Q3 2025: Solid top-line growth and improving execution
Rentokil Initial delivered a steady third quarter. Group Revenue came in at $1,810 million, up 4.6% on a constant currency basis (5.1% reported), with Organic Revenue growth of 3.4%. That organic figure strips out the impact of acquisitions to show like-for-like progress. “Constant currency” adjusts for FX swings so we can compare underlying trading.
Management says trading is in line with expectations and full-year 2025 guidance is unchanged. In short: a disciplined, execution-led quarter with a notable pickup in North America.
North America: momentum building, especially beyond core pest control
North America Revenue rose 4.6% with Organic Revenue growth of 3.4%. Within that, North America Pest Control Services – the core residential and commercial routes – delivered 1.8% organic growth, a clear improvement from 0.1% in H1 2025. Business Services was the stand-out, posting 14.4% Revenue growth (11.9% organic).
Execution levers: marketing, local presence and pricing
- Positive lead flow supported by an enhanced digital marketing strategy and improved sales execution, with better conversion and lower cost per lead.
- 139 satellite branches are live (100 at H1), with 150 expected by year end. These micro-locations strengthen local coverage and reviews, which in turn feeds lead generation.
- Pricing discipline remains firm, with price increases slightly above inflation.
- Door-to-door sales pilot ran in 25 territories over the summer and is slated for a wider rollout in 2026.
People and retention trends still inching higher
- Colleague Retention reached 81.8% (H1 2025: 80.7%) – that is 11 consecutive quarters of improvement.
- Customer Retention rose to 80.9% (H1 2025: 80.5%), helped by the ‘Drive to 85’ programme and investment in the customer saves team.
Margins and cost programme
Cost efficiency initiatives are on track to deliver a $100 million cost reduction and an operating margin in North America above 20% post 2026. Rentokil also recommenced the gradual integration of commercial branches during the quarter – a lever to unlock further efficiencies over time.
One Q4 nuance to remember
Q4 is seasonally quieter, and last year’s quarter benefited from approximately $6 million of emergency Vector Control work during the hurricane season, which is “not currently expected to repeat” based on 2025 conditions. That is a small headwind to year-on-year comparisons.
International: UK-led improvement, Southern Europe strong, Pacific mixed
International Revenue grew 4.6% with Organic Revenue growth of 3.3%, up from 2.7% in H1. The UK drove the improvement with strong Pest Control and Plants, plus a better showing from Property Services. Elsewhere, Europe was solid, particularly Spain, Portugal and Greece. The Pacific lagged the International average due to adverse weather in Rural and Trackspray, offset by good growth in core Pest Control and Ambius.
Category trends: Pest Control steady, Hygiene & Wellbeing improves
- Pest Control Organic Revenue grew 3.4%, helped by North America at 3.3%.
- Hygiene & Wellbeing Organic Revenue rose 3.0% (up from 0.9% in H1 2025), as the UK and Sub-Saharan Africa returned to growth and market conditions improved in the Pacific.
Portfolio moves: small bolt-ons and a sizeable divestment
- M&A remained selective: three bolt-on deals in the quarter, adding annualised revenue of $4 million. Year-to-date, that is 21 deals with $39 million of annualised revenue.
- The sale of the France Workwear business completed on 30 September 2025 for an enterprise value of €410 million (c.$480 million), including an earn-out of up to €30 million. Net cash proceeds were €370 million (c.$435 million), subject to the final earn-out outcome.
Strategically, that disposal tightens focus on service lines where Rentokil holds global leadership and scale benefits – notably Pest Control and Hygiene.
Balance sheet and credit: de-leveraging supported by disposal
Net debt at quarter end was $3,865 million. Credit ratings remain investment grade at BBB (stable) from both Fitch and S&P Global. The Workwear proceeds support de-leveraging while keeping firepower for disciplined bolt-ons.
Key numbers at a glance
| Metric | Q3 2025 $m | Q3 2024 $m | Change (reported) | Change (constant currency) | Organic growth |
|---|---|---|---|---|---|
| Group Revenue | 1,810 | 1,721 | 5.1% | 4.6% | 3.4% |
| North America (total) | 1,137 | 1,088 | 4.5% | 4.6% | 3.4% |
| International (total) | 673 | 633 | 6.2% | 4.6% | 3.3% |
| Pest Control (category) | 1,508 | 1,434 | 5.1% | 4.7% | 3.4% |
| Hygiene & Wellbeing (category) | 302 | 287 | 5.5% | 3.9% | 3.0% |
North America mix highlights
- Pest Control (total): $1,105 million vs $1,058 million – 4.5% constant currency growth, 3.3% organic.
- – Pest Control Services: $930 million vs $905 million – 2.8% constant currency growth, 1.8% organic.
- – Business Services: $175 million vs $153 million – 14.4% constant currency growth, 11.9% organic.
- Hygiene & Wellbeing: $32 million vs $30 million – 6.9% constant currency growth, 6.7% organic.
My take: why this update matters
- Positive: The inflection in North America Pest Control Services to 1.8% organic is the headline – proof that sales execution and marketing changes are gaining traction.
- Positive: Business Services keeps delivering double-digit growth, diversifying the regional mix and supporting overall momentum.
- Positive: Retention metrics continue to grind higher. That is the lifeblood of route density, unit economics and cash generation.
- Positive: Cost programme and branch integration back on – a clear path to a North America operating margin above 20% post 2026.
- Neutral: International is doing its job, with the UK and Southern Europe offsetting Pacific weather impacts. Solid, not spectacular.
- Watch-out: Q4 will lap around $6 million of hurricane-related Vector Control work from last year, which will slightly dampen year-on-year comparisons.
- Watch-out: Net debt is $3,865 million. Investment-grade ratings are intact, but continued de-leveraging and disciplined M&A remain important.
Outlook: guidance intact, execution remains the swing factor
Management expects FY 2025 results in line with market expectations. The near-term watchlist is clear: reach 150 satellite branches, maintain pricing discipline, keep pushing digital-led lead quality, and continue smoothing the integration of commercial branches. If North America Pest Control keeps moving up the organic curve, the story improves materially.
Where to learn more
- Replay of the analyst and investor call will be available on the company website: rentokil-initial.com/investors.aspx
- Live webcast registration link (as provided in the RNS): Investis Live
Disclosure notes: Comparatives are presented in US dollars following the 1 January 2025 change in presentation currency. Organic revenue growth excludes businesses acquired during the year; acquired businesses enter organic measures in the year following acquisition, with pro forma adjustments applied to the comparative period.
