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RB Global (RBA) Beats Q2 Earnings and Revenue Estimates
ZACKS· 2025-08-06 23:55
Core Viewpoint - RB Global (RBA) reported quarterly earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $0.95 per share, and showing an increase from $0.94 per share a year ago, representing an earnings surprise of +12.63% [1][2] Financial Performance - The company posted revenues of $1.19 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.81%, compared to $1.1 billion in the same quarter last year [2] - Over the last four quarters, RB Global has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance - RB Global shares have increased approximately 21.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [3] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, including current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.89 on revenues of $1.03 billion, and for the current fiscal year, it is $3.75 on revenues of $4.46 billion [7] Industry Context - The Financial Transaction Services industry, to which RB Global belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]
RB (RBA) - 2025 Q2 - Earnings Call Transcript
2025-08-06 21:32
RB Global (RBA) Q2 2025 Earnings Call August 06, 2025 04:30 PM ET Company ParticipantsSameer Rathod - VP - IR & Market IntelligenceJim Kessler - Director & CEOEric Guerin - CFOSabahat Khan - MD - Global ResearchKrista Friesen - Director - Equity ResearchMichael Feniger - MD - Equity ResearchMaxim Sytchev - MD & Research - Industrial ProductsConference Call ParticipantsSteve Hansen - MD & Equity Analyst - Transportation & AgribusinessCraig Kennison - Director - Research Operations & Senior Research AnalystOp ...
RB (RBA) - 2025 Q2 - Earnings Call Transcript
2025-08-06 21:30
RB Global (RBA) Q2 2025 Earnings Call August 06, 2025 04:30 PM ET Speaker0Ladies and gentlemen, thank you for standing by. My name is Jim, and I'll be your conference operator today. At this time, I am pleased to welcome you all to the RB Global Second Quarter twenty twenty five Earnings Conference Call. As a reminder, all lines have been placed in a listen only mode, but later you will have the opportunity to ask questions during our question and answer session. Today's session is also being recorded.And n ...
RB (RBA) - 2025 Q2 - Earnings Call Presentation
2025-08-06 20:30
Second Quarter 2025 Financial Results © 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 operati ...
RB (RBA) - 2025 Q2 - Quarterly Report
2025-08-06 20:08
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number: 001-13425 RB Global, Inc. (Exact Name of Registrant as Specified in its Charter) Canada 98-0626225 Westchester, ...
RB (RBA) - 2026 Q1 - Earnings Call Transcript
2025-07-31 13:00
Financial Data and Key Metrics Changes - The total revenue for the company reached 552 crores, reflecting a growth of 12.6% year-over-year, driven by a same-store sales growth (SSSG) of 2.6% and the addition of 63 new restaurants [5][31] - Company EBITDA was reported at 22.5 crores, which is 28.6% higher than the same quarter last year, while restaurant EBITDA increased by 23% to 53.6 crores [6][5] - Gross profit margin has been maintained at around 67.6% despite inflationary pressures, with a target to reach 70% over the next three to four years [31][32] Business Line Data and Key Metrics Changes - The India business showed strong performance with a revenue growth of 12.6% and a net addition of 63 restaurants, while the Indonesia business is in a revitalization phase with a year-over-year growth of 5% in average daily sales (ADS) [5][21] - The company has focused on a "barbell strategy" with both value promotions and premium offerings, including the introduction of the King's collection of premium burgers and a Korean range [11][12][44] Market Data and Key Metrics Changes - In Indonesia, the company has seen a consistent increase in ADS, achieving 19.7 million in the latest reporting period, with a focus on improving dine-in traffic and menu offerings [21][36] - The company has rationalized its restaurant portfolio in Indonesia, closing four additional restaurants, and is working on reducing corporate overhead by 25% [25][26] Company Strategy and Development Direction - The company continues to focus on digital transformation, with 93% of restaurants equipped with self-ordering kiosks and 90% of sales coming from digital platforms [13][14] - The strategy includes enhancing customer experience through technology and maintaining a strong value proposition across all menu layers [17][58] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand environment remains tight, particularly in the premium segment, but the value segment continues to perform well [70][76] - The company is optimistic about future growth, especially with upcoming festive seasons expected to boost traffic [75][79] Other Important Information - The company has implemented cost-saving measures, particularly in utilities and IT, which have contributed to improved margins [18][33] - The introduction of new products and promotions, such as the Korean range and the BK Fusion with KitKat, has been well received by consumers [44][50] Q&A Session Summary Question: What were the one-off impacts on corporate overheads? - The CFO mentioned that one-off impacts included a valuation liability due to defect rate adjustments and some ESOP grants, with the actual valuation around one crore [65][66] Question: How is the overall demand environment perceived? - Management indicated that demand remains similar to previous quarters, with strong performance in the value segment but some softness in the premium layer [70][71] Question: Are transaction counts increasing despite demand softness? - Management confirmed that dine-in traffic continues to be strong, with a focus on value promotions driving customer loyalty [73][74] Question: What is the outlook for margin improvements? - Management highlighted that as the top line grows, margins will improve, with ongoing efforts to reduce rent and utility costs contributing to this [81][82]
RB (RBA) - 2026 Q1 - Earnings Call Presentation
2025-07-31 12:00
Restaurant Brands Asia Limited Investor Presentation July 31, 2025 Disclaimer Certain statements made in this presentation relating to the Company's objectives, projections, outlook, expectations, estimates, among others may constitute 'forward-looking statements' within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections etc., whether express or implied. These forward-looking statements are based on various assumptions, expectations and other factor ...
RB Global (RBA) Earnings Expected to Grow: Should You Buy?
ZACKS· 2025-07-30 15:07
Company Overview - RB Global (RBA) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.95, reflecting a +1.1% change, and revenues of $1.12 billion, up 2.3% from the previous year [3][12]. Earnings Expectations - The consensus outlook indicates that the stock price may rise if the actual earnings exceed expectations in the upcoming report, scheduled for August 6 [2][12]. - The company has an Earnings ESP of +2.80%, suggesting analysts have recently become more optimistic about its earnings prospects [12]. Historical Performance - In the last reported quarter, RB Global exceeded the expected EPS of $0.86 by delivering $0.89, resulting in a surprise of +3.49% [13]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14]. Analyst Sentiment - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - Despite the positive Earnings ESP, the company currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12][17]. Industry Comparison - Fidelity National Information Services (FIS), a peer in the Financial Transaction Services industry, is expected to report an EPS of $1.36, with revenues projected at $2.58 billion, reflecting a 3.5% increase from the previous year [18][19]. - FIS has an Earnings ESP of +0.67% and a Zacks Rank of 2, indicating a higher likelihood of beating consensus EPS estimates [20].
RB (RBA) - 2025 Q1 - Quarterly Report
2025-05-07 20:08
[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section presents RB Global's unaudited financial statements for the first quarter of 2025, Management's Discussion and Analysis (MD&A) of the results, and disclosures on market risk and internal controls [Condensed Consolidated Financial Statements](index=4&type=section&id=ITEM%201%3A%20Condensed%20Consolidated%20Financial%20Statements) Presents the unaudited financial statements for the quarter ended March 31, 2025, showing a 4% revenue increase to $1.11 billion, a 5% operating income decline to $189.5 million, and a 5% net income growth to $113.3 million [Condensed Consolidated Income Statements](index=4&type=section&id=Condensed%20Consolidated%20Income%20Statements) Condensed Consolidated Income Statement (Q1 2025 vs Q1 2024) | Metric | Three months ended March 31, 2025 (in millions) | Three months ended March 31, 2024 (in millions) | | :--- | :--- | :--- | | **Total revenue** | **$1,108.6** | **$1,064.7** | | Service revenue | $852.5 | $849.1 | | Inventory sales revenue | $256.1 | $215.6 | | **Total operating expenses** | **$919.5** | **$868.2** | | **Operating income** | **$189.5** | **$198.9** | | **Net income** | **$113.3** | **$107.4** | | Net income available to common stockholders | $102.9 | $97.1 | | **Diluted EPS available to common stockholders** | **$0.55** | **$0.53** | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) - Comprehensive income increased to **$123.8 million** for the three months ended March 31, 2025, up from **$82.4 million** in the same period of 2024, primarily due to a positive foreign currency translation adjustment of **$10.5 million** compared to a **$25.0 million** loss in the prior year[9](index=9&type=chunk) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights | Metric | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $578.1 | $533.9 | | Total current assets | $1,782.6 | $1,714.8 | | Goodwill | $4,515.2 | $4,511.8 | | **Total assets** | **$11,887.3** | **$11,807.0** | | Total current liabilities | $1,363.1 | $1,331.3 | | Long-term debt | $2,622.6 | $2,622.1 | | **Total liabilities** | **$6,111.4** | **$6,090.6** | | **Total stockholders' equity** | **$5,285.9** | **$5,226.3** | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statement of Cash Flows (Q1 2025 vs Q1 2024) | Cash Flow Activity | Three months ended March 31, 2025 (in millions) | Three months ended March 31, 2024 (in millions) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$156.8** | **$124.8** | | Net cash used in investing activities | ($101.9) | ($77.5) | | Net cash used in financing activities | ($45.0) | ($190.9) | | **Net increase (decrease) in cash** | **$13.0** | **($150.5)** | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) - On March 10, 2025, the company agreed to acquire J.M. Wood Auction Co., Inc. for approximately **$235 million** in cash, with the deal expected to close in Q2 or Q3 2025[26](index=26&type=chunk)[27](index=27&type=chunk) - The company operates as a single operating and reportable segment, with performance reviewed at the consolidated level by the CEO[28](index=28&type=chunk) - The company is in a dispute with the Canada Revenue Agency (CRA) over a **CA$79.1 million** assessment for taxation years 2010-2015, having filed a Notice of Objection and paid a required deposit of **CA$39.5 million** in February 2025[37](index=37&type=chunk)[38](index=38&type=chunk) - On April 3, 2025, the company amended its Credit Agreement, increasing its revolving credit facilities to **$1.3 billion**, reducing its USD Term Loan A facility, and extending the maturity to April 2030[55](index=55&type=chunk) - The company is in arbitration with its former CEO, Ann Fandozzi, regarding the circumstances of her departure in 2023[74](index=74&type=chunk) - As of March 31, 2025, the company had **$125.7 million** of assets under guarantee contracts, where it guarantees a minimum level of proceeds to consignors[77](index=77&type=chunk)[78](index=78&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=25&type=section&id=ITEM%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 results, highlighting a 6% decrease in Gross Transaction Value (GTV) to $3.8 billion, driven by weakness in the Commercial Construction & Transportation (CC&T) sector, while total revenue increased 4% to $1.1 billion, supported by a 19% rise in inventory sales [Overview](index=26&type=section&id=Overview) RB Global operates a global marketplace for commercial assets and vehicles, primarily in the automotive and commercial construction & transportation (CC&T) sectors, and announced a proposed acquisition of J.M. Wood Auction Co. to expand its US footprint - The company operates in two main sectors: automotive and commercial construction & transportation (CC&T)[84](index=84&type=chunk)[86](index=86&type=chunk) - On March 10, 2025, the company entered an agreement to acquire J.M. Wood Auction Co., Inc. for approximately **$235.0 million** in cash to enhance its geographic coverage and customer base in the United States[88](index=88&type=chunk)[89](index=89&type=chunk) [Macroeconomic Conditions and Trends](index=27&type=section&id=Macroeconomic%20Conditions%20and%20Trends) The CC&T sector is experiencing headwinds as customers delay asset dispositions due to market uncertainty, while the automotive sector benefits from a higher rate of vehicles being declared a total loss - In the CC&T sector, customers are delaying asset disposition decisions due to an uncertain macro environment, impacting unit volume growth of higher value assets[101](index=101&type=chunk) - In the automotive sector, a higher number of vehicles being deemed a total loss is driving industry salvage unit volume growth, though used automotive prices have remained fairly flat[102](index=102&type=chunk) [Performance Overview and Consolidated Results](index=28&type=section&id=Performance%20Overview%20and%20Consolidated%20Results) In Q1 2025, RB Global saw a 6% decrease in total GTV to $3.8 billion, but a 4% increase in total revenue to $1.1 billion, with net income rising 5% to $113.3 million Q1 2025 Performance Highlights vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total GTV | $3.8 billion | $4.1 billion | (6)% | | Total revenue | $1.1 billion | $1.1 billion | 4% | | Net income | $113.3 million | $107.4 million | 5% | | Diluted EPS | $0.55 | $0.53 | 4% | | Adjusted EBITDA | $327.9 million | $331.0 million | (1)% | [Results of Operations](index=29&type=section&id=Results%20of%20Operations) The analysis details a 6% year-over-year decrease in GTV, primarily from an 18% drop in the CC&T sector, partially offset by 2% growth in the automotive sector, while total revenue increased 4% [Total GTV](index=29&type=section&id=Total%20GTV) GTV by Sector (Q1 2025 vs Q1 2024) | Sector | Q1 2025 GTV (in millions) | Q1 2024 GTV (in millions) | % Change | | :--- | :--- | :--- | :--- | | Automotive | $2,144.7 | $2,105.0 | 2% | | Commercial construction and transportation | $1,276.7 | $1,561.2 | (18)% | | Other | $407.5 | $411.2 | (1)% | | **Total GTV** | **$3,828.9** | **$4,077.4** | **(6)%** | - The decrease in total GTV was primarily driven by lower GTV in the CC&T sector in the United States and Canada due to lower lot volumes as consignors adopted a cautious stance amid market uncertainty[112](index=112&type=chunk) [Total Revenue](index=30&type=section&id=Total%20Revenue) - Total revenue increased **4%** to **$1.1 billion**, primarily due to a **19%** increase in inventory sales revenue, while total service revenue remained flat[113](index=113&type=chunk) Service Revenue Breakdown (Q1 2025 vs Q1 2024) | Revenue Type | Q1 2025 (in millions) | Q1 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Transactional seller revenue | $216.8 | $238.6 | (9)% | | Transactional buyer revenue | $556.7 | $525.4 | 6% | | Marketplace services revenue | $79.0 | $85.1 | (7)% | | **Total service revenue** | **$852.5** | **$849.1** | **— %** | - Transactional buyer revenue increased **6%**, primarily from higher buyer fee rates in the automotive sector implemented in late 2024 and early 2025[117](index=117&type=chunk) [Costs and Expenses](index=32&type=section&id=Costs%20and%20Expenses) - Costs of services increased **3%** to **$361.9 million**, driven by higher tow costs in the automotive sector and increased employee compensation expenses[121](index=121&type=chunk) - Selling, general and administrative (SG&A) expenses rose **3%** to **$205.0 million**, mainly due to higher technology costs for new systems and increased legal fees related to the ex-CEO's departure and the CRA matter[123](index=123&type=chunk) - Acquisition-related and integration costs decreased **76%** to **$3.1 million**, primarily due to lower severance and integration costs related to the IAA acquisition[124](index=124&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company believes its existing working capital and credit facilities are sufficient for current needs, with net cash from operations increasing by $32.0 million year-over-year to $156.8 million - On April 3, 2025, the company amended its Credit Agreement to increase revolving facilities from **$750.0 million** to **$1.3 billion** and extend the maturity to April 2030[136](index=136&type=chunk)[137](index=137&type=chunk) - In February 2025, the company paid a required deposit of **CA$39.5 million** (approx. **$27.4 million**) to the CRA as part of its appeal process against a tax assessment[145](index=145&type=chunk) Cash Flow Summary (Q1 2025 vs Q1 2024) | Cash Flow Activity | Q1 2025 (in millions) | Q1 2024 (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Operating activities | $156.8 | $124.8 | $32.0 | | Investing activities | ($101.9) | ($77.5) | ($24.4) | | Financing activities | ($45.0) | ($190.9) | $145.9 | [Non-GAAP Measures](index=37&type=section&id=Non-GAAP%20Measures) This section provides definitions and reconciliations for non-GAAP financial measures, including Adjusted Net Income, Diluted Adjusted EPS, and Adjusted EBITDA, which decreased 1% to $327.9 million for Q1 2025 Reconciliation of Net Income to Adjusted EBITDA | Metric | Three months ended March 31, 2025 (in millions) | Three months ended March 31, 2024 (in millions) | | :--- | :--- | :--- | | Net income | $113.3 | $107.4 | | Add: Depreciation & Amortization | $114.5 | $107.7 | | Add: Interest expense | $49.9 | $63.9 | | Less: Interest income | ($3.0) | ($6.6) | | Add: Income tax expense | $29.6 | $32.5 | | EBITDA | $304.3 | $304.9 | | Add: Adjusting Items | $23.6 | $26.1 | | **Adjusted EBITDA** | **$327.9** | **$331.0** | Reconciliation to Adjusted Net Income and Diluted Adjusted EPS | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net income available to common stockholders | $102.9 M | $97.1 M | | **Adjusted net income available to common stockholders** | **$165.2 M** | **$165.5 M** | | Diluted EPS available to common stockholders | $0.55 | $0.53 | | **Diluted adjusted EPS available to common stockholders** | **$0.89** | **$0.90** | [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=ITEM%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports that there have been no material changes to its market risk exposures during the first quarter of 2025 compared to those disclosed in its 2024 Annual Report on Form 10-K - There have been no material changes to the company's market risk during the three months ended March 31, 2025, from those disclosed in the Annual Report for the year ended December 31, 2024[175](index=175&type=chunk) [Controls and Procedures](index=45&type=section&id=ITEM%204%3A%20Controls%20and%20Procedures) The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective[177](index=177&type=chunk) - There were no changes in the company's internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the controls[179](index=179&type=chunk) [PART II – OTHER INFORMATION](index=46&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section covers other required disclosures, including legal proceedings, risk factors, and other information, reporting no material legal proceedings or changes to risk factors, and the adoption of Rule 10b5-1 trading plans by three insiders [Legal Proceedings](index=46&type=section&id=ITEM%201%3A%20Legal%20Proceedings) The company states that it has no material legal proceedings pending, other than ordinary routine litigation incidental to its business - The company has no material legal proceedings pending, other than ordinary routine litigation incidental to the business[182](index=182&type=chunk) [Risk Factors](index=46&type=section&id=ITEM%201A%3A%20Risk%20Factors) The company confirms that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - As of the filing date, there have been no material changes to the risk factors discussed in the company's Annual Report on Form 10-K for the year ended December 31, 2024[183](index=183&type=chunk) [Other Information](index=46&type=section&id=ITEM%205%3A%20Other%20Information) Discloses that during the first quarter of 2025, director Adam DeWitt, Chief Legal Officer Darren Watt, and CEO James Kessler each adopted new Rule 10b5-1 trading arrangements for the potential sale of company stock - In March 2025, director Adam DeWitt, Chief Legal Officer Darren Watt, and CEO James Kessler each adopted new Rule 10b5-1 trading arrangements[187](index=187&type=chunk) [Exhibits](index=47&type=section&id=ITEM%206%3A%20Exhibits) Lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including the Equity Purchase Agreement for J.M. Wood Auction Co., Inc., and CEO/CFO certifications - Key exhibits filed with the report include the Equity Purchase Agreement for J.M. Wood Auction Co., Inc. and certifications by the CEO and CFO[189](index=189&type=chunk)
RB (RBA) - 2025 Q1 - Quarterly Results
2025-05-07 20:03
[Report Overview & Outlook](index=1&type=section&id=Report%20Overview%20%26%20Outlook) RB Global reported a 4% revenue increase in Q1 2025, with GTV declining 6% and Adjusted EBITDA slightly down, while maintaining its full-year 2025 outlook [Q1 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%20Financial%20Highlights) RB Global reported a 4% increase in total revenue to $1.1 billion for Q1 2025, primarily driven by a 19% rise in inventory sales revenue, though Gross Transaction Value (GTV) decreased by 6% to $3.8 billion - Management emphasized their focus on controllable factors and prudent expense management to navigate the current macroeconomic environment[2](index=2&type=chunk) Q1 2025 Key Financial Metrics (YoY) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | GTV | $3,828.9M | $4,077.4M | (6)% | | Total Revenue | $1,108.6M | $1,064.7M | 4% | | Service Revenue | $852.5M | $849.1M | 0% | | Inventory Sales Revenue | $256.1M | $215.6M | 19% | | Net Income | $113.3M | $107.4M | 5% | | Adjusted EBITDA | $327.9M | $331.0M | (1)% | | Diluted EPS | $0.55 | $0.53 | 4% | | Diluted Adjusted EPS | $0.89 | $0.90 | (1)% | [2025 Financial Outlook](index=1&type=section&id=2025%20Financial%20Outlook) The company has maintained its full-year 2025 financial outlook, projecting GTV growth between 0% and 3%, and Adjusted EBITDA in the range of $1,320 million to $1,380 million Full-Year 2025 Outlook | Metric | Low-End | High-End | | :--- | :--- | :--- | | GTV growth | 0% | 3% | | Adjusted EBITDA | $1,320M | $1,380M | | Full year tax rate (GAAP and Adjusted) | 25% | 28% | | Capital Expenditures | $350M | $400M | - The company has not provided a reconciliation for its Adjusted EBITDA outlook to GAAP net income, citing the inability to predict non-GAAP adjustments with reasonable certainty[5](index=5&type=chunk) [Detailed Operational Performance](index=2&type=section&id=Detailed%20Operational%20Performance) The company's Q1 2025 revenue grew 4% driven by inventory sales despite a 6% GTV decline, while net income increased due to lower interest and tax expenses [Revenue and GTV Analysis](index=2&type=section&id=Revenue%20and%20GTV%20Analysis) Total revenue increased 4% YoY, supported by a 19% rise in inventory sales revenue, while service revenue remained flat as a 150 basis point expansion in the service revenue take rate to 22.3% was offset by a 6% decline in GTV - The decrease in Commercial Construction & Transportation (CC&T) GTV was primarily due to lower volume from large enterprise customers compared to the prior year, which had benefited from significant contracts[11](index=11&type=chunk) - Automotive GTV increased due to market share gains and growth from existing partners, although this was partially offset by a lower average price per lot sold[11](index=11&type=chunk) Revenue Breakdown (Q1 2025 vs Q1 2024) | Revenue Type | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Transactional seller revenue | $216.8M | $238.6M | (9)% | | Transactional buyer revenue | $556.7M | $525.4M | 6% | | Marketplace services revenue | $79.0M | $85.1M | (7)% | | **Total service revenue** | **$852.5M** | **$849.1M** | **— %** | | Inventory sales revenue | $256.1M | $215.6M | 19% | | **Total revenue** | **$1,108.6M** | **$1,064.7M** | **4%** | GTV by Sector (Q1 2025 vs Q1 2024) | Sector | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Automotive | $2,144.7M | $2,105.0M | 2% | | Commercial construction and transportation | $1,276.7M | $1,561.2M | (18)% | | Other | $407.5M | $411.2M | (1)% | | **Total GTV** | **$3,828.9M** | **$4,077.4M** | **(6)%** | [Profitability and Expense Analysis](index=2&type=section&id=Profitability%20and%20Expense%20Analysis) Net income available to common stockholders rose 6% to $102.9 million, benefiting from lower interest and income tax expenses which offset lower operating income, while Adjusted EBITDA decreased by 1% to $327.9 million - The increase in net income available to common stockholders was primarily driven by lower interest expense (due to prior-year debt repayments) and a lower effective tax rate[11](index=11&type=chunk) - The decrease in Adjusted EBITDA was driven by lower GTV and higher adjusted operating expenses, partially offset by service revenue take rate expansion and higher inventory returns[12](index=12&type=chunk) Reconciliation of Operating Expenses (Q1 2025) | (in U.S. dollars in millions) | As reported | Adjustments | Adjusted | | :--- | :--- | :--- | :--- | | Cost of services | $361.9 | $(0.7) | $361.2 | | Cost of inventory sold | $235.0 | $0.0 | $235.0 | | Selling, general and administrative expenses | $205.0 | $(20.3) | $184.7 | | Acquisition related and integration costs | $3.1 | $(3.1) | $0.0 | | Depreciation and amortization | $114.5 | $(68.3) | $46.2 | | **Total operating expenses** | **$919.5** | **$(92.4)** | **$827.1** | [Corporate Developments and Shareholder Returns](index=4&type=section&id=Corporate%20Developments%20and%20Shareholder%20Returns) RB Global announced the acquisition of J.M. Wood Auction Co. and amended its credit agreement to improve terms, while also declaring a quarterly cash dividend [Corporate Developments](index=4&type=section&id=Other%20Company%20Developments) The company announced an agreement to acquire J.M. Wood Auction Co., Inc. for approximately $235 million, with the deal expected to close in Q2 or Q3 2025, and also amended its credit agreement to increase its revolving credit facility to $1.3 billion - Announced agreement to acquire J.M. Wood Auction Co., Inc. for approximately **$235 million**, expected to close in Q2 or Q3 2025[21](index=21&type=chunk) - Amended and restated its Credit Agreement to increase the revolving credit facility to **$1.3 billion**, extend maturity to April 2030, and reduce bank spread by **~85 basis points**[21](index=21&type=chunk) [Dividend Information](index=4&type=section&id=Dividend%20Information) On May 6, 2025, the company's board declared a quarterly cash dividend of $0.29 per common share, payable on June 20, 2025, to shareholders of record as of May 29, 2025 - A quarterly cash dividend of **$0.29 per common share** was declared[17](index=17&type=chunk) [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited Q1 2025 financial statements show increased revenue and net income, a slight rise in total assets, and positive operating cash flow [Condensed Consolidated Income Statements](index=7&type=section&id=GTV%20and%20Condensed%20Consolidated%20Income%20Statements) For the three months ended March 31, 2025, RB Global reported total revenue of $1,108.6 million, up from $1,064.7 million in the prior year, with operating income at $189.5 million and net income at $113.3 million Condensed Consolidated Income Statements | (in U.S. dollars in millions) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Total revenue | $1,108.6 | $1,064.7 | | Operating income | $189.5 | $198.9 | | Net income | $113.3 | $107.4 | | Net income available to common stockholders | $102.9 | $97.1 | | Diluted earnings per share available to common stockholders | $0.55 | $0.53 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, the company had total assets of $11.89 billion, a slight increase from $11.81 billion at year-end 2024, with total liabilities at $6.11 billion and total stockholders' equity at $5.29 billion Condensed Consolidated Balance Sheet Highlights | (in U.S. dollars in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $578.1 | $533.9 | | Total current assets | $1,782.6 | $1,714.8 | | Total assets | $11,887.3 | $11,807.0 | | Total current liabilities | $1,363.1 | $1,331.3 | | Long-term debt | $2,622.6 | $2,622.1 | | Total liabilities | $6,111.4 | $6,090.6 | | Total stockholders' equity | $5,285.9 | $5,226.3 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2025, net cash provided by operating activities was $156.8 million, an increase from $124.8 million in the prior year, resulting in a net increase in cash, cash equivalents, and restricted cash of $13.0 million Condensed Consolidated Statement of Cash Flows | (in U.S. dollars in millions) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $156.8 | $124.8 | | Net cash used in investing activities | $(101.9) | $(77.5) | | Net cash used in financing activities | $(45.0) | $(190.9) | | Net increase (decrease) in cash | $13.0 | $(150.5) | [Non-GAAP Financial Measures & Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) The company provides reconciliations for key non-GAAP metrics, including Adjusted Net Income, Adjusted EBITDA, and Adjusted Net Debt, highlighting their impact on financial performance and leverage [Adjusted Net Income and Diluted Adjusted EPS](index=10&type=section&id=Adjusted%20Net%20Income%20and%20Diluted%20Adjusted%20EPS%20Available%20to%20Common%20Stockholders%20Reconciliation) Adjusted net income available to common stockholders was flat year-over-year at $165.2 million, while diluted adjusted EPS decreased 1% to $0.89 from $0.90, with key adjustments from GAAP net income including amortization of acquired intangibles and share-based payments Reconciliation to Adjusted Net Income | (in U.S. dollars in millions, except per share data) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income available to common stockholders (GAAP) | $102.9 | $97.1 | | Adjustments (Amortization, Share-based payments, etc.) | $62.3 | $68.4 | | **Adjusted net income available to common stockholders (Non-GAAP)** | **$165.2** | **$165.5** | | Diluted EPS (GAAP) | $0.55 | $0.53 | | **Diluted adjusted EPS (Non-GAAP)** | **$0.89** | **$0.90** | [Adjusted EBITDA](index=11&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 was $327.9 million, a 1% decrease from $331.0 million in Q1 2024, with its reconciliation from net income including additions for depreciation, amortization, interest, and income tax expenses Reconciliation to Adjusted EBITDA | (in U.S. dollars in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (GAAP) | $113.3 | $107.4 | | Add: D&A, Interest, Taxes | $194.0 | $204.1 | | Less: Interest Income | $(3.0) | $(6.6) | | EBITDA | $304.3 | $304.9 | | Add: Other Adjustments | $23.6 | $26.1 | | **Adjusted EBITDA (Non-GAAP)** | **$327.9** | **$331.0** | [Adjusted Net Debt and Leverage Ratio](index=12&type=section&id=Adjusted%20Net%20Debt%20and%20Adjusted%20Net%20Debt/Adjusted%20EBITDA%20Reconciliation) For the trailing twelve months (TTM) ended March 31, 2025, the company's adjusted net debt decreased by 15% to $2,111.4 million, and the adjusted net debt to TTM adjusted EBITDA leverage ratio improved significantly to 1.6x from 2.0x Adjusted Net Debt and Leverage Ratio (TTM) | (in U.S. dollars in millions) | As of March 31, 2025 | As of March 31, 2024 | | :--- | :--- | :--- | | Debt | $2,689.5 | $2,951.0 | | Less: Cash and cash equivalents | $(578.1) | $(462.8) | | **Adjusted net debt** | **$2,111.4** | **$2,488.2** | | TTM Adjusted EBITDA | $1,299.5 | $1,231.5 | | **Adjusted net debt/adjusted EBITDA** | **1.6x** | **2.0x** |