RB Global NYSE: RBA executives highlighted stronger gross transaction value (GTV) and adjusted EBITDA growth in the company’s first-quarter 2026 earnings call, while also pointing to a complex macro backdrop and sector-specific disruptions that management said it is working to navigate.
First-quarter performance and pending BigIron deal
Chief Executive Officer Jim Kessler said the company’s operating model showed “durability” in the quarter, with adjusted EBITDA increasing 11% on a 13% increase in GTV. Kessler also noted progress on the company’s acquisition strategy, saying RB Global recently received Hart-Scott-Rodino (HSR) approval for its BigIron transaction and now expects to close the deal in the second quarter. Chief Financial Officer Eric Guerin emphasized that the company’s updated 2026 guidance “does not reflect any impact from BigIron.”
GTV growth led by commercial construction and transportation
Guerin reported total GTV increased 13% to $4.3 billion in the quarter. The commercial construction and transportation (CC&T) segment was a key growth driver, with GTV up 27% year-over-year. Guerin said the quarter benefited from the auction calendars of certain acquired businesses that “typically host their largest events early in the year.” Excluding acquisitions, he said CC&T GTV grew approximately 16%.
Management described improving, but uneven, market conditions. Kessler said the company is “cautiously optimistic” as customer feedback suggests “early signs of improving confidence,” supported by stabilizing used equipment values and continued activity in mega projects and civil infrastructure. He added that some of the volume strength reflected “the early and uneven return of pent-up supply as sellers who deferred decisions in 2025 began to reenter the market.”
On pricing, Guerin said the average price per lot sold increased due to improvements in asset mix, while like-for-like pricing remained “relatively flat” year-over-year.
Automotive results, partner disruption, and Middle East exposure
In automotive, Guerin said GTV increased 7%, driven primarily by higher average selling prices and a 1% increase in unit volumes. The average price per vehicle sold rose approximately 6%, which he said reflected strength across both salvage and remarketed vehicles. Unit growth, he added, was supported by “continued new wins,” though first-quarter growth was partially moderated by changes in the auction calendar early in the year.
Kessler said the automotive business delivered another strong quarter “despite navigating disruption among our Market Alliance partners and buyers in the Middle East,” adding that the company’s “foremost priority remains the safety and well-being of our teammates in the region.” Asked whether the Middle East conflict was affecting shipments and salvage pricing, Kessler said disruptions would affect a segment of the Market Alliance, but management believed it could “manage the other segments” and remained confident in guidance. Sameer Rathod, vice president of investor relations and market intelligence, said the company was “not quantifying the number of units” impacted, but acknowledged that Market Alliance partners in the region were being affected.
On insurance-related dynamics, Guerin said in recent months the inflation differential between automotive repair costs and used vehicle prices “has widened slightly,” which he said continues to support an increase in the total loss ratio. He cited CCC Intelligent Solutions estimates that total loss frequency across all categories increased by 70 basis points to 23.6% versus the prior-year period. Rathod told analysts RB Global was “not noticing any dramatic shifts in terms of claim frequency,” while also noting the company would not comment on any specific insurance providers.
Kessler also pointed to improved gross returns—measured as salvage values as a percentage of pre-accident cash value—which he said helped support “approximately 10% year-over-year growth in U.S. insurance average selling prices.” Rathod attributed the higher U.S. insurance ASPs to marketplace strength and buyer-focused improvements, including website enhancements, more descriptive listings, and auction format optimization.
Kessler said unit volumes increased 1% year over year, marking the “fifth consecutive quarter of outperformance relative to the broader market,” and added that the company exceeded service level commitments again. He also said an “agreement in principle” with one of RB Global’s largest partners that was discussed last quarter “has now been fully executed,” which Guerin confirmed during the Q&A.
Service revenue take rate declined; profitability improved
Guerin said service revenue increased 5% in the quarter, driven by higher GTV, but partially offset by a lower service revenue take rate. The take rate declined 160 basis points year-over-year to 20.7%. Guerin said part of the decline was “optical,” reflecting a mix shift toward higher average selling price assets and RB Global’s regressive buyer fee schedule, in which higher-priced assets fall into lower percentage fee tiers. He also cited additional impacts from recent acquisitions and divestments.
Despite the take-rate decline, adjusted EBITDA rose 11%, driven by higher GTV volumes and increased contribution from inventory returns, partially offset by the take-rate pressure. Guerin said adjusted EPS increased 13%, primarily due to higher operating income and lower net interest expense.
On cost controls, Guerin said RB Global expects operating leverage to be “evergreen,” though potentially “lumpy” quarter to quarter depending on the timing of investments and volume. He also noted the company built fuel-related cost headwinds into guidance and said some contracts allow pass-throughs, while others do not.
Raised 2026 outlook and strategic priorities
Guerin said RB Global is raising its 2026 outlook and now expects full-year GTV growth of 6% to 9%, with adjusted EBITDA growth of approximately 8% at the midpoint. He described 2026 as “a year of volume-led growth,” with a continued focus on growing adjusted EBITDA faster than service revenue. Management attributed the higher outlook to first-quarter performance that was “in line with our expectations, a little bit ahead,” and to confidence in execution and market share gains in both automotive and CC&T.
Kessler reiterated that RB Global intends to be selective on volumes in a competitive market, prioritizing partners aligned with the company’s culture and focusing on “tangible P&L value” for partners. He said the company’s industry leadership summit achieved record attendance, which he characterized as evidence of growing partner engagement.
In M&A commentary, Kessler said RB Global acquired Blackmon to expand into Arkansas—where the company previously lacked presence—and to gain exposure to a railroad-related sector. On BigIron, he said the company finds U.S. agriculture “very attractive,” noting it has been active in the sector in Canada for years. Executives also discussed ongoing experimentation in CC&T with reserved or “fixed price” auctions internationally. Kessler said a first-quarter pilot was successful and the company sees a large addressable market, while Guerin noted reserved auctions are expected in markets where “business is done” that way, not broadly across unreserved markets.
About RB Global NYSE: RBA
RB Global, Inc, an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; and Veritread, an online marketplace for heavy haul transport solution.
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