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DATE

Monday, May 4, 2026, at 4:30 p.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — James F. Kessler
  • Chief Financial Officer — Eric J. Guerin
  • SVP, Finance and Business Development — Sameer Rathod

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TAKEAWAYS

  • Gross Transaction Value (GTV) -- $4.3 billion, a 13% increase, with automotive GTV rising 7% and commercial construction & transportation (CC&T) GTV up 27%.
  • Adjusted EBITDA -- Grew 11%, driven by higher GTV volumes and greater inventory return contributions, partially offset by a lower service revenue take rate.
  • Average Selling Price (ASP) - Automotive -- Increased approximately 6%, reflecting both salvage and remarketed vehicle segments.
  • U.S. Insurance Average Selling Prices -- Up about 10%, attributed to enhanced marketplace features improving buyer experience and auction optimization.
  • Automotive Unit Volume -- Grew 1%, with management noting this marks the fifth consecutive quarter of outperformance versus the broader market.
  • Service Revenue -- Increased 5%, driven by higher GTV, but the take rate declined 160 basis points to 20.7% due to a greater mix of higher ASP assets and the regressive buyer fee schedule.
  • CC&T GTV Excluding Acquisitions -- Grew approximately 16%, illustrating ongoing organic expansion.
  • Adjusted EPS -- Rose 13%, mainly due to higher operating income and reduced net interest expense.
  • Full-Year 2026 Guidance -- Raised to project GTV growth of 6%-9% and approximately 8% adjusted EBITDA growth at the midpoint, with no impact from the pending Big Iron transaction included.
  • Big Iron Transaction -- Hart-Scott-Rodino (HSR) approval received; expected to close in the second quarter, advancing strategic expansion in the U.S. agriculture sector.
  • Major Automotive Partner Agreement -- A previously announced agreement in principle has been fully executed; management reiterated confidence in ongoing net market share gains for 2026.
  • Blackmon Acquisition -- Expanded presence in Arkansas and Dallas, and entered the railroad sector, broadening CC&T capabilities.
  • Reserve Auction Strategy -- Management reported satisfaction with reserve and fixed-price auction pilots internationally, emphasizing significant opportunity outside traditional formats.
  • Service Revenue Dollar Focus -- Management clarified focus on absolute dollar P&L performance over percentage take rate as business mix shifts toward higher average transaction values.
  • Total Loss Frequency - Automotive Insurance -- According to CCC Intelligent Solutions, increased by 70 basis points to 23.6% compared to the prior year, supported by widening inflation differentials between repair costs and used vehicle prices.

SUMMARY

RB Global (RBA +0.12%) management increased full-year guidance for both GTV and adjusted EBITDA, underscoring volume-led growth expectations. The company reported completion of the previously announced major automotive partner agreement, which is positioned to support 2026 share gains. Strategic geographic and sector expansion advanced with the acquisition of Blackmon and regulatory clearance for the Big Iron transaction. Pilots of reserve and fixed-price auctions internationally are noted as promising by management, suggesting diversification in auction models. Management reiterated its capital allocation flexibility and highlighted new sector entry in agriculture and railroads through M&A.

  • Management stated, "our expectation is that creating operating leverage within this P&L is evergreen," emphasizing structural cost control and profit flow-through.
  • Fuel cost headwinds are explicitly built into guidance, with a mix of pass-through provisions and non-recoverable exposures across contracts.
  • Management indicated that organic and M&A strategies are both actively pursued, with entry into the Australia salvage market cited as an example of organic expansion and recent U.S. deals as inorganic.
  • Net working capital and free cash flow performance were characterized as normal, with no unusual items highlighted in the quarter.
  • Management specifically avoided commenting on competitor pricing behavior, stating the intent to remain in a rational market environment.
  • The "evergreen" approach to operational efficiency was highlighted as a key factor in sustaining operating leverage.
  • Guidance increase reflected Q1 coming in "a little bit ahead" of internal expectations and confidence in share gains across major business segments.

INDUSTRY GLOSSARY

  • GTV (Gross Transaction Value): The total value of all assets transacted on the platform within a given period, across all auction and marketplace channels.
  • CC&T (Commercial Construction & Transportation): The business segment covering commercial construction assets, transportation equipment, and related services.
  • HSR Approval: Regulatory clearance under the Hart-Scott-Rodino Act, a required process for significant mergers and acquisitions in the U.S.
  • ASP (Average Selling Price): The mean price achieved for assets or vehicles sold through auction or marketplace channels.
  • Take Rate: The percentage of transaction value retained as service revenue by the platform, generally influenced by the fee schedule and mix of higher or lower value assets.
  • Reserve Auction: Auction format in which a minimum acceptable price is set for assets, and sales only occur if bids meet or exceed that threshold.
  • Fixed-Price Auction: Auction or marketplace listing with assets offered at a predetermined "buy-it-now" price rather than variable bidding.

Full Conference Call Transcript

James F. Kessler: Thanks, Sameer, and good afternoon to everyone joining the call. I want to recognize our teams for their continued strong performance, particularly against the backdrop of the complex macro environment. As always, we are focused on the factors within our control to ensure we consistently overdeliver on our commitments and remain a trusted partner to our customers. Our execution in these areas was evident in the first quarter as our growth strategy and operating model continue to demonstrate durability, with adjusted EBITDA increasing 11% on a 13% increase in GTV. As we have discussed, expanding and diversifying our business into complementary growth areas is a strategic priority, and we are executing accordingly.

In support of that strategy, we recently received HSR approval for the Big Iron transaction, satisfying a key regulatory condition, and we now expect to close the transaction in the second quarter. Turning to the commercial construction and transportation sector, our growth strategy continued to deliver, with GTV up 27% year over year. We are cautiously optimistic as customer feedback suggests early signs of improving confidence, supported by stabilizing used equipment values and continued activity in mega projects and civil infrastructure. At the same time, we believe that a portion of the quarter's volume growth reflects the early and uneven return of pent-up supply as sellers who deferred decisions in 2025 began to reenter the market.

Turning to the automotive sector, we delivered another strong quarter despite navigating disruption among our market alliance partners and buyers in the Middle East. Our foremost priority remains the safety and well-being of our teammates in the region. Despite these headwinds, gross returns—measured as the salvage values as a percentage of pre-accident cash value—continued to expand, supporting approximately 10% year-over-year growth in U.S. insurance average selling prices. We believe this performance underscores the resilience and breadth of our marketplace, reflects our continued progress in enhancing the buyer experience, and optimizes the auction format for our sellers. Unit volumes increased 1% year over year, marking the fifth consecutive quarter of outperformance relative to the broader market.

I am proud of our team's execution as we exceeded all service level commitments again. Last quarter, we announced an agreement in principle with one of our largest partners, and I am pleased to report that it has now been fully executed. We remain confident in our goal of delivering net market share gains in 2026, as our focus on driving tangible P&L value for our partners continues to resonate and differentiate our platform. Importantly, in a competitive market, we will remain selective in pursuing volumes. We are prioritizing partners that align with our culture, ensuring the value we realize from our differentiated marketplace platform reflects the meaningful benefits it delivers to our customers.

Our confidence in our goal of continued market share gains was further reinforced at our industry leadership summit, which again achieved record attendance, highlighting our strong and growing partner engagement. Partners walked away excited and energized by our marketplace and overall strategic direction, backed by our transparent, data-driven approach and continued innovation. I will now pass the call to Eric to review the financials and updated 2026 outlook.

Eric J. Guerin: Thanks, Jim. Total GTV increased by 13% to $4.3 billion in the first quarter. Automotive GTV increased by 7% in the quarter, driven primarily by higher average selling prices and a 1% increase in unit volumes. The average price per vehicle sold increased approximately 6% in the quarter, reflecting strength across both salvage and remarketed vehicles. Unit volume growth reflected continued new wins in the sector, though first quarter growth moderated partially due to changes in the auction calendar at the start of the year. In recent months, the inflation differential between automotive repair costs and used vehicle prices has widened slightly, which continues to support an increase in the total loss ratio.

CCC Intelligent Solutions estimates the total loss frequency across all categories increased by 70 basis points to 23.6% compared to the prior-year period. GTV in the commercial construction and transportation sector increased 27%, driven by strength in both unit volumes and ASPs. First quarter results benefited from an outsized contribution related to the auction calendars of certain acquired businesses, which typically host their largest events early in the year. Excluding acquisitions, CC&T GTV increased approximately 16%. As market conditions continue to normalize, we are seeing early but inconsistent signs of pent-up supply returning, which contributed to higher transaction activity during the quarter.

Our ability to capture the growth is enabled by maintaining the industry's most comprehensive network of territory managers, alongside the continued rollout of targeted programs designed to improve and deepen customer engagement. The average price per lot sold increased due to improvements in the asset mix, while like-for-like pricing remained relatively flat year over year. Excluding the impact of our recent acquisitions, total GTV across all sectors increased 9%. We are seeing strong organic growth in the underlying business. Moving to service revenue, service revenue increased 5% in the quarter, driven by higher GTV, partially offset by a decline in the service revenue take rate. The service revenue take rate declined 160 basis points year over year to 20.7%.

A portion of this decline is optical, reflecting a larger mix of higher ASP assets when compared to the prior year. Under our regressive buyer fee schedule, higher-priced assets fall into lower percentage fee tiers, which can make the reported take rate lower. While the percentage rate is lower, higher-priced items are attractive from a total service revenue dollar perspective. There were additional impacts on the service revenue take rate from recent acquisitions and divestments. Adjusted EBITDA increased 11% in the quarter, driven by higher GTV volumes and increased contribution from inventory returns. These benefits were partially offset by the lower service revenue take rate.

Our continued focus on cost discipline supported strong profit flow-through, with adjusted EBITDA growth of 11% outpacing service revenue growth of 5%. Adjusted earnings per share in the first quarter increased by 13%, primarily driven by higher operating income and lower net interest expense. Now turning to guidance. We are raising our 2026 outlook and now expect gross transaction value to grow between 6% and 9% for the full year, with adjusted EBITDA growth of approximately 8% at the midpoint. Note that our updated guidance does not reflect any impact from Big Iron. Consistent with our strategy, we remain focused on growing adjusted EBITDA at a faster rate than service revenue and view 2026 as a year of volume-led growth.

We are concentrating on the elements within our control, including advancing cost-savings initiatives, deploying technology designed to enhance yard-level efficiency, and executing against our operating model to drive productivity and operating leverage. With that, let us open the call for questions.

Operator: Thank you. We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Now please stand by while we compile the Q&A roster. Your first question comes from the line of Gary Prestopino with Barrington. Your line is open. Please go ahead.

Gary Prestopino: Hey, Jim, Eric, Sameer. How are you guys?

James F. Kessler: Good. How are you doing, Eric?

Gary Prestopino: Just fine. Thank you. Hey, Jim. As I look back on my notes from last quarter, you had mentioned that there was a plethora of RFPs in the auto sector that were in the pipeline. Did any of them come to market this quarter? And were there any wins that you could cite that you got from these RFPs that came to market?

James F. Kessler: Hey, Gary. I do not recall talking about how many RFPs were out there. We typically do not. So I really do not have a comment on that question.

Gary Prestopino: Okay. Yeah. You had—it is what you said was you have a strong RFP pipe, so I was just trying to get an idea of what basically came—

James F. Kessler: I think what we talked about is when you look over the next three years, when you think about what comes up on RFP, a lot of the stuff that will come up is not representative of our current customer base. So it is something that we have an opportunity to go after. But it was nowhere inside of a quarter or anything like that. It was over a longer period of time.

Gary Prestopino: Okay. Thank you.

Operator: Your next question comes from the line of John Healy with Northcoast Research. Your line is open. Please go ahead.

John Healy: Thanks for taking the question. Jim, I wanted to ask—last couple of days, we have seen some earnings reports from auto insurers—think GEICO in particular—talked about dramatic increases in claims frequency kind of hitting the profit line for those guys. Can you talk to what you are seeing out of insurers as it relates to claim frequency? And if, given the recent strength in used car prices, might it be likely or prudent to think that maybe total loss frequency may plateau in the near term? Just curious to get your thoughts on the puts and takes as it relates to the funnel of your business. Thanks.

James F. Kessler: Yeah. Hey, John. Good question, and I will pass this over to Sameer who handles a lot of this external information.

Sameer Rathod: Hey, John. In terms of how we view the market, I have looked at the data you are talking about in terms of used car pricing increasing a little bit with some of the third-party data. The way we look at it internally is looking at that inflation spread between cost of repair versus what the Census Bureau comes up with for used car pricing inflation. I think the wholesale pricing leads a little bit compared to the retail level. At the moment, we are not noticing any dramatic shifts in terms of claim frequency or anything like that, but we would not comment specifically about any of our providers.

John Healy: Understood. And then just a follow-up. Obviously, there is a percentage of your vehicles that go to the Middle East. Given the tensions and the war activity, are cars able to get there right now in any capacity? And is that having some sort of bleed-through impact yet on ASPs on the salvage side? Thanks.

James F. Kessler: Yeah. Hey, John. I will start, and if Sameer or Eric want to jump in, feel free. We kind of look at our whole market alliance and not just one specific segment. And based on what we are seeing in our whole alliance, anytime you have a disruption like you do and you have a conflict in the Middle East, it is going to affect the segment. But we believe we can manage the other segments, and you know, Eric gave our guidance. We feel really confident in that, and in that guidance is the optimism that we believe international still leads for us and what it can be for us.

But, like everything, we have Middle East business, and our real concern is more the safety of our team. But we believe it is something we can manage inside of our business and inside of the guidance that we gave.

John Healy: Understood, and congratulations. Thank you.

Operator: Your next question comes from the line of Steven Hansen with Raymond James. Your line is open. Please go ahead.

Steven P. Hansen: Good afternoon, guys. Thanks for the time. Really strong GTV performance in CC&T. I think even ex-acquisition, you said up 16%, if I caught that correctly. Just trying to square your comments around seeing pent-up supply returning to market quickly early on. Do you see evidence that is going to continue into the next quarter or two? I mean, how are the auctions and the calendar stacking up thus far? I am trying to get a sense for whether that is an upfront surge and then plateauing out or if it is going to continue through the balance of the year.

James F. Kessler: Yeah. Hey, Steven. I will start, and Eric and Sameer again, feel free to jump in. I think one of the issues with the cycles that we face is there is just some lumpiness along with our organic growth. To be honest, we are just staying focused on growing market share in each of the markets that we perform in CC&T, and that is really what our focus is on. The one thing we cannot control is when people make decisions of when they want to dispose of equipment, but when they are ready, our team is ready to handle it.

I think we are going to have a little bit of lumpiness, but we feel really cautiously optimistic about what we are seeing from our partners and what future quarters are going to look like for us.

Steven P. Hansen: That is great. One quick follow-up, if I may, is just on the M&A side. You have been active. You referenced the Big Iron closing early. You have also got the disclosure here that you acquired Blackmon in the U.S. South by the looks of it here. Smaller deal, but just trying to get a sense for why that was attractive and what the pipeline looks like. Thanks.

James F. Kessler: Yeah. For Blackmon, whom we acquired, their main business is in Arkansas and a little bit in Dallas. Arkansas was not a geography that we had a presence in, and they also had a sector in railroads that we found attractive that we wanted to be able to leverage with the acquisition. And then Big Iron—we find the sector of ag very attractive in the U.S., something that we have been doing for a number of years up in Canada. So those two things are what made us attracted to both targets.

Operator: Your next question comes from the line of Craig Kennison with Baird. Your line is open. Please go ahead.

Craig R. Kennison: Hey. Good afternoon. Thank you for taking my question. Might be for you, Sameer, but I am wondering if you can help us unpack volume trends for the automotive space. In particular, I am interested in what the headwind was from the absence of catastrophes in this quarter versus the same period last year, and then what were the tailwinds from share gains and the total loss rate as it relates to your 1% growth rate overall?

James F. Kessler: Yeah, Craig, I will start and then pass it over to Sameer so we can talk through some of the puts and takes. It is always tough when you think about quarter by quarter. We kind of look at our business a little bit longer term than that. But we feel really confident about the unit volume increase for us as we think about the next couple of quarters coming up. And with that, I will pass over to Sameer to add any color about headwinds and tailwinds.

Sameer Rathod: Yeah, Craig, I think it is fair to say there are industry dynamics at play in terms of insurance, underinsurance, things like that. But you can see we reported 1% unit volume growth, and we feel really comfortable saying that we are gaining share in the U.S. and globally.

Craig R. Kennison: Okay. Thank you. And then maybe just as a follow-up, could you comment on how we should think about your take rate evolving over time, especially as we include—or when we include—Big Iron in results?

James F. Kessler: Yeah, Craig, I will start, and Eric, feel free to jump in. I think I mentioned this a number of times. We run our business based on dollars and not a percentage. And as we enter attractive sectors like agriculture—especially when you get into a real estate component—the percentage is going to change. And as we close this deal, I am sure Sameer and Eric will help all of you understand what it looks like. But again, to clarify, we run this business based on dollars and how we get that to flow through the most efficient way into our P&L, and not by a percentage. With that, I will pass it over to Eric.

Eric J. Guerin: Yeah, I think Jim commented on it, and we have been pretty clear. Even if you look at the 160 basis points, and I said this in my prepared remarks, when you get higher ASP performance—which we did—with our regressive tiering on the buyer side, you get a lower take rate, but we like those dollars that flow through to our top line. So to Jim's point, we are really focused on making sure we have the most efficient P&L. We have talked about in the past GSA has a different take rate. We will provide more detail in the ag space that has a different take rate when you look at farmland and things like that.

So our focus is making sure we optimize the P&L.

Craig R. Kennison: Great. Thank you.

Operator: Your next question comes from the line of Sabahat Khan with RBC Capital Markets. Your line is open. Please go ahead.

Sabahat Khan: Thanks, and good afternoon. Maybe more a question for Eric and kind of for the whole team. Hoping to get a bit more color on, given the performance in quarter one, if you can dig a little bit into what you baked into the guidance in terms of puts and takes. Did the quarter go as expected and the guidance increase maybe just reflect some more confidence? Or were there share shifts or other trends in the quarter that made you a bit more confident to be able to kick up the guide? Just trying to understand more the qualitative puts and takes to the extent you can share. Thanks.

Eric J. Guerin: Yeah. Thanks for the question. Q1 was in line with our expectations, a little bit ahead, and that is what is highlighted in the guidance. What I would say, there are some headwinds as we know with fuel and some other costs, but we have that built into our guidance. And on the automotive side, we are gaining share. We believe our 1% growth is continuing to grow share there. And in CC&T, we also believe that we are gaining share, and we reflected both of those impacts into the updated guidance.

James F. Kessler: Just at a high level, I think what Eric and I are hearing from the team is we are operating at a very high level right now in every avenue of our business. And I think we feel the confidence of the team's execution as to why we are able to increase guidance.

Sabahat Khan: Great. And then just one on the capital allocation and the M&A side along the lines of Steven's question. Balance sheet is in good shape. You guys have announced—you know, at least put out there—a share buyback program. You had alluded a bit to ag being of interest in the past. Are you able to maybe just, even in broad brushes, talk about whether it is more capabilities or still regions in the U.S. or around the world that you hope to fill in with M&A? And where would buybacks at this point in the game rank in the order?

Eric J. Guerin: I can start, and then Jim can fill in. What we have said—and you can look at what we have done—whether it be JM Wood, it gave us a different region in the country and a different capability with municipalities. Jim commented on Blackmon; it gives us a different region and then gives us access to rail. So I think if you look at what we have done, you will see that is the pattern, whether it gives us new capabilities or a different region.

We talked about DLG last year when we went into—so those are the types of opportunities that we are looking at as RB Global, Inc., and they give us an opportunity to get new capabilities and new regions. We are excited about the opportunities. And again, we have ag that we just talked about with Big Iron.

James F. Kessler: Yeah, Eric, what I would just add is I think what is great and what really makes me excited about our future business is we have the ability to do all of the above that you described. Take a look at Australia—how we entered the salvage market. We did that organically, and the team did a fantastic job of going into a new country for salvage and executing against the plan really flawlessly. And then if you look at the acquisition of IEA and the Ritchie Brothers, I think the team did an amazing job. So what we are always going to look at is can we do this organically?

But at the end of the day, what we are looking for is what gives our investors the best return. If it is organically, we are going to choose that path. If it is M&A, we are going to do that path. But hopefully what everyone has seen from us over the last three years is our ability and our playbook to do M&A either organically or through acquisition. This is something that this team is really good at, and it is something I am excited about for the future.

Operator: Just a reminder, if you would like to ask a question, please press 1 on your telephone keypad now to raise your hand. Your next question comes from the line of Analyst with Stephens. Your line is open. Please go ahead.

Analyst: Thanks very much for taking my question. I was wondering—just one point of clarification—the agreement that you talked about today, the auto agreement, is that the one that you talked about in the last call, which was not signed, but it was an agreement in principle? Just a clarification there. And then—

James F. Kessler: Correct.

Analyst: Okay. Perfect. Thank you so much. And then on the average insurance prices, I think you said they were up 10%. Just curious what is driving that because that is a bit of an acceleration over the last two quarters. I think it was 2.5% in Q3 and 7% in Q4. Just kind of curious what is driving that.

Sameer Rathod: Yeah. I think what we said is U.S. insurance ASPs were up 10%, and I think this speaks to the strength of the marketplace. We have made a number of enhancements for the buyer on our website. We have talked about ChromeVid descriptors in the past. We have talked about optimizing auction formats. So a lot of this is some of the improvements we have been making on our website, and then the continued march to get more and more buyers onto our marketplace.

Analyst: And then just a quick follow-up. On the Middle East situation that you referenced, I am not sure if you said it, but what type of impact did that have on units, if anything?

Eric J. Guerin: We are not quantifying the number of units, but as you can imagine, we do have market alliance partners in that region that are being impacted.

Analyst: Yeah. Yeah. I am not sure if you had anything—

James F. Kessler: Yeah. I will just add, like I mentioned before, our market alliance is very large with multiple countries that we deal with. And right now, based on what is going on, we think we have an avenue in how to navigate this. And like everyone, we are hoping the conflict ends sooner than later. But right now, as we think about guidance and everything else, we believe we have everything in our control that we can manage this. So I think we feel comfortable where we are at right now.

Analyst: Awesome. Well, thanks for taking my questions, and congrats on an impressive Q1.

James F. Kessler: Thank you.

Operator: Your next question comes from the line of Michael J. Feniger with Bank of America. Your line is open. Please go ahead.

Michael J. Feniger: Yeah. Hey, guys. Thanks for squeezing me in. I appreciate it. Eric, SG&A was up, I think, 4% year over year. Cost of service was flat, when GTV is up 11%. Can you just talk about the performance in the quarter—what is sustainable? I heard you earlier talk about cost savings and yard efficiency. Did that show up in the quarter? Is that some of these initiatives you are talking about? Is that more on the come that we should be thinking about?

Eric J. Guerin: Thanks for the question. Ongoing—and Jim and I have been very clear about this—our expectation is that creating operating leverage within this P&L is evergreen. We will continue to look for opportunities across the business. Now it may be lumpy in some quarters. Sometimes there may be additional investment in SG&A ahead of volume, then you have that volume come in after. When we look at cost of services and in the yard, I think our operations team—this is to Jim's comment—we really feel like across the business we are hitting on all cylinders, and our operations team has just done a wonderful job, and they are making sure we are operating as efficiently as possible.

So those types of initiatives will continue as we move forward. It is not an event—it is just the way we operate the business.

Michael J. Feniger: Great. And is there anything we should think about with towing cost—obviously fuel—how does that kind of flow through? Is there a chance, if fuel stays at a certain level, do we see players such as yourself pass that through? Do we see fees implemented? I am just kind of curious what you are feeling now and how we should think about that with the business.

Eric J. Guerin: Yeah. Thanks for the question. We have built into our guidance the headwind related to fuel. We do have some contracts where we can pass that through. Others, where that does not get passed through, it would be a headwind for the business. So we will continue to manage that as we move forward through the year.

Michael J. Feniger: Great. I am just going to sneak one quick one in. Obviously, we heard a lot about CC&T, and you guys mentioned share gains. I am curious—I think last quarter you talked about Europe, this reserved auction strategy, some things you are piloting there. Can we see that broadly also adopted in the U.S. to a bigger degree, potentially in the rental channel? I am just kind of curious. It sounds like there is actually a lot of opportunity to share gains in CC&T. We have not heard that in a while—most of the focus is on auto. Just curious if you could flesh out some things you are seeing out there that get you excited.

James F. Kessler: Yeah. Hey, Michael. There is a bunch—we could probably take the next hour talking about what gets us excited. But let me address the reserve first. Just to remind the group, we did our first pilot in the first quarter. We are very happy with how that pilot went, and we are continuing to do more of those auctions internationally. When we think about it, we do not just think about it as reserve. We think about it as fixed-price auctions. We are really excited about how big that serviceable addressable market is for us to go after. We play in a very small part of it today.

So yes, along with our traditional auction business, we can gain share, and on this fixed-price side of the marketplace, we think we have tremendous upside, and we play in a very small part of it today.

Eric J. Guerin: The only thing I would add there is we are going to do the reserve auction where that is where or how business is done. There are opportunities in those markets, but it is not our expectation that would go into markets on a broad base that are currently unreserved and operate that way.

Operator: Your next question comes from the line of Krista Friesen with CIBC. Your line is open. Please go ahead.

Krista Friesen: Hi. Thanks for taking my question. Maybe I was just wondering if you could give us a little bit more color on how things are going in Australia, and if there are any lessons learned there in terms of your land-and-expand strategy as you are thinking about other countries to move into?

James F. Kessler: I will start, and Eric or Sameer, feel free to jump in. We are really happy about the performance on a lot of our operational metrics, which are similar to what you see in the U.S. when you talk about net return and our ability to execute. ASPs are not as good as they are in the U.S., but it is beating our projections and our expectations. I think we feel really good.

As you think about other countries, what we want to make sure of is we go into countries that operate similarly to the Canada market, to Australia, to the U.K., where we are able to leverage the scale and the playbook that we have built by doing it. But we want countries that have similar economic dynamics and what they need to actually see a salvage company come in that can improve the process and the workflows that exist today. So we would look for countries that match the countries I mentioned.

Krista Friesen: Okay. Perfect. Thank you. And then just on the automotive side, it sounds like you are gaining share there. Are you seeing any sort of irrational behavior from any competitors in the marketplace when it comes to pricing or anything?

James F. Kessler: We do not really talk about competitors in any of that. What we stay on is what we can control, and we want to be in a very rational marketplace, and that is our goal. But we do not really get into comments about what any one competitor is doing.

Operator: Your next question comes from the line of John Gibson with BMO Capital Markets. Your line is open. Please go ahead.

John Gibson: Afternoon. Thanks for taking my question. Just had one on the CC&T side—general trend that you are seeing. Are you seeing any more insourcing of used equipment sales by dealers, or maybe the offset? I mean, your results suggest that it is going the other way, but just wondering what you are seeing, especially with some of the newer equipment that is coming onto the market.

James F. Kessler: For us here, we have seen every different cycle that you can imagine in different cases from dealers. So I would not say anything is different than what we have seen in the past.

John Gibson: Okay. Great. Thanks a lot. I will turn it back.

Operator: And your next question comes from the line of Maxim Sytchev with NBCM. Your line is open. Please go ahead.

Maxim Sytchev: Good afternoon, gentlemen. Is it possible to quantify the pull-forward for CC&T in the quarter at all?

Eric J. Guerin: No, I do not think we can quantify the pull-forward. It is more just timing of the auction calendars. We also talked about on the automotive side—early in the year we had a number of storms; some things moved. Our goal is to make sure that we optimize our marketplace for our buyers and sellers, and if things move across quarters, that is not our primary objective for us.

Maxim Sytchev: Sure. But I guess, given the policy uncertainty, there was some hesitance to transact at some point. Do you feel right now buyers and sellers are ready to go? Or how would you qualify that, if there is such a thing?

Eric J. Guerin: I would say we are cautiously optimistic, but I would not straight-line our Q1 and say that is what we are expecting for the full year. I have highlighted in the guidance what we expect for the full-year performance, so you can use that as a reference point. Does that help?

Maxim Sytchev: Yeah. And then another quick question. In terms of the DST impact, can you just qualify what was included and excluded from the adjusted EBITDA by chance? Thanks.

Eric J. Guerin: Yeah. We provided a reconciliation on that, but broad brush, it was overall about $11 million or so impact, and we carved out almost half of that. It is disclosed in our financials.

Maxim Sytchev: Okay. Thank you. And just one quick last one. Was there anything unusual around the very strong free cash flow and working capital efficiency in Q1?

Eric J. Guerin: Nothing unusual.

Maxim Sytchev: Okay. Perfect. Thank you so much.

Operator: There are no further questions at this time. I would now like to turn the call back to RB Global, Inc. CEO, James F. Kessler, for closing remarks. Please go ahead.

James F. Kessler: Thank you. To close, I want to recognize the teams across RB Global, Inc. for a strong start to 2026 and the execution discipline that delivered our first quarter results. As we move through the year, our priorities are straightforward: deepen our customer engagement, run the business efficiently, and keep investing in the platform capabilities that drive durable share gains and profitable growth. We appreciate your time today and your continued interest in RB Global, Inc. Everyone have a good week, and we will talk to you soon.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.