Rentokil Initial PLC shares tumbled 16.11% during Thursday's intraday session, as investors reacted sharply to a mixed first-half performance that revealed ongoing struggles in the company's key North American market.

According to RBC Capital Markets, the pest-control giant reported higher Ebita and adjusted pretax profit, but the results were overshadowed by weakness in North America. Analysts noted that while Rentokil is still expected to deliver on its guidance, the figures were not sufficient to satisfy market expectations. The company also announced it would reinvest more resources into the North American region, funded by cost savings elsewhere, and retired its 20% margin target for 2027, a move that further rattled investor confidence.

“We don't expect to materially change our forecasts, but these results aren't good enough today,” RBC analysts Andrew Brooke and Karl Green commented, highlighting the disappointment that drove the steep sell-off.