Strategic focus remains on driving operating leverage by translating incremental transaction volumes into EBITDA growth through tight cost management.Commercial construction and transportation (CC&T) showed early signs of recovery as seller confidence improved alongside stabilizing equipment values and lower interest rates.The narrowing inflation differential between vehicle repair costs and used car pricing supported a 10 basis point increase in total loss frequency to 24.2%.Management secured a multi-year ...

Adjusted earnings per share increased 17% in the fourth quarter and 15% for the full year, which management attributed to higher operating income, lower net interest expense, and a lower adjusted tax rate. Guerin added that adjusted and GAAP tax rates came in below prior guidance due to additional discrete tax deductions captured in the company’s 2024 U.S. federal tax return.Adjusted EBITDA increased 10% in the quarter, driven by higher GTV and take rate expansion, partially offset by a lower inventory retu ...

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 ...