Q1 2026: Steady growth and a confident start under a new CEO
Rentokil Initial has opened 2026 with a solid set of first-quarter numbers in what is usually a quieter trading period. Group revenue reached $1,677m, up 4.3% at constant currency, with organic revenue growth of 3.4%. New Chief Executive Mike Duffy sounds upbeat, saying momentum in North America and “solid progress” internationally give confidence for a full-year outcome in line with market expectations.
Quick jargon check: “constant currency” strips out exchange-rate moves so we see underlying trading, and “organic revenue growth” excludes the effect of newly acquired businesses to show like-for-like expansion.
Headline numbers you need to know
| Q1 2026 revenue ($m) | Organic growth | Change (constant currency) | |
|---|---|---|---|
| Group | $1,677m | 3.4% | 4.3% |
| North America | $995m | 3.9% | 4.5% |
| – Pest Control | $965m | 4.1% | 4.7% |
| — Pest Control Services | $829m | 2.8% | 3.5% |
| — Business Services | $136m | 12.7% | 12.7% |
| – Hygiene & Wellbeing | $30m | (2.7)% | (1.5)% |
| International | $682m | 2.8% | 4.1% |
| – Pest Control | $405m | 2.8% | 4.6% |
| – Hygiene & Wellbeing | $277m | 2.7% | 3.5% |
North America keeps the momentum going
North America remains the engine. Revenue rose to $995m with organic growth of 3.9%. Pest Control was the standout, up 4.1% organically, aided by price increases and a recovery from late-January weather disruption. Management highlights stronger marketing and better sales execution – sensible levers that should have legs beyond one quarter.
Pest Control: services steady, Business Services flying
Pest Control Services grew 2.8% organically (2.6% in Q4 2025), a steady improvement. The eye-catcher is Business Services – up 12.7% organically, helped by pre-spring demand in product distribution, 2025 wins in brand standards, and high-value lake management jobs. That mix tends to be a little lumpier, but it is a useful margin contributor when it lands.
Retention: stable and edging higher
Colleague retention of 82.6% (FY25: 82.2%) nudged up, while customer retention was broadly flat at 80.4% (FY25: 80.5%). Retention is a quiet but important driver of service quality and route density – small improvements here compound nicely over time.
International: good progress with regional bumps
International revenue reached $682m, up 4.1% at constant currency and 2.8% organically. Europe, Latin America and the UK & Sub-Saharan Africa put in “good growth” on the back of pricing and higher volumes. Two headwinds clipped performance by around 60bps: Pacific faced tough comparatives in Rural and Trackspray, and MENAT saw disruption from the Middle East conflict. Management call this out clearly, which helps investors calibrate what is cyclical versus structural.
Category trends: Pest Control outpacing Hygiene & Wellbeing
| Category | Q1 2026 revenue ($m) | Organic growth | Change (constant currency) |
|---|---|---|---|
| Pest Control (Group) | $1,370m | 3.7% | 4.6% |
| Hygiene & Wellbeing (Group) | $307m | 2.1% | 3.0% |
Pest Control remains the growth leader: 4.1% organic in North America and 2.8% internationally (3.0% excluding MENAT). Hygiene & Wellbeing grew 2.1% organically overall, with 2.7% in International offset by a (2.7)% decline in North America. The drag Stateside is timing-related – later construction phasing delayed Ambius jobbing revenue. That suggests some catch-up potential rather than a structural issue.
Bolt-on M&A continues to tick over
Rentokil completed 9 bolt-on deals in the quarter, bringing in annualised revenue of $19m in the year before acquisition. These are small, sensible in-fill buys that build route density and local capability. Nothing transformational here, and that is fine – consistency beats drama in this industry.
CEO commentary: cautious world, confident outlook
Mike Duffy’s first month in the chair comes with a measured message: despite geopolitical uncertainty, the company expects to deliver a full-year performance in line with market expectations. There is no change to guidance detail (not disclosed), but the tone is constructive. The specific call-out of improved marketing and sales execution in North America is encouraging because it reflects controllable, repeatable actions.
My take: a tidy start with line of sight to improvement
- Positives: Group organic growth of 3.4% in a soft quarter; North America Pest Control humming; Business Services providing a nice kicker; slight uptick in colleague retention; clean execution on pricing and weather recovery.
- Negatives: North America Hygiene & Wellbeing dipped due to timing; MENAT disruption and Pacific comparatives muted International growth; no fresh detail on margins or cash flow in this update (not disclosed).
- Why it matters: Pest Control – the core profit engine – is growing faster than the Group, which usually bodes well for mix and margins as the year unfolds. If Ambius timing normalises and MENAT pressures ease, growth could broaden out into H2.
Key things to watch through 2026
- Execution in North America: do marketing and sales upgrades keep Pest Control growth north of 4% organically?
- International recovery: any easing of MENAT disruption and the Pacific comparative headwinds.
- Hygiene & Wellbeing in North America: confirmation that delayed Ambius jobbing revenue lands later in the year.
- Retention metrics: further small gains in colleague and customer retention would support density and profitability.
- M&A cadence: steady bolt-ons that add local scale without distracting integration risk.
Want the details from management?
The CFO is hosting a webcast today at 9:00am BST. You can register for the live audio webcast here: webcast registration. A replay will be available on the company’s investor page: rentokil-initial.com/investors. To join via teleconference, register here: teleconference registration.
Bottom line
This is a neat, confidence-building Q1 from Rentokil Initial. Growth is broad enough, the core engine is performing, and the headwinds called out are mostly transient. If management keeps nudging execution forward and external pressures ease, the company looks set to deliver the “in line” year it is guiding towards – with scope for upside should timing benefits and M&A contributions stack up.
