Key Morningstar Metrics for RB Global
- : C$142.00Fair Value Estimate
- : ★★★Morningstar Rating
- : NarrowMorningstar Economic Moat Rating
- : MediumMorningstar Uncertainty Rating
What We Thought of RB Global’s Earnings
RB Global RBA posted 11% revenue growth to USD 1.3 billion in its second quarter, but services only grew 5% to USD 933 million. Adjusted EBITDA and earnings per share each grew 6%, to USD 387 million and USD 1.13, respectively.
Why it matters: The company increased its 2026 guidance for gross transaction value growth to 9%-11% from 6%-9%. However, adjusted EBITDA guidance barely moved, as lower-margin inventory sales were a bigger proportion of the mix.
- The automotive segment saw healthy 13% growth in GTV. Management called out higher average prices per vehicle sold, market share gains, and improved presence with its top insurance company customer. However, the lower services take rate is somewhat disappointing.
- Performance was murkier in the newly relabeled heavy equipment and transportation segment. GTV increased 8%, but management indicated this was mostly due to acquisitions, and transaction volume declined due to “a more cautious customer environment.”
The bottom line: We are increasing our fair value estimate for narrow-moat RB Global to USD 104/C$142 per share from USD 103/C$140 on the updated guidance and a moderately more conservative view on service take rates in our forecast.
- The GTV dynamics in automotive are positive and relatively straightforward, but the situation in HE&T strikes us as odd, given strong performance at construction equipment manufacturers and equipment rental companies, where we would have expected volume sold in auction channels to be better.
