管理層發言
Hello, everyone. Thank you for joining us, and welcome to RB Global Second Quarter 2026 Earnings Call. Operator provided instructions. I would now like to hand the call over to Sameer Rathod, Vice President, Investor Relations and Market Intelligence. Sameer, please go ahead.
Hello, and good afternoon. Thank you for joining us today to discuss our second quarter 2026 results. On the call with me are Jim Kessler, our Chief Executive Officer; and Eric Guerin, our Chief Financial Officer. The following discussion will include forward-looking statements, including projections of future earnings, business and market trends. These statements are subject to risks and uncertainties that could cause actual results to differ materially and should be considered in conjunction with the cautionary statements contained in our earnings release and periodic SEC reports. We will also discuss certain non-GAAP financial measures. For the identification of these measures, the most directly comparable GAAP financial measures and the applicable reconciliation, please see our earnings release and SEC filings. At this time, I would like to turn the call over to our CEO, Jim Kessler. Jim?
Thanks, Sameer, and good afternoon to everyone joining us today. Last quarter, we said our priorities are straightforward: continue to gain share, execute with discipline and position the business for durable long-term growth. Our second quarter results reinforce our confidence that our strategy is working. Our teams across the organization delivered another strong quarter, remaining focused on serving our partners, advancing our strategic priorities and operating with discipline. Those efforts drove 11% GTV growth and 6% adjusted EBITDA growth, underscoring the resilience of our marketplace platform and the durability of our long-term growth strategy. Turning to BigIron. We are pleased to complete our acquisition in May. BigIron establishes RB Global as a scaled, trusted global partner in the U.S. agriculture sector, creating a new growth platform. While agriculture has long been an important end market for us, particularly in Canada, BigIron significantly expands our presence in the United States with a leading marketplace that services buyers and sellers of farm equipment and agriculture real estate. BigIron brings a highly respected brand with an experienced team that has built trusted local customer relationships over decades in the U.S. agricultural Heartland. Their footprint is highly complementary to ours with limited overlap with our existing business. By combining BigIron's deep industry expertise and strong customer relationships with RB Global scale, technology capabilities and global buyer network, we believe we are well positioned to create greater value for customers while further strengthening our long-term growth profile. Just as important, this acquisition reinforces the strategy that has consistently created value at RB Global, applying our marketplace capabilities to adjacent sectors where we can drive greater liquidity, stronger customer outcomes and attractive long-term returns. Integration is off to a strong start, and our teams remain focused on executing thoughtfully by preserving the trusted local relationships and sector expertise that had made BigIron successful. BigIron significantly expands our participation in a highly attractive U.S. agriculture market, which accounts for the majority of the approximately $60 billion of annual transactional volume in North America. Roughly half of that opportunity consists of equipment with the remainder comprised of land and agricultural real estate. Note that consistent with market norms, real estate transactions carry take rates in the low single-digit range. We see three durable drivers that we believe can support our growth in this market. First, recurring equipment replacement and ongoing investment in farm productivity supports sustained transaction activity. Second, generational farm transitions, retirement and industry consolidation consistently bring quality equipment and agricultural real estate to market. And third, the market remains significantly underpenetrated by online auctions, which we believe creates meaningful opportunities to increase adoption of digital and online marketplaces over time. Together, these characteristics, combined with BigIron's strong brand awareness, create an attractive opportunity for RB Global as a scaled marketplace operator. While our presence in U.S. agriculture has historically been limited, it is a market where we have a strong track record of success in Canada. Over the past 25 years, we have built a leading agriculture marketplace in Canada through a combination of disciplined acquisition and sustained organic growth. We are a trusted partner and leading marketplace for agriculture assets there, and that experience provides what we believe is a proven playbook for expanding into a significantly larger U.S. market. BigIron immediately adds scale and strengthens our ability to apply RB Global's marketplace capabilities to another large attractive end market, reinforcing our confidence in the potential long-term growth and shareholder value creation opportunities ahead. Turning to our financial results. Our heavy equipment and transportation sector continued to demonstrate the strength and resiliency of our strategy with GTV increasing 8% year-over-year. In the first quarter, we noted early signs of pent-up supply returning to the market. While that trend persisted in selected end markets, customer decision-making became more deliberate during the second quarter, dependent on the end markets they serve. Despite this backdrop, we continue to strengthen customer engagement and advance key commercial initiatives in the competitive market. We remain focused on sales execution and positioning the business to capture incremental market share and volume if market activity and supply conditions improve. Turning to the Automotive segment. The business continues to perform well and remains one of the strongest examples of our ability to gain market share through differentiated performance. Our overdelivery against all our SLAs continues to resonate in the market. Unit volumes increased 11% year-over-year, marking our sixth consecutive quarter of outperformance relative to the broader market and reinforcing our conviction that we are well positioned to achieve net market share gains in 2026. One of the clearest proof points of our momentum is the expansion of our relationship with our largest automotive insurance partner, who we now support across all 50 states in both personal auto and commercial lines. This expansion reflects the trust we have earned, the strength of our long-standing partnership and the measurable P&L value we believe we consistently deliver. Successfully executing this expansion demonstrates both the strength and scalability of our operating platform. Within 90 days, the team successfully integrated substantial additional volume across 30 states while continuing to execute at a high level across the broader business. Service level performance remained strong and improved in certain areas, underscoring our ability to support growth through operational excellence. As we discussed, we remain disciplined in how we pursue growth. The expansion with our largest partner is a good example. It shows we can drive market share gains without compromising the discipline that defined our strategy, but that's not the only place we see room to grow. We have a proven ability to execute meaningful additional capacity within our network, and we're energized by the opportunity to put our model to work for new partners. We continue to believe our culture of drive and value to our partners' P&L is what will win new relationships. The market is competitive, and there will be pluses and minuses as we move forward, but trajectory is what matters, and we remain confident that we are well positioned to achieve the net market share gains in 2026. I will now turn the call over to Eric to review the financials and provide an update to the outlook.
Thanks, Jim. Before we begin, I wanted to highlight that we have realigned our GTV reporting sectors to better reflect how we manage and evaluate the business internally. Each sector continues to represent the assets we transact across all of our marketplace brands. Our heavy equipment and transportation sector now includes our former commercial construction and transportation sector expanded to incorporate agriculture as well as machinery assets that we previously classified under other. These include industrial support equipment, equipment attachments, assets used to support aggregate, forestry, mining and oil and gas industries. Our automotive sector remains unchanged and continues to include passenger vehicles, both salvage and remarketed. Our other sector now primarily consists of real estate, consumer, marine, rail, and aircraft assets. As a reminder, real estate transaction volumes are inherently lumpy from quarter-to-quarter. Now moving to the financial results. Total GTV increased by 11% to $4.7 billion in the second quarter. Automotive GTV grew 13% in the quarter, driven primarily by an 11% increase in unit volumes and higher average selling prices. Average price per vehicle sold was approximately 2% higher, reflecting improvement in both salvage and remarketed vehicles. Within U.S. insurance, ASP increased 4% compared to the prior year. Unit volume growth was supported by continued net market share gains, while broader industry volumes remain under pressure. Leading indicators of the total loss frequency have improved modestly in recent months. The inflation differential between automotive repair costs and used vehicle prices continues to be supportive of higher total loss frequency. Reflecting these dynamics, CCC Intelligent Solutions estimates that the total loss frequency increased 90 basis points year-over-year to 23.3%. GTV in the heavy equipment and transportation sector increased by 8% in the quarter, reflecting contributions from recent acquisitions. Excluding the impact of our recent acquisitions, total GTV increased by 7%. Moving to service revenue. It increased 5% in the quarter, driven by higher GTV, partially offset by a lower service revenue take rate. The service revenue take rate declined 110 basis points year-over-year to 20%. The decline primarily reflects changes in business and portfolio mix from acquisitions and growth in certain businesses, such as GSA, which has strong revenue per unit economics but carries lower service revenue take rates. Volume-related price incentives in automotive also contributed to the year-over-year decline in the service revenue take rate. As we have discussed, we prioritize service revenue dollars and adjusted EBITDA dollars over percentage take rates. As our business mix evolves, we believe these measures provide a better indication of underlying economics and value creation of the business. Adjusted EBITDA increased 6% in the quarter, driven by higher GTV volumes and increased contribution from inventory returns, partially offset by business mix and take rate impacts. We continue to focus on profit flow-through and adjusted EBITDA growth of 6% outpaced service revenue growth of 5%, consistent with our continued focus on operating leverage. Adjusted earnings per share increased by 6%, primarily driven by higher operating income and lower net interest expense, partially offset by a higher adjusted tax rate. Before moving to our outlook, I wanted to note that as part of our disciplined capital allocation strategy, the Board has approved a $0.02 increase to our quarterly common stock dividend, raising it to $0.33 per share. This represents an approximately 6.5% increase and reflects the strength of our cash generation and our confidence in the business. In addition, as of today, we have repurchased and retired approximately 1.4 million shares for $150 million. Together, these actions reflect our balanced and disciplined approach to capital allocation, which supports shareholder return while preserving the flexibility to invest in the long-term growth and value creation. Now moving to the outlook. We are raising our 2026 outlook and now expect gross transaction value to grow in the range of 9% to 11%, with adjusted EBITDA growth of approximately 8.6% at the midpoint. This updated outlook reflects our revised assumptions for the core business as well as expected contribution of approximately $500 million in GTV from the BigIron acquisition. Consistent with our strategy, we remain focused on generating adjusted EBITDA growth ahead of service revenue growth and continue to see 2026 as a year of volume-led growth. We remain focused on execution, productivity and delivering operating leverage. With that, let's open the call for questions.
分析師問答
Operator: Your first question comes from the line of Sabahat Khan with RBC Capital Markets.
Maybe just on the discussion around take rate and the focus on dollars. For our modeling purposes, should we assume that whether we look at H2, H1, or Q2, we have a good mix of the overall business reflected here that lets us use the current EBITDA margin as a ballpark range to build from? Or do you think waiting until year-end 2026, when BigIron is fully baked in, might be a better reflection? I'm just trying to figure out how to think about margins and what base rate to use as we build them out.
Yes. No, great question, and I'll start and then I'll pass it over to Eric if he wants to provide more detail. We're right at the earliest stages with BigIron. And as the farming season is ongoing, I don't think you're really going to see BigIron, especially with the real estate side of the equation, until a lot later as we go through this year. There are still some of the smaller acquisitions we did as we work our way through those integrations. So I don't think there's a point yet where you can look at what our resting spot is. But with that, I'll pass it over to Eric.
No, Jim, I agree. I would, to your original question, probably wait through the end of this year so we can get through the farming season, get BigIron stabilized a bit, and that should get closer to a run rate. But as I noted in the prepared remarks, we're really focused on the service revenue and our revenue per unit. So there's going to be movement. I wouldn't say that even that take rate couldn't fluctuate up or down from where we exit. But as a starting point for modeling, I would wait until the end of the year.
Great. And then maybe just for my follow-up, I think you guys have sort of evolved your capital allocation a little bit. We have more buyback activity now. Do you feel from an acquisition front, at least the bigger pieces are in place? Maybe if you can just detail out as we move past BigIron, what is the runway for M&A? And maybe just should we expect if bigger pieces are in place, is return of capital maybe a bigger part of the story going forward? And I'll pass the line.
Yes. It's a difficult question to answer because there are so many different avenues and opportunities. I would probably say our main focus is always on organic growth of what we can drive through the business. But as opportunities come up, we're always going to look at other verticals and assets that are complementary where we can add the expertise that we do. Some of that is companies raising their hand and saying it's time for them to figure out how they want to monetize. But with that, I will pass it over to Eric for any other comments.
Yes. I think as Jim indicated, and you can see from what we've done over the last year, we are really focused on investing in the core business, returning where we can to shareholders where it makes sense, and M&A. So we'll continue to flex as opportunities come up and maximize the value creation for our shareholders.
Our next question comes from the line of Steven Hansen with Raymond James.
Apologies, Steven. There was a technical delay. If you wouldn't mind starting your question again, that would be great.
Yes, sure. I'm just curious if there's any specific differences you'd highlight between BigIron and your Canadian ag franchise. And just in relation to that, what do you think really the key milestones are in terms of integrating the business outside of traditional back office stuff?
I'll start, and Eric, feel free to jump in with anything. I think the business itself from a partner and customer standpoint is very similar to what they need from liquidity and the timing of the farm-in cycle. So I think that's very common across all of our platforms. The thing that's always unique is when you buy two founder-led businesses, the founders run them slightly differently. So as you get into the back office and the community and how they do business, that's really where the difference comes. But it's something that we've done multiple times with different founders, so it's something we're used to. Eric, if you have any other additional comments, feel free.
I think the only thing I would add is we're really happy with how the integration is going. Our integration office is moving the back office of the business forward to integrate it where we can into RB Global and making sure that we continue to focus on the customer experience on the front end, to Jim's point, making sure what makes BigIron great we keep focused on, and that's the customer experience.
That's helpful. And just as a follow-up, Jim, I just wanted to go back to your comments in your prepared remarks about customer decision-making becoming more deliberate in the quarter. Is that something you're seeing carrying through into the third quarter? And where are you seeing that specifically? Is it in some of the larger equipment, smaller equipment, across the board, regionally? Just trying to get a sense for where that decision-making confidence is coming through.
It's a hard question to answer because we deal with so many different verticals and sectors of this industry. We typically don't go down to that level in terms of guidance about how we think about it or which subsegments. In our industry, there are many different decision points for why someone comes to us for their liquidation needs, and it's always hard to pinpoint when that will happen. But I think we're in a great spot when those decisions are made to be able to capture that market share like we have done in our history and like we're going to do going forward.
Our next question comes from the line of Gary Prestopino with Barrington.
A couple of questions here. You cited in the narrative that you're seeing a change in customer preference for contracts from consignment sales to inventory purchases. Is there anything going on in the market that's driving that? Or is that just kind of an anomaly, Jim?
I wouldn't call it an anomaly. We go through periods where that is more prevalent, and this happens to be one. As I mentioned, we deal in many different sectors and it's hard to narrow it down to one specific cause, but it's really a customer need more than anything else.
Okay. So nothing to do with the industry. And then just getting back to the prior question, we say customer decision-making is becoming more—what is it—deliberate was the word you used? Do you take that as being that they're pulling back, just taking longer to make a decision? What exactly does that mean?
How I would describe it is, since COVID and the cycle of new equipment pricing and disposals, we've gone through a period where lots of disposals happened. Now as you think about interest rates and broader macro uncertainty, people are very conscious of what they bought equipment for and what kind of liquidation value they need. We describe it as a blended recovery to fit their P&Ls. They're being very conscious and good stewards of their money.
Our next question comes from the line of Craig Kennison with Robert W. Baird.
I wanted to go to Slide 3. It mentions an expanded relationship with your largest automotive insurance partner, and you got to all 50 states. How many states did you have before? And when did that incremental volume begin to flow through your platform?
I don't think we're going to get into how many states we had before, but when we say 50, you can infer the scope going forward. Over the last 90 days, we've been transitioning in that incremental volume.
Okay. And then the other question I had in the same bullet, you mentioned commercial lines. Can you add more color as to what you mean by commercial lines? I assume it's not automotive, but what are some examples?
Think about trucks as the best example—heavier types of transportation. Our insurance partners often call everything but personal automotive 'commercial,' which differs from other industry uses of the term.
So these are assets owned by commercial operators, but they feel more automotive in general?
You got it. They're more rolling than heavy equipment.
Our next question comes from the line of Jeff Lick with Stephens.
Congrats on a great quarter. I was just wondering the 11% auto lot growth, maybe you could expand a little bit more beyond the — it seems like you're getting share and volume from other sources than just that one insurance customer. I wonder if you could elaborate on that whether it's GSA and Direct Line kind of kicking in more. Any details there would be great.
I'll pass that question over to Eric.
We won't go into specifics, but we are really happy with the performance. When you look at DLG and how that's performing, and what's going on in Australia with Suncorp, we're really comfortable with the unit growth across the board outside of just the one large partner we discussed on the call.
And then just maybe a little help of clarification. I think you referenced service revenue and tied it to the economics of some of the incremental business you picked up. Could you explain maybe how that manifests itself in terms of the differing economics or how promotions or whatever kind of flow through there, what that is?
When you think about GSA, my comments referred to some acquisitions having different take rates, but we're happy with the revenue per unit. For example, GSA units sell for significantly higher prices, so mathematically our take rate can appear lower, but the revenue per unit is in line with what we would expect for the services we're providing.
Our next question comes from the line of John Babcock with Barclays.
I did want to go into the take rate a little bit here. I was wondering, is this fully run rate per quarter? I assume that you probably only have a partial quarter of that big contract win. And so I wanted to get a sense for how much of the quarter reflected that contract to the extent you can comment and also whether or not there were any upfront items that may have impacted the take rate more in this quarter perhaps than we might see down the line?
This isn't the full run rate yet. BigIron is coming in, and real estate has low single-digit take rates, so you'd get closer to a normal run rate later in the year. There are opportunities for us to improve take rate, and there are opportunities like BigIron where it will impact the take rate in a negative way. So to answer your question, it is not at run rate yet; you have to wait for BigIron to be fully incorporated.
Okay. That's fair. And then just a quick follow-on here. You've obviously done well winning share with your largest insurer. Just kind of curious, as you look at this from a go-forward basis, what can you do in addition to volume incentives providing ROI to the insurers to maintain that market share. So as you get a couple of years down the line, the contract comes up for renegotiation, what do you do between here and there and then also when you get there that helps you to maintain that volume?
We stay focused on operational excellence at our yards every day, providing the highest level of service. An insurance carrier won't make a decision just based on rebate if operations are lower quality. We stay laser-focused on the value we drive to our partners' P&L, innovation, meeting SLAs, and consistency in execution for every car we get in. To be successful, we must add value to each partner, across automotive, industrial, construction, heavy equipment and transportation sectors. That focus is what differentiates us from competitors.
Our next question comes from the line of John Healy with Northcoast Research.
I guess I'll be kind of direct with this one. The biggest question we're getting from investors right now is what sort of changes might be afoot in the salvage business with a founder of a competitor returning to run the business? What do you think that does to the industry? Obviously, who knows. But I'd love to get your thoughts on this, Jim. Can you help us think about what percentage of your salvage business is contractual with firm visibility for the next couple of years? Any thoughts you could give us on renewals that are coming up, what sort of pipeline could be competed against? I'd love for you to help us understand the visibility you have into retaining business. I feel like it's a sensible question given the wins that you've gotten recently, but I'd just love to get how you guys are thinking and help investors think about that.
I don't think it's a silly question, although I can't answer all specifics. We tried to give the group insight in our last earnings call; we discussed our big contracts being renewed. If you go back and review the prior transcript, we talked about our top two being signed, which gives you an idea of stability for the company. The majority of what comes up over the next three years includes a lot of opportunities where we have the chance to gain share. We're not going to gain everything that comes up—there will be pluses and minuses—but when we talked about 2026, we see ourselves as net market share positive. If you review the prior call materials, they lay out some of the stability and why we feel good about continuing to gain share over the next two to three years.
Great. And then just on the BigIron acquisition. Obviously, ag is a huge market. I would love to get your thoughts on the incremental TAM that you guys are opening up there. And is this an asset where you may need to stand up more capacity or sales force for the next year or two? So obviously it's a good-sized operator, but I'm curious if there might be an investment phase that gets tacked on to this end market.
One thing that gets us excited about agriculture is that we think of it as global. We already have experience in Canada and a European business where this fits well, so we see agriculture as a global vertical for the company. We've grown other verticals from much smaller bases before, and that growth came with the things you mentioned: how to grow effectively and efficiently, how to train sales teams, and operational scaling. We bought BigIron to get started in the U.S. and to grow that business to the kind of share we have in our other verticals. We think there's about $30 billion of equipment in North America and about $30 billion of real estate. Given the share we have traditionally in markets we serve, we don't see any reason why we can't replicate similar results in agriculture over time.
Our next question comes from the line of Michael Feniger with Bank of America.
I realize 2026 is a year of volume-led growth. Do you see in 2027 more of that flow-through from GTV growth into EBITDA and free cash flow? Is there anything in 2026—either higher fuel or operating expenses or ramping some of these contracts—that would lower or fall out in 2027? And somewhat on this topic, in 2026 there was not a big shift higher in fees and rates. This seemed a year where RB wanted to compete on service offerings and win share, get after units and grow. I'm curious if you think any cost inflation this year could lead the industry in 2027 to take up certain fees and rates, or what we would need to see for that to happen?
I'll start and pass to Eric. One thing we weren't expecting in '26 was diesel increasing the way it did because of the geopolitical situation; we absorbed much of that in the second quarter. It's hard to predict '27 from here. Our commitment as a management team is to run the business efficiently and optimize operations. We'll evaluate whether the improvements in technology and customer experience justify increasing take rates, but any increase would have to be tied to delivering something that provides value to our partners. We also see opportunities to manage cost through AI and operational improvements to maximize flow-through to EBITDA and cash. That's a core focus for the executive team.
The detail I would provide is that our commitment is to continue creating operating leverage in the business. By definition, that means growing EBITDA faster than service revenue. While I'm not providing guidance for 2027 today, that will be our commitment and focus. Tools we might use include AI, leveraging yard capacity as volume grows, and other operational levers. Creating operating leverage within the P&L is a priority.
Our next question comes from the line of Krista Friesen with CIBC.
I was just wondering if you can give us a little bit more color on the operating environment and performance for BigIron, given where we're at in the ag equipment cycle and how you're thinking about that over the next couple of quarters here—what you're expecting?
Right now, we're head down focused on integrating the two companies and adding many of the capabilities that RB Global provides—transportation, finance and other attachments—which can help with take rate as we go forward. We're especially focused on integration while the farming season is under way, making sure we get the foundation built as we head into 2027.
Okay. Perfect. And maybe just a follow-up for me on capital allocation. This quarter you were pretty active on the buyback, dividend increase and an acquisition as well. Should we expect that kind of activity going forward, assuming your leverage stays within your target range, that we could see you doing acquisitions and buying back shares at the same time?
Yes. We'll continue to evaluate capital allocation opportunities. We have a $500 million buyback authorization in place and used $150 million of it in the second quarter, so we have remaining capacity. We'll also look at M&A opportunities as they arise. What you've seen this quarter is likely representative of how we'll approach capital allocation going forward.
Our next question comes from the line of Steven Hansen with Raymond James.
This is a general question on the Australian market. I'm curious how pleased you've been with your investments there over the past 18 months or so. You've obviously bought Smith Broughton and been ramping the Suncorp contract. Is that a market you'd anticipate scaling up further if the right opportunity came along? I'm trying to get a sense for returns in that market and the broader opportunity from a GTV standpoint.
We like the Australian market and see room for organic growth. We've been pushing for carrier wins and feel very good about all the sectors we deal with in Australia. We believe there's opportunity to scale further if the right opportunities arise.
We have reached the end of our Q&A session. I will now turn the call back to RB Global CEO, Jim Kessler, for closing remarks.
To close, I want to thank our teams across RB Global for delivering another quarter of solid execution and strong financial performance. The consistency of our results reflects the strength of our platform, the commitment of our people and the value we continue to create for customers and partners around the world. As we move through the second half of the year, we are focused on executing against a clear set of priorities: create more value for our partners, improve operating leverage and invest in the products, technology and capabilities that we believe will drive durable share gains and long-term profitable growth. We appreciate your interest in RB Global and look forward to updating you on our progress next quarter. Thank you so much.
This concludes today's call. Thank you for attending. You may now disconnect.