London, March 6, 2026, 14:05 GMT
- Rentokil Initial reported a 4% rise in adjusted pretax profit for 2025, citing better performance in North America.
- Chair Richard Solomons will step down after a replacement is named.
- The termite damage claim provision jumped by $201 million, reaching $384 million.
Rentokil Initial plc reported a 4% gain in adjusted pretax profit for 2025 on Thursday, crediting stronger performance in North America during the latter half of the year. The company also announced an upcoming board leadership change. Shares surged over 10% in London after the news.
North America remains under the microscope after the Terminix acquisition, especially with a leadership change looming this month. The question for investors: can tweaks to marketing, branch ops, and IT turn the growth dial without crimping margins?
Rentokil stuck to its 2026 forecast, maintaining it still sees results “in line with market expectations” even after January’s weather disruptions in the U.S. and “increased uncertainty” tied to geopolitical tensions. rentokil-initial.com
The company reported revenue of $6.91 billion for 2025, up 3.8%. Organic revenue growth, which excludes the impact of currency shifts and acquisitions, landed at 2.6%.
Adjusted operating profit came in at $1.07 billion, up 5.4%. Free cash flow jumped 24.5% to $615 million. Net debt closed out the year at $3.65 billion.
Adjusted profit before tax hit $876 million, edging up from $842 million a year ago. Statutory profit before tax, though, dropped to $390 million from last year’s $462 million, with the decline tied to adjustments—such as one-offs, plus amortisation and impairment of intangibles.
Andy Ransom, the outgoing chief executive, described 2025 as “a year of encouraging progress,” highlighting a pickup in the second half as first-quarter initiatives began to show results. rentokil-initial.com
The company reported North America revenue of $4.29 billion, noting that organic revenue growth picked up over the year. The improvement came as it leaned further into organic lead generation and sharpened its approach to paid marketing.
Management’s been making adjustments to sections of the Terminix integration. During the results call, CFO Paul Edgecliffe-Johnson mentioned that pricing remains “inflation plus,” as the company works to expand its local branch presence. rentokil-initial.com
On the call, the group said its North America branch network should hit “approximately 800” locations by the end of 2026. That figure includes around 220 small, local “satellite” branches. rentokil-initial.com
Rentokil’s chair, Richard Solomons, has informed the board he plans to step down after a replacement is found, the company said. Senior independent director John Pettigrew is overseeing the process.
The company’s preliminary statement confirmed that Mike Duffy, brought in as CEO-designate back in February, will take over as chief executive on March 16, replacing Ransom.
The figures also spotlight a persistent threat tied to Terminix’s old termite liabilities. Rentokil bumped its termite damage claims provision by $201 million in 2025, pushing the closing total up to $384 million after $95 million in claims paid out in cash. The company flagged the chance of more changes if costs, lawsuits, or assumptions about inflation shift unfavorably.
