Company Reports

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.

RB Global posted 11% growth in revenue to USD 1.3 billion in its second quarter, but services only grew 5% to USD 933 million. Adjusted EBITDA and earnings per share each grew 6%, to USD 387 million and USD 1.13, respectively.

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.

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 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.

RB Global reported a 13% increase in gross transaction value to $4.3 billion and a 5% increase in services revenue to $898 million, which was weighed down by a 160-basis-point contraction in the services take rate to 20.7%

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 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.

RB Global reported a 2% increase in gross transaction value to $16.2 billion and a 4% increase in service revenue to $3.5 billion, with a 50-basis-point improvement in the take rate. Adjusted EBITDA grew 7%, showing operating leverage.

RB Global reported a 7% increase in gross transaction value, or GTV. While both automotive and commercial, construction and transportation (CC&T) posted increases, acquisitions and other one-offs somewhat distort the results.

We are transferring coverage of RB Global, a leading marketplace for transactions in industrial equipment. Second-quarter results were steady, with a tightening of EBITDA guidance range, but essentially the same outlook, excluding the potential positive impact from second-half catastrophe events.

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 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.

RB Global's first-quarter gross transaction value declined 6% year over year, primarily due to a tough prior-year comparison. Adjusted EBITDA margin compressed approximately 150 basis points to 29.6%. RB Global announced the acquisition of J.M. Wood for $235 million.

RB Global provides auction and marketplace services for used heavy equipment. The company’s strong auction liquidity attracts both buyers and sellers to its network. We believe RB Global will continue to be the top player in the industrial asset disposition market. The network effects present in its business have consistently delivered higher average selling prices for consignors (or sellers) and provided buyers a wide range of equipment to choose from. For both parties, RB Global drives a significant amount of value, which has allowed it to monetize its network effects and develop a strong competitive positioning.

RB Global provides auction and marketplace services for used heavy equipment. The company’s strong auction liquidity attracts both buyers and sellers to its network. We believe RB Global will continue to be the top player in the industrial asset disposition market. The network effects present in its business have consistently delivered higher average selling prices for consignors (or sellers) and provided buyers a wide range of equipment to choose from. For both parties, RB Global drives significant amount of value, which has allowed it to monetize its network effects and develop a strong competitive positioning.

RB Global's fourth-quarter revenue increased 10% year over year as service and inventory sales revenue increased 8% and 15%, respectively. Adjusted EBITDA grew 13%, leading to 80 basis points of margin expansion to 30.3%. Management expects adjusted EBITDA to grow 1%-6% in 2025.

RB Global provides auction and marketplace services for used heavy equipment. The company’s strong auction liquidity attracts both buyers and sellers to its network. We believe RB Global will continue to be the top player in the industrial asset disposition market. The network effects present in its business have consistently delivered higher average selling prices for consignors (or sellers) and provided buyers a wide range of equipment to choose from. For both parties, RB Global drives significant amount of value, which has allowed it to monetize its network effects and develop a strong competitive positioning.

RB Global provides auction and marketplace services for used heavy equipment. The company’s strong auction liquidity attracts both buyers and sellers to its network. We believe RB Global will continue to be the top player in the industrial asset disposition market. The network effects present in its business have consistently delivered higher average selling prices for consignors (or sellers) and provided buyers a wide range of equipment to choose from. For both parties, RB Global drives significant amount of value, which has allowed it to monetize its network effects and develop a strong competitive positioning.

RB Global's third-quarter results were mixed relative to our expectations, as lower-than-expected revenue was countered by better profitability. Total revenue was down nearly 4% year over year to $982 million, but adjusted EBITDA margin expanded 90 basis points to 28.9%.

Shares of narrow-moat-rated RB Global moved higher on Aug. 6 after the market digested the firm’s second-quarter earnings results and revised 2024 guidance. Total revenue of $1.1 billion fell roughly 1% year over year and missed the FactSet consensus estimate by roughly 3%. Nevertheless, adjusted EBITDA margin expanded 350 basis points year over year to 31.2%, and adjusted EPS of $0.94 was about 8% above the consensus estimate. After updating our valuation model for management’s revised guidance, we’ve maintained our $57 per share estimate for New York Stock Exchange-listed shares. We’ve increased our fair value estimate for Toronto Stock Exchange-listed shares about 1% due to a modestly higher USD/CAD exchange rate.

RB Global provides auction and marketplace services for used heavy equipment. The company’s strong auction liquidity attracts both buyers and sellers to its network. We believe RB Global will continue to be the top player in the industrial asset disposition market. The network effects present in its business have consistently delivered higher average selling prices for consignors (or sellers) and provided buyers a wide range of equipment to choose from. For both parties, RB Global drives significant amount of value, which has allowed it to monetize its network effects and develop a strong competitive positioning.

RB Global provides auction and marketplace services for used heavy equipment. The company’s strong auction liquidity attracts both buyers and sellers to its network. We believe RB Global will continue to be the top player in the industrial asset disposition market. The network effects present in its business have consistently delivered higher average selling prices for consignors (or sellers) and provided buyers a wide range of equipment to choose from. For both parties, RB Global drives significant amount of value, which has allowed it to monetize its network effects and develop a strong competitive positioning.