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1. Company Snapshot

1.a. Company Description

Ritchie Bros.Auctioneers Incorporated, an asset management and disposition company, sells industrial equipment and other durable assets through its unreserved auctions, online marketplaces, listing services, and private brokerage services.It sells a range of used and unused commercial assets, including earthmoving equipment, truck tractors and trailers, government surplus, oil and gas equipment, and other industrial assets, as well as construction and heavy machinery.


The company also offers live auction events with online bidding.It sells used equipment to its customers through live unreserved auctions at 40 auction sites worldwide.The company serves construction, transportation, agriculture, energy, oil and gas, mining, and forestry sectors.


It operates in the United States, Canada, Australia, the United Arab Emirates, the Netherlands, Europe, the Middle East, Asia, and internationally.Ritchie Bros.Auctioneers Incorporated was founded in 1958 and is headquartered in Burnaby, Canada.

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1.b. Last Insights on RBA

Recent positive drivers behind Ritchie Bros. Auctioneers Incorporated's performance include: * Acquisition of IAA, which has boosted adjusted EBITDA and EPS despite lower revenue, setting the stage for future profitable growth. * Operational efficiencies, which have improved margins and supported a one-year price target 10.36% above the current price. * Strong Q3 earnings, beating the Zacks Consensus Estimate of $0.62 per share, with earnings of $0.71 per share. * Growing optimism about its earnings prospects, reflected by its upgrade to a Zacks Rank #1 (Strong Buy). * Momentum from its strong Q3 earnings and acquisition-driven growth, making it a great stock pick for momentum investors.

1.c. Company Highlights

2. RB Global's Strong 2025 Results and Promising 2026 Outlook

RB Global reported a robust financial performance in 2025, with adjusted EBITDA increasing 7% driven by a 2% growth in gross transaction value (GTV). The company's adjusted EBITDA margin expanded, reflecting its continued focus on operational efficiency and cost management. Earnings per share (EPS) came in at $1.11, beating analyst estimates of $0.99. Revenue growth is expected to continue in 2026, with GTV expected to grow between 5% and 8%, and adjusted EBITDA expected to increase by approximately 7% at the midpoint.

Publication Date: Feb -20

📋 Highlights
  • Adjusted EBITDA Growth: Increased 10% in 2025, driven by 4% gross transaction value (GTV) growth and tight cost management.
  • GTV Performance: Full-year GTV rose 2%, with automotive sector gains offsetting CC&T sector cyclical declines.
  • 2026 Outlook: Targets 5–8% GTV growth and $1.47B–$1.53B adjusted EBITDA (7% growth at midpoint), reflecting market share gains.
  • Operational Efficiency: Service revenue take rate expansion and higher inventory returns boosted 2025 adjusted EBITDA by 7% despite flat GTV.
  • Capital Allocation: 2026 plans allocate 2/3 to PP&E and 1/3 to technology, supporting market share growth via new contracts and AI-driven solutions.

Operational Highlights

The company's operational performance was driven by new wins in its automotive sector, partially offset by cyclical pressure in its commercial and consumer (CC&T) sector. The company is seeing early signs of improvement in the CC&T sector, with partners discussing potential future opportunities. RB Global's focus on service revenue growth and operational excellence is expected to continue in 2026, with a goal of efficiently translating incremental volume into EBITDA growth.

Valuation and Growth Expectations

With a P/E Ratio of 44.86 and an EV/EBITDA ratio of 16.08, the market is pricing in a certain level of growth for RB Global. Analysts estimate revenue growth at 6.1% next year, which is within the company's guidance range. The company's return on invested capital (ROIC) is 6.29%, and its return on equity (ROE) is 7.39%, indicating a reasonable return on capital employed. As Jim Kessler mentioned, "2025 was a year of disciplined execution and deliberate strategic progress at RB Global," which is reflected in the company's financial performance.

Outlook and Investment Considerations

RB Global's strong 2025 results and promising 2026 outlook make it an attractive investment opportunity. The company's focus on operational excellence, service revenue growth, and strategic investments is expected to drive long-term shareholder value. With a Net Debt / EBITDA ratio of 2.49, the company's leverage is manageable, and its Free Cash Flow Yield is 3.77%, indicating a reasonable cash return. Overall, RB Global's financial performance, operational highlights, and growth expectations make it a stock worth considering.

3. NewsRoom

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RB Global Q4 Earnings Call Highlights

Feb -19

Source: defenseworld.net

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RB Global (NYSE:RBA) Shares Gap Up Following Better-Than-Expected Earnings

Feb -19

Source: defenseworld.net

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RB Global, Inc. (RBA) Q4 2025 Earnings Call Transcript

Feb -18

Source: seekingalpha.com

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RB Global (RBA) Q4 Earnings and Revenues Top Estimates

Feb -17

Source: zacks.com

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RB Global Reports Fourth Quarter and Full Year 2025 Results

Feb -17

Source: businesswire.com

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RB Global, Inc. $RBA Shares Acquired by Cidel Asset Management Inc.

Feb -15

Source: defenseworld.net

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Caprock Group LLC Acquires New Stake in RB Global, Inc. $RBA

Feb -14

Source: defenseworld.net

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Are Business Services Stocks Lagging RB Global, Inc. (RBA) This Year?

Feb -10

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.96%)

6. Segments

Buyer Fees

Expected Growth: 0.8%

Ritchie Bros. Auctioneers' 0.8% growth in Buyer Fees is driven by increasing online auction participation, expansion into new markets, and a rise in average selling prices. Additionally, the company's strategic investments in digital platforms and services have improved the buyer experience, leading to higher transaction volumes and fees.

Inventory Sales

Expected Growth: 1.2%

Ritchie Bros. Auctioneers' 1.2% inventory sales growth is driven by increasing demand for used heavy equipment and trucks, expansion into new markets, and strategic acquisitions. Additionally, the company's online platform and data analytics capabilities have improved customer experience, leading to higher sales volumes and prices. Furthermore, a strong brand reputation and extensive network of buyers and sellers have contributed to the growth.

Commissions

Expected Growth: 0.9%

Commissions from Ritchie Bros. Auctioneers Incorporated grew 0.9% driven by increased auction volumes, higher equipment prices, and expansion into new markets. Additionally, the company's strategic partnerships and investments in digital platforms contributed to the growth, enhancing the customer experience and increasing online bidding activity.

Marketplace Services

Expected Growth: 1.1%

Ritchie Bros. Auctioneers' Marketplace Services growth of 1.1% is driven by increasing online adoption, expansion of equipment listings, and growing demand for used heavy equipment and trucks. Additionally, the company's strategic partnerships, investments in digital platforms, and enhanced customer experience contribute to the segment's growth.

7. Detailed Products

Live Auctions

Ritchie Bros. conducts live auctions at its permanent auction sites and temporary auction sites, featuring a wide range of equipment and trucks.

Timed Auctions

Ritchie Bros. offers timed auctions, which allow buyers to bid on equipment and trucks over a set period of time.

IronPlanet

IronPlanet is an online marketplace that provides a platform for buying and selling of used equipment and trucks.

Marketplace-E

Marketplace-E is an online platform that allows buyers and sellers to negotiate prices and terms of equipment and truck sales.

Ritchie Bros. Asset Solutions

Ritchie Bros. Asset Solutions provides a range of services, including asset valuation, consulting, and disposition, to help companies manage their equipment and truck fleets.

8. Ritchie Bros. Auctioneers Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is low for Ritchie Bros. Auctioneers Incorporated because the company has a strong brand presence and a large customer base, making it difficult for substitutes to enter the market.

Bargaining Power Of Customers

The bargaining power of customers is medium for Ritchie Bros. Auctioneers Incorporated because while customers have some negotiating power, the company's strong brand and large market share limit their ability to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Ritchie Bros. Auctioneers Incorporated because the company has a diverse supplier base and is not heavily reliant on any one supplier, giving it negotiating power.

Threat Of New Entrants

The threat of new entrants is low for Ritchie Bros. Auctioneers Incorporated because the company has a strong brand presence and a large market share, making it difficult for new entrants to gain traction.

Intensity Of Rivalry

The intensity of rivalry is high for Ritchie Bros. Auctioneers Incorporated because the company operates in a competitive industry with several established players, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.94%
Debt Cost 6.39%
Equity Weight 62.06%
Equity Cost 8.34%
WACC 7.60%
Leverage 61.12%

11. Quality Control: Ritchie Bros. Auctioneers Incorporated passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Ritchie Bros Auctioneers

A-Score: 5.7/10

Value: 2.1

Growth: 7.6

Quality: 5.6

Yield: 3.0

Momentum: 7.0

Volatility: 9.0

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Secure Energy Services

A-Score: 5.4/10

Value: 3.8

Growth: 8.3

Quality: 3.5

Yield: 2.0

Momentum: 8.0

Volatility: 6.7

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ABM Industries

A-Score: 5.1/10

Value: 6.1

Growth: 5.7

Quality: 5.4

Yield: 4.0

Momentum: 1.5

Volatility: 7.7

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Aramark

A-Score: 4.9/10

Value: 4.6

Growth: 5.9

Quality: 3.4

Yield: 2.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
UniFirst

A-Score: 4.6/10

Value: 5.7

Growth: 5.2

Quality: 6.2

Yield: 1.0

Momentum: 2.5

Volatility: 7.0

1-Year Total Return ->

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CBIZ

A-Score: 3.8/10

Value: 4.9

Growth: 5.2

Quality: 5.6

Yield: 0.0

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

101.43$

Current Price

101.44$

Potential

-0.00%

Expected Cash-Flows