT, benefiting from favourable economic trends, the roll-out of digital solutions, resilient pricing and strong sales leadership. Organic Revenue Growth was 3.7%.
Adjusted Operating Profit increased by 5.7% to $1,043m (FY24: $987m) and by 4.9% at constant currency, with Adjusted Operating Profit Margin increasing to 18.3% (FY24: 18.0%). Statutory Operating Profit decreased by 11.2% to $635m (FY24: $715m).
Pest Control represented 83% of Group Revenue and 82% of Group Adjusted Operating Profit.
We acquired 31 Pest Control businesses in the period, with revenues in the year prior to acquisition of c.$55m.
increase the annual value of our contract portfolio. We increase the value of the portfolio through winning new business, retaining existing customers and increasing pricing.
C1
Companies acquired
in 2025
tLLh
Revenues in year prior
to acquisition
How we do it
Pest risk assessment Hassle-free pest survey and consultation
Scheduled pest inspection at a time of your convenience
On-site pest risk review and consultancy
No-obligation quote and recommendations
Pest treatment Comprehensive pest treatment programme tailored to your needs
Certified, local pest control experts
Environmentally sensitive approach
Industry-specific legislation expertise supporting audit compliance
Pest protection (aftercare) Providing a clean, safe environment and treatment
Integrated pest management (IPM) solutions
Detailed post-service recommendations
Pest prevention aftercare and advice
Macro trends underpinning our growth
Pest control is a largely non-discretionary, essential service that protects public health, and the global market is evolving rapidly due to a range of interconnected factors. Our services and markets have attractive growth prospects underpinned by positive macro trends, from climate change and increasing urbanisation to stricter
regulations and technological advances. These trends, together with our ability to drive efficiency, innovation and digital solutions across our pest control portfolio, have helped maintain Rentokil's strong global market position in this growing market.
Market opportunity
The global pest control market is a strong, growing and attractive, largely non-cyclical market, underpinned by long-term structural growth drivers. According to latest industry reports1, over the past ten years the global pest control market has grown from a value of
$15.4bn in 2015 to $29.0bn in 2025 at a CAGR of 6.6%. Industry forecasts1 for the next ten years deliver a CAGR of 6.2% - with the value of the global market expected to reach in excess of $50bn by 2035.
Within the North American market, the largest market for pest control, M&A activity continues, but it still remains a highly fragmented market with further opportunity for consolidation. The top 100 pest control operators comprise 85% of the market, with the remaining share coming from 17,000 local operators.
Global pest control market forecast1
Market drivers
A Increased urbanisation
Rising urban populations and migration to warmer climates are creating favourable conditions for pests, increasing global demand for pest control services. By 2050,
68% of the world's population is expected to live in cities. Rapid urbanisation and the need to expand food supply chains are driving higher pest prevalence, particularly
in dense urban areas.
68%
of the population will
live in cities by 2050
A Climate change
Changing weather patterns are further supporting pest growth. More frequent extreme weather events such as storms and flooding introduce new pest challenges, while climate change also affects pest behaviour, distribution, lifecycles and resistance to pesticides.
A Growing impact of technological advancements
Digital technologies - including remote monitoring, connected cameras, drones, apps and AI - are improving the efficiency and effectiveness of pest control. These tools enable continuous monitoring, early detection and optimised treatment.
to 2035 ($bn)
60
50
c.6.2%
Total market CAGR to 2035
AI in particular is set to transform the pest control industry through more accurate pest identification, predictive analytics for infestation risks, and the development of autonomous pest control devices, benefiting both customers and scalable operators.
A Growing awareness of pest-borne diseases
Increasing concern about diseases transmitted by pests is a major driver of demand across residential and commercial markets. About half of the world's population is now at risk of dengue, with an estimated 100-400 million infections occurring each year.
40 | |||||||||||||||
30 | |||||||||||||||
20 10 0 | |||||||||||||||
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
A Regulation and sustainability
Many commercial customers face stringent regulatory requirements around pest control and audit reporting,
Global pest control market1 (2025) by region and customer segment
$29.0bn
$14.2bn
(49%)
$14.8bn
(51%)
while the industry is subject to evolving chemical regulations. At the same time, demand for sustainable solutions is accelerating innovation in integrated pest management, with greater emphasis on prevention, early detection and environmentally friendly alternatives to traditional chemical treatments.
North America International
Commercial 50%
Residential 33%
Termites 17%
1. Market data sources: Allied Markets (Global), The Strategic Analysis of the US Structural Pest Control Industry, Speciality Consultants LLC, QuinceMarket Insights and Company internal revenue data.
SPOTLIGHT ON:
NEW CUSTOMERS
MARKETING AND BRAND DRIVING ORGANIC LEADSThis year we adjusted our marketing to prioritise organic lead generation, shifting focus from paid digital media to channels that drive greater awareness, reach and incremental lead flow. This shift towards a higher contribution from organic leads also supports more efficient marketing spend, reducing our overall cost per lead.
We have supported our regional brands by updating around 800 webpages, providing detailed and useful information for customers, and optimised for AI.
Across our major brands we have launched over 400 new branch, metro and state pages to drive up local performance and conversion. These initiatives are already delivering results - e.g. in Q4 we measured a five-fold increase in the number
of times Terminix appeared in 'exterminator near me' searches and a doubling for 'pest control near me'.
Watch the latest Terminix adverts on our YouTube channel
Innovation is a core driver of performance
Innovation is core to how we operate, and it begins and ends with serving our customers in the most efficient and environmentally responsible way. We focus on finding better ways to solve existing problems while also anticipating and addressing emerging challenges and as yet unknown issues. We are proud of our industry-leading track record in delivering best-in-class, differentiated innovation.
Our organisation is built on a strong foundation of innovation, underpinned by ongoing reinvestment in product and solution design, development and rigorous testing to fuel our innovation pipeline and future growth. Our differentiated solutions provide customers with more efficient products and services, while ensuring our operations remain as sustainable as possible. We are also integrating AI to enhance service delivery and further improve efficiency.
Innovation as a growth enabler and differentiator
Our innovative services enable us to tap into new market segments, drive global organic growth, and differentiate ourselves by offering unique solutions that competitors cannot easily replicate.
For example, our Lumnia LED Insect Light Traps offer an eco-friendly and efficient fly control solution, reducing energy costs by 79%, cutting
carbon emissions by 62% and providing 80% greater fly control coverage than traditional fluorescent tube products. We have developed a complete range of products - from Slim to Suspended - ensuring that every business, irrespective of its sector or scale, has the ideal protection.
Innovation drives margin accretion
Adopting innovative processes and technologies drives profitable growth by lowering service costs, reducing consumable usage, and leveraging data to enhance efficiency. This approach also allows us to pursue longer-term customer contracts. Our innovations improve customer conversion, retention and service efficiency, facilitating sustained growth and margin accretion over time in mature markets while positioning us as leaders in emerging countries, especially in commercial sectors.
Innovation serves as a powerful sales tool, enhancing operational efficiency and margin growth. We are leaders in our industry when it comes to digital technologies and are committed to further building this competitive advantage. Our smart technology is enhancing remote monitoring solutions and increasing data transparency. For example, PestConnect provides a real-time early-warning digital system for monitoring and controlling rodents and protecting businesses, while delivering a reduction in rodenticide use of up to 60%.
Our scale advantage
Our scale allows us to rapidly introduce new products and services into both new and existing markets, helping us stay ahead of the competition. It enables us to test and refine products or solutions
in a single market, ensuring optimal performance before launching a measured rollout across our cities, markets and regions. This strategic rollout paves the way for future organic growth, supported by a robust pipeline of new projects.
Our innovation strategy
We have built a long-term track record of delivering market-ready innovation in Pest Control. We continue to advance pest control technologies and solutions through our four global innovation centres and our team of scientists, engineers and technicians.
Our industry-leading R&D capabilities provide a differentiated platform to develop enhanced solutions across three time horizons: short, medium and long term.
Our innovation strategy is currently focused on two key areas: maximising the impact of existing innovations and driving margin-accretive growth through new solutions.
We maintain a strong pipeline of potential projects for commercial launch, enabling us to meet industry regulations, satisfy evolving customer needs and improve efficiency.
We are well positioned to sustain our leadership in commercial sectors, supported by increased focus and investment in residential pest control in North America.
Our four Pest Control innovation centres:
The Power Centre, UK: Our global R&D hub for pest control, focusing on early innovation, regulatory analysis, microbiology advancements, and training in pest control solutions.
The Technology Centre, UK: Specialises in hardware product development, validation and regulatory excellence.
Rentokil Initial Supplies, UK: Dedicated to the research, development, and delivery of more sustainable consumable products, along with achieving industry-leading accreditations.
Rentokil Terminix Innovation Centre, Dallas, Texas: Opened in 2024, this centre focuses on developing new technologies and products for residential, vector and termite pest control. Its mission is to significantly enhance Rentokil Terminix's competitive advantage, particularly in termite and mosquito pest control.
SPOTLIGHT ON:
INNOVATION
AWARD-WINNING OPTIX INNOVATIONRentokil's PestConnect Optix cameras won the Innovation of the Year award at the UK's National Pest Awards 2025.
The category recognises the vital role that innovation plays in the pest control sector. Entries had to demonstrate a unique and novel method of dealing with a challenging pest, a new business idea
or business development concept. The winning entry was for Rentokil's innovative SMART Pest Control solutions, specifically the PestConnect Optix cameras, which use AI-powered connected camera devices to provide 24/7 pest monitoring and management for real-time pest detection and identification.
Discover the process behind PestConnect Optix
Watch the video
SPOTLIGHT ON:
INNOVATION
PRODUCT DEVELOPMENT TO MEET EVOLVING CUSTOMER NEEDS
Our core suite of pest prevention and control solutions has been developed in a customer-centric way and we continuously innovate with each new launch, responding to evolving customer needs while anticipating emerging challenges and risks.
INITIAL LAUNCH 2007
INITIAL LAUNCH 2024
ECOCATCH: EFFECTIVE AND REUSABLE
Rentokil's fly control solutions include the new EcoCatch product, a sustainable, reusable, outdoor, power-free fly trap, designed for commercial sites such as hospitality, food retail and leisure areas.
The trap is a visually aesthetic fly control solution that uses attractants to lure flies, and hides the flies captured in a more appealing container. It can catch 60% more flies in 24 hours than a traditional fly catch device (in controlled laboratory conditions). Over 30% of the non-toxic, reusable trap unit is made from recycled plastics.
RADAR & RADAR X: SAFE, SUSTAINABLE RODENT CONTROL
Rentokil's innovative RADAR unit is a proprietary bait-free mouse control device. It is a sealed CO₂ trap used mainly in high risk or sensitive environments, such as food or pharmaceutical sites, where rodenticide bait cannot
be used.
The RADAR family was expanded with the RADAR Connect model and has recently been upgraded to RADAR X, launched in 2024, with a dual catch chamber. RADAR X growth has been strong, with units now live in multiple countries.
These devices link into the PestConnect system and the myRentokil reporting portal - the secure online customer portal providing a dashboard for all pest control activity. 24/7 remote monitoring is provided by our Command Centre, sending instant alerts to technicians and online reporting of rodent activity.
INITIAL LAUNCH 2024
INITIAL LAUNCH 2017
LUMNIA: HIGHLY EFFECTIVE, REUSABLE LOW-ENERGY FLY CONTROL
Lumnia is Rentokil's family of patented LED insect light traps for flying insect control. First launched in 2017 with Lumnia Standard, the range has been expanded to meet the needs of different customers with Lumnia Slim/Compact, Lumnia Ultimate and most recently Lumnia Suspended units, launched in 2021.
These professional UV LED fly killers are designed for different
PESTCONNECT OPTIX: AI-DRIVEN, DATA-POWERED SOLUTIONSIn operation since 2014, PestConnect is Rentokil's digital pest control system, using a network of connected devices (such as smart traps and monitors) to detect, capture and eliminate pests while transmitting data in real time. We have 600,000 devices installed, with c.100,000 added in 2025.
The next-generation PestConnect Optix, launched in 2024, is Rentokil's AI-enabled environmental camera system within the PestConnect service. It uses smart imaging devices and
machine learning algorithms to continuously scan for rodents in difficult to access areas, automatically identifying rodent activity and filtering out non-target images so technicians receive rapid, relevant alerts and can respond quickly to potential infestations.
risk areas, from customer-facing spaces to high-dependency food preparation zones, offering lower energy use and faster catch rates than traditional fluorescent tube products.
c.4,000 4.1h
AI cameras are live in customers' premises
Images automatically processed in 2025
Can AI revolutionise your pest control for unprecedented peace of mind? It certainly can! Find out more
Our Businesses: Hygiene & Wellbeing
continued
Hygiene & Wellbeing
Our strategy for Hygiene & Wellbeing is to deliver sustained revenue and margin growth by sharpening operational and sales execution, increasing footprint and density and pursuing M&A to build and support specialist service extensions.
What we do
Our Hygiene & Wellbeing business, trading under the Initial brand, holds a strong global position in core washroom hygiene services. We provide industry-leading solutions for hand, air and in-cubicle hygiene, and the hygienic collection and disposal of washroom waste, as well as the installation and servicing of washroom products. We are increasing
our focus on washroom dignity and services for an ageing population.
Our performance
2025
Change 2024 (reported)
Change (constant currency)
Organic
$m | $m | % | % | Growth | |
Revenue | 1,205 | 1,136 | 6.1% | 4.3% | 2.3% |
Operating Profit | 230 | 196 | 17.3% | 15.9% | |
Adjusted Operating Profit | 224 | 205 | 9.3% | 7.8% | |
Adjusted Operating Margin 18.6% 18.0% 0.6%pts 0.6%pts | |||||
Organic Growth | Q1 | Q2 | Q3 | Q4 | Full Year |
Hygiene & Wellbeing | 1.6% | 0.2% | 3.2% | 3.9% | 2.3% |
Building on our core Washroom Hygiene business expertise, we also deliver Premises Hygiene and enhance occupant experience through our Enhanced Environments business. Beyond customer premises, our specialist hygiene operations provide clinical waste management, dental hygiene and cleanroom services. Together, our portfolio
helps organisations manage hygiene risk, create healthier working environments and public spaces, and make workplaces better and safer for colleagues and visitors. This focus on health and wellbeing translates directly to real cost savings and increased productivity for our customers' who lose fewer days to sickness as a result.
Where we operate
Initial Hygiene operates across 74 markets in our International region, and our Ambius planting and scenting business operates in markets across North America and International. We support customers in key sectors: government, health, personal and professional services, leisure and hospitality, retail and manufacturing. Most customers contract with us on an annual basis, and our larger global customers are supported by a dedicated Global Account Manager.
Leveraging our leadership in Pest Control
Hygiene & Wellbeing Revenue increased by 6.1% to $1,205m (FY24:
$1,136m) and by 4.3% at constant currency. Organic Revenue Growth was 2.3%. Growth was driven principally by key markets in Europe, UK & Sub-Saharan Africa.
Adjusted Operating Profit increased by 9.3% to $224m (FY24: $205m) and by 7.8% at constant currency with Asia & MENAT and UK & Sub-Saharan Africa growing profits ahead of revenue. Adjusted Operating Margin increased to 18.6% (FY24: 18.0%). The profit performance reflected the benefit of pricing and productivity initiatives, alongside continued cost discipline, which more than offset inflationary pressures. Statutory Operating Profit increased by 17.3% to $230m (FY24: $196m).
For FY25, Hygiene & Wellbeing represented 17% of Group Revenue and 18% of Group Adjusted Operating Profit.
We acquired 5 Hygiene & Wellbeing businesses in the period with revenues of c.$8m in the year prior to acquisition.
The Hygiene & Wellbeing business continues to focus on operational excellence, product development, disciplined sales activity and dedicated Hygiene digital marketing. It leverages the same operating infrastructure as Pest Control, which enables the Group to deliver cost synergy benefits. As well as the shared operational and functional infrastructure, it benefits from common efficiency opportunities, including deploying the same technologies, aggregating procurement and frequently cross-selling services across the combined customer base.
L
Companies
acquired in 2025
t8h
Revenues in year prior
to acquisition
How we do it
Hygiene assessment Hassle-free hygiene survey and consultation
Prompt response from local expert hygiene surveyors
On-site hygiene risk review and consultancy
Detailed inspection against health and safety guidelines, focusing on your business's hygiene needs
Tailored solutions Customised hygiene solutions for your business
Hygiene solutions tailored to your unique business needs
Award-winning products compliant with hygiene and environmental regulations
Quick and discreet installation, ensuring minimal disruption to your business operations
Maintenance and aftercare Ongoing support of hygiene excellence
Dedicated manager for global customers providing regular support and query resolution
Regularly scheduled account reviews and on-site hygiene audits
Access to technologies and innovations for continuous improvement in hygiene standards
SPOTLIGHT ON:
OPERATIONAL INNOVATION
CHAMPIONING WASHROOM DIGNITY
Access to suitable washrooms is vital for everyone, particularly those with medical conditions requiring urgent or frequent use. Initial Hygiene champions 'washroom dignity' to create hygienic, comfortable and inclusive spaces.
Men's facilities have historically been neglected, with our research1 showing that over half of men avoid public washrooms due to bad odours (56%) or uncleanliness (60%).
While investment in basic hygiene such as odour control and hand-washing facilities is improving, the most significant shift is our 'Stalls For All' project. This initiative advocates for
mandatory sanitary waste bins in all washrooms - male, female and gender-neutral. To further support a dignified experience, we have also launched in-cubicle dispensers for male incontinence products.
1. Research conducted by Opinium on behalf of Initial Washroom Hygiene. 17-20 January 2023. 1,000 male UK adults.
Macro trends supporting growth
Our Hygiene & Wellbeing business operates in an attractive market with strong structural growth opportunities. Demand is underpinned by rising expectations of hygiene in workplaces and public spaces, supported by drivers including: essential non-discretionary services; tighter and more complex regulation; rapid urbanisation and denser city living; and heightened public expectations around health, safety, and cleanliness following recent global health crises. Together, these trends are driving sustained customer demand for partners that can support higher standards of protection, compliance and brand reputation.
Market opportunity
The global washroom services market is broad and fragmented, making precise sizing difficult. However, we estimate the core washroom market will grow at a CAGR of c.4% to 2030. As the market is expected to exceed GDP growth, the business is well positioned for long-term sustained performance.
4%
Global washroom
market CAGR to 2030
Market drivers
A Heightened focus on hygiene and sanitation
SPOTLIGHT ON:
OPERATIONAL EXCELLENCE
AMBIUS WINS BIGAmbius secured 20 honours - 17 design awards and three technician awards - at the 2025 International Plantscape Awards. These awards recognise outstanding achievements in interior and exterior plantscaping, honouring companies that push the boundaries of creativity, sustainability and functionality.
"At Ambius, every project is unique and crafted to transform spaces into environments that inspire connection, foster wellbeing and celebrate the beauty of nature," said Lorri MacHarg, President of Ambius. "These 20 awards celebrate our team's creativity and dedication to making the world healthier and greener, one space at a time."
The global pandemic has permanently increased hygiene awareness, supporting sustained demand across hygiene products and services. Growth opportunities are also emerging in hygiene and wellbeing solutions that enhance the user experience, which is driving demand for services that create healthier, more pleasant spaces and wellness-enabled buildings.
A Environmental and legislative factors
Sustainability legislation is increasing alongside customer demand for more sustainable hygiene solutions.
Governments worldwide are tightening hygiene and sanitation regulations, raising compliance requirements.
A Social and demographic changes
Urbanisation continues rapidly, with 68% of the global population expected to live in cities by 2050, largely in developing regions. Rising middle-class populations and the millennial generation's focus on health and wellbeing are driving higher expectations for hygiene, living standards and health as disposable incomes grow.
A Ageing population
By 2030, one in six people will be aged 60 or over, increasing demand for accessible washrooms and infection-prevention solutions. The ageing population is a significant demographic trend with long-term implications for the hygiene industry.
Our Regions
North America
Overview
Business Service operations, and 3% from the Hygiene & Wellbeing business.
North America benefits from strong underlying fundamentals, including improving colleague retention, good progress on customer satisfaction, and a portfolio of powerful national, regional and specialist brands.
North America is the world's largest pest control market, valued at $14.2bn in 2025, and is expected to grow by a CAGR of c.6% to 2035. Growth
in the region. Our Pest Control business has c.67% of regional revenue | Organic Growth | Q1 | Q2 | Q3 | Q4 | Full Year |
generated by our contract portfolio with the remaining 33% coming from | North America | 0.7% | 1.4% | 3.4% | 3.6% | 2.3% |
is driven by strong commercial demand and the essential nature of pest control services in supporting customers' 'licence to operate'. The market is broadly segmented into three areas, with Residential accounting for c.43% of the total market value, followed by Commercial at c.37% and the remainder is Termite. Rentokil Terminix is the largest pest control provider
one-time revenue - job work and also the sale of goods primarily through our product distribution business.
Within Pest Control, our Business Services are high-quality, well-managed businesses. Each benefits from deep specialist expertise within its respective market, including: VDCI for public sector mosquito vector control, SOLitude for lake management, Steritech for food hygiene and brand standards auditing, and Target, which is our
Pest Control and Turf & Ornamental Products distribution business.
Performance
Full year Revenue was up 3.1% to $4,294m and by 3.2% at constant currency. Organic Revenue was up 2.3%. Performance improved in the second half, with H2 Organic Revenue Growth of 3.5% (H1: 1.1%).
A robust pricing environment supported strong price realisation, with the measures implemented to drive up customer retention and increase new business contributing to an easing of volume reductions through the year.
North America Pest Control Services delivered an encouraging quarterly sequential improvement in Organic Revenue Growth including 2.6% in Q4.
North America Business Services continued to see positive momentum through the year with H2 revenues of $341m (H1: $306m). Organic Revenue Growth in H2 was 9.8% (H1: 7.8%). Our distribution business delivered double-digit Organic Revenue Growth in the year, and Q4 was boosted by a good performance from our lake management business.
Adjusted Operating Profit increased by 5.1% to $749m. Adjusted Operating Profit margin was 17.4%, up 0.4%pts on the prior year, reflecting some early benefit from the business simplification and cost efficiency programme. Statutory Operating Profit was $413m (FY24: $534m).
Colleague retention increased to 82.2% (FY24: 79.4%) and customer retention improved to 80.5% (FY24: 80.1%).
Bolt-on M&A activity continued, with 12 acquisitions completed (FY24: 13) with combined revenues of c.$27m in the year prior to acquisition.
We continue to selectively pursue high quality M&A assets in the North America region.
Improving profitable growth in North America -2025 progress
At the beginning of 2025, we set out our evolved strategy to improve Organic Revenue Growth by strengthening the core performance drivers of customer retention, colleague retention and growth in lead volumes.
Change
Our North America region delivered 62% of Group Revenue in 2025, with 82% generated from the Pest Control Services business,15% from | 2025 $m | 2024 $m | Change (reported) % | (constant currency) % | Organic Growth |
Revenue | 4,294 | 4,164 | 3.1% | 3.2% | 2.3% |
Pest Control | 4,148 | 4,026 | 3.0% | 3.1% | 2.2% |
Pest Control Services | 3,501 | 3,430 | 2.1% | 2.1% | 1.1% |
Business Services | 647 | 596 | 8.6% | 8.7% | 8.9% |
Hygiene & Wellbeing | 146 | 138 | 5.8% | 6.0% | 4.0% |
Operating Profit | 413 | 534 | (22.7)% | (22.6)% | |
Adjusted Operating Profit | 749 | 713 | 5.0% | 5.1% | |
Adjusted Operating Margin 17.4% 17.1% 0.3%pts 0.4%pts | |||||
North America
Pest Control Services -0.2% 0.3% 1.8% 2.6% 1.1%
North America
Business Services 5.6% 9.2% 11.9% 7.8% 8.9%
These 2025 activities have delivered encouraging results with improving growth in leads through the year, with 7.1% growth in the second half, and growth in the value of our contract portfolio.
Enhanced digital marketing and investment in brand awareness During the year we refocused our marketing investment towards more efficient, higher return opportunities with a stronger focus on organic lead generation and building brand awareness for long-term brand health.
We have supported growth in leads through search engine optimisation activity with new digital content, improved local web pages and awareness campaigns. In total we have launched over 400 new branch, metro and state pages across our major brands. For Terminix alone, in Q4, this drove a five-fold increase in the number of times the brand appeared in 'exterminator near me' searches. We have also evolved content to maximise AI optimisation driving significant increases in our brands' appearances in AI searches.
This activity has all been supported by, and continues to evolve through, a focus on data-driven marketing performance and efficiency, and we can measure its success through a double-digit reduction in the cost
of each lead and a meaningful shift in the proportion of organic leads.
Elevating our local marketing execution will remain in focus in 2026, with continued investment in data and insights to better target the highest value leads with the strongest conversion rates.
Improved customer proximity and local lead generation
In Q4 2024, we started a successful pilot of satellite branches. These are smaller branches that are fully branded and operational, serving as localised hubs with active facilities, but have a low cost to operate. These branches increase local community presence, customer proximity and lead growth in key metro areas with high-value untapped customer demand. We continued the roll-out through 2025, taking the total number of these smaller, local branches to over 150. As these branches mature their performance improves and by Q4, branches with these localised hubs connected to them recorded lead flow more than double that
of branches without. In 2026, we will expand this network of smaller,
local branches and expect to have around 220 by the end of the year.
Strengthened sales execution
At the beginning of 2025 we integrated sales teams back into field operations leadership at the branch level to drive local accountability with measurable results. By the second half we had improved key metrics of sales visits per day and services proposed. There is
even more to do in 2026 to focus on execution and conversion. We successfully piloted door-to-door sales across 25 territories to penetrate an additional fast-growing sales channel for residential contracts in the peak US pest season. We expect to extend this to cover around 40 territories in 2026.
Driving up customer retention through focus on customer satisfaction We have continued to execute the 'Drive to 85' programme to improve customer retention over time to be closer to the average outside North America. This requires a relentless focus on improving the overall quality of end-to-end service through getting the basics right including service adherence, speed of sale to install, customer communications and billing and scheduling. Our State of Service rate for 2025 was 99%, a strong indication we are delivering on customer expectations. We have had success reducing billing friction through initiatives such as autopay and the investment in the 'Customer Saves' team at the start of the year has delivered good results.
Another source of improving customer satisfaction has been through investment in the Trusted Advisor programme, training field technicians to build sticky relationships based on delivery of high-value advice and
comprehensive pest prevention solutions in addition to recommendations for add-on services, which also provides an additional source of leads.
Participation in the Trusted Advisor programme is up 5% year-on-year to 61.5%.
Overall, we have seen a 5.3 point year-on-year improvement in US Commercial Pest customer Net Promoter Scores (NPS), with a 3.1 point year-on-year increase for US Residential customers, and an improvement in customer retention of 0.4%pts to 80.5% in North America. This is a metric which is moving slowly, but where we see significant opportunity.
Investing in key capabilities - pricing and data
One of the key drivers of increase in the value of our contract portfolio is pricing. There remains significant opportunity to optimise pricing (e.g.
through pricing segmentation) and in 2025 we invested in new leadership and a new team in this area. There is also a clear opportunity to drive performance through the increasing use of data science and analytics across the organisation, which we have also invested behind in 2025
with new leadership and a new team.
Leveraging data and analytics
Through 2025 we focused on improving our data and analytics, with one of the key benefits being a more granular branch-level assessment of performance across a full suite of metrics. We used this insight to inform targeted growth initiatives, including replacing branch-level leadership across over 90 branches resulting in meaningful levels of acceleration
in growth.
Business simplification and cost efficiencies
At the same time as driving Organic Revenue Growth we are focused on business simplification and efficiency. We made good progress in 2025 towards our target of a $100m cost reduction in 2027 from the
>2x
inflation-adjusted 2024 spend level. A number of efficiency programmes are underway to deliver this including a headcount reduction programme during the period, procurement initiatives to benefit from purchasing scale and the use of outsourcing and Global Capability Centres for back-office roles. In 2025, these initiatives delivered in-year savings of $25m.
SPOTLIGHT ON:
LEAD GENERATION
DRIVING LOCAL MARKET PENETRATION
Expanding smaller, local branch network to increase local community presence
In Q4 2024, we launched a successful pilot of smaller, local branches which we called our satellite programme. These smaller branches are fully branded and operational, serving as localised hubs with active facilities, but a lower cost to operate.
This is a key part of our strategy to enhance customer proximity and presence in the community, with locations targeted in key metro areas with high-value untapped customer demand.
The roll-out of these low-cost branches continued through 2025, taking the total to over 150 by the end of the year. These smaller, local branches are generating strong lead flow and operating profitably, and we plan to open another c.70 in 2026, taking the total to around 220.
Performance at these locations continues to improve as they mature and build local five-star reviews. By Q4 2025, branches connected to a local hub were recording more than double the lead flow compared to branches without.
We continue to expect that, in 2027, the delivery of these cost savings, together with an improved organic growth rate, will allow the North American business to achieve Operating Profit margins of above 20%, whilst delivering on the streamlined integration process, supported by enhanced marketing investment and the increased branch network.
During the year, we incurred one-time costs to achieve these savings (cash and non-cash) of $77m. We currently expect further one-time costs in 2026 in the region of $70m.
1L0
Smaller, local branches operating at the
end of 2025
Lead generation from branches connected to a local hub
Our Regions: North America
continued
Streamlining operations in 2026
At the start of 2025, we paused integration activity and began the implementation of an evolved strategy to optimise the combination of the Rentokil and Terminix businesses.
As we move into 2026, we will continue to progress this strategy with a substantially streamlined approach which simplifies further integration activity across brands, branches, systems and pay plans.
Optimising Brand strategy
In 2025, we laid out a plan to focus on two national brands and nine well-known regional brands. This focus has increased leads for these brands substantially in the second half. Further data analysis confirms that growth is optimised with multiple brand entry points to tap into highly localised residential and SME demand across national, regional and local brands with strong brand equity.
We now plan to retain around 30 brands which represent over 90% of our revenues. Over time we will carefully and progressively retire the remainder, shifting that business to the stronger and more salient retained brands.
Optimising Branch strategy
Our evolved branch strategy prioritises local customer proximity and protects service quality and customer retention by keeping more local brands and their branches, and by expanding our network of small, local branches from the satellite programme. Our plan is to create
a high-quality network of around 800 branches by the end of 2026, including around 220 of the small, local branches. This evolved strategy will minimise change across branches and technicians, which will support customer retention.
Simplified Systems approach
Following the pause in integration in 2025 we have developed an alternative approach which uses branch data from our existing systems (Mission and PestPac) to build an integrated Branch 360 data reporting, insight and action system accessed through a unified branch BI (Business Intelligence) scorecard which delivers consistent KPIs and insight into
the field on how to leverage best practice and target underperforming branches with suggested areas of action. This dashboard enhances the user experience driving accountability for performance, with ongoing development from initial pilot phases already underway.
For Commercial branches, systems migration resumed in Q4 2025 with encouraging results. This will continue in 2026, enabling all Commercial customers to access our online portal, PestNet Online, as we consolidate on a single branch system.
Integrating Pay Plans
The de-coupled approach on systems allows for the harmonisation of pay plans to proceed without the need to complete branch-by-branch IT migration. We have completed the harmonisation of pay plans for branch managers, updated Commercial sales plans to better incentivise performance and there will be no change to Residential sales
colleagues plans in 2026. For our Technician colleagues, future changes will involve onboarding new colleagues to the new plans, while existing colleagues will be offered a 'grandfathering' choice between old and new plans to ensure stability and talent retention.
We are confident this revised plan to optimise the combination of Rentokil and Terminix in North America mitigates further risk of disruption while still allowing us to deliver on our North America margin target of over 20% in 2027. Our plan for more branches and fewer brand combinations bolsters
SPOTLIGHT ON:
BUSINESS SERVICES
STRONG STANDALONE BUSINESSES
In North America, Business Services comprises high-quality businesses with deep expertise in specialist areas. They are non-route pest and hygiene operations sitting alongside our core Pest Control activities in the region.
These include VDCI for public sector mosquito vector control, SOLitude for lake management, Steritech for food hygiene and brand standards auditing, and Target Specialty Products, our Pest Control and Turf and Ornamental Products distribution business.
Business Services accounts for 15% of Revenue in North America. In 2025, Revenue grew 8.7%, with 8.9% Organic Growth. The largest business in the segment is currently Target while the Vector Control, Lake and Food Audit markets are each expected to grow at a CAGR of 5.5% through to 2030.
our local presence, maximises our penetration of highest value demand and minimises fewer technician changes, protecting customer retention. Retaining our existing systems reduces risks to growth, and incremental investment through 2025 gives us confidence we can deliver the right data and insights to support performance and satisfy customer expectations.
During 2026, we will also remain focused on building momentum in sales and operations through driving accountability and disciplined execution and delivering on a renewed focus on Commercial as a key growth segment through improved service, industry leading offerings and dedicated local and national resources.
L.L%
CAGR through to 2030
for each of Vector Control, Lake and Food Audit markets
8.9%
Organic Growth across
Business Services
International
Overview
The International Region accounted for 38% of Group Revenue in the full year, comprising 59% from the Pest Control business and 41% from the Hygiene & Wellbeing business.
The Region is made up of a portfolio of high-quality businesses, operating in strong, largely non-cyclical markets, across 88 countries in Europe, the United Kingdom, Asia, MENAT, Latin America, Sub-Saharan Africa and the Pacific. Rentokil holds leading positions in pest control in key high-demand growth markets such as India, China and Indonesia. Initial Hygiene operates in 72 countries across the International Region, growing its footprint in key Cities of the Future where urbanisation is driving demand.
SPOTLIGHT ON:
CULTURE AND ENGAGEMENT
A UNIFIED CULTURE ACROSS EUROPEIn November 2025, the top 150 leaders from across the Europe business's 19 countries gathered in Malaga, Spain, for a three-day summit to launch the European Culture Programme.
The Programme is designed to create a unified business across diverse European nations - one that operates with speed and simplicity while acting as a magnet for the best talent. It aims to drive the practical impact of culture over time, moving towards common ways of working across the region to simplify operations.
Participants described the Programme as "inspirational", and it is set to be rolled out further across Europe in 2026.
Strong structural growth drivers together with the increasing adoption of digital innovation in pest management, continue to create attractive opportunities across our International markets. We are focused on capturing this growth through our industry leading operations, the roll out of our connected technology, and our excellent M&A programme which targets expansion in some of the fastest growth economies in the world, supported by our Cities of the Future programme. We continue to build scale and density in new and existing cities, while expanding our presence in high-potential territories including Latin America, India, and Australia.
Performance
Revenue
Full year Revenue was up 6.6% to $2,614m and by 4.8% at constant currency. Organic Revenue was up 3.0%. Performance improved in the second half, with H2 Organic Revenue Growth of 3.4% (H1: 2.6%).
Europe incl. LATAM saw the strongest growth in the region, driven by the Southern European markets of Spain and Portugal which experienced good volume growth from healthy overall demand and a solid pricing environment.
The UK & Sub-Saharan Africa region and Asia & MENAT also saw good growth. In the UK this was driven by the core UK Pest Control and Plants businesses and an improving performance from our Property Services division in H2. In Asia there was strong growth in Indonesia and India benefiting from underlying demand growth in these fast-growing economies.
Growth in the Pacific region was softer across both one-off and contract revenue primarily due to weather related challenges which particularly impacted rural and trackspray operations in the year.
Profit
Adjusted Operating Profit in our International region increased by 8.1% to $518m and by 5.7% at constant currency. Adjusted Operating Margin was 19.8%, up 0.2%pts on the prior year. Statutory Operating Profit was $451m, up 19.6% year-on-year (FY24: $377m).
The UK and Sub-Saharan Africa region delivered double-digit growth
in Adjusted Operating Profit reflecting the strong revenue performance.
Europe and Asia & MENAT also delivered Adjusted Operating Profit growth ahead of the regional average, with Asia & MENAT's margins demonstrating resilience despite a backdrop of high wage inflation.
Within the Pacific region, Operating Profit grew slower than the overall International region, consistent with the revenue growth.
Colleague retention of 90.3% was slightly below last year (FY24: 90.5%) with small dips from exceptionally high levels in Asia and Latin America. Customer retention improved to 85.7% (FY24: 85.1%).
The International region acquired 24 businesses with total revenues in the year prior to acquisition of $36m.
Change
2025 $m | 2024 $m | Change (reported) % | (constant currency) % | Organic Growth | |
Revenue | 2,614 | 2,453 | 6.6% | 4.8% | 3.0% |
Operating Profit | 451 | 377 | 19.6% | 16.8% | |
Adjusted Operating Profit | 518 | 479 | 8.1% | 5.7% |
Adjusted Operating Margin 19.8% 19.5% 0.3%pts 0.2%pts
Organic Growth | Q1 | Q2 | Q3 | Q4 | Full Year |
International | 3.2% | 2.0% | 3.4% | 3.4% | 3.0% |
Financial Review
We are encouraged to see the positive impact on performance of the strategic initiatives we
implemented at the start of this year and will build on this in 2026 with
a continued focus on faster organic growth, improving margins and strong Free Cash Flow Conversion.
Paul Edgecliffe-Johnson
Chief Financial Officer
Introduction
2025 was a year of encouraging progress, with improving performance through the second half, as we started to see the benefits of the strategic initiatives implemented at the beginning of the year. In addition to improving organic growth, when I joined Rentokil Initial just over a year ago, I saw significant opportunities to improve our commercial insights and decision making through enhancing data capabilities across the organisation, to grow margins through cost efficiencies and to improve free cash flow to fuel our capital allocation model. We have made good progress in each of these areas in 2025, with more to go for in 2026.
Revenue
We delivered Revenue of $6,908m in 2025, up 3.8% at constant exchange rates, and including Organic Revenue Growth of 2.6%.
We were particularly pleased with the second half and fourth quarter performance, with Organic Revenue Growth of 3.5% in the second half of the year compared to 1.6% in the first half. This improvement was primarily driven by North America Pest Control Services where Organic Revenue Growth accelerated to 2.6% in the fourth quarter from 1.8% in the third quarter and 0.1% in the first half.
38 Rentokil Initial plc
Operating Profit
In 2025, Group Adjusted Operating Profit was $1,070m, up 5.4% on
a constant currency basis, supporting Operating Profit margin growth of 0.3%pts to 15.5%.
Increasing margins through cost efficiencies
At the start of this year, I set out a plan to begin to simplify the business and create fuel for growth and margin improvement through cost efficiencies, with a focus on North America. We are tracking well towards our target of a $100m reduction in costs in 2027 in our
North America business compared to a 2024 inflation-adjusted base. During the year we have moved some back-office functions to Global Capability Centres, improved our discipline around procurement to better leverage our scale purchasing power, and improved productivity with the use of technology and automation. In the year, we have realised around $25m of the total and have ambitious plans in place for the future to deliver the full $100m.
Our confidence in these plans, and the improvements in Organic Growth we have seen in 2025, underscore our North America Operating Profit margin target of over 20% in 2027.
Data driving commercial insights and informing improved decision making
We have made real progress this year enhancing our data and commercial analytics capabilities and taken significant strides forward in the use of insights to understand and improve performance.
In North America, this has driven a more informed understanding of the drivers of performance at our best and worst performing branches. In digital marketing, our insights facilitated the re-allocation of spend to higher-return and more efficient channels, reducing our overall cost per lead. There is more to be done in 2026 to ensure our technicians and sales teams in the field are armed with the best data to deliver
an exceptional customer experience in the most efficient way.
Cash generation and balance sheet
In 2025, we have improved our Free Cash Flow Conversion with a more disciplined focus on working capital and capital expenditure. We have reported Free Cash Flow Conversion of 97.6%, compared to a target
of 80%, benefiting from real estate sales and some one-off benefits in the overall working capital improvement. This remains an area
of significant focus.
Overall Free Cash Flow grew 24.5% to $615m, which combined with the improvement in profitability, supported a reduction in our Net Debt to Adjusted EBITDA ratio to 2.6x.
On 30 September 2025 we completed the sale of the France Workwear business for $397m. Strategically this divestment reinforces our focus on our core pest control and hygiene and wellbeing sectors and financially it increases our cash generation going forwards, reducing our capital expenditure needs and improving our cash conversion ratio.
Our capital allocation model remains consistent. We will invest in the business organically and inorganically to drive our compounding growth model, grow the dividend sustainably, and then return surplus capital
to shareholders whilst maintaining a strong balance sheet.
2026 priorities
Looking forward to 2026, across the Group, we will continue to focus on growing organic revenues through more efficient and effective
marketing spend, pricing optimisation and improved customer retention. We will also continue to seek out opportunities for improved cost efficiency and cash flow conversion to fuel our long-term compounding growth model of shareholder value creation.
Summary of financial performance
Regional performance
Revenue Adjusted Operating Profit
2025
$m
2024
$m
Change (constant currency)
%
Organic Revenue
Growth
%
2025
$m
2024
$m
Change (constant currency)
%
North America | ||||
Pest Control | 4,148 | 4,026 | 3.1% | 2.2% |
Hygiene & Wellbeing | 146 | 138 | 6.0% | 4.0% |
4,294 | 4,164 | 3.2% | 2.3% | |
720 | 688 4.7% |
29 | 25 17.8% |
749 | 713 5.1% |
International | ||
Pest Control | 1,555 | 1,455 5.4% 3.7% |
Hygiene & Wellbeing | 1,059 | 998 4.0% 2.0% |
2,614 | 2,453 4.8% 3.0% |
323 | 299 5.2% |
195 | 180 6.5% |
518 | 479 5.7% |
Central | ||
Restructuring costs | ||
Total | 6,908 | 6,617 3.8% 2.6% |
(191) | (175) (6.9)% |
(6) | (9) 35.7% |
1,070 | 1,008 5.4% |
Category performance | |||||||
Revenue | Adjusted | Operating Profit | |||||
Change | Organic Revenue | Change | |||||
2025 | 2024 (constant | currency) | Growth | 2025 | 2024 (constant currency) | ||
$m | $m | % | % | $m | $m % | ||
Pest Control | 5,703 | 5,481 | 3.7% | 2.6% |
Hygiene & Wellbeing | 1,205 | 1,136 | 4.3% | 2.3% |
Central | - | - | - | - |
Restructuring costs | - | - | - | |
Total | 6,908 | 6,617 | 3.8% | 2.6% |
1,043 | 987 4.9% |
224 | 205 7.8% |
(191) | (175) (6.9)% |
(6) | (9) 35.7% |
1,070 | 1,008 5.4% |
Revenue
Group Revenue increased 3.8% to $6,908m (FY24: $6,617m) driven
by a strong demand and pricing environment across our scale markets. Group Organic Revenue grew 2.6%. Revenue growth in North America was 3.2% driven primarily by pricing. Organic Revenue Growth was 2.3%, with improvements through the year (Q1:0.7%; Q2:1.4%; Q3:3.4%; Q4:3.6%). The International business grew Revenue 4.8% for the full year with growth across the region particularly in the UK, Southern Europe and the faster growing economies of India and Indonesia. Organic Revenue Growth was up 3.0%.
Our Pest Control category grew Revenue by 3.7% to $5,703m.
Organic Revenue Growth was 2.6% with 2.2% Organic Revenue Growth in North America and 3.7% Organic Revenue Growth in International being driven primarily by pricing. Hygiene & Wellbeing Revenue increased by 4.3% to $1,205m. Organic Revenue Growth was up 2.3%.
Revenue ($m) | H1 | H2 | Full Year |
Group | 3,364 | 3,544 | 6,908 |
North America | 2,106 | 2,188 | 4,294 |
International | 1,258 | 1,356 | 2,614 |
Organic Revenue Growth | H1 | H2 | Full Year |
Group | 1.6% | 3.5% | 2.6% |
North America | 1.1% | 3.5% | 2.3% |
International | 2.6% | 3.4% | 3.0% |
Profit
Adjusted Operating Profit increased by 5.4% during the year to $1,070m (FY24: $1,008m) reflecting revenue growth of 3.8% and the benefit of cost efficiency activities. Performance reflected improved results across the Group, with growth delivered in both North America and International. Adjusted Operating Profit for Pest Control increased
by 4.9% to $1,043m (FY24: $987m).
Hygiene & Wellbeing Adjusted Operating Profit increased by 7.8% to
$224m (FY24: $205m).
Adjusted Operating Profit growth was 16.7% in the second half of the year with the benefits from cost efficiency initiatives in North America being weighted to later in the year.
Adjusted Operating Profit margin of 15.5% increased 0.3%pts year-on-year. There was consistent growth across the Group with
year-on-year growth in North America of 0.4%pts and International of 0.2%pts. On a category basis, Adjusted Operating Profit margins
in Pest Control grew 0.2%pts and by 0.6%pts in Hygiene & Wellbeing.
Adjusted Profit Before Tax, which excludes one-off and adjusting items and amortisation costs, was $876m (FY24: $842m). Adjusted interest was $204m, $29m higher year-on-year due to the interest cost of new bond debt issued, lower bank interest received and a reduction in the impact from hyperinflation accounting. One-off and adjusting operating items of $287m (FY24: $110m) include an increase in the provision
for termite claims and costs related to North America transformation
and other strategic initiatives. Statutory Operating Profit was $584m (FY24: $644m). Statutory Profit Before Tax was $390m (FY24: $462m).
Adjusted Operating Profit ($m) | H1 | H2 | Full Year |
Group | 511 | 559 | 1,070 |
North America | 356 | 393 | 749 |
International | 242 | 276 | 518 |
Adjusted Operating Profit Margin | H1 | H2 | Full Year |
Group | 15.2% | 15.8% | 15.5% |
North America | 16.9% | 18.0% | 17.4% |
International | 19.2% | 20.4% | 19.8% |
Financial Review
continued
Cash flow
Cash generation remained a key focus during the year, supported by continued discipline in operational cash conversion and working capital management.
Free Cash Flow from continuing operations was $615m (FY24: $494m), with the improvement driven principally by the higher profits and improved working capital position, partly offset by higher cash interest. Free Cash Flow for the Group including discontinued operations was
$636m (FY24: $526m), $110m higher year-on-year.
Free Cash Flow Conversion of 98% exceeded our guidance as a result of a particularly strong performance in debtor collection across the Group.
One-off and adjusting items (non-cash) were an outflow of $214m (FY24: $19m). The Group had a $59m working capital outflow in the year (FY24: $126m outflow). The movement on provisions was a $142m inflow (FY24: $76m outflow), primarily reflecting the increase in the provision for termite damage claims of $201m offset by the $95m of cash settled claims. Capital expenditure additions were $196m (FY24: $190m), with disposals of property, plant and equipment of $20m (FY24: $5m). Lease payments were $186m (FY24: $177m).
Cash interest payments were $222m, $41m higher than the prior year, reflecting the impact of refinancing existing debt at higher prevailing rates. Cash tax payments were lower year-on-year at $100m (FY24:
$107m) mainly due to a one-off benefit from a change to US tax legislation. Free Cash Flow from discontinued operations was $21m (FY24: $32m).
Cash spend on current and prior year acquisitions was $121m, receipts from the disposal of France Workwear were $391m, dividend payments were $304m and the cash impact of one-off and adjusting items was
$100m, largely related to North America transformation costs.
Disposal of France Workwear
The sale of our France Workwear business, which we announced on 28 May 2025, completed on 30 September 2025, with net cash
proceeds of €339m ($397m). The business has been accounted for as
a discontinued operation since 31 May 2025. In FY24, France Workwear, including flat linen textile and clean room business, generated Revenue of $324m, Adjusted Operating Profit of $57m and had associated capital expenditure of $93m. For the nine months ended 30 September 2025, France Workwear, including flat linen textile and clean room business, generated Revenue of $261m and Adjusted Operating Profit of $74m.
M&A
In 2025, we acquired 36 businesses, comprising 31 in Pest Control and 5 in Hygiene & Wellbeing for a total consideration of $115m.
Revenues in the year prior to purchase were c.$63m. We added 12 new businesses in North America during the period and 24 businesses in our International region. Revenues acquired in the year prior to purchase were c.$27m and c.$36m respectively.
M&A remains relevant for our strategy for growth. We continue to seek attractive bolt-on deals, both in Pest Control and Hygiene & Wellbeing, to build density in existing and new markets. Our pipeline of prospects remains strong.
Central and regional overheads
Central and regional overheads of $191m were up $12m at CER ($16m at AER) on the prior year predominantly as a result of inflationary increases and increased investment in our proprietary digital applications,
AI capabilities and IT security.
Restructuring costs
With the exception of integration costs for significant acquisitions, the Company reports restructuring costs within Adjusted Operating Profit. Costs associated with significant acquisitions are reported as one-off and adjusting items and excluded from Adjusted Operating Profit.
Restructuring costs of $6m were down $3m on prior year (FY24: $9m). They consisted mainly of costs in respect of initiatives in our European business.
Legacy termite warranty obligations
The legacy termite warranty provision is based on an assessment of probable future cash outflows arising from historical and future claims relating to the entire pool of Termite contracts acquired on the acquisition of Terminix. It is based on a number of assumptions including the number, and rate of claims arising, the costs anticipated to resolve these claims, customer churn rate for this pool of contracts, inflation and discount rate, and the actual claim outcomes versus the assumptions which are reviewed in detail at each half year and year end.
In the year to 31 December 2025, we have increased the termite provision by $201m to $384m. This increase has largely been driven by:
A continued increase in the number of litigated claims for both Residential and Commercial customers received in 2025 compared to 2024, albeit at a lower level than at the time of acquisition
A continued increase in the cost per claim, as our proactive strategy to solve customer problems and reduce litigation continues
The settlement of some of the larger, legacy complex Commercial cases at a higher average cost than the historical average, due to the particular nature of the underlying facts of these claims
An increase in the long term inflation rate in the model from 2% to 3.2%. When the original provision was booked at the time of the acquisition a long term inflation rate was assumed for the 20 year life of the provision. Since then we have experienced higher levels of general inflation and, specifically, we have seen an inflation premium over general inflation in relation to the cost inputs for settling the claims (namely legal defence costs, building materials and house prices).
The cost of settling claims in the year to 31 December 2025 has been
$95m and we expect a similar level of cash payments in 2026.
Interest
Adjusted interest of $204m includes $31m of lease interest charges and a $33m offsetting reduction from the impacts of hyperinflation and net interest received. In the year, hyperinflation of $3m was $6m lower than the prior year (FY24: $9m) due to a drop in hyperinflation in Argentina and devaluation of the Argentinian peso. Cash interest in FY25 was
$222m (FY24: $181m), with the year-on-year increase principally reflecting higher bond interest on new debt issuance in the year and a reduction in bank interest received.
Tax
The income tax charge for the period at actual exchange rates was
$100m on the reported Profit Before Tax of $390m, giving an effective tax rate (ETR) of 25.6% (FY24: 25.1%). The Group's ETR before amortisation of intangible assets (excluding computer software), one-off and adjusting items and the net interest adjustments for FY25 was 25.3% (FY24: 24.2%). This compares with a blended rate of tax for the countries in which the Group operates of 25.3% (FY24: 25.3%).
40 Rentokil Initial plc
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