Rentokil Initial PLC shares plummeted 19.18% during intraday trading on Thursday, as investors reacted sharply to a mixed first-half performance overshadowed by persistent struggles in the company's core North American business.

The pest-control giant reported higher Ebita and adjusted pretax profit, but the figures failed to meet market expectations. RBC Capital Markets analysts Andrew Brooke and Karl Green noted the results "aren't good enough," highlighting the disappointment that drove the steep sell-off. The company also announced it would reinvest more resources into the North American region, funded by cost savings elsewhere, and abandoned its 20% margin target set for 2027. While Rentokil is still expected to deliver on its overall guidance, the strategic shift and regional weakness significantly rattled investor sentiment.

Adding to concerns, the company disclosed that demand for residential pest control showed signs of deceleration toward the end of the second quarter and into July. Although revenue in North America rose 2%, organic growth moderated to just 1.1%, and operating margins came under pressure as the company absorbed cost inflation, higher field-level wage investments, and stepped-up marketing spend. The combination of these headwinds triggered the sharp intraday decline.