Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 10% on a 4% increase in gross transaction value (GTV) in Q4 2025, reflecting strong execution and cost management [4][11] - Adjusted earnings per share increased by 17% in Q4 and 15% for the full year, driven by higher operating income and lower net interest expense [14] - Full-year GTV increased by 2%, driven by new wins in the automotive sector, partially offset by cyclical pressure in the commercial construction and transportation (CC&T) sector [12][14] Business Line Data and Key Metrics Changes - Automotive GTV increased by 3% in Q4, with unit volumes rising by 2%. Excluding catastrophic impacts, GTV and unit volumes grew approximately 12% and 8%, respectively [11][12] - In the CC&T sector, GTV increased by 9%, with unit volumes growing approximately 10% and average price per lot sold increasing due to improvements in asset mix [12][14] Market Data and Key Metrics Changes - Gross returns or salvage values as a percentage of pre-accident cash values expanded, supporting approximately 7% year-over-year growth in the U.S. insurance average selling price [6] - The inflation differential between automotive repair costs and used vehicle pricing continued to narrow, supporting an increase in the total loss ratio [11] Company Strategy and Development Direction - The company is focused on disciplined execution and strategic progress, prioritizing scale, longevity, and strategic positioning to expand market share and enhance partner relationships [4][5] - A new multi-year agreement with one of the largest partners was signed, reinforcing trust and providing long-term visibility into expected volumes [5][6] - The company plans to roll out the IAA Total Loss Predictor in 2026 to improve vehicle routing efficiency, which is expected to deliver cost savings for partners [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding early signs of improvement in seller confidence within the CC&T sector, supported by stabilizing used equipment values and lower interest rates [9] - The outlook for 2026 anticipates full-year GTV growth between 5% and 8%, with a focus on volume-led growth and continued market share gains [15] Other Important Information - The company expects full-year capital expenditures for 2026 to be between $350 million and $400 million, with a mix of one-third on technology-related investments and two-thirds on traditional physical assets [15][38] - The company is committed to ongoing operational excellence and cost savings initiatives to maximize profit flow-through [15][47] Q&A Session Summary Question: Clarification on 2026 guidance and market share capture - Management confirmed that the guidance includes annualization of wins already announced and any additional terms agreed upon [20] Question: Flow-through of GTV to revenue - Management indicated there may be slight pressure on the take rate but remains optimistic about unit economics and volume growth [22] Question: Improvement in CC&T sector - Management noted early signs of improvement in partner conversations, indicating potential for a return to a normalized cycle [26] Question: Details on the total loss predictor - The total loss predictor aims to enhance efficiency by determining vehicle status at the scene of an accident, potentially reducing costs associated with storage and rental fees [28] Question: AI development among competitors - Management acknowledged varying capabilities among insurance carriers regarding AI development, emphasizing their role in providing integrated solutions [35] Question: Capital allocation strategy - Management is focused on debt reduction, business investment, and evaluating share repurchase opportunities as part of their capital allocation strategy [53] Question: Impact of autonomous vehicles - Management does not foresee immediate risks from autonomous vehicles but acknowledges potential long-term changes in collision rates and vehicle ownership [57] Question: Total salvage volumes outlook - Management expects to continue gaining market share and growing faster than the market, without providing specific volume breakdowns [78]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 10% on a 4% increase in gross transaction value (GTV), reflecting strong execution and cost management [4][11] - Adjusted earnings per share increased by 17% in the fourth quarter and 15% for the full year, driven by higher operating income and lower net interest expense [14] - Full-year adjusted EBITDA is expected to be between $1.47 billion and $1.53 billion, representing approximately 7% growth at the midpoint [15] Business Line Data and Key Metrics Changes - Automotive GTV increased by 3% in the fourth quarter, with unit volumes rising by 2% [11] - Excluding catastrophic impacts, automotive GTV and unit volumes grew approximately 12% and 8% respectively [11] - GTV in the commercial construction and transportation sector increased by 9%, with unit volumes growing approximately 10% [12] Market Data and Key Metrics Changes - Gross returns or salvage values as a percentage of pre-accident cash values expanded, supporting approximately 7% year-over-year growth in the U.S. insurance average selling price [6] - The average price per vehicle sold increased by approximately 1% in the quarter, or roughly 4% excluding catastrophic impacts [12] Company Strategy and Development Direction - The company is focused on disciplined execution and strategic progress, prioritizing scale, longevity, and market share expansion [4][5] - New multi-year agreements with major partners provide long-term visibility into expected volumes and deepen strategic alignment [5][6] - The introduction of the IAA Total Loss Predictor aims to enhance operational efficiencies and strengthen partner economics [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding early signs of improvement in seller confidence, supported by stabilizing used equipment values and lower interest rates [9] - The company expects full-year GTV to grow between 5% and 8% in 2026, with a focus on volume-led growth [15] - Management emphasized the importance of continuous improvement in operational efficiency and cost management [46][48] Other Important Information - The company plans to invest between $350 million and $400 million in capital expenditures for 2026, with a focus on technology and traditional physical assets [15][38] - The company is exploring opportunities for share repurchase programs as part of its capital allocation strategy [53] Q&A Session Summary Question: Clarification on 2026 guidance and market share capture - Management confirmed that the guidance includes both annualization of wins and additional terms agreed upon [19][20] Question: Flow-through of GTV to revenue - Management indicated there may be slight pressure on the take rate but remains optimistic about unit economics [21][22] Question: Improvement in the CC&T sector - Management noted early signs of improvement in partner conversations, though the environment remains complex [26] Question: Details on the total loss predictor - Management explained that the tool aims to optimize vehicle routing post-accident, significantly reducing costs [27][30] Question: AI development among customers - Management highlighted varying capabilities among insurance carriers regarding AI investment and integration [34][35] Question: Breakdown of CapEx investments - Management provided a typical mix of 1/3 on technology-related investments and 2/3 on traditional physical assets [38] Question: Total volumes across the auto salvage business - Management stated they do not break down guidance to that level but expect to continue gaining market share [78]

RB Global (NYSE:RBA) Q4 2025 Earnings call February 17, 2026 04:30 PM ET Speaker8Hello, everyone. Thank you for joining us, and welcome to the RB Global Fourth Quarter 2025 Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, press star one again. I will now hand the call over to Sameer Rathod, Vice President, Investor Relations and Market Intelligence. Please ...

Core Insights - RB Global, Inc. is preparing for the February 2026 Orlando auction, which is recognized as the world's largest equipment auction, featuring over 7,000 assets from various industries [1][2] Auction Details - The auction will take place from February 16 to 20, 2026, at the Orlando facility, with live onsite bidding, online participation, and Timed Auction formats [1][2] - Each day will feature live bidding, with specific days dedicated to major equipment sales, including articulated dump trucks and wheel loaders [2] Customer Engagement - Attendees will have access to Ritchie Bros. teams, including product specialists and financial services, to enhance their auction experience [3] - The event will also include an invite-only Creator Day on February 17, aimed at capturing the auction's scale and energy for broader social media engagement [4] Company Overview - RB Global operates as a leading omnichannel marketplace for commercial assets and vehicles, serving various sectors including automotive, construction, and agriculture [6]