Commercial asset marketplace RB Global (NYSE: RBA) reported Q1 CY2025 results topping the market’s revenue expectations, with sales up 4.1% year on year to $1.11 billion. Its non-GAAP profit of $0.89 per share was 9.1% above analysts’ consensus estimates.

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StockStory’s Take

RB Global’s first quarter was shaped by a mix of operational initiatives and shifting market dynamics, as management highlighted both ongoing macroeconomic uncertainty and proactive efforts to strengthen the core business. CEO Jim Kessler noted the complexity of the current environment, referencing the impact of new tariffs, evolving trade policies, and residual effects from the COVID-era equipment cycle. The company’s acquisition of J.M. Wood expanded its presence in Alabama and adjacent states, adding specialized expertise in commercial construction and transportation assets. Kessler also detailed the integration of technology and sales force expansion as key factors supporting customer engagement, while COO Steve Lewis’s metric-driven efficiency programs aimed to improve the experience across Ritchie Bros. branded yards. On the automotive side, RB Global cited gains in market share and successful new customer wins, including a multi-year salvage contract with Direct Line Group in the UK, which is expected to begin contributing later this year.

Looking forward, RB Global’s guidance reflects a cautious approach amid what CFO Eric Guerin described as “an unprecedented level of market uncertainty and changes in trade policy.” Management stated that the company will continue to focus on controllable factors, including disciplined expense management and targeted investments in technology and sales capacity. The team emphasized the importance of adapting to evolving customer priorities, particularly as partners navigate higher interest rates and potential shifts in equipment demand. Notably, Kessler reiterated the company’s intent to leverage its scale and data-driven tools to create value for enterprise partners and insurance clients, while remaining vigilant for further M&A opportunities. He added, “We remain committed to advancing our long-term growth strategy by investing in key technological initiatives and expanding the sales force.”

Key Insights from Management’s Remarks

Management identified customer hesitancy, segment-specific trends, and operational improvements as central to first quarter results, while also noting increased focus on technology and sales expansion.

• Tariff and policy uncertainty: Management cited newly announced tariffs and ongoing changes in trade policy as factors that introduced additional uncertainty for customers, prompting a wait-and-see approach in both commercial construction and transportation segments.
• J.M. Wood acquisition: The acquisition of J.M. Wood, a family-owned business specializing in commercial construction and transportation assets, will expand RB Global’s geographic reach and expertise, particularly in Alabama and nearby states. Management expects synergies from integrating technology, back-office processes, and established municipal relationships.
• Operational efficiency initiatives: COO Steve Lewis implemented a metric-driven framework across Ritchie Bros. branded yards, and the company increased planned North American sales events by 15% to better balance asset supply and improve service for buyers and consignors.
• Automotive segment momentum: The automotive business, led by the IAA platform, gained global salvage market share and secured an exclusive multi-year contract with Direct Line Group in the UK. RB Global also launched AI-driven tools to help insurance partners optimize asset routing and cost management for total loss vehicles.
• Service revenue take rate improvement: The service revenue take rate increased 150 basis points year over year, driven by higher buyer fees. Management indicated ongoing review and adjustment of fee and commission structures in response to market trends, supporting margin resilience despite lower transaction volumes.

Drivers of Future Performance

RB Global expects ongoing macro uncertainty, customer behavior shifts, and continued investment in technology to shape future performance and guidance.

• Macro uncertainty and customer hesitancy: Management acknowledged that higher interest rates, new tariffs, and evolving trade policy are causing customers to delay decisions on fleet disposition and new equipment purchases, impacting transaction volumes in key segments.
• Expansion of technology and salesforce: The company plans further investment in technological tools—such as AI-driven asset classification—and continued growth of its territory manager network to drive customer engagement and operational efficiency, supporting long-term growth objectives.
• M&A and international expansion: RB Global views tuck-in acquisitions like J.M. Wood and new market entries (such as the UK and Australia) as central to its growth strategy, aiming to leverage scale, back-office integration, and local expertise to capture new business and reinforce its market position.

Catalysts in Upcoming Quarters

As we look ahead, StockStory analysts will closely monitor (1) the pace of integration and performance of the J.M. Wood acquisition, (2) progress on customer adoption of AI-driven tools in the automotive segment, and (3) whether increased North American sales events offset volume headwinds in commercial construction and transportation. Shifts in macroeconomic conditions and further M&A activity will also be important factors to watch.

RB Global currently trades at a forward P/E ratio of 28.3×. At this valuation, is it a buy or sell post earnings? The answer lies in our full research report (it’s free).

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