Key Takeaways:
RB Global (NYSE: RBA) reported a 16% year-over-year increase in adjusted EBITDA for the third quarter of 2025, prompting the company to raise its full-year earnings forecast.
"Our disciplined execution was evident again in the quarter, with adjusted EBITDA increasing 16% on a 7% increase in gross transactional value," Chief Executive Officer James Kessler said on the company's earnings call.
The commercial asset marketplace saw total gross transaction value (GTV) grow 7%, supported by a 6% rise in the automotive segment and a 14% increase in commercial construction and transportation, excluding the impact of the Yellow Corporation bankruptcy. Service revenue grew 8%, while adjusted earnings per share jumped 31%, helped by lower interest expenses and a reduced tax rate.
The strong performance led RB Global to lift its full-year 2025 adjusted EBITDA guidance to a new range of $1.35 billion to $1.38 billion. The company narrowed its GTV growth forecast for the year to between 0% and 1%, citing a tough comparison with a significant catastrophe-related event in the fourth quarter of 2024.
A key development was the expansion of its partnership with the U.S. General Services Administration (GSA). RB Global will now provide disposition services for approximately 35,000 vehicles annually, an end-to-end solution that builds on its existing five-year relationship with the agency. The company expects to reach the full run rate for this new service in the second quarter of 2026.
"This competitive win underscores the strength of our platform and the unmatched value we deliver to our customers and partners," Kessler said, highlighting the company's marketplace breadth and physical footprint as key differentiators.
In addition to organic growth, RB Global announced the acquisition of Smith Broughton Auctioneers and Allied Equipment Sales in Western Australia for approximately $38 million. The move is intended to strengthen its geographic footprint in the region. The company also detailed a new operating model that is expected to generate over $25 million in annualized run-rate savings by the second quarter of 2026.
The guidance increase and strategic initiatives suggest management is confident in its ability to drive growth despite macroeconomic uncertainty. Investors will watch for the integration of the new acquisitions and the ramp-up of the GSA contract in the coming quarters.
This article is for informational purposes only and does not constitute investment advice.
