RB Global Reports Higher Earnings Amid Shrinking Take Rate
On August 4, RB Global (NYSE:RBA) reported a significant increase in net income and earnings per share during the second quarter of fiscal year 2026. Net income rose by 33% to $132 million, while diluted EPS increased by 34% to $0.71. However, total revenue only grew modestly by 11%, raising questions about how much of this profit growth was driven organically versus through acquisitions or cost reductions. The company's gross transaction value (GTV) rose 11% year-over-year to $4.7 billion, with the Automotive segment contributing most significantly due to higher unit volumes and prices per vehicle. RB Global also acquired BigIron, enhancing its presence in the U.S. agriculture market. Management raised full-year guidance for GTV growth from 6-9% to 9-11%, while adjusted EBITDA expectations were lifted as well. Despite these gains, organic GTV growth was only around 7%, suggesting a portion of expansion came through acquisitions rather than internal performance. The service revenue take rate declined by 110 basis points due in part to lower-margin acquired businesses and pricing incentives. Additionally, transactional seller and marketplace services revenues both fell slightly. The stock currently trades at a forward P/E ratio of 17.12, which is not particularly high for a company still raising guidance.
Tickers: $RBA
Topics: acquisition dividend increase earnings revenue growth stock buyback