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    RBA
    Earnings call· Mar 2026(Q1 FY26)

    RB GLOBAL Q1 FY26 earnings call RBA

    May 4, 2026 Source

    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

    4
    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

    3
    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%——

    Operational metrics

    8
    Gross Transaction Value (GTV)
    $4.3 billionup 13% year-over-year
    Q1 FY26

    Total GTV across all sectors.

    Service revenue take rate
    20.7%declined 160 basis points year-over-year
    Q1 FY26

    Partially optical, reflecting a larger mix of higher ASP assets falling into lower percentage fee tiers. Additional impacts from recent acquisitions and divestments.

    Total loss frequency
    23.6%increased by 70 basis points compared to the prior year period
    Q1 FY26

    Estimated by CDC Intelligent Solutions, supported by the widening inflation differential between automotive repair costs and used vehicle prices.

    Cost savings initiatives
    —
    Q1 FY26

    Advancing cost savings initiatives is a focus to drive productivity and operating leverage.

    Technology deployment for yard efficiency
    —
    Q1 FY26

    Deploying technology designed to enhance yard level efficiency is a focus to drive productivity and operating leverage.

    Reserve auction pilot
    —
    Q1 FY26

    The first pilot went very well, and the company is continuing to do more of these auctions internationally. This is seen as part of a larger opportunity in fixed price auctions.

    Fuel cost headwind
    —
    FY26

    Built into the full-year guidance. Some contracts allow pass-through, others do not.

    Share buyback program
    —
    Q1 FY26

    The company has a share buyback program, indicating a focus on capital allocation.

    Industry KPIs

    2
    MetricValueDetails
    Volume1% (Automotive unit volumes); 16% (CC&T GTV ex-acquisitions); 9% (Total GTV ex-acquisitions)%
    Core price10% (U.S. insurance ASPs); 6% (Automotive ASPs); relatively flat (CC&T like-for-like pricing)%

    Deals & partnerships

    3
    Big IronAcquisition 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.

    BlackmontAcquisition 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 partnersAgreement 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

    3
    Disruption in Middle EastQ1 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 costsFY26

    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 declineQ1 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

    5

    Big Iron transaction close

    Q2 FY26
    CurrentHSR approval received
    TargetTransaction 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.

    Q&A highlights

    6

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.