RB Global, Inc. ( RBA ) and Copart, Inc. ( CPRT ) are two leading companies that operate in the global online auction and marketplace sector, focusing mainly on vehicles and commercial assets. RB GlobalI have been investing in the stock market since I was 17 years old, and over the 25+ years since I have learned the joy of compounding, the value of dividend reinvesting, and the principle that patient investing through good times and bad brings the greatest rewards. I believe the key to creating wealth is th ...

RB Global, Inc. (NYSE:RBA) reported upbeat earnings for the third quarter on Thursday.The company posted quarterly earnings of 93 cents per share which beat the analyst consensus estimate of 82 cents per share. The company reported quarterly sales of $1.093 billion which beat the analyst consensus estimate of $1.054 billion.“GTV growth this quarter was broad-based across every sector, reflecting the dedication of our teammates and our commitment to being trusted partners,” said Jim Kessler, CEO of RB Global ...

Core Insights - RB Global reported Q3 CY2025 revenue of $1.09 billion, exceeding analyst expectations of $1.06 billion, reflecting an 11.3% year-on-year growth [5] - Non-GAAP profit per share was $0.93, surpassing estimates by 17.3% [5] - Adjusted EBITDA reached $327.7 million, with a margin of 30%, also beating analyst expectations [5] Revenue and Profit Performance - Revenue of $1.09 billion represented an 11.3% increase year-on-year and a 3.4% beat against analyst estimates [5] - Adjusted EPS of $0.93 exceeded analyst estimates of $0.79 by 17.3% [5] - Adjusted EBITDA of $327.7 million was above the expected $302.8 million, with an EBITDA margin of 30% [5] Operational Highlights - The automotive sector showed strength with a 9% year-on-year increase in unit volumes, contributing to market share gains [6] - The partnership with the U.S. General Services Administration (GSA) was expanded, allowing RB Global to manage around 35,000 government vehicles annually [6] - Operational efficiencies were noted, with a 25% increase in yard capacity compared to pre-transaction levels, and on-time performance metrics remained high at 99.7% and 99.8% [6] Strategic Initiatives - The company implemented a new operating model and realigned executive leadership, aiming for over $25 million in run rate savings by Q2 2026 [6] - RB Global announced the acquisition of Smith Broughton Auctioneers and Allied Equipment Sales, enhancing its regional presence, while divesting DDI Technologies to focus on core operations [7] Future Outlook - Management raised the full year 2025 adjusted EBITDA guidance, reflecting ongoing operational discipline and cost management strategies [3] - The company is cautious about external factors such as macroeconomic uncertainty that could impact future performance [3]

Core Insights - RB Global (RBA) reported quarterly earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.82 per share, and up from $0.71 per share a year ago, representing an earnings surprise of +13.41% [1] - The company achieved revenues of $1.09 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.47%, compared to $981.8 million in the same quarter last year [2] - The stock has increased approximately 8.2% year-to-date, while the S&P 500 has gained 15.6% [3] Earnings Performance - Over the last four quarters, RB Global has consistently surpassed consensus EPS estimates [2] - The company is expected to report a consensus EPS estimate of $1.04 on revenues of $1.18 billion for the upcoming quarter, and $3.80 on revenues of $4.52 billion for the current fiscal year [7] Market Outlook - The current Zacks Rank for RB Global is 3 (Hold), indicating expected performance in line with the market in the near future [6] - The outlook for the Financial Transaction Services industry, where RB Global operates, is currently in the bottom 38% of over 250 Zacks industries, which may impact stock performance [8]

Commercial asset marketplace RB Global (NYSE:RBA) announced better-than-expected revenue in Q3 CY2025, with sales up 11.3% year on year to $1.09 billion. Its non-GAAP profit of $0.93 per share was 17.3% above analysts’ consensus estimates. Is now the time to buy RB Global? Find out in our full research report. RB Global (RBA) Q3 CY2025 Highlights: Revenue: $1.09 billion vs analyst estimates of $1.06 billion (11.3% year-on-year growth, 3.4% beat) Adjusted EPS: $0.93 vs analyst estimates of $0.79 (17.3% ...

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 16% on a 7% increase in gross transactional value (GTV) [3][14] - Adjusted earnings per share rose by 31%, driven by higher operating income and lower net interest expense [17] - Adjusted EBITDA as a percentage of GTV expanded to 8.4%, up from 7.8% in the prior year [16] Business Line Data and Key Metrics Changes - Automotive GTV increased by 6%, driven by a 9% increase in unit volumes, partially offset by a decline in average price per vehicle sold [14] - GTV in the commercial, construction, and transportation sector increased by 9%, with a higher average price per lot sold, partially offset by a 15% decline in lot volumes [15] - Service revenue increased by 8% on higher GTV and a higher service revenue take rate [15] Market Data and Key Metrics Changes - The US insurance average selling price (ASP) increased approximately 2.5% [14] - Total loss frequency across all categories rose by nearly 70 basis points to 22.6% [14] - The active buyer base expanded, indicating resilience in the platform [8] Company Strategy and Development Direction - The company announced a significant expansion of its partnership with the US General Services Administration (GSA), providing disposition services for approximately 35,000 remarketed vehicles annually [4][5] - A new operating model was introduced to unlock sustainable growth and drive long-term value for shareholders [10][11] - The company is focused on strategic acquisitions and pruning to sharpen its focus and simplify operations [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy to deepen engagement with existing partners while expanding into adjacent opportunities [6][7] - The macroeconomic environment remains complex, but the company is optimistic about future market share gains [33][34] - Full-year 2025 GTV growth is expected to range between 0% and 1%, with Adjusted EBITDA guidance raised to $1.35 billion-$1.38 billion [18] Other Important Information - The company recognized approximately $10 million in restructuring charges during the quarter, primarily related to severance costs [16] - The acquisition of Smith Broughton Auctioneers and Allied Equipment Sales for approximately $38 million is expected to close by year-end [9][10] Q&A Session Summary Question: Can you provide insights on the full-year guidance and segment performance? - Management clarified that the GTV guidance was tightened to 0%-1% and discussed strong performance in Q3, which was in line with expectations [21][22] Question: Can you elaborate on the GSA agreement and its financial implications? - The GSA agreement adds disposition services, which are expected to be accretive to ASPs in the salvage space, although it operates under a different model [24][26] Question: What are the strategic benefits of the recent acquisition in Western Australia? - The acquisition enhances the company's geographic footprint and aligns with its broader growth strategy in the region [30][31] Question: How does the company view market share opportunities in the automotive sector? - Management emphasized a focus on performance and operational excellence, which they believe will lead to market share gains [33][34] Question: What is the rationale behind narrowing the GTV range for Q4? - The range was narrowed to provide a more pointed guide as the company approaches the end of the year, considering the absence of significant CAT events compared to the previous year [43][45] Question: What is the company's exposure to the used car market and subprime credit issues? - The company primarily deals with slightly damaged cars, which are complementary to the salvage business, and has limited exposure to higher-value vehicles [46][48] Question: Can you clarify the nature of the GSA contract regarding vehicle conditions? - The GSA contract involves whole cars that have gone through a lifecycle, appealing to the buyer base [53][54]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 16% on a 7% increase in gross transactional value (GTV) [3][14] - Adjusted earnings per share rose by 31%, driven by higher operating income and lower net interest expense [17] - Adjusted EBITDA as a percentage of GTV expanded to 8.4%, up from 7.8% in the prior year [16] Business Line Data and Key Metrics Changes - Automotive GTV increased by 6%, driven by a 9% increase in unit volumes, partially offset by a decline in average price per vehicle sold [14] - Service revenue increased by 8% on higher GTV and a higher service revenue take rate [15] - GTV in the commercial, construction, and transportation sector increased by 9%, with a 14% increase when excluding the impact of the Yellow Corporation bankruptcy [9][15] Market Data and Key Metrics Changes - The US insurance average selling price (ASP) increased approximately 2.5% [14] - The total loss frequency across all categories rose by nearly 70 basis points to 22.6% [14] - The active buyer base expanded, indicating resilience in the platform [8] Company Strategy and Development Direction - The company announced a significant expansion of its partnership with the US General Services Administration (GSA), expecting to provide services for approximately 35,000 remarketed vehicles annually [4][5] - A new operating model was introduced to unlock sustainable growth and drive long-term value for shareholders [10][11] - The company is focused on strategic acquisitions and pruning to sharpen its focus and simplify operations [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy to deepen engagement with existing partners and expand into adjacent opportunities [6][7] - The macro environment remains favorable for salvage volumes, driven by inflation gaps between vehicle repair costs and used vehicle values [14] - Full-year 2025 GTV growth is expected to range between 0% and 1%, with adjusted EBITDA guidance raised to $1.35 billion-$1.38 billion [18] Other Important Information - The company recognized approximately $10 million in restructuring charges during the quarter, primarily related to severance costs [16] - The new operating model is expected to generate over $25 million in total run rate savings by the second quarter of 2026 [13] Q&A Session Summary Question: Can you provide insights on the full-year guidance and segment performance? - Management clarified that the GTV guidance was tightened to 0%-1% and discussed the strong performance in Q3, which was in line with expectations [21][22] Question: Can you elaborate on the GSA agreement and its financial implications? - The GSA contract adds disposition services, which were not previously provided, and the ASPs will be accretive to the salvage space [24][26] Question: What are the motivations behind the recent acquisition in Western Australia? - The acquisition strengthens the geographic footprint and aligns with the broader growth strategy in the region [30][31] Question: How does the company view market share opportunities in the automotive sector? - Management emphasized focusing on performance and maintaining high service-level agreements, which they believe will enhance market share [32][33] Question: What factors led to narrowing the GTV range for Q4? - The range was narrowed to provide a more pointed guide as the company approaches the end of the year, considering the absence of significant CAT events [43][45] Question: What is the company's exposure to the used car market and subprime credit issues? - The company primarily deals with slightly damaged cars, minimizing exposure to higher-value vehicles and broader economic concerns [46][48] Question: Can you clarify the nature of the GSA contract vehicles? - The vehicles involved are primarily those with heavy usage, appealing to the buyer base, and will be a mix of different types of buyers [53][54]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 16% on a 7% increase in gross transactional value (GTV) [3][16] - Adjusted earnings per share rose by 31%, driven by higher operating income and lower net interest expense [17] - Adjusted EBITDA as a percentage of GTV improved to 8.4%, up from 7.8% in the prior year [16] Business Line Data and Key Metrics Changes - Automotive GTV increased by 6%, supported by a 9% increase in unit volumes, despite a decline in average price per vehicle sold [13][15] - Service revenue increased by 8% due to higher GTV and an increased service revenue take rate [15] - GTV in the commercial, construction, and transportation sector grew by 9%, with a higher average price per lot sold [15] Market Data and Key Metrics Changes - The US insurance average selling price (ASP) increased by approximately 2.5% [13] - The total loss frequency across all categories rose by nearly 70 basis points to 22.6% [14] - Excluding the impact of the Yellow Corporation bankruptcy, GTV growth in the commercial, construction, and transportation sector would have been approximately 14% [15] Company Strategy and Development Direction - The company announced a significant expansion of its partnership with the US General Services Administration (GSA), providing disposition services for approximately 35,000 remarketed vehicles annually [4][5] - A new operating model was introduced to enhance efficiency and drive long-term value for shareholders, expected to generate over $25 million in total run rate savings by Q2 2026 [12][60] - The company is focused on strategic acquisitions and geographic expansion, with a recent agreement to acquire Smith Broughton Auctioneers for approximately $38 million [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy to deepen engagement with existing partners while expanding into adjacent opportunities [6] - The macroeconomic environment remains complex, but the company is committed to investing in growth and enhancing operational efficiency [9] - Full-year 2025 GTV growth is expected to range between 0% and 1%, with adjusted EBITDA guidance raised to $1.35 billion-$1.38 billion [18] Other Important Information - The company divested DDI Technologies to streamline operations and focus on core capabilities [11][12] - The new operating model aims to improve clarity and focus within the organization, reducing management layers from eight to four or five [59][60] Q&A Session Summary Question: Can you provide insights on the full-year guidance and segment performance? - Management clarified that the GTV guidance was tightened to 0%-1% and highlighted strong Q3 performance aligned with expectations [21][23] Question: What are the details of the GSA agreement regarding vehicle volume and economics? - The GSA contract adds disposition services, with ASPs expected to be accretive to salvage space ASPs [25][26] Question: What is the motivation behind the recent acquisition in Western Australia? - The acquisition enhances geographic coverage and aligns with the company's growth strategy in Australia [30] Question: How does the company view market share opportunities in the automotive sector? - Management emphasized focusing on performance and operational excellence to capture market share, without disclosing specific deals [33] Question: What factors influenced the decision to narrow the Q4 guidance range? - The tightening of the range was based on a clearer outlook as the year progresses, considering the absence of significant CAT events compared to the previous year [43][44] Question: What is the company's exposure to the used car market and subprime credit issues? - The company primarily deals with slightly damaged cars, minimizing exposure to higher-value vehicles and benefiting from a repossession business [46][48]

Third Quarter 2025 © 2025 RB Global, Inc. | All Rights Reserved Forward-Looking Statements Forward-Looking Statements: Certain statements contained in this presentation include "forward-looking statements" within the meaning of U.S. federal securities laws and "forward-looking information" within the meaning of Canadian securities laws (collectively, "forward-looking statements"). Forward-looking statements herein include, in particular statements relating to future financial and operational results, opport ...

Financial Performance - Total revenue for Q3 2025 reached $1,092.7 million, a 11.3% increase from $981.8 million in Q3 2024[7] - Service revenue increased to $845.0 million, up 8.3% from $779.9 million year-over-year[7] - Net income for the nine months ended September 30, 2025, was $318.2 million, compared to $294.4 million for the same period in 2024, reflecting an increase of 8.5%[8] - Basic earnings per share available to common stockholders rose to $0.43 in Q3 2025, compared to $0.36 in Q3 2024, marking a 19.4% increase[7] - The net income for the three months ended September 30, 2025, was $95.5 million, compared to a net income of $76.1 million for the same period in 2024, representing an increase of 25.1%[12] - Net income for the nine months ended September 30, 2025, was $318.2 million, an increase of 8.0% compared to $294.4 million for the same period in 2024[15] - Net income increased 25% to $95.2 million, while net income available to common stockholders rose 21% to $80.7 million[118] Assets and Liabilities - Total assets increased to $12,240.1 million as of September 30, 2025, up from $11,807.0 million at the end of 2024, representing a growth of 3.7%[10] - Current liabilities increased to $1,516.7 million as of September 30, 2025, compared to $1,331.3 million at the end of 2024, reflecting a rise of 13.9%[10] - The company’s retained earnings grew to $1,212.3 million as of September 30, 2025, up from $1,090.3 million at the end of 2024, indicating an increase of 11.2%[10] - As of September 30, 2025, the total stockholders' equity increased to $5,485.3 million, up from $5,157.6 million on June 30, 2024, reflecting a growth of approximately 6.3%[12] - The total long-term debt as of September 30, 2025, was $2,568.6 million, a decrease from $2,626.2 million at December 31, 2024, representing a reduction of 2.2%[68] Cash Flow - Cash provided by operating activities was $723.0 million, slightly down from $747.5 million in the previous year[15] - Cash used in investing activities totaled $465.3 million, significantly higher than $209.6 million in the prior year[15] - Cash and cash equivalents at the end of the period were $753.3 million, down from $790.1 million at the end of the previous year[15] - The company reported a net cash used in financing activities of $226.5 million, a decrease from $491.6 million in the prior year[15] Expenses - Total operating expenses for Q3 2025 were $935.6 million, up from $828.9 million in Q3 2024, indicating a rise of 12.9%[7] - Share-based payments expense for the nine months ended September 30, 2025, totaled $59.5 million, compared to $40.8 million for the same period in 2024, reflecting a rise of 45.5%[13] - Selling, general, and administrative expenses increased by 22% in Q3 2025, mainly due to higher employee compensation and professional fees[134] - Interest expense for the three months ended September 30, 2025, was $48.2 million, a decrease from $57.2 million in 2024[36] Acquisitions - The company completed the acquisition of J.M. Wood for a total purchase consideration of $239.0 million, with approximately $163.6 million paid at closing[28][29] - The acquisition of J.M. Wood is expected to enhance the company's geographic coverage and leverage regional expertise[28] - The fair value of identifiable intangible assets acquired from J.M. Wood was $49.9 million, with a weighted average amortization period of 6.8 years[30] Dividends - The company paid dividends of $165.5 million to common stockholders, an increase from $152.4 million in the previous year[15] - The company declared a quarterly dividend of $0.31 per common share, payable on December 17, 2025, to common stockholders of record on November 26, 2025[82] Tax and Compliance - The effective tax rate for the three months ended September 30, 2025, was 14.8%, down from 20.5% for the nine months ended September 30, 2025[43] - The company remains compliant with all financial covenants applicable to its debt agreements as of September 30, 2025[150] Market and Operational Insights - Total GTV increased 7% to $3.9 billion[118] - Total service revenue grew by 8% to $845.0 million in Q3 2025, with transactional buyer revenue up 12%[124] - Inventory sales revenue surged by 23% in Q3 2025, primarily due to the inclusion of J.M. Wood and a large customer in the CC&T sector[128] - The automotive sector GTV rose by 6% in Q3 2025, attributed to market share gains and higher volumes, despite a decrease in average price per lot sold[120] Other Financial Metrics - Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 16% to $327.7 million[118] - Adjusted net income available to common stockholders increased by 33% to $174.0 million for the three months ended September 30, 2025, compared to $130.8 million in 2024[171] - Adjusted net debt decreased by 7% to $1,967.5 million as of September 30, 2025, compared to $2,110.0 million in 2024[176]