Rentokil Initial shares fell to their lowest since 2024 after the company warned of weakness in the North American market.

Shares in early trade were down 75.30 pence, or 17%, at 368 pence. The company's shares were last trading at this level in September 2024 after the company issued a profit warning that sent the stock into the 340 pence to 360 pence range.

The London-listed pest-control, hygiene and workwear company said demand for residential pest control showed signs of deceleration toward the end of the second quarter and into July. Management highlighted customer lead generation and softer demand across key product lines.

Although revenue in North America rose 2%, on an organic basis the growth moderated to 1.1%. Adjusted operating profit--the company's preferred metric--in the region rose 10.4% to $393 million. Still, operating margins came slightly under pressure as the company absorbed cost inflation, higher field-level wage investments, and stepped-up marketing spend.

The board said it expects to deliver 2026 profit in line with market expectations despite weakness in the North American market. Company-compiled revenue consensus for the year stands at $7.25 billion compared with $6.91 billion for 2025.

RBC Capital Markets analysts Andrew Brooke and Karl Green said that despite the weakness experienced in that region they still see Rentokil delivering on guidance. Results weren't good enough, they said, but added that they don't expect to materially change forecasts.