RBA changes
Pick any two versions below to diff them.
- Price
- CA$119.32 → CA$136.18(+14.1%)
- Discount category
- Below intrinsic value → Close to intrinsic value
- Next earnings
- Nov 9, 2026 → Feb 9, 2027
- Next earnings is estimate
- No → Yes
- About
- RB Global runs online and live marketplaces where sellers sell used vehicles and heavy equipment to buyers around the world. Its main brands are Ritchie Bros. for heavy equipment and IAA for damaged and total-loss vehicles, most of which come from insurance companies. Other brands include BigIron for farm equipment, Rouse Services for equipment data and SmartEquip for parts. RB Global earns fees from buyers and sellers on each sale (service revenue), and it also buys and resells some equipment itself (inventory sales). Gross transaction value (GTV), the total value of goods sold on its marketplaces, was removed: $9.0 added: $13.7 billion in the first removed: half added: nine months of 2026. Its advantage is the size of its buyer network, which helps sellers get good prices and brings more sellers. The company has its head office in Westchester, Illinois, and trades on the NYSE and the TSX.
- Thesis
- The market prices RB Global for lower fees per sale and for removed: weak volumes in heavy equipment. added: the debt that it uses to buy back shares. The service revenue take rate fell to removed: 20.0% added: 19.8% in removed: Q2 added: Q3 2026 from removed: 21.1% added: 21.7% a year earlier, because acquired businesses removed: charge added: and real estate sales have lower fees and because removed: of price incentives to large automotive removed: sellers. Without acquisitions, heavy equipment GTV fell slightly in Q2 2026 as customers were more cautious, mainly in Canada. Net added: remarketing grows fast. Adjusted net debt rose to removed: $2.38 added: $2.66 billion at removed: June added: September 30, 2026, added: or 1.8 times adjusted EBITDA, from 1.4 times a year earlier, after the $316.6 million purchase of removed: BigIron, added: BigIron and removed: the added: $500.0 million of buybacks in 2026. The company added: also changed its CFO and COO on October 8, 2026. added: Volumes are strong: GTV rose 20% in Q3 2026, and 14% without acquisitions, and the company raised its 2026 outlook to GTV growth of 14% to 15% and adjusted EBITDA of $1,525 million to $1,545 million. For the gap to close, three things must be true. removed: GTV growth must stay at 9% to 11% for 2026, and adjusted added: Adjusted EBITDA must reach the removed: high end of added: 2026 outlook, and the removed: $1,495 million to $1,545 million range, as the company said on October 8, 2026. added: 2027 outlook must show more growth. The take rate must become stable as the removed: automotive incentives added: acquisitions and the removed: acquisitions added: automotive mix are fully in the base. Free cash flow must pay for the removed: larger added: remaining $500 million of the buyback program removed: of $1 billion while leverage removed: stays near added: falls back toward 1.6 times adjusted EBITDA. The removed: Q3 2026 report on November 9, 2026, gives the first test. The full-year report and the 2027 outlook in February 2027 removed: give added: are the removed: second. added: next test. If these checks pass, the gap can close over the next three to five quarters. The main reason it may not close is a longer drop in used heavy equipment sales, which depends on construction and freight activity.
- Risks
- The service revenue take rate fell removed: 110 added: 186 basis points in removed: Q2 2026. Price incentives added: Q3 2026, to removed: large insurance and automotive sellers, and acquired added: 19.8%. Acquired businesses with lower fees, added: real estate sales and growth in automotive remarketing can keep it falling and slow profit growth. Heavy equipment volumes depend on construction, freight and farm activity. removed: Without acquisitions, heavy added: Heavy equipment GTV removed: fell slightly added: rose 19% in removed: Q2 2026, added: Q3 2026 with removed: lower volumes added: acquisitions, after a small fall without acquisitions in removed: Canada. added: Q2 2026. A removed: longer downturn lowers fees and inventory returns. The company changed its CFO and COO in October 2026 and had removed: $47.9 added: $43.2 million of executive transition costs in the 12 months to removed: June added: September 30, 2026. More changes at the top can slow the execution of its plans. added: Leverage rose to 1.8 times adjusted EBITDA at September 30, 2026, from 1.4 times a year earlier, because the company borrowed for BigIron and for buybacks. Most of the bank debt has variable interest rates. Holders of the Series A senior preferred shares can raise the preferred dividend to 7.50% from 5.5% from February 2027. This raises the cost of the preferred shares unless the company converts or redeems them.
- Balance sheet
- Cash: removed: $525M added: $512M Debt: removed: $2.9B added: $3.2B Net debt: removed: $2.4B added: $2.7B EBITDA, last 12 months: $1.5B Net debt / EBITDA: removed: 1.6× added: 1.8× (low) Interest cover: removed: 5.1× added: 4.9× Undrawn credit line: removed: $686M, added: $400M, to April 2030 Debt due within 12 months: removed: $70M added: $61M Last debt due: 2031 RB Global funds itself with bank loans, notes and convertible preferred shares. At removed: June added: September 30, 2026, debt principal was removed: $2.92 added: $3.19 billion: Term Loan A loans of removed: $971 added: $958 million and revolving loans of removed: $599 added: $883 million under a credit agreement that runs to April 2030, $550 million of 6.75% senior secured notes due March 2028, and $800 million of 7.75% senior unsecured notes due March 2031. Debt rose from removed: $2.49 added: $2.92 billion at removed: December 31, 2025, mainly added: June 30, 2026, because added: revolving loans rose by $284 million in Q3 2026, when the company removed: borrowed $300 added: bought back $350.0 million removed: for BigIron. added: of shares. Cash was removed: $525 added: $512 million, not counting removed: $131 added: $121 million of restricted cash. Adjusted net debt was removed: 1.6 added: $2.66 billion, or 1.8 times adjusted EBITDA of removed: $1,457 added: $1,500 million over the 12 months to removed: June added: September 30, 2026, up from removed: 1.5 added: 1.4 times a year earlier. Undrawn revolving commitments were removed: $685.5 added: $399.8 million. Interest cover is operating income divided by interest expense for the first removed: half added: nine months of 2026. The company added: met all covenants at September 30, 2026. It also has Series A senior preferred shares with a 5.5% dividend, convertible into common shares at $71.58 per share. As of removed: Jun added: Sep 30, 2026.
- Checkpoints
- Nov 9, 2026: Q3 2026 results: GTV and take rate. removed: Pending. added: Passed. Watch: GTV growth near 10% with a stable take rate and the 2026 outlook kept at the high end pass; a lower outlook or a further large fall in the take rate fails. added: Outcome: GTV rose 20% and the company raised its 2026 outlook, while the take rate was 19.8%, close to 20.0% in Q2 2026 but down from 21.7% a year earlier. Feb added: 9, 2027 (estimate): Full-year 2026 results and 2027 outlook. Pending. Watch: Adjusted EBITDA removed: near added: within the removed: top of the $1,495 added: $1,525 million to $1,545 million removed: range and added: range, a 2027 outlook for growth in heavy equipment volumes added: and lower leverage pass; a removed: miss or added: miss, a flat outlook added: or higher leverage fails.
- Recent events
- added: Nov 9, 2026: RB Global reported Q3 2026 results. GTV rose 20% to $4.7 billion, and 14% without acquisitions. Total revenue rose 17% to $1.3 billion. Diluted adjusted EPS rose 11% to $1.03, and adjusted EBITDA rose 13% to $370.9 million. The service revenue take rate fell to 19.8% from 21.7%. The company bought back 3.9 million shares for $350.0 million in the quarter. It raised its 2026 outlook to GTV growth of 14% to 15%, from 9% to 11%, and to adjusted EBITDA of $1,525 million to $1,545 million, from $1,495 million to $1,545 million. On November 6, 2026, it declared a quarterly dividend of $0.33 per share. Oct 8, 2026: RB Global promoted Steve Steinberg to CFO and named new leaders for strategy, heavy equipment in North America, and automotive. CFO Eric Guerin and COO Steve Lewis are leaving the company. RB Global said it expects 2026 results at the high end of its outlook of 9% to 11% GTV growth and adjusted EBITDA of $1,495 million to $1,545 million. Sep 15, 2026: RB Global increased its normal course issuer bid to up to $1 billion of shares, from $500 million. By September 11, 2026, it had bought back 5,363,497 shares at an average price of about $93.22. Aug 4, 2026: RB Global reported Q2 2026 results. GTV rose 11% to $4.7 billion, and 7% without acquisitions. Total revenue rose 11% to $1.3 billion. Adjusted EPS rose 6% to $1.13 and adjusted EBITDA rose 6% to $387.2 million. The service revenue take rate fell to 20.0% from 21.1%. The company raised its 2026 GTV growth outlook to 9% to 11%, from 6% to 9%. Jul 21, 2026: RB Global raised its quarterly dividend to $0.33 per share from $0.31. May 15, 2026: RB Global completed the purchase of BigIron, a U.S. online marketplace for farm equipment, land and livestock, for $316.6 million. It borrowed $300 million under its revolving facilities to pay for it. BigIron had revenue of about $86.2 million in 2025.