RB Global Q2 2025 slides: Service revenue and EBITDA growth amid mixed sector performance

RB Global Inc (NYSE:RBA) reported solid second-quarter 2025 financial results on August 6, showing growth in key metrics despite mixed performance across business segments. The company achieved 3% service revenue growth and a 6.7% increase in adjusted EBITDA, while continuing to advance strategic initiatives in its automotive business.

Quarterly Performance Highlights

RB Global demonstrated resilience in Q2 2025 with total Gross Transaction (JO:NTUJ) Value (GTV) increasing by 2% and lot volume growing by 1% compared to the same period last year. However, performance varied significantly across sectors, with automotive showing strength while other segments faced challenges.

The automotive sector emerged as a bright spot, with 9% growth in lot volume and 8% growth in GTV. This contrasted sharply with the commercial construction and transportation segment, which experienced an 18% decline in lot volume and a 6% drop in GTV. The "Other" category showed mixed results with an 11% decrease in lot volume but a 6% increase in GTV.

As shown in the following chart of sector performance:

Service revenue, a key indicator of the company’s operational performance, reached $887 million in Q2 2025, representing a 3% increase from $859 million in Q2 2024. This growth was primarily driven by higher GTV and an improved service revenue take rate, which expanded by 20 basis points to 21.1%.

The composition of service revenue showed a shift toward buyer fees, with transactional buyer revenue increasing to $561 million from $510 million a year earlier. Meanwhile, transactional seller revenue declined slightly to $241 million from $251 million, and marketplace revenue decreased to $86 million from $98 million.

The following chart illustrates these service revenue trends:

Detailed Financial Analysis

RB Global’s adjusted EBITDA reached $365 million in Q2 2025, up from $342 million in the same period last year, representing a 6.7% increase. This improvement was driven by several factors, including $20 million from GTV growth and $8 million from take rate expansion, partially offset by a $7 million increase in operating expenses.

The company’s adjusted earnings per share showed even stronger growth, rising 13.8% to $1.07 compared to $0.94 in Q2 2024. This outpaced the growth in adjusted EBITDA, suggesting improved operational efficiency and capital management.

The following chart breaks down the components contributing to adjusted EBITDA growth:

Strategic Initiatives

RB Global highlighted three key strategic developments in its Q2 presentation that position the company for future growth. First, the company achieved market share gains in the automotive sector, which aligns with the strong performance metrics reported for this segment.

Second, RB Global announced a joint venture with LKQ (NASDAQ:LKQ) Corporation in the United Kingdom (TADAWUL:4280) aimed at streamlining the distribution of green parts. This partnership represents a strategic move to strengthen the company’s position in the circular economy for automotive parts.

Third, the company successfully closed its acquisition of J.M. Wood Auction Co., expanding its capabilities in the auction space.

These strategic initiatives are summarized in the following slide:

Forward-Looking Statements

Looking ahead, RB Global updated its outlook for fiscal year 2025, projecting GTV growth between 0% and 3%, though management expects results to be at the lower end of this range. The company anticipates continued market share gains but noted that the guidance does not factor in significant GTV from catastrophic events.

Adjusted EBITDA is projected to reach between $1,340 million and $1,370 million for the full year, with growth driven by operational excellence initiatives alongside prudent growth investments. The company also reduced its forecasted tax rate to 24-27% based on year-to-date results.

Capital expenditures are expected to range from $350 million to $400 million, supporting greenfield expansion in Australia, execution of the company’s land strategy, and continued investment in technology to enhance customer experience and operational efficiency.

The detailed 2025 outlook is presented in the following slide:

RB Global’s Q2 2025 results demonstrate the company’s ability to generate growth in key financial metrics despite headwinds in certain business segments. The strong performance in the automotive sector, coupled with strategic initiatives like the LKQ joint venture and the J.M. Wood acquisition, position the company to continue its growth trajectory. However, challenges in the commercial construction and transportation segment highlight the importance of the company’s diversified business model in navigating varying market conditions.

With the stock closing at $109.58 on August 6, 2025, down 0.82% for the day, investors appear to be taking a measured view of the company’s performance and outlook. The stock has traded between $77.08 and $111.71 over the past 52 weeks, suggesting that the market has generally responded positively to RB Global’s strategic direction and financial results.

Full presentation:

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