RB Global’s first quarter results were well received by the market, as both revenue and adjusted earnings surpassed Wall Street’s expectations. Management attributed this outperformance primarily to robust growth in the automotive salvage segment and the successful integration of value-added services. CEO Jim Kessler pointed to a recent acquisition and continued investment in operational efficiency as key contributors, highlighting, “Our disciplined execution was evident again in this quarter.” The company also benefited from a higher service revenue take rate, which helped offset declines in commercial construction and transportation volumes.
Is now the time to buy RBA? Find out in our full research report (it’s free).
RB Global (RBA) Q1 CY2025 Highlights:
- Revenue: $1.11 billion vs analyst estimates of $1.04 billion (4.1% year-on-year growth, 6.9% beat)
- Adjusted EPS: $0.89 vs analyst estimates of $0.82 (9.1% beat)
- Adjusted EBITDA: $327.9 million vs analyst estimates of $307.4 million (29.6% margin, 6.7% beat)
- EBITDA guidance for the full year is $1.35 billion at the midpoint, above analyst estimates of $1.34 billion
- Operating Margin: 17.1%, down from 18.7% in the same quarter last year
- Market Capitalization: $19.6 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 RB Global’s Q1 Earnings Call
- Sabahat Khan (RBC Capital Markets) asked about customer hesitancy in the commercial segment and whether this could change as macro clarity improves. CEO Jim Kessler explained that customers are weighing new equipment investments versus asset dispositions, driven by interest rates and project pipelines.
- Sabahat Khan (RBC Capital Markets) inquired about the scale and operational setup for the new UK insurance contract. Kessler clarified that existing UK infrastructure supports the deal, requiring minimal incremental investment, and described the client as a top-tier insurance carrier.
- Krista Friesen (CIBC) requested quantification of automotive salvage market share gains. Kessler declined to provide specifics but pointed to previously announced insurance carrier wins now flowing through to results.
- Michael Feniger (Bank of America) sought clarification on the outlook for gross transaction value (GTV) and the impact of customer hesitancy. CFO Eric Guerin indicated that the company expects stronger performance in the second half of the year.
- Craig Kennison (Baird) asked about potential synergies from the J.M. Wood acquisition and whether this could serve as a template for future deals. Kessler responded that the acquisition strategy focuses on leveraging scale, technology, and back-office integration to unlock value.
Catalysts in Upcoming Quarters
In the coming quarters, our team will be watching (1) the integration and initial contributions from the J.M. Wood acquisition, (2) the pace of customer adoption in new automotive salvage contracts, particularly in the UK and Australia, and (3) trends in commercial construction and transportation volumes as macro and trade policy conditions evolve. Further evidence of service revenue take rate expansion and operational efficiency gains will also be important markers.
RB Global currently trades at $105.84, up from $102.28 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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