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RB Global (RBA) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Industrials· May 4, 2026

Source: earnings call transcript

Executive summary

RB Global Q1 FY26 — Strong GTV and Adjusted EBITDA Growth, Raised Full-Year Outlook

RB Global delivered a strong Q1 FY26, driven by robust GTV growth and increased adjusted EBITDA, leading to a raised full-year outlook. The company's strategic focus on expanding into complementary growth areas and operational efficiency continues to yield results, despite navigating market disruptions and a lower service revenue take rate due to asset mix. Management remains confident in its ability to gain market share and optimize profitability.

Highlights

5

  • Adjusted EBITDA increased 11% on a 13% increase in GTV.

  • Commercial Construction & Transportation GTV grew 27% year-over-year (16% excluding acquisitions).

  • Automotive unit volumes increased 1% year-over-year, marking the fifth consecutive quarter of outperformance.

  • U.S. insurance average selling prices (ASPs) in the Automotive sector grew approximately 10% year-over-year.

  • Full-year 2026 outlook raised: GTV to grow between 6% and 9%, Adjusted EBITDA growth of approximately 8% at midpoint.

Concerns

3

  • Service revenue take rate declined 160 basis points year-over-year to 20.7% due to a larger mix of higher ASP assets.

  • Disruption among market alliance partners and buyers in the Middle East impacted the automotive sector.

  • Fuel costs represent a headwind, which has been built into the full-year guidance.

Guidance & targets

CategoryTargetConfidence
Full-year 2026 Gross Transaction Value (GTV) growth
between 6% and 9%
high materiality
High
Full-year 2026 Adjusted EBITDA growth
approximately 8% at the midpoint
high materiality
High
Adjusted EBITDA growth rate relative to service revenue growth
faster rate than service revenue
medium materiality
High
2026 growth focus
volume-led growth
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Automotive
GTV increased, driven by higher average selling prices and unit volumes. Unit volume growth reflected continued new wins, though moderated partially due to auction calendar changes. Gross returns (salvage values as % of pre-accident cash value) continued to expand.
Unit volumes: 1% year-over-year increaseAverage price per vehicle sold: approximately 6% increaseU.S. insurance average selling prices: approximately 10% year-over-year growthTotal loss frequency across all categories: 23.6% (up 70 basis points compared to prior year)
—7%——
Commercial Construction & Transportation
GTV increased, driven by strength in both unit volumes and ASPs. First quarter results benefited from an outsized contribution related to acquired businesses' auction calendars. Early, inconsistent signs of pent-up supply returning contributed to higher transaction activities.
GTV excluding acquisitions: approximately 16% increaseAverage price per lot sold: increased due to improvements in asset mixLike-for-like pricing: relatively flat year-over-year
—27%——
Total (excluding acquisitions)
Strong organic growth in the underlying business across all sectors.
—9%——

RBA operating KPIs by quarter

RBA operating KPIs stated on its earnings calls, by fiscal quarter
KPIThis call Mar 2026 Q1 FY26 Jun 2026 Q2 FY26Change vs prior quarter
Gross transaction value (GTV)
$4.3B 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. Source: earnings call transcript
$4.7B Total GTV increased by 11% to $4.7 billion in the second quarter. Source: earnings call transcript
+9.3%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

Big Iron Acquisition of an agricultural equipment auction platform

Received HSR approval, satisfying a key regulatory condition. Expected to close in the second quarter. Strategic priority to expand into complementary growth areas, specifically the U.S. ag sector.

Blackmont Acquisition of a business with operations in Arkansas and Dallas, and a sector in railroads.

Blackmont's main business was in Arkansas, a geography where RB Global previously lacked presence. The acquisition also provided access to the railroad sector, which was found attractive.

One of our largest partners Agreement in principle announced last quarter, now fully executed.

This agreement is with a large partner in the automotive sector and reinforces confidence in achieving net market share gains in 2026.

Risks & headwinds

Disruption in Middle East Q1 FY26, ongoing

Impacted market alliance partners and buyers in the automotive sector.

Mitigation:Management believes they can manage the impact within other segments and current guidance, while prioritizing the safety of their team in the region.

Fuel costs FY26

Headwind built into guidance.

Mitigation:Some contracts allow for pass-through of fuel costs, while others do not. The company continues to manage this as the year progresses.

Service revenue take rate decline Q1 FY26

Declined 160 basis points year-over-year to 20.7%.

Mitigation:Management focuses on optimizing total service revenue dollars rather than percentage take rate, as the decline is partially optical due to a mix shift towards higher ASP assets.

What to watch in Q2 FY26

Big Iron transaction close

Q2 FY26
Current HSR approval received
Target Transaction closed

Why it matters

The successful closure of the Big Iron acquisition is critical for RB Global's strategic expansion into the U.S. agricultural sector and its overall growth strategy.

we recently received HSR approval for the big iron transaction, satisfying a key regulatory conditions, and we now expect to close the transaction in the second quarter.

Find out whether RBA delivers this. Inve re-checks your case every morning.

Q&A highlights

Did any of the strong RFP pipeline in the auto sector from last quarter come to market or result in wins this quarter?

Jim Kessler clarified that the previously discussed RFP pipeline was a longer-term outlook (next 3 years) for opportunities with non-current customers, not specific to the current quarter.

“I think what we talk about is when you look over the next 3 years, when you think about what comes up on a RFP, a lot of the stuff that will come up isn't representative of our current customer base. So it's something that we have an opportunity to go after. But it was nowhere inside quarter or anything like that, it was over a longer period of time.”

asked by Gary Prestopino · answered by James Kessler

2 min read 6 chapters

Detailed narrative

Strategic Priorities & Big Iron Transaction

RB Global is actively pursuing a strategy of expanding into complementary growth areas, with the recent HSR approval for the Big Iron transaction being a key milestone. This regulatory clearance allows the company to proceed with the acquisition, which is now expected to close in the second quarter. The Big Iron acquisition is strategically important as it targets the attractive U.S. agricultural sector, aligning with RB Global's broader growth objectives.

Commercial Construction & Transportation (CC&T) Performance

The CC&T sector demonstrated strong performance in Q1 FY26, with Gross Transaction Value (GTV) increasing by 27% year-over-year. Excluding the impact of recent acquisitions, CC&T GTV still grew by approximately 16%. This growth was attributed to both higher unit volumes and average selling prices, reflecting early but inconsistent signs of pent-up supply returning to the market as sellers who deferred decisions in 2025 began to re-enter. The company remains focused on growing market share in this segment.

Automotive Sector Resilience

Despite navigating disruptions among market alliance partners and buyers in the Middle East, the automotive sector delivered another strong quarter. Gross returns, measured as salvage values as a percentage of pre-accident cash value, continued to expand, contributing to an approximate 10% year-over-year growth in U.S. insurance average selling prices. Unit volumes increased 1% year-over-year, marking the fifth consecutive quarter of outperformance relative to the broader market, underscoring the resilience and breadth of RB Global's marketplace.

Service Revenue Take Rate Dynamics

The service revenue take rate declined by 160 basis points year-over-year to 20.7% in the first quarter. This decline is partially optical, resulting from a larger mix of higher Average Selling Price (ASP) assets. Under the company's aggressive buyer fee schedule, higher-priced assets fall into lower percentage tiers, which can reduce the reported take rate. However, management emphasizes that these higher ASP items are attractive from a total service revenue dollar perspective, and the company focuses on optimizing overall P&L rather than just the percentage take rate.

Operational Efficiency & Cost Discipline

RB Global maintained a strong focus on cost discipline, which supported robust profit flow-through, with adjusted EBITDA growth of 11% outpacing service revenue growth of 5%. The company views creating operating leverage as an evergreen initiative, continuously advancing cost savings initiatives, deploying technology to enhance yard-level efficiency, and executing its operating model to drive productivity. This ongoing commitment to efficiency is expected to continue contributing to strong financial performance.

M&A Strategy and Capital Allocation

The company's M&A strategy is opportunistic, targeting acquisitions that provide new regional presence, such as Blackmont in Arkansas, or new sector capabilities, like Blackmont's entry into railroads and Big Iron's focus on U.S. agriculture. RB Global evaluates whether growth can be achieved organically or through M&A, always prioritizing the path that offers the best return for investors. The company also has a share buyback program in place, indicating a balanced approach to capital allocation.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.