RB Global, Inc. (RBA) Earnings

Management highlights

- Jim recognized the teams' strong performance against the complex macro environment. Adjusted EBITDA increased 11% on a 13% increase in GTV. - Commercial construction and transportation sector: GTV up 27% y-o-y, cautiously optimistic with early signs of improving confidence, but part of volume growth reflects early and uneven return of pent-up supply. - Automotive sector: Despite disruption in Middle East, gross returns expanded, U.S. insurance average selling prices up ~10% y-o-y, unit volumes up 1% y-o-y (fifth consecutive quarter of outperformance). - Announced full execution of agreement in principle with a large partner, confident in net market share gains in 2026. - Industry leadership summit achieved record attendance, highlighting strong partner engagement. - Service revenue increased 5% but take rate declined due to higher ASP assets, adjusted EBITDA growth outpaced service revenue growth due to cost discipline.

Guidance

Raising 2026 outlook: expect gross transaction value to grow between 6% and 9% for the full year, with adjusted EBITDA growth of approximately 8% at the midpoint. Updated guidance not reflecting impact from Big Iron. Focus on growing adjusted EBITDA at a faster rate than service revenue, 2026 as year of volume-led growth, concentrating on cost savings initiatives, technology deployment for yard efficiency, and executing operating model to drive productivity and operating leverage.

Segment performance

Total GTV increased by 13% to 4.3 billion in the first quarter. Automotive GTV increased by 7% in the quarter, driven primarily by higher average selling prices and a 1% increase in unit volumes. The average price per vehicle sold increased approximately 6% in the quarter. GTV in the commercial construction and transportation sector increased 27%, driven by strength in both unit volumes and ASPs. Excluding acquisitions, CC&T GTV increased approximately 16%. Excluding the impact of recent acquisitions, Total GTV across all sectors increased 9%. Service revenue increased 5% in the quarter, but the service revenue take rate declined 160 basis points year over year to 20.7%. Adjusted EBITDA increased 11% in the quarter, driven by higher GTV volumes and increased contribution from inventory returns, partially offset by lower service revenue take rate.

Risks & headwinds

- Disruption in Middle East market alliance partners and buyers may impact business. - Complex macro environment brings uncertainty. - Selective pursuit of volumes in competitive market may affect growth. - Rising costs like fuel may exert cost pressure. - Auction calendar time changes may affect GTV performance.

Analyst Q&A

• Q: Hey, Jim, as I look back on my notes from last quarter, You had mentioned that there was a plethora of RFPs in the auto sector that were in the pipeline. Did any of them come to market this quarter? And were there any wins that you could cite that you got from these RFPs that came to market?

  A: Hey, Gary, I do not recall talking about how many RFPs were out there. We typically don't. So, I really don't have a comment on that question. Your next question comes from John Healy:

• Q: Jim, I wanted to ask, last couple of days we've seen some earnings reports from auto insurers. I think Geico in particular talked about some dramatic increases in claims frequency, kind of hit the profit line for those guys. Could you talk to what you're seeing out of insurers as it relates to the claim frequency? And if, you know, given the recent strength in used car prices, might it be likely or prudent to think that maybe total loss frequency may plateau in the near term?

  A: Hey, John, good question, and I'll pass this over to Samir, who kind of handles a lot of this external information. Your next question comes from Stephen Hansen:

• Q: Yeah, good afternoon, guys. Thanks for your time. Look, really strong GDP performance in CC&T. Obviously, I think even X acquisition, you said, up 16%, if I caught that correctly. Just trying to square your comments around seeing pent-up supply return to the market quickly early on. Do you see sort of evidence that's going to continue through into the next quarter or two?

  A: Yeah, hey, Stephen, I'll start. And Eric and Samir, again, feel free to jump in. Your next question comes from Craig Tennyson:

• Q: Hey, good afternoon. Thank you for taking my question. It might be for you, Samir, but I'm wondering if you can help us unpack volume trends for the automotive space. In particular, I'm interested in what the headwind was from the absence of catastrophes in this quarter versus the same period last year. And then what were the tailwinds from share gains and the total loss rate as it relates to your 1% growth rate overall?

  A: Yeah, Craig, I'll start and pass it over to Sameer so we can talk through some of the push and takes. Your next question comes from Sabat Khan:

• Q: Thanks, Sam. Good afternoon. Maybe more for a question for Eric and kind of for the whole team. I'm hoping to get a bit more color on just given kind of the performance through quarter one. If you can just dig a little bit into what you baked into the guidance in terms of puts and takes. Did the quarter go as expected and the guidance increase maybe just reflect some more confidence or were there share shifts or other trends in the quarter that made you a bit more confident to be able to kick up the guide?

  A: Yeah, thanks for the question. Your next question comes from Jeff Lick:

• Q: Thanks very much for taking my question. I was wondering, just one point of clarification, the agreement that you talked about today, the auto agreement, is that the one that you talked about in the last call, which was not signed, but it was an agreement in principle?

  A: Correct. Your next question comes from Michael Seneca:

• Q: Yeah. Hey, guys, thanks for squeezing me in. I appreciate it. Yeah, Eric, SG&A was up, I think, 4% year-over-year. Cost of service was flat. when GTV's up 11, can you just talk about the performance in the quarter, what's sustainable?

  A: Yeah, I think that's for the question. Your next question comes from Krista Friesen:

• Q: Hi, thanks for taking my question. Maybe I was just wondering if you could give us a little bit more color on how things are going in Australia and if there's any lessons learned there in terms of your land and expand strategy as you're thinking about other countries to move into.

  A: Yeah, so I'll start, and Eric or Samir, feel free to jump in. Your next question comes from John Gibson:

• Q: Thanks for taking the question. This is one on the CC&T side, just general trends that you're seeing. Are you seeing any more insourcing of used equipment sales by dealers, or maybe the opposite?

  A: Yeah, look, for us here at Ritchie Brothers, we've seen every different cycle that you can imagine in different cases from dealers, so I wouldn't say anything's different than what we've seen in the past. Your next question comes from Max Sychev:

• Q: Hi. What up from Joe 19? Is it possible to quantify the pull forward for CC&T in the quarter at all?

  A: Yeah. No, I don't think we can quantify the pull forward. It's more just timing of the auction calendars.