RB Global’s third quarter results surpassed Wall Street’s revenue and non-GAAP profit expectations, reflecting disciplined execution and operational improvements across its core commercial asset marketplace. Management pointed to strong momentum in the automotive sector, marked by a 9% increase in unit volumes and continued market share gains. CEO James Kessler highlighted the expansion of the company’s partnership with the U.S. General Services Administration (GSA) as a pivotal development, noting, "Our disciplined execution was evident again in the quarter, with adjusted EBITDA increasing 16% on a 7% increase in gross transactional value."
Is now the time to buy RBA? Find out in our full research report (it’s free for active Edge members).
RB Global (RBA) Q3 CY2025 Highlights:
- Revenue: $1.09 billion vs analyst estimates of $1.06 billion (11.3% year-on-year growth, 3.4% beat)
- Adjusted EPS: $0.93 vs analyst estimates of $0.79 (17.3% beat)
- Adjusted EBITDA: $327.7 million vs analyst estimates of $302.8 million (30% margin, 8.2% beat)
- EBITDA guidance for the full year is $1.37 billion at the midpoint, in line with analyst expectations
- Operating Margin: 14.5%, down from 15.6% in the same quarter last year
- Market Capitalization: $18.93 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From RB Global’s Q3 Earnings Call
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Sabahat Khan (RBC Capital Markets) asked about the factors behind the updated full-year guidance. CFO Eric Guerin explained the narrowing of GTV guidance was due to increased forecast clarity, while the EBITDA guidance reflected early savings from the new operating model.
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Steven Hansen (Raymond James) inquired about the strategic rationale for the Western Australia acquisition. CEO James Kessler emphasized the expansion into previously underserved geographies and the cultural fit with the acquired team.
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Krista Friesen (CIBC) questioned whether growth was concentrated in Canada and international markets. Kessler noted growth occurred across all regions, with no significant shifts in geographic performance.
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Craig Kennison (Baird) pressed for details on the more conservative Q4 outlook. Guerin cited the absence of a repeat of last year’s one-time catastrophic event in Q4 and a desire to provide more precise guidance with only one quarter remaining.
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Gary Prestopino (Barrington) sought clarification on RB Global’s exposure to the used car market and subprime credit. Kessler explained the company’s focus is on lower-value, slightly damaged vehicles, minimizing exposure to broader used car market risks.
Catalysts in Upcoming Quarters
Looking ahead, our team will be monitoring (1) the onboarding and volume realization from the expanded GSA contract, (2) the pace and effectiveness of cost savings from the new operating model, and (3) progress in integrating the Western Australia acquisitions. Additional focus will be on RB Global’s ability to manage external pressures in the construction and transportation markets while maintaining service levels and operational discipline.
RB Global currently trades at $101.97, up from $96.23 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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