Shares of Rentokil Initial PLC tumbled 16.51% during pre-market trading on Thursday, as the market digested 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, with RBC Capital Markets analysts noting the results "aren't good enough." The disappointment was compounded by the company's announcement that it would pump more resources into the North American region, funded by cost reductions elsewhere, and its decision to abandon the 20% margin target set for 2027.

While Rentokil is still expected to meet its overall guidance, the strategic shift and regional weakness have significantly shaken investor confidence, triggering the sharp sell-off.