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.
Is now the time to buy RBA? Find out in our full research report (it’s free).
RB Global (RBA) Q2 CY2025 Highlights:
- Revenue: $1.19 billion vs analyst estimates of $1.12 billion (8.2% year-on-year growth, 5.8% beat)
- Adjusted EPS: $1.07 vs analyst estimates of $0.96 (11.9% beat)
- Adjusted EBITDA: $364.5 million vs analyst estimates of $338.3 million (30.7% margin, 7.8% beat)
- EBITDA guidance for the full year is $1.36 billion at the midpoint, in line with analyst expectations
- Operating Margin: 15.9%, down from 18.4% in the same quarter last year
- Market Capitalization: $21.64 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 Q2 Earnings Call
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Sabahat Khan (RBC): Asked about the cautious EBITDA guidance despite outperformance in Q2. CFO Eric Guerin stressed that ongoing partner hesitancy and uncertainty around mega projects warranted a conservative approach, with guidance reflecting expected growth acceleration in the second half.
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Steven Hansen (Raymond James): Queried the M&A pipeline following the J.M. Wood acquisition. CEO Jim Kessler said the company sees ample opportunity for complementary tuck-in deals, particularly in salvage and international segments, and will remain focused on core transaction services.
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Krista Friesen (CIBC): Requested an update on Australia’s IAA launch. Kessler confirmed the first cars would be processed within 10 days and noted the infrastructure is in place for future market share gains.
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Craig Kennison (Baird): Inquired about trends in uninsured motorists and their effect on volumes. Kessler responded that there has been no significant impact on the company’s results, as the issue is more relevant for repairable claims.
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Michael Feniger (Bank of America): Asked about the sustainability of GTV trends in commercial construction. Guerin stated that the Q2 improvement (excluding Yellow bankruptcy effects) is expected to continue into Q3, but growth remains cautious given the unpredictable impact of weather and industry-specific factors.
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 $116.61, up from $108.68 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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