Rentokil Initial Past Earnings Performance
Past criteria checks 1/6
Rentokil Initial has been growing earnings at an average annual rate of 2.6%, while the Commercial Services industry saw earnings growing at 13.3% annually. Revenues have been growing at an average rate of 14.9% per year. Rentokil Initial's return on equity is 5.3%, and it has net margins of 4.2%.
Key information
2.63%
Earnings growth rate
-5.60%
EPS growth rate
| Commercial Services Industry Growth | 27.48% |
| Revenue growth rate | 14.93% |
| Return on equity | 5.28% |
| Net Margin | 4.20% |
| Next Earnings Update | 30 Jul 2026 |
Recent past performance updates
Recent updates
Narrative Update • May 16
RTO: Bolt On M&A And Progressive Dividend Will Likely Sustain High P/E
Analysts have adjusted their price target on Rentokil Initial to £4.54. The change reflects refreshed assumptions around discount rate, revenue growth, profit margins and future P/E rather than a shift in fair value.
Narrative Update • Apr 28
RTO: Future Dividend Policy And M&A Pipeline Will Support Further Upside
Analysts have revised their fair value estimate for Rentokil Initial from £5.70 to £6.24, based on updated assumptions around revenue growth, profit margins, discount rate and future P/E expectations. What's in the News Board recommends a final dividend of 8.24 cents per share for the year ended 31 December 2025, subject to approval at the AGM on 7 May 2026.Narrative Update • Apr 13
RTO: Bolt On M&A And New CEO Will Likely Sustain High P/E
Analysts have adjusted their price target for Rentokil Initial to £4.54 from £4.06. This reflects updated assumptions around revenue growth, profit margins, the discount rate and the stock's future P/E multiple.Analysis Article • Apr 01
There May Be Some Bright Spots In Rentokil Initial's (LON:RTO) Earnings
Rentokil Initial plc's ( LON:RTO ) stock was strong despite it releasing a soft earnings report last week. We think...Narrative Update • Mar 30
RTO: Ongoing M&A Plans Will Likely Keep P/E Excessively High
Analysts have trimmed their price target on Rentokil Initial to £4.06 from £4.07, reflecting updated assumptions around fair value, discount rate, revenue growth, profit margin and future P/E that are only slightly different from prior estimates. What's in the News Board recommends a final dividend of 8.24 cents per share in respect of the year ended 31 December 2025, taking the full year dividend to 12.39 cents per share.Narrative Update • Mar 16
RTO: Higher P/E And Aggressive M&A Strategy Will Likely Keep Shares Expensive
Analysts have raised their price target on Rentokil Initial from £3.68 to £4.07, citing updated assumptions around revenue growth, profit margins, the discount rate and future P/E as key drivers of the change. What's in the News Rentokil Initial is actively seeking acquisitions, with management highlighting bolt-on M&A as a core part of its growth plans and pointing to a strong pipeline of potential deals into 2026.Narrative Update • Mar 02
RTO: Higher P/E And CEO Transition Will Likely Keep Shares Expensive
Analysts have lifted their fair value estimate for Rentokil Initial from £3.35 to £3.68. The updated assumptions reflect a higher discount rate, a lower revenue growth outlook, slightly stronger profit margins and a higher future P/E multiple.Analysis Article • Feb 16
Calculating The Intrinsic Value Of Rentokil Initial plc (LON:RTO)
Key Insights Using the 2 Stage Free Cash Flow to Equity, Rentokil Initial fair value estimate is UK£4.27 With UK£4.42...
Narrative Update • Feb 16
RTO: Incoming CEO And Revised Assumptions Will Support Fair Value Steadiness
Analysts have nudged their price target for Rentokil Initial higher to reflect updated fair value assumptions around £4.82 per share, based on slightly revised inputs for discount rate, revenue growth, profit margin, and future P/E expectations. What's in the News Rentokil Initial has appointed Mike Duffy as Chief Executive Officer, effective March 16, 2026, with a handover period starting February 16, 2026, as CEO Designate (Key Developments).Narrative Update • Feb 02
RTO: Future CEO Transition Will Likely Leave Shares Looking Expensive
Analysts have lifted their fair value estimate for Rentokil Initial from £3.13 to about £3.35, citing updated views on revenue growth, profit margins, a lower assumed discount rate and a revised future P/E multiple. What's in the News Rentokil Initial has appointed Mike Duffy as Chief Executive Officer, with the role becoming effective on March 16, 2026, following a period as CEO Designate from February 16, 2026 (company announcement).Narrative Update • Jan 19
RTO: CEO Transition And Refined Assumptions Will Support Fair Value Steadiness
Analysts have slightly increased their price target for Rentokil Initial, citing updated assumptions around fair value, discount rate, revenue growth, profit margin and future P/E, although specific currency figures were not provided. What's in the News Rentokil Initial plc appointed Mike Duffy as Chief Executive Officer, with effect from March 16, 2026, following a period as CEO Designate starting February 16, 2026.Analysis Article • Jan 12
Why Investors Shouldn't Be Surprised By Rentokil Initial plc's (LON:RTO) P/E
Rentokil Initial plc's ( LON:RTO ) price-to-earnings (or "P/E") ratio of 44.7x might make it look like a strong sell...Narrative Update • Jan 04
RTO: Lower Discount Rate And Margin Outlook Will Support Fair Value Steadiness
Analysts have raised their price target for Rentokil Initial by approximately 2 percent. They cited a modestly lower discount rate and an improved profit margin outlook, which more than offset slightly reduced revenue growth expectations and a marginally lower future earnings multiple.Narrative Update • Dec 14
RTO: Rising Margins And Lower Risk Are Expected To Drive Upside
Analysts have raised their price target for Rentokil Initial from approximately $5.39 to $5.70, citing expectations of stronger profit margins and a slightly lower discount rate. These factors more than offset trimmed revenue growth forecasts and a modestly lower future P/E multiple.Narrative Update • Nov 28
RTO: Fair Value And Margins Suggest Steady Outlook Amid Modest Profit Gains
Analysts have raised their price target for Rentokil Initial slightly, from $4.55 to $4.56, based on modest improvements in forecasted revenue growth and profit margins. Valuation Changes The Fair Value Estimate has increased slightly from £4.55 to £4.56 per share.Analysis Article • Nov 15
Calculating The Fair Value Of Rentokil Initial plc (LON:RTO)
Key Insights Using the 2 Stage Free Cash Flow to Equity, Rentokil Initial fair value estimate is UK£3.71 Rentokil...Narrative Update • Nov 14
RTO: Rising Revenue Expectations Will Drive Continued Share Price Momentum
Analysts have raised their price target for Rentokil Initial slightly, increasing it from $4.49 to $4.55. They cite expectations for stronger revenue growth despite only modest changes in profitability and valuation metrics.Narrative Update • Oct 31
RTO: Future Performance Will Balance Modest Revenue Tailwinds And Discount Rate Reductions
Analysts have raised their price target for Rentokil Initial from £4.36 to £4.49 per share, citing upgraded estimates for revenue growth and a modest reduction in the discount rate as key supporting factors. Valuation Changes The Fair Value Estimate has increased from £4.36 to £4.49 per share, reflecting a modest upward revision.Analysis Article • Oct 28
Does Rentokil Initial (LON:RTO) Have A Healthy Balance Sheet?
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...Narrative Update • Oct 17
Urbanization And Digital Shifts Will Reposition Pest And Hygiene Services
Analysts have raised their price target for Rentokil Initial from £4.16 to £4.36, citing slightly improved profit margin forecasts and a modest decrease in the discount rate as the primary factors behind the adjustment. What's in the News Rentokil Initial plc has declared an interim dividend payment of 4.15 pence per share.Narrative Update • Oct 03
Urbanization And Digital Shifts Will Reposition Pest And Hygiene Services
Analysts have slightly lowered their price target for Rentokil Initial to £4.16 from £4.25. They cited more moderate expectations for revenue growth and profit margins.Analysis Article • Aug 26
Rentokil Initial plc (LON:RTO) Not Flying Under The Radar
When close to half the companies in the United Kingdom have price-to-earnings ratios (or "P/E's") below 16x, you may...Analysis Article • Jul 20
Estimating The Intrinsic Value Of Rentokil Initial plc (LON:RTO)
Key Insights The projected fair value for Rentokil Initial is UK£3.34 based on 2 Stage Free Cash Flow to Equity...Analysis Article • Jun 23
Is Rentokil Initial (LON:RTO) Using Too Much Debt?
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
New Narrative • Mar 09
Terminix Integration And Network Expansion Will Improve North American Operations
Expanding North American operations with new branches and improved marketing boosts revenue potential and operational reach.Revenue & Expenses Breakdown
Revenue & Expenses Breakdown
How Rentokil Initial makes and spends money. Based on latest reported earnings, on an LTM basis.
Earnings and Revenue History
| Date | Revenue | Earnings | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 31 Dec 25 | 6,908 | 290 | 0 | 0 |
| 30 Sep 25 | 6,812 | 286 | 0 | 0 |
| 30 Jun 25 | 7,546 | 356 | 4,050 | 0 |
| 31 Mar 25 | 7,072 | 364 | 3,819 | 0 |
| 31 Dec 24 | 6,617 | 346 | 0 | 0 |
| 30 Sep 24 | 5,934 | 345 | -1,973 | 0 |
| 30 Jun 24 | 6,683 | 477 | 3,721 | 0 |
| 31 Mar 24 | 6,735 | 479 | 3,718 | 0 |
| 01 Jan 24 | 6,385 | 437 | 0 | 0 |
| 30 Sep 23 | 6,215 | 411 | 3,088 | 0 |
| 30 Jun 23 | 6,112 | 372 | 2,542 | 0 |
| 31 Mar 23 | 5,260 | 324 | 2,470 | 0 |
| 31 Dec 22 | 4,490 | 280 | 2,490 | 0 |
| 30 Sep 22 | 3,790 | 279 | 2,012 | 0 |
| 30 Jun 22 | 3,742 | 326 | 1,949 | 0 |
| 31 Mar 22 | 3,961 | 349 | 2,103 | 0 |
| 31 Dec 21 | 3,999 | 356 | 2,165 | 0 |
| 30 Sep 21 | 3,991 | 351 | 2,085 | 0 |
| 30 Jun 21 | 4,104 | 357 | 2,076 | 0 |
| 31 Mar 21 | 3,977 | 307 | 2,069 | 0 |
| 31 Dec 20 | 3,833 | 254 | 2,047 | 0 |
| 30 Sep 20 | 3,555 | 277 | 1,946 | 0 |
| 30 Jun 20 | 3,354 | 301 | 1,879 | 0 |
| 31 Mar 20 | 3,370 | 327 | 1,885 | 0 |
| 31 Dec 19 | 3,596 | 376 | 2,008 | 0 |
| 30 Sep 19 | 3,264 | 115 | 1,773 | 0 |
| 30 Jun 19 | 3,296 | -123 | 1,737 | 0 |
| 31 Mar 19 | 3,300 | -127 | 1,779 | 0 |
| 31 Dec 18 | 3,152 | -125 | 1,739 | 0 |
| 30 Sep 18 | 3,146 | 60 | 1,755 | 0 |
| 30 Jun 18 | 3,108 | 250 | 1,754 | 0 |
| 31 Mar 18 | 3,344 | 612 | 1,865 | 0 |
| 31 Dec 17 | 3,257 | 922 | 1,795 | 0 |
| 30 Sep 17 | 3,234 | 915 | 1,694 | 0 |
| 30 Jun 17 | 3,145 | 889 | 1,561 | 0 |
| 31 Mar 17 | 2,871 | 533 | 1,501 | 0 |
| 31 Dec 16 | 2,672 | 207 | 1,476 | 0 |
| 30 Sep 16 | 2,631 | 195 | 1,401 | 0 |
| 30 Jun 16 | 2,514 | 178 | 1,282 | 0 |
| 31 Mar 16 | 2,628 | 186 | 1,390 | 0 |
| 31 Dec 15 | 2,594 | 183 | 1,424 | 0 |
| 30 Sep 15 | 2,649 | 192 | 1,437 | 0 |
| 30 Jun 15 | 2,739 | 204 | 1,469 | 0 |
Quality Earnings: RTO has a large one-off loss of $290.0M impacting its last 12 months of financial results to 31st December, 2025.
Growing Profit Margin: RTO's current net profit margins (4.2%) are lower than last year (5.2%).
Free Cash Flow vs Earnings Analysis
Past Earnings Growth Analysis
Earnings Trend: RTO's earnings have grown by 2.6% per year over the past 5 years.
Accelerating Growth: RTO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RTO had negative earnings growth (-16.2%) over the past year, making it difficult to compare to the Commercial Services industry average (-4.7%).
Return on Equity
High ROE: RTO's Return on Equity (5.3%) is considered low.
Return on Assets
Return on Capital Employed
Discover strong past performing companies
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/06/03 17:29 |
| End of Day Share Price | 2026/06/03 00:00 |
| Earnings | 2025/12/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
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Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Rentokil Initial plc is covered by 28 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Paul Daniel Sullivan | Barclays |
| James Rosenthal | Barclays |
| Jane Sparrow | Barclays |