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Rentokil shares drop 17% as North America demand weakens and margin target is cut

Market News
30 Jul 2026
Proactive Investors
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Bearish
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Rentokil Initial PLC shares fell 17% after the company warned of weaker residential demand in North America and scrapped its 2027 operating margin target of 20%. New CEO Mike Duffy is focusing on investment and volume growth rather than short-term margin gains. Despite this, Rentokil expects to meet profit forecasts for 2026, with first-half revenue up 6.7% to $3.6 billion and adjusted operating profit rising 6.6% to $556 million. The company plans to simplify operations and reinvest cost savings, while also managing termite damage claims and increasing its interim dividend by 8%.

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