Commercial vehicle marketplace RB Global’s revenue rose in the fourth quarter as lots sold across all sectors outpaced a slight decline in commercial construction and transportation gross transaction values.
RB Global also benefited from auctions of bankrupt Yellow Corp.’s equipment, which helped reduce the effects of declining gross transaction values (GTV) and lower average selling prices (ASPs), Chief Financial Officer Eric Guerin said during today’s earnings call. For the commercial construction and transportation (CC&T) segment, Yellow units improved GTV by 1% year over year, he said.
“Asset mix headwinds stemmed from lot volume growth from rental and transportation industries where asset values are intrinsically at lower ASPs,” he said. “Excluding the impact of the Yellow Corp. bankruptcy, the GTV decline in the commercial construction and transportation sector would have been approximately 2%. By the end of the fourth quarter, most of the unit volumes related to Yellow had been sold.”
STATE OF PLAY:
RB Global, parent company of equipment auctioneer Ritchie Bros., blamed the continued slowdown in the CC&T segment during the fourth quarter on customers maintaining a “wait-and-see” approach to the auction market and fleet needs, Chief Executive James Kessler said during the call.
“Although we are hearing more confidence and optimism from our partners and customers in CC&T, they continue to evaluate business conditions in the face of continued uncertainty in 2025. Much like last quarter, we would continue to describe the environment as wait and see,” he said. “We are focused on driving sustainable growth and continue to invest in our North American sales organization.”
BY THE NUMBERS:
RB Global total revenue and sales revenue increased in Q4 as elevated lot sales volumes and cautious optimism overcame market concerns, according to today’s 10-Q filing with the Securities and Exchange Commission.
For the quarter ending Dec. 31, RB Global reported:
- Total revenue of $1.1 billion, up 9.7% YoY;
- Inventory sales revenue of $266.1 million, up 14.8% YoY;
- Commercial construction and transportation GTV of $1.4 billion, down 0.6% YoY;
- Commercial construction and transportation lots sold of 102,200, up 17.6% YoY;
- Total GTV landed at $4.1 billion, up 2.2% YoY;
- Total lots sold reached 870,700, up 6.9% YoY; and
- Total inventory rate rose 70 basis points (bps) to 5.7%.
For all of 2024, RB Global reported:
- Total revenue of $4.3 billion, up 16.4% YoY;
- Inventory sales revenue of $920.6 million, down 2.8% YoY;
- Commercial construction and transportation GTV of $5.8 billion, up 6.6% YoY;
- Commercial construction and transportation lots sold of 432,300, up 37.5% YoY;
- Total GTV landed at $15.9 billion, up 4.2% YoY;
- Total lots sold reached 3.3 million, up 24.2% YoY;
- Total inventory rate rose 60 bps to 6.2%.
NOTEWORTHY:
Following the mostly positive end to Q4, RB Global increased its forecast for GTVs to be up to 3% growth in 2025, Guerin said.
“We will face the most challenged comparison in the first quarter of 2025 and expect consolidated GTV to decline mid-single digits year over year,” he said.
RB Global also looks to improve partner relations in the new year to earn more transactions and gain market share, Kessler said.
“This means helping insurance partners with the first notice of loss, shortened total cycle times and reducing advanced charges,” he said. “In CC&T, this involves supporting partners with insights, minimizing maintenance costs with SmartEquip and streamlining asset transportation with VeriTread.”
MARKET REACTION: Shares of RB Global Inc. (NYSE: RBA) were up 8.45% or $8.16 from market open to $104.72 as of market close today. RB Global has a market capitalization of $17.81 billion.
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