RB Global Sees Mixed GTV Performance Across Segments

RB Global is the top company in auctioning used and surplus construction equipment and has expanded its reach through organic growth and acquisitions. It has strong customer relationships, increasing online capabilities, and storage facilities to support its auctions, which have helped it increase sales and service revenue. We believe that these add-on services will be fuel for growth in the vehicle auction market as network operators try to extract more value from buyers and sellers. By acquiring IAA, which focuses on auctioning salvage cars, RB Global combined its strengths for better efficiency and value in the auction market. For example, both businesses maintain yards to store and market vehicles, which are sold through various channels: live auction, online auction, negotiated transactions, and so forth. That said, the end markets and demand drivers differ in the two businesses. Legacy RB Global (now relabeled heavy equipment and transportation, or HE&T) generally serves the industrial and commercial markets, while IAA primarily handles passenger vehicles. However, filling yards efficiently, leveraging online platforms, and connecting buyers and sellers allow for ample cross-benefit potential.