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RTO

Rentokil Initial plc

RTO

Rentokil Initial plc • NYSE
$27.65 ▲ 1.17% (+0.32)
Market Cap $13.99 B
52w High $30.10
52w Low $19.60
Dividend Yield 0.66%
P/E 43.89
Volume 265.35K
Outstanding Shares 506.11M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2025 $3.364B ▲ $151M ▲ $188M ▲ 5.589% ▲ $0.33 ▲ $608M ▲
Q4-2024 $2.73B ▲ $113M ▲ $111M ▼ 4.066% ▼ $0.22 ▼ $465M ▼
Q2-2024 $2.706B ▲ $64M ▼ $196M 7.243% ▼ $0.39 $525M ▼
Q4-2023 $2.704B ▲ $981M ▲ $196M ▲ 7.249% ▲ $0.39 ▲ $534M ▼
Q2-2023 $2.671B $58M $185M 6.926% $0.37 $590M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2025 $1.691B ▲ $14.233B ▲ $8.966B ▲ $5.269B ▲
Q4-2024 $927M ▼ $10.554B ▼ $6.326B ▼ $4.229B ▲
Q2-2024 $1.558B ▼ $11.232B ▲ $7.069B ▲ $4.164B ▲
Q4-2023 $1.577B ▲ $11.127B ▲ $7.039B ▼ $4.089B ▲
Q2-2023 $1.419B $10.992B $7.04B $3.953B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $188M ▲ $469M ▲ $-205M ▼ $270M ▲ $1.027B ▲ $361M ▲
Q4-2024 $111M ▼ $371M ▲ $-193M ▼ $-521M ▼ $-906M ▼ $284M ▲
Q2-2024 $196M $307M ▼ $-180M ▼ $-231M ▼ $716M ▲ $223M ▼
Q4-2023 $196M ▲ $409M ▲ $-141M ▲ $-145M ▲ $144M ▲ $300M ▲
Q2-2023 $185M $332M $-275M $-216M $-752M $230M

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown strongly over the last few years, helped by acquisitions and steady demand for pest control and hygiene services. Profitability is solid: operating profit and net profit have both risen over time, even as the business has scaled up. Margins look generally healthy for a service business, though they appear to have moved around a bit as the company integrates large acquisitions, absorbs deal-related costs, and digests higher interest and inflation. Earnings per share have been positive and reasonably resilient, but not in a straight line, which suggests some dilution and integration noise alongside the growth. Overall, the income statement reflects a larger, more global business with good underlying economics, but also the complexity that comes with rapid, deal‑driven expansion.

Balance Sheet

Balance Sheet The balance sheet shows a company that has grown significantly in size, with total assets rising sharply following major acquisitions. Debt levels have increased alongside this, leaving the business more leveraged than it was a few years ago. Equity has also built up, so the company is not thinly capitalized, but borrowings now represent a meaningful part of the capital structure and likely include a large amount of intangible assets from past deals. Cash balances were stronger right after acquisitions and have since come down, which points to a shift from deal funding towards normal operations and integration. The key takeaway is a scale player with a sizeable, but manageable, debt load that will require continued focus on cash generation and disciplined capital allocation.

Cash Flow

Cash Flow Cash generation is a clear strength. Operating cash flow has been consistently positive and has grown in line with the business, reflecting the recurring and contract‑based nature of pest control and hygiene services. After routine investment in equipment and technology, the company still produces solid free cash flow, giving it room to fund integration, interest payments, and selective further investment. Capital spending needs are relatively modest for the size of the business, which helps. The main question on cash flow is not the ability to generate it, but how management balances its use between debt reduction, future acquisitions, and shareholder returns over time.

Competitive Edge

Competitive Edge Rentokil Initial sits in a leading global position in pest control, with a strong presence across many countries and industries. Its advantage comes from scale and dense local service routes, which allow technicians to serve many nearby customers efficiently. This density is hard for smaller rivals to replicate and supports better service reliability and profitability. The company has spent years rolling up local operators, building a large customer base and strong brand recognition, especially with commercial and highly regulated clients. Offering both pest control and hygiene services gives it cross‑selling opportunities and deeper customer relationships. Competitive risks mainly relate to integrating numerous acquisitions smoothly, maintaining service quality at scale, and fending off capable global peers that are also investing in technology and sustainability.

Innovation and R&D

Innovation and R&D Innovation is a clear focus and an important part of the moat. Rentokil has invested in connected pest control systems, such as its remote monitoring platform that uses sensors and automated traps to track and respond to pest activity in real time. This digital layer, combined with customer portals and data analytics, turns a traditional service into an information‑rich, proactive solution that is hard for low‑tech competitors to match. The company also emphasizes more sustainable and non‑toxic methods, like heat treatments, biological controls, and reduced use of traditional chemicals, aligning with tighter regulation and customer preferences. Dedicated research centers in key regions support product development in areas like termites, mosquitoes, and other local challenges. Looking ahead, greater use of artificial intelligence, image recognition, and predictive analytics has the potential to further sharpen its service, but execution and customer adoption will determine how much value this ultimately adds.

Summary

Overall, Rentokil Initial looks like a scaled, cash‑generative service company that has transformed itself through acquisitions into a global leader in pest control and hygiene. The income statement shows strong growth and solid profitability, while the cash flow profile underlines the resilience of its recurring, route‑based model. The balance sheet carries more debt than in the past, reflecting this expansion, so ongoing discipline around leverage and integration is an important watch point. Competitively, its route density, brand, and digital tools give it a durable edge, supported by a visible commitment to innovation and greener solutions. The main opportunities lie in further digitalization, cross‑selling, and expanding sustainable offerings, while key risks include acquisition integration, maintaining service quality at scale, and managing a higher debt burden through different economic conditions.

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