RB Global inventory sales revenue soars 26% in Q2

Commercial vehicle marketplace RB Global reported increased total revenue and gross transaction values in the second quarter despite struggles in its commercial construction and transportation segment. 

The company’s construction and transportation business was effected by high interest rates, trade policy uncertainty and lower average selling prices in the transportation industry, Chief Financial Officer Eric Guerin said during the company’s Aug. 6 earnings call.  

Overall, RB Global’s active buyer base continues to grow as the company works to “refine and optimize our multichannel auction format to drive premium price performance,” Chief Executive James Kessler said during the call.  

BY THE NUMBERS: RB Global, parent company of equipment auctioneer Ritchie Bros., reported in Q2:  

• Total revenue increased 8.2% year over year to $1.2 billion; 
• Inventory sales revenue jumped 26.1% YoY to $298.8 million; 
• Commercial construction and transportation gross transaction values (GTV) totaled $1.5 billion, down 5.6% YoY; 
• Commercial construction and transportation lots sold dropped 17.5% YoY to 97,500; 
• Total GTV rose 2.3% YoY to $4.2 billion;  
• Total lots sold rose 0.9% YoY to 847,200; 
• Total inventory rate, which divides inventory return by sales revenue, was 4.1%, down 1.9 percentage points YoY; and 
• Net income fell 1.2% YoY to $109.7 million. 

The decline in construction and transportation sales also reflects subsidizing benefits from auctions of bankrupt trucking company Yellow Corp.’s equipment, Guerin said. Yellow Corp. assets significantly boosted RB Global’s GTV in Q2 of 2024 and subsequent quarters, slightly skewing the results. 

“Excluding the impact of the Yellow Corp. bankruptcy, unit volumes were declined approximately 2% year over year,” Guerin said. 

NOTEWORTHY: In Q2, the company completed its $235 million acquisition of Montgomery, Ala.-based equipment auction company J.M. Wood Auction. Thus, RB Global is poised for accelerated growth, Kessler said.  

“By combining their strong brand, customer focus and regional presence with our global reach, digital platform and value-added services, we are well positioned to deliver even greater value to our customers and drive continued growth,” he said. While “customers and partners in our commercial construction and transportation end markets continue to navigate macroeconomic uncertainty, we remain focused on factors within our control.” 

MARKET REACTION: Shares of RB Global [NYSE: RBA] were down 2.1% from market open to $111.01 as of market close today. It has a market capitalization of $20.6 billion.  

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