What RB Global (RBA) Said on Its Q3 Earnings Call

Key Points

• RB Global raised its 2026 outlook, projecting full-year gross transaction value growth of 14%–15% and adjusted EBITDA growth of 9.7% at the midpoint. In Q3, GTV rose 20% to $4.7 billion, adjusted EBITDA increased 13%, and adjusted EPS grew 11%.
• Automotive GTV increased 18% and heavy equipment and transportation GTV rose 19%. The service revenue take rate fell 186 basis points to 19.8%, largely because of a shift toward asset types with lower percentage take rates; management expects it to be broadly consistent in Q4.
• RB Global launched Buy Now and Make Offer options as part of its One Marketplace strategy, and repurchased $350 million of shares in Q3. Year-to-date share repurchases totaled $500 million.

RB Global NYSE: RBA raised its 2026 outlook after reporting third-quarter growth in transaction values, service revenue and adjusted earnings, as automotive market share gains and equipment sales helped offset a lower service revenue take rate.

The company expects gross transaction value, or GTV, to grow 14% to 15% for the full year, with adjusted EBITDA growth of 9.7% at the midpoint of its outlook. Chief Financial Officer Steve Steinberg said the revised forecast reflects marketplace growth, operational execution and momentum from acquisitions.

Third-quarter GTV rose 20% year over year to $4.7 billion, including approximately 14% organic growth. Service revenue increased 10%, while adjusted EBITDA rose 13%. Adjusted earnings per share increased 11%, helped by higher operating income and a lower weighted-average share count, partly offset by higher net interest expense and an increased adjusted tax rate.

Automotive and Equipment Growth

Automotive GTV increased 18%, driven by higher unit volumes and selling prices, Steinberg said. The company attributed volume growth to net market share gains in salvage and growth in U.S. remarketed vehicles supported by its GSA contract. U.S. remarketed vehicles accounted for approximately 24% of total automotive unit volume.

The average price per vehicle sold rose about 8%, reflecting strength in both salvage and remarketed vehicles. Steinberg said broader salvage industry volumes remained relatively stable, citing CCC Intelligent Solutions data showing total-loss frequency was roughly flat year over year at 22.8%.

Sameer Rathod, vice president of investor relations and market intelligence, told analysts that declining inflation in private auto insurance was a favorable leading indicator. He said, however, that RB Global was not in a position to comment on whether it had seen a statistical pickup in assignments.

Heavy equipment and transportation GTV increased 19%, or 9% organically. Steinberg said organic growth was led by North American regions and international markets, particularly in unreserved auctions. Some enterprise customers held equipment longer because of stronger activity in their end markets, while others were cycling past large fleet realignments from the prior year, he said.

Take Rate and Acquisition Strategy

The company’s service revenue take rate fell 186 basis points to 19.8%. Steinberg said most of the decline reflected decisions to add asset types with lower percentage take rates, including higher-value GSA vehicles and real estate transactions associated with BigIron.

Automotive remarketing accounted for approximately 60 basis points of the decline, while acquisitions and divestitures contributed approximately 40 basis points and real estate about 30 basis points. The auto salvage take rate declined approximately 40 basis points, reflecting customer mix and commercial decisions to add profitable volume, Steinberg said.

Management expects the fourth-quarter service revenue take rate to be broadly consistent with the third quarter. Steinberg said the company focuses on growing service revenue dollars and long-term profitability rather than maintaining a particular take rate.

Chief Executive Officer Jim Kessler said RB Global has begun a multiyear process of retaining customers, adding services and integrating acquired businesses into its marketplace. He clarified that plans to harmonize take rates with historical levels apply primarily to businesses comparable to its legacy construction equipment operations, rather than every asset class.

Marketplace and Capital Allocation

RB Global recently introduced Buy Now and Make Offer options on rbauction.com, bringing fixed-price and negotiated transactions alongside auctions. Kessler described the launch as a milestone in the company’s One Marketplace strategy, which aims to connect more inventory and buyers across its platforms.

The company repurchased and retired approximately 3.9 million shares for $350 million during the quarter, bringing year-to-date repurchases to $500 million. Its adjusted net debt-to-adjusted EBITDA leverage ratio stood at 1.8 times at quarter-end, Steinberg said.

During the question-and-answer session, analysts asked about a FinCEN report and whether the company was subject to an investigation. Kessler said RB Global continually works to know its customers and guard against suspicious transactions. On the investigation question, he pointed to the company’s disclosures, saying, “If we had anything to disclose, we would disclose it.”

About RB Global (NYSE:RBA)

RB Global operates a global marketplace for commercial assets and vehicles, connecting sellers with buyers through live auctions, online platforms and other sales channels. Its offerings include asset marketing and disposition services, along with support such as inspections and transaction services.

The company serves businesses, governments and other organizations across industries including construction, transportation, agriculture, mining and energy. Through its IAA business, it also facilitates sales of salvage and used vehicles to buyers such as licensed dealers and vehicle rebuilders.

RB Global traces its roots to Ritchie Bros.

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