RB GLOBAL INC. (RBA) Q3 2025 Earnings Summary

Executive Summary

Q3 2025 was solid: revenue $1.09B (+11% y/y) and diluted adjusted EPS $0.93 (+31% y/y), with adjusted EBITDA up 16% to $327.7M on 7% GTV growth to $3.89B .
Results beat Street on EPS ($0.93 vs $0.79*), and revenue ($1.09B vs $1.05B*); EBITDA came in below S&P EBITDA consensus ($281.0M vs $302.8M*) as Street tracks unadjusted EBITDA while company emphasizes adjusted EBITDA strength .
Guidance: EBITDA raised to $1.35–$1.38B, tax rate lowered to 22–24%; GTV growth range tightened to 0–1% given tough CAT comp in Q4; capex unchanged .
Strategic catalysts: new GSA remarketing award (~35k vehicles run-rate by Q2’26), exec operating model realignment with $25M run-rate savings by Q2’26, Australia tuck-in (Smith Broughton) .

Note: Asterisk-marked consensus values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

Automotive momentum: unit volumes +9% y/y; market share gains; US insurance ASP +~2.5%; SLAs at 99.7% on-time tow and 99.8% total performance .
Take-rate expansion: service revenue take rate up 20 bps to 21.7% y/y; buyer fee rate structure supported revenue mix; adjusted EBITDA +16% y/y with margin leverage to 8.4% of GTV .
Strategic wins and initiatives: GSA award adds ~35k remarketed vehicles; operating model projected $25M run-rate savings by Q2’26; Australia expansion via Smith Broughton .

Selected quotes:

“Our newly implemented operating model brings the leaders closer to the customer and sets the stage for the next generation of growth…” — CEO Jim Kessler .
“Adjusted EBITDA increased 16%… reflects the early impact of our transformation initiatives…” — CFO Eric Guerin .

What Went Wrong

EBITDA (unadjusted) below S&P Global consensus: $281.0M actual vs $302.8M* estimate, reflecting Street’s focus on unadjusted EBITDA vs company’s adjusted EBITDA framing .
CC&T volumes: lot volumes -15% y/y (Q3), even as average price per lot improved; Yellow bankruptcy comp effects complicated sector comparisons .
Marketplace services revenue declined (transport services fees lower y/y); inventory rate down vs Q1 and Q2, though improved sequentially from Q2 .

Financial Results

Consolidated quarterly trends (oldest → newest)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$1,108.6	$1,186.0	$1,092.7
Service Revenue ($USD Millions)	$852.5	$887.2	$845.0
Inventory Sales Revenue ($USD Millions)	$256.1	$298.8	$247.7
GTV ($USD Millions)	$3,828.9	$4,198.1	$3,893.8
Net Income ($USD Millions)	$113.3	$109.7	$95.2
Net Income Available to Common ($USD Millions)	$102.9	$99.5	$80.7
Diluted EPS (GAAP) ($)	$0.55	$0.53	$0.43
Diluted Adjusted EPS ($)	$0.89	$1.07	$0.93
EBITDA ($USD Millions)	$304.3	$305.7	$281.0
Adjusted EBITDA ($USD Millions)	$327.9	$364.5	$327.7
Adjusted EBITDA / GTV (%)	8.6%	8.7%	8.4%
Service Revenue Take Rate (%)	22.3%	21.1%	21.7%
Inventory Rate (%)	8.2%	4.1%	4.7%

Q3 2025 vs Q3 2024

Metric	Q3 2024	Q3 2025
Total Revenue ($USD Millions)	$981.8	$1,092.7
Service Revenue ($USD Millions)	$779.9	$845.0
Inventory Sales Revenue ($USD Millions)	$201.9	$247.7
GTV ($USD Millions)	$3,622.2	$3,893.8
Net Income ($USD Millions)	$76.0	$95.2
Net Income Available to Common ($USD Millions)	$66.9	$80.7
Diluted EPS (GAAP) ($)	$0.36	$0.43
Diluted Adjusted EPS ($)	$0.71	$0.93
Adjusted EBITDA ($USD Millions)	$283.7	$327.7
Service Revenue Take Rate (%)	21.5%	21.7%
Inventory Rate (%)	4.2%	4.7%

Consensus vs Actual (Q3 2025)

Metric	S&P Consensus*	Actual
Primary EPS ($)	0.79312*	0.93
Revenue ($USD)	$1,054,308,120*	$1,092,700,000
EBITDA ($USD)	$302,753,340*	$281,000,000

Values retrieved from S&P Global.

Segment breakdown (GTV)

Segment GTV ($USD Millions)	Q1 2025	Q2 2025	Q3 2025
Automotive	$2,144.7	$2,161.5	$2,152.2
Commercial Construction & Transportation (CC&T)	$1,276.7	$1,523.2	$1,328.9
Other	$407.5	$513.4	$412.7
Total GTV	$3,828.9	$4,198.1	$3,893.8

KPIs and operational metrics

KPI	Q1 2025	Q2 2025	Q3 2025
Total Lots Sold (‘000s)	855.1	847.2	816.2
Automotive Lots (‘000s)	625.6	595.9	601.7
CC&T Lots (‘000s)	87.6	97.5	87.8
Other Lots (‘000s)	141.9	153.8	126.7
Service Revenue Take Rate (%)	22.3%	21.1%	21.7%
Inventory Rate (%)	8.2%	4.1%	4.7%
Adjusted EBITDA / GTV (%)	8.6%	8.7%	8.4%

Non-GAAP adjustments (Q3 2025 notable items): share-based payments $21.6M; amortization of acquired intangibles $72.7M; restructuring costs $10.2M; other legal/advisory/non-income tax $7.4M; executive transition costs $4.7M; net of tax and allocation effects .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
GTV Growth	FY 2025	0%–3%	0%–1%	Tightened/lowered top end
Adjusted EBITDA ($USD Millions)	FY 2025	$1,340–$1,370	$1,350–$1,380	Raised
Full-year Tax Rate (GAAP & Adjusted)	FY 2025	24%–27%	22%–24%	Lowered
Capital Expenditures ($USD Millions)	FY 2025	$350–$400	$350–$400	Maintained
Quarterly Dividend per Share	Q2 vs Q3 2025	$0.31 declared Aug 5 (up from $0.29 in Q1 )	$0.31 declared Nov 5	Maintained

Management reiterated that Q4 faces a difficult CAT comp (Q4’24 automotive CAT GTV ~$169M) and excludes CAT in guidance .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Operating model & efficiency	Q1: COO-driven efficiency framework; more sales events; prudent expense mgmt . Q2: EBITDA rate up; cautious macro; JV deconsolidation one-time cost .	New operating model; $25M run-rate savings by Q2’26; EBITDA rate 8.4% .	Strengthening operational leverage
Automotive performance & market share	Q1: global salvage share gains; UK Direct Line exclusive; tariffs introduced uncertainty . Q2: unit volume +9%; US insurance ASP +1%; SLAs strong .	Unit volume +9%; US insurance ASP +~2.5%; expanded SLAs; GSA award (~35k vehicles) .	Continued share gains and service excellence
CC&T sector dynamics	Q1: GTV -18%; volumes -19%; mix improved; macro caution . Q2: GTV -6%; volumes -18%; ex-Yellow volume -2% .	GTV +9% y/y (Q3); volumes -15%; mix improvement; JM Wood tailwind ~2% to overall GTV .	Mix improving; volumes cautious
Tariffs/macro & CAT	Q1: tariff uncertainty and higher rates impacting timing . Q2: continued uncertainty; CAT comp headwind flagged .	Tariff and rate uncertainty persists; CAT not assumed in guide .	Persistent macro overhang
Technology/AI tools	Q1: IAA Total Loss Predictor (AI) launched; routing optimization . Q2: multi-channel auction optimization; process improvements .	Virtual inspection platform; acceleration of cycle times and yard capacity +~25% vs pre-transaction .	Expanding tech-enabled operations
Regional expansion	Q1: UK contract (Direct Line); Australia ramp plan . Q2: Australia first cars in 10 days; global alliances .	Smith Broughton acquisition in Western Australia; new Guatemala alliance .	Broadening footprint

Management Commentary

“Our newly implemented operating model brings the leaders closer to the customer and sets the stage for the next generation of growth and shareholder value creation.” — CEO Jim Kessler .
“Adjusted EBITDA increased 16%… as adjusted EBITDA as a percentage of GTV expanded to 8.4%… underscoring our ability to drive leverage in the model as we scale.” — CFO Eric Guerin .
“We expect to provide disposition services to approximately 35,000 remarketed vehicles on an annualized run rate basis [for GSA]… reach full run rate in Q2 2026.” — CEO Jim Kessler .
“We expect that our new operating model would generate over $25 million in total run rate savings by the second quarter of 2026.” — CEO Jim Kessler .
“We have entered into a definitive agreement to acquire Smith Broughton… for approximately $38 million.” — CEO Jim Kessler and press release .

Q&A Highlights

Guidance: GTV range tightened to 0–1% (lower top end) due to CAT comp; EBITDA guide raised on operational savings beginning in Q4 .
GSA contract economics: ASPs accretive vs salvage; model differs from salvage; added services revenue streams .
CC&T trajectory: mix improvement boosted average prices; volumes still cautious; JM Wood contributed ~2% tailwind to overall GTV .
Whole-car exposure: minimal exposure to high-priced whole cars; focused on slightly damaged lower-price segment; repossessions benefit from subprime .
Operating model: not a cost-cutting exercise; reduces layers, increases customer proximity; full line-of-sight to $25M savings .

Estimates Context

EPS beat: $0.93 actual vs $0.79* consensus; revenue beat: $1.093B actual vs $1.054B* consensus; EBITDA miss: $281.0M actual vs $302.8M* consensus, noting company emphasizes adjusted EBITDA ($327.7M, +16% y/y) .
Consensus revisions likely: upward on EPS/tax-rate and possibly revenue given take-rate expansion; EBITDA consensus may recalibrate between GAAP EBITDA and adjusted EBITDA as the company guides on adjusted EBITDA .