Rentokil And Rollins: Revisiting The Quality And Valuation Gap After Earnings

Multinational pest control and hygiene company Rentokil Initial plc reported its H1 2026 results on Thursday, which led to a 20% drop in share price.

In this update, I'll review Rentokil's performance so far this year, looking for the reasons behind the underperformance, and give an update on the progress of the (still ongoing) turnaround.

I'll explain why the withdrawn North America margin guidance matters more than the reported organic growth figures.

Moreover, I'll take a closer look at management's persistent earnings adjustments and the underlying cash profitability.

I'll also compare Rentokil's performance and valuation with that of Rollins and share my view on the—still significant—difference.