Commercial asset marketplace RB Global (NYSE: RBA) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 8.2% year on year to $1.19 billion. Its non-GAAP profit of $1.07 per share was 11.9% above analysts’ consensus estimates.

Is now the time to buy RBA? Find out in our full research report (it’s free).

StockStory’s Take

RB Global’s results for Q2 were well received by the market, as the company surpassed Wall Street’s revenue and non-GAAP profit expectations. Management credited continued expansion in automotive market share and a growing active buyer base as key drivers of performance. CEO Jim Kessler highlighted that unit volumes in automotive rose 9% year-over-year, reflecting strong demand and successful execution against service agreements. The company also benefited from an optimized multichannel auction format and new international partnerships, which broadened its reach and buyer diversity.

Looking forward, RB Global’s guidance is shaped by ongoing investments in technology, sales force optimization, and international growth initiatives. Management pointed to uncertainty in commercial construction and transportation markets but emphasized readiness to capture demand when macro conditions improve. CFO Eric Guerin explained that full-year EBITDA guidance assumes no contributions from unpredictable weather-related events, while Kessler stated, “We are investing in key technological initiatives and optimizing our sales force to improve the customer experience.”

Key Insights from Management’s Remarks

Management attributed Q2 results to higher automotive volumes, expanded platform capabilities, and disciplined operational execution, while ongoing macro uncertainty in construction and transportation tempered outlook for those segments.

• Automotive market share growth: RB Global saw a 9% year-over-year increase in automotive unit volumes, driven by both organic growth from existing partners and new international alliances, particularly in the U.K. and Australia. Management noted increased activity from insurance carriers and emphasized the company’s ability to consistently deliver on service-level agreements.

• Multichannel auction optimization: The company continued to refine its multichannel auction strategy, allowing it to drive higher average selling prices and support premium price performance, especially within its U.S. insurance segment. This approach, combined with targeted investments in digital capabilities, led to higher salvage values as a percentage of pre-accident cash value.

• International expansion: RB Global successfully launched new operations in Australia and formed a joint venture with LKQ Corporation in the U.K., which will see its automotive parts business operated jointly and its salvage auction business rebranded as IAA. Management expects these moves to streamline distribution and enhance customer experience.

• Commercial construction and transportation headwinds: Gross transactional value (GTV) declined 6% in the construction and transportation sector due to lower volumes, although asset mix improvements lifted average selling prices. Management cited last year’s aged fleet releases and the Yellow Corporation bankruptcy as unique factors that benefitted the prior-year comparison.

• Service revenue and take rate improvement: Service revenue increased 3%, supported by a higher service revenue take rate (21.1%) due to a higher average buyer fee structure and ongoing optimization of marketplace services, partially offset by commission rate declines.

Drivers of Future Performance

RB Global’s outlook emphasizes continued investment in technology and operational efficiency, while macroeconomic conditions and industry-specific trends will influence volume growth and margins.

• Uncertain construction and transportation demand: Management cautioned that customers in commercial construction and transportation remain hesitant amid higher interest rates and evolving trade policies. While optimism exists around future mega projects, CFO Eric Guerin noted that guidance is conservative and does not assume a rebound in the second half of the year.

• Weather event unpredictability: Full-year guidance excludes contributions from catastrophic (cat) weather events—such as hurricanes or floods—because of their unpredictable impact. Management highlighted that last year’s cat event volumes created a difficult comparison for Q4 and that no such volume is assumed for this year, introducing variability into growth forecasts.

• Focus on digital and sales force initiatives: The company is investing in technology upgrades, optimizing its territory manager network, and piloting new blended recovery solutions for partners. These efforts are designed to sustain long-term growth, improve customer experience, and differentiate RB Global from competitors, especially as new geographies like Australia come online.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be watching (1) execution of the Australia rollout and early volume trends, (2) progress on integrating and scaling the LKQ SYNETIQ joint venture in the U.K., and (3) signs of demand recovery in commercial construction and transportation as macro conditions evolve. Additionally, we will track how digital platform enhancements and sales force optimization affect customer engagement and service revenue.

RB Global currently trades at $117.60, up from $108.68 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

Stocks That Trumped Tariffs

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.