RB Global Inc (RBA) Q3 2025 Earnings Call Highlights: Strong EBITDA Growth and Strategic ...

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Adjusted EBITDA: Increased by 16%. Gross Transactional Value (GTV): Increased by 7%. Automotive Unit Volume: Increased by 9% year-over-year. US Insurance Average Selling Price (ASP): Increased by approximately 2.5%. Commercial Construction and Transportation GTV: Increased by 14% year-over-year, excluding the impact of the Yellow Corporation bankruptcy. Service Revenue: Increased by 8%. Service Revenue Take Rate: Increased by approximately 20 basis points to 21.7%. Adjusted EBITDA Margin: Expanded to 8.4% from 7.8% in the prior year. Adjusted Earnings Per Share: Increased by 31%. Restructuring Charges: Approximately $10 million recognized, primarily related to severance costs. Full Year 2025 Adjusted EBITDA Guidance: Raised to $1.35 billion to $1.38 billion.

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Release Date: November 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

RB Global Inc (NYSE:RBA) reported a 16% increase in adjusted EBITDA, driven by a 7% increase in gross transactional value. The company expanded its partnership with the US General Services Administration (GSA), expecting to handle approximately 35,000 remarketed vehicles annually. RB Global Inc (NYSE:RBA) achieved a 9% year-over-year increase in automotive unit volume, marking the third consecutive quarter of market outperformance. The company announced a strategic acquisition of Smith Broughton Auctioneers and Allied Equipment Sales, enhancing its geographic footprint in Western Australia. Operational improvements led to exceptional on-time tow and total performance rates of 99.7% and 99.8%, respectively, translating into tangible benefits for partners.

Negative Points

The average price per vehicle sold in the automotive sector declined, despite an increase in unit volumes. The commercial construction and transportation sector experienced a 15% decline in lot volumes, partially offsetting growth. RB Global Inc (NYSE:RBA) recognized approximately $10 million in restructuring charges during the quarter, primarily related to severance costs. The company tightened its full-year gross transaction value growth guidance to a range of 0% to 1%, down from a previous range of 0% to 3%. The divestiture of DDI Technologies was necessary after determining it would be more efficient to divest to a third party.

Q & A Highlights

Q: Can you provide more details on the full-year guidance and the factors influencing the EBITDA outlook? A: Eric Guerin, Chief Financial Officer, explained that the guidance range for Gross Transaction Value (GTV) was tightened to 0% to 1%, reflecting the company's expectations. The EBITDA guidance was raised due to strong Q3 performance and anticipated savings from the new operating model, which is expected to contribute $25 million in savings by Q2 2026.

Story Continues

Q: Could you elaborate on the new agreement with the US General Services Administration (GSA) and its financial implications? A: James Kessler, CEO, stated that the new agreement expands their services to include vehicle disposition, adding approximately 35,000 vehicles annually. Eric Guerin added that the Average Selling Prices (ASPs) from this agreement will be accretive compared to the salvage space, although the financial model differs from the salvage model.

Q: What strategic benefits does the acquisition in Western Australia provide, and how does it fit into your broader M&A strategy? A: James Kessler highlighted that the acquisition strengthens their geographic footprint in Western Australia, allowing them to service the entire country. The acquisition aligns with their strategy to expand geographically and enhance service capabilities.

Q: How do you view the opportunity for market share gains in the automotive sector, and are there any specific contracts in the pipeline? A: James Kessler emphasized the company's focus on performance and service level agreements, which are attracting industry attention. While optimistic about future opportunities, he refrained from discussing specific contracts not yet finalized.

Q: Can you clarify RB Global's exposure to the non-salvage whole car market, especially given concerns in the used car space? A: James Kessler clarified that RB Global's whole car business focuses on slightly damaged vehicles, complementary to the salvage business, with no significant exposure to higher-value vehicles. Sameer Rathod added that the company benefits from sub-prime repossession business, which is not necessarily negative.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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