RB Global, Inc. Q4 2025 Earnings Call Summary

• Performance was characterized by disciplined execution and selective contracting, prioritizing long-term partner stickiness and scale over short-term gains.

• Automotive sector outpaced the broader market for the fourth consecutive quarter, supported by an 8% increase in unit volumes when excluding prior-year catastrophic events.

• Management secured a multi-year renewal with one of its two largest partners and reached an agreement in principle with the other, providing long-term volume visibility.

• The narrowing inflation differential between vehicle repair costs and used car pricing supported a 10 basis point increase in total loss frequency to 24.2%.

• Commercial construction and transportation (CC&T) showed early signs of recovery as seller confidence improved alongside stabilizing equipment values and lower interest rates.

• Strategic focus remains on driving operating leverage by translating incremental transaction volumes into EBITDA growth through tight cost management.

• Full-year 2026 GTV is projected to grow between 5% and 8%, driven by expected market share gains and a robust RFP pipeline from prospective partners.

• The company plans the 2026 rollout of the IAA Total Loss Predictor, an AI tool designed to enable dynamic vehicle routing and reduce carrier storage and rental costs.

• Management expects 2026 to be a year of volume-led growth, acknowledging that service revenue take rates may face modest pressure due to contract mix and unit economics.

• International expansion will focus on a new ‘reserved auction’ format to better align with local market cultures in Germany and the Nordics.

• Capital expenditures for 2026 are guided between $350 million and $400 million, with approximately one-third allocated to technology and two-thirds to physical assets.

• The 2025 results included a higher mix of remarketed vehicles which partially offset strength in U.S. insurance vehicle pricing.

• Management highlighted that while AI is an enabler for efficiency, the business’s physical infrastructure and 70 years of proprietary data serve as a defensive moat against disruption.

• Net debt-to-adjusted EBITDA ended the period at 1.4x, providing flexibility for potential tuck-in acquisitions or future share repurchases.

• The 2025 tax rate was lower than previous guidance due to discrete deductions captured in the 2024 U.S. federal tax return.

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