WESTCHESTER, Ill.--(BUSINESS WIRE)--May 04, 2026--
RB Global, Inc. (NYSE & TSX: RBA, the "Company", "RB Global", "we", "us", "their", or "our") reported the following results for the three months ended March 31, 2026.
"We delivered broad-based GTV growth across all our sectors, underscoring the strength of our growth strategy, the commitment of our teammates, and the value we deliver as trusted partners to our customers, " said Jim Kessler, CEO of RB Global. "our focus remains on what we can control ensuring that we consistently overdeliver on our commitments, particularly in this fluid macroeconomic environment."
"Our topline momentum translated into earnings growth, reflecting the durability of our operating model and our disciplined execution across the business," said Eric J. Guerin, Chief Financial Officer.
First Quarter Financial Highlights(1,2,3) :
-- Total gross transaction value ("GTV") increased 13% year over year to
$4.3 billion.
-- Total revenue increased 11% year over year to $1.2 billion.
-- Service revenue increased 5% year over year to $897.7 million.
-- Inventory sales revenue increased 32% year over year to $336.9
million.
-- Net income increased 20% year over year to $135.6 million.
-- Net income available to common stockholders increased 21% year over
year to $124.6 million.
-- Diluted earnings per share available to common stockholders increased
20% to $0.66 per share.
-- Diluted adjusted earnings per share available to common stockholders
increased 13% year over year to $1.01 per share.
-- Adjusted earnings before interest, taxes, depreciation and amortization
("EBITDA") increased 11% year over year to $362.7 million.
2026 Financial Outlook
The Company has updated its full-year 2026 outlook for select financial data, as shown below:
(in millions, except percentages) Current Outlook Prior Outlook
--------------------------------------- ---------------- ----------------
GTV growth 6% to 9% 5% to 8%
Adjusted EBITDA $1,485 to $1,545 $1,470 to $1,530
Full year tax rate (GAAP and adjusted) 23% to 25% 23% to 25%
Capital expenditures(4) $350 to $400 $350 to $400
__________________________________________
(1) For information regarding RB Global's use and definition of certain
measures, see "Key Operating Metrics" and "Non-GAAP Measures" sections in this
news release.
(2) All figures are presented in U.S. dollars.
(3) For the first quarter of 2026 as compared to the first quarter of 2025.
(4) Capital expenditures is defined as property, plant and equipment, net of
proceeds on disposals, plus intangible asset additions.
Additional Financial and Operational Highlights
(Unaudited)
Three months ended March 31,
--------------------------------------------
(in millions, except
percentages and per share
data) 2026 2025 % Change
------------------------------ --------- -------- ----------
GTV $ 4,340.9 $ 3,828.9 13%
Service revenue 897.7 852.5 5%
--------- -------- ---- ---
Service revenue take rate 20.7% 22.3% (160)bps
Inventory sales revenue $ 336.9 $ 256.1 32%
Inventory return 30.2 21.1 43%
--------- -------- ---- ---
Inventory rate 9.0% 8.2% 80bps
Net income $ 135.6 $ 113.3 20%
Net income available to common
stockholders 124.6 102.9 21%
Adjusted EBITDA 362.7 327.9 11%
Diluted earnings per share
available to common
stockholders $ 0.66 $ 0.55 20%
Diluted adjusted earnings per
share available to common
stockholders $ 1.01 $ 0.89 13%
Revenue
(Unaudited)
Three months ended March 31,
--------------------------------------------
(in millions, except
percentages) 2026 2025 % Change
------------------------------ --------- -------- ----------
Transactional seller revenue $ 241.3 $ 216.8 11%
Transactional buyer revenue 577.5 556.7 4%
Marketplace services revenue 78.9 79.0 --%
--------- -------- ---- ---
Total service revenue 897.7 852.5 5%
Inventory sales revenue 336.9 256.1 32%
--------- -------- ---- ---
Total revenue $ 1,234.6 $ 1,108.6 11%
========= ======== ==== ===
For the First Quarter:
-- GTV increased 13% year over year to $4.3 billion, reflecting
broad-based strength across all sectors and contributions from the
inclusion of J.M. Wood and Smith Broughton. Growth in the Commercial
Construction and Transportation ("CC&T") sector increased due to a higher
average price per lot sold, driven primarily by improved mix and higher
volumes. In the Automotive sector, GTV increased year over year due to
higher average price per lot sold.
-- Service revenue increased 5% year over year to $897.7 million, driven
by higher GTV, partially offset by lower service revenue take rate.
Service revenue take rate declined 160 basis points year over year to
20.7% driven by a larger proportion of higher average price per lot sold
assets compared to the prior year, acquired businesses, and divestment of
certain businesses.
-- Inventory sales revenue increased 32% year over year to $336.9 million,
partially due to the inclusion of J.M. Wood. Excluding the impact of this
acquisition, inventory sales revenue increased from higher CC&T revenue,
partially offset by lower Automotive revenue. The inventory rate
increased 80 basis points year over year to 9.0%, primarily due to strong
performance in the CC&T sector.
-- Net income available to common stockholders increased to $124.6 million,
primarily due to higher operating income, lower interest expense due to
lower outstanding principal and lower variable interest rates. These
increases were partially offset by an increase to income tax expense.
-- Adjusted EBITDA1 increased 11% year over year driven by GTV growth,
higher contribution from inventory returns partially offset by higher
operating expenses and lower service revenue take rate.
__________________________________________
(1) For information regarding RB Global's use and definition of this measure,
see "Key Operating Metrics" and "Non-GAAP Measures" sections in this news
release.
GTV by Sector
Three months ended March 31,
------------------------------------------
(in millions, except
percentages) 2026 2025 % Change
------------------------------ -------------- -------------- ----------
Automotive $ 2,289.2 $ 2,144.7 7%
CC&T 1,622.0 1,276.7 27%
Other 429.7 407.5 5%
---------- ---------- ---- ---
Total GTV $ 4,340.9 $ 3,828.9 13%
========== ========== ==== ===
Lots Sold by Sector
Three months ended March 31,
----------------------------------
(in '000's of lots sold, except
percentages) 2026 2025 % Change
-------------------------------------- ---------- ---------- ----------
Automotive 631.3 625.6 1%
CC&T 97.8 87.6 12%
Other 128.4 141.9 (10)%
---------- -----
Total lots sold 857.5 855.1 --%
========== ========== =====
Reconciliation of Operating Expenses (Unaudited) The following table reconciles as reported operating expenses
by line item to adjusted operating expenses to exclude the impact of adjustments, as defined in our Non-GAAP
Measures.
Three months ended March 31, 2026
-------------------- ----------------------------------------------------------------------------------------
Selling, Acquisition-
Cost of general and related and Depreciation Total
Cost of inventory administrative integration and operating
(in millions) services sold expenses costs amortization expenses
As reported
(unaudited) $ 365.1 $ 306.7 $ 214.2 $ 6.2 $ 126.7 $1,018.9
Stock-based
compensation
expense -- -- (15.3) -- -- (15.3)
Acquisition-related
and integration
costs -- -- -- (6.2) -- (6.2)
Restructuring costs -- -- (2.4) -- -- (2.4)
Amortization of
acquired intangible
assets -- -- -- -- (72.6) (72.6)
Other legal,
advisory and
non-income tax
recovery -- -- 2.5 -- -- 2.5
------- -------- --- ------- ---- ----- ----- ------ ---- -------
Adjusted $ 365.1 $ 306.7 $ 199.0 $ -- $ 54.1 $ 924.9
------- -------- --- ------- ---- ----- ----- ------ ---- -------
Dividend Information
On May 1, 2026, the Company declared a quarterly cash dividend of $0.31 per common share, payable on June 18, 2026, to shareholders of record on May 27, 2026.
Other Company Developments
-- On April 21, 2026, the U.S. Federal Trade Commission granted early
termination of the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, with respect to its pending acquisition of
BigIron Auction Company ("BigIron"). The acquisition is subject to other
customary closing conditions and is expected to close in the second
quarter of 2026.
-- On April 13, 2026, the Company acquired Blackmon Auctions ("Blackmon"),
a U.S.-based auction provider serving the construction, transportation,
agriculture, and real estate sectors, further strengthening the Company's
presence and expanding its footprint in the South Central U.S. Blackmon
conducts both live and online auctions and processed more than $60
million of GTV in 2025.
First Quarter 2026 Earnings Conference Call
RB Global is hosting a conference call to discuss its financial results for the quarter ended March 31, 2026, at 4:30 PM ET on May 4, 2026. The replay of the webcast will be available through May 4, 2027.
Conference call and webcast details are available at the following link: https://investor.rbglobal.com.
About RB Global
RB Global, Inc. (NYSE: RBA) (TSX: RBA) is a leading, omnichannel marketplace that provides value-added insights, services and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Through our auction sites and digital platform, we have a wide global presence and serve customers across a variety of asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining and agriculture. Our marketplace brands include Ritchie Bros., the world's largest auctioneer of commercial assets and vehicles offering online bidding, and IAA, Inc. ("IAA"), a leading global digital marketplace connecting vehicle buyers and sellers. Our portfolio of brands also includes Rouse Services ("Rouse"), which provides a complete end-to-end asset management and market data-driven intelligence; SmartEquip Inc. ("SmartEquip"), an innovative technology platform that supports customers' management of the equipment lifecycle and integrates parts procurement with both OEMs and dealers; and VeriTread LLC ("VeriTread"), an online marketplace for heavy haul transport.
Forward-looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable U.S. and Canadian securities legislation (collectively, "forward-looking statements"), including, in particular, statements regarding future financial and operational results, opportunities, and any other statements regarding events or developments that RB Global believes or anticipates will or may occur in the future. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as "expect", "plan", "anticipate", "project", "target", "potential", "schedule", "forecast", "budget", "confident", "estimate", "intend" or "believe" and similar expressions or their negative connotations, or statements that events or conditions "will", "would", "may", "remain", "could", "should" or "might" occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are beyond RB Global's control, including risks and uncertainties related to: our ability to integrate acquisitions, including the recently acquired J.M. Wood; the fact that operating costs and business disruption may be greater than expected; the effect of the consummation of the merger on the trading price of RB Global's common shares; the ability of RB Global to retain and hire key personnel and employees; the significant costs associated with the merger; the outcome of any legal proceedings that have been or could be instituted against RB Global; the ability of the Company to realize anticipated synergies in the amount, manner or timeframe expected or at all; the failure of the Company to achieve expected operating results in the amount, manner or timeframe expected or at all; changes in capital markets and the ability of the Company to generate cash flow and/or finance operations in the manner expected or to de-lever in the timeframe expected; the failure of RB Global or the Company to meet financial forecasts and/or key performance targets including the Company's key operating metrics; the Company's ability to commercialize new platform solutions and offerings; legislative, regulatory and economic developments affecting the combined business; general economic and market developments and conditions, including as a result of global trade tensions and as a result of current, proposed or future tariffs, including retaliatory tariffs; the evolving legal, regulatory and tax regimes under which RB Global operates; unpredictability and severity of catastrophic events, including, but not limited to, pandemics, acts of terrorism or outbreak of war or hostilities, as well as RB Global's response to any of the aforementioned factors. Other risks that could cause actual results to differ materially from those described in the forward-looking statements are included in RB Global's periodic reports and other filings with the Securities and Exchange Commission ("SEC") and/or applicable Canadian securities regulatory authorities, including the risk factors identified under Item 1A "Risk Factors" and the section titled "Summary of Risk Factors" in RB Global's most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and RB Global's periodic reports and other filings with the SEC, which are available on the SEC, SEDAR and RB Global' websites. The foregoing list is not exhaustive of the factors that may affect RB Global's forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, and actual results may differ materially from those expressed in, or implied by, these forward-looking statements. Forward-looking statements are made as of the date of this news release and RB Global does not undertake any obligation to update the information contained herein unless required by applicable securities legislation. For the reasons set forth above, you should not place undue reliance on forward-looking statements.
Key Operating Metrics
We regularly review a number of metrics, including the following key operating metrics, to evaluate our business, measure our performance, identify trends affecting our business, and make operating decisions. We believe these key operating metrics are useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our operational strategies.
Gross Transaction Value ("GTV"): Represents total proceeds from all items sold on our auctions and online marketplaces, third-party online marketplaces, private brokerage services and other disposition channels. GTV is not a measure of financial performance, liquidity, or revenue, and is not presented in the Company's consolidated financial statements.
Total service revenue take rate: Total service revenue divided by total GTV.
Inventory return: Inventory sales revenue less cost of inventory sold.
Inventory rate: Inventory return divided by inventory sales revenue.
Total lots sold: A single asset to be sold or a group of assets bundled for sale as one unit.
GTV and Condensed Consolidated Income Statements
(Unaudited; in millions, except per share data)
Three months ended March 31,
--------------------------------------
2026 2025
-------------------------------------- ----------- ----------
GTV $ 4,340.9 $ 3,828.9
----------- ----------
Revenue:
Service revenue $ 897.7 $ 852.5
Inventory sales revenue 336.9 256.1
----------- ----------
Total revenue 1,234.6 1,108.6
----------- ----------
Operating expenses:
Costs of services 365.1 361.9
Cost of inventory sold 306.7 235.0
Selling, general and administrative 214.2 205.0
Acquisition-related and integration
costs 6.2 3.1
Depreciation and amortization 126.7 114.5
----------- ----------
Total operating expenses 1,018.9 919.5
Gain on disposition of property, plant
and equipment 1.8 0.4
----------- ----------
Operating income 217.5 189.5
----------- ----------
Interest expense (44.0) (49.9)
Interest income 2.6 3.0
Other income (loss), net (2.3) 0.7
Foreign exchange loss (0.6) (0.4)
----------- ----------
Income before income taxes 173.2 142.9
Income tax expense 37.6 29.6
----------- ----------
Net income 135.6 113.3
Net loss attributable to redeemable
non-controlling interest -- (0.1)
Net income attributable to
non-controlling interests 0.1 --
----------- ----------
Net income attributable to controlling
interests 135.5 113.4
Cumulative dividends on Series A
Senior Preferred Shares (6.7) (6.7)
Allocated earnings to Series A Senior
Preferred Shares (4.6) (3.8)
Adjustment of redeemable
non-controlling interest 0.4 --
----------- ----------
Net income available to common
stockholders $ 124.6 $ 102.9
=========== ==========
Basic earnings per share available
to common stockholders $ 0.67 $ 0.56
Diluted earnings per share available
to common stockholders $ 0.66 $ 0.55
Basic weighted average number of
shares outstanding 186.0 184.8
Diluted weighted average number of
shares outstanding 187.5 186.4
Condensed Consolidated Balance Sheets
(Unaudited, in millions, except per share
data)
March 31, December 31,
2026 2025
---------- ----------------
Assets
Current assets:
Cash and cash equivalents $ 667.2 $ 531.5
Restricted cash 192.2 163.3
Trade and other receivables, net of
allowance for credit losses of $9.1 and
$8.6, respectively 894.8 706.3
Prepaid consigned vehicle charges 62.2 62.4
Inventory 119.1 139.8
Other current assets 97.6 107.8
Income taxes receivable 55.4 73.7
-------- ---------
Total current assets 2,088.5 1,784.8
Property, plant and equipment, net 1,541.4 1,522.3
Operating lease right-of-use assets 1,558.8 1,545.5
Other non-current assets 149.7 149.4
Intangible assets, net 2,388.0 2,464.5
Goodwill 4,662.3 4,668.0
Deferred tax assets 8.5 8.5
-------- ---------
Total assets $12,397.2 $ 12,143.0
======== =========
Liabilities, Temporary Equity and
Stockholders' Equity
Current liabilities:
Auction proceeds payable $ 687.1 $ 457.9
Trade and other liabilities 664.2 836.5
Current operating lease liabilities 132.8 128.2
Income taxes payable 17.8 6.7
Short-term debt 282.0 137.5
Current portion of long-term debt 51.2 51.2
-------- ---------
Total current liabilities 1,835.1 1,618.0
Long-term operating lease liabilities 1,472.3 1,456.8
Long-term debt 2,271.0 2,282.8
Other non-current liabilities 158.3 158.5
Deferred tax liabilities 559.2 559.2
-------- ---------
Total liabilities 6,295.9 6,075.3
-------- ---------
Temporary equity:
Series A Senior Preferred Shares; shares
authorized, issued and outstanding: 485.0
million 482.0 482.0
Redeemable non-controlling interest -- 12.6
Stockholders' equity:
Senior preferred and junior preferred
stock; unlimited shares authorized; shares
issued and outstanding, other than Series
A Senior Preferred Shares: nil -- --
Common stock and additional paid-in
capital, no par value; unlimited shares
authorized; shares issued and outstanding:
186.3 million and 185.1 million,
respectively 4,360.4 4,365.1
Retained earnings 1,323.5 1,254.6
Accumulated other comprehensive loss (65.0) (48.3)
-------- ---------
Stockholders' equity 5,618.9 5,571.4
Non-controlling interests 0.4 1.7
-------- ---------
Total stockholders' equity 5,619.3 5,573.1
-------- ---------
Total liabilities, temporary equity and
stockholders' equity $12,397.2 $ 12,143.0
-------- ---------
Condensed Consolidated Statements of Cash Flows
(Unaudited, in millions)
Three months ended March 31, 2026 2025
--------------------------------------------------- ----- ------
Cash provided by (used in):
Operating activities:
Net income $135.6 $ 113.3
Adjustments for items not affecting cash:
Depreciation and amortization 126.7 114.5
Stock-based compensation expense 15.6 15.6
Amortization of right-of-use assets 41.4 38.7
Other, net 3.4 0.1
Net changes in operating assets and liabilities (98.6) (125.4)
----- ------
Net cash provided by operating activities 224.1 156.8
----- ------
Investing activities:
Property, plant and equipment additions (51.5) (54.3)
Proceeds on disposition of property, plant and
equipment 2.4 1.1
Intangible asset additions (27.8) (27.7)
Proceeds from repayments of loans receivable 1.0 1.4
Issuance of loans receivable (2.8) (22.1)
Other, net (0.1) (0.3)
----- ------
Net cash used in investing activities (78.8) (101.9)
----- ------
Financing activities:
Dividends paid (66.5) (62.1)
Proceeds from exercise of stock options 2.5 4.3
Payment of tax withholding related to vesting of
share units (22.2) (15.2)
Net increase in short-term debt 144.3 34.5
Repayment of long-term debt (12.8) (1.0)
Repayment of finance lease and equipment
financing obligations (8.0) (6.5)
Proceeds from equipment financing obligations 0.5 1.0
Acquisition of VeriTread non-controlling
interests (14.2) --
----- ------
Net cash provided by (used in) financing activities 23.6 (45.0)
----- ------
Effect of changes in exchange rates on cash, cash
equivalents, and restricted cash (4.3) 3.1
Net increase in cash, cash equivalents, and
restricted cash 164.6 13.0
Cash, cash equivalents, and restricted cash,
beginning of period 694.8 708.8
----- ------
Cash, cash equivalents, and restricted cash, end of
period $859.4 $ 721.8
Non-GAAP Measures
(Unaudited)
This news release references non-GAAP measures. These measures do not have a standardized meaning and are, therefore, unlikely to be comparable to similar measures presented by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP.
The Company has not provided a reconciliation of Adjusted EBITDA outlook for fiscal 2026 to GAAP net income, the most directly comparable GAAP financial measure, because without unreasonable efforts, it is unable to predict with reasonable certainty the amount or timing of non-GAAP adjustments that are used to calculate Adjusted EBITDA, including but not limited to: (a) the net loss or gain on the sale of property plant & equipment, or other assets, (b) loss on divestiture and deconsolidation and related costs, (c) acquisition-related or integration costs relating to our mergers and acquisition activity, including severance costs, (d) restructuring costs, (e) stock-based compensation expense, which value is directly impacted by the fluctuations in our share price and other variables, and (f) other expenses that we do not believe are indicative of our ongoing operations. These adjustments are uncertain, depend on various factors that are beyond our control and could have a material impact on net income for fiscal 2026.
Please refer to the Form 10-Q for the quarterly period ended March 31, 2026 for a summary of adjusting items for the quarter ended March 31, 2026. The adjusting items recognized in prior quarters are discussed in Part II, Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended December 31, 2025.
Unless otherwise indicated, all amounts in the following tables are in millions, except per share amounts and percentages.
Adjusted Net Income Available to Common Stockholders and Diluted Adjusted EPS Available to Common Stockholders Reconciliation
The Company believes that adjusted net income available to common stockholders provides useful information about the growth or decline of the net income available to common stockholders for the relevant financial period and eliminates the financial impact of adjusting items the Company does not consider to be part of the normal operating results. Diluted adjusted EPS available to common stockholders eliminates the financial impact of adjusting items from net income available to common stockholders that the Company does not consider to be part of the normal operating results.
Adjusted net income available to common stockholders is calculated as net income available to common stockholders, excluding the effects of adjusting items that we do not consider to be part of our normal operating results, such as stock-based compensation expense, acquisition-related and integration costs, restructuring costs, amortization of acquired intangible assets, executive transition costs and certain other items.
Net income available to common stockholders is calculated as net income attributable to controlling interests, less cumulative dividends on Series A Senior Preferred Shares, allocated earnings to Series A Senior Preferred Shares, and adjustments to redeemable non-controlling interest.
Diluted adjusted EPS available to common stockholders is calculated by dividing adjusted net income available to common stockholders by the weighted average number of dilutive shares outstanding, except that it is computed based upon the lower of the two-class method or the if-converted method, which includes the effects of the assumed conversion of the Series A Senior Preferred Shares and the effect of shares issuable under the Company's stock-based incentive plans, if such effect is dilutive.
The following table reconciles adjusted net income available to common stockholders and diluted adjusted EPS available to common stockholders to net income available to common stockholders and diluted EPS available to common stockholders, which are the most directly comparable GAAP measures in our consolidated financial statements:
Three months ended March 31, 2026 2025 % Change
---------------------------------------- ----- ----- ----------
Net income available to common
stockholders $124.6 $102.9 21%
Stock-based compensation expense 15.3 14.4 6%
Acquisition-related and integration
costs 6.2 3.1 100%
Restructuring costs 2.4 1.8 33%
Amortization of acquired intangible
assets 72.6 68.3 6%
Gain on disposition of property, plant
and equipment and related costs (1.8) (0.2) (800)%
Executive transition costs -- 2.7 NM
Other legal, advisory and non-income
tax expense 0.1 1.8 (94)%
Related tax effects of the above (27.2) (27.3) --%
Related allocation of the above to
Series A Senior Preferred Shares (2.4) (2.3) 4%
Adjustment of redeemable
non-controlling interest (0.4) -- NM
----- ----- ------
Adjusted net income available to common
stockholders $189.4 $165.2 15%
----- ----- ------
Weighted average number of dilutive
shares outstanding 187.5 186.4 1%
----- ----- ------
Diluted earnings per share available to
common stockholders $ 0.66 $ 0.55 20%
Diluted adjusted earnings per share
available to common stockholders $ 1.01 $ 0.89 13%
===== ===== ======
__________________
NM = Not meaningful
Adjusted EBITDA
The Company believes adjusted EBITDA provides useful information and is a key performance measure because it facilitates operating performance comparisons from period to period and it provides management with the ability to monitor its controllable incremental revenues and costs.
Adjusted EBITDA is calculated by adding back depreciation and amortization, interest expense, and income tax expense, and subtracting interest income from net income, as well as adding back the adjusting items.
The following table reconciles adjusted EBITDA to net income, which is the most directly comparable GAAP measure in, or calculated from, our consolidated financial statements:
Three months ended March 31, 2026 2025 % Change
---------------------------------------- ----- ----- ----------
Net income $135.6 $113.3 20%
Add: depreciation and amortization 126.7 114.5 11%
Add: interest expense 44.0 49.9 (12)%
Less: interest income (2.6) (3.0) (13)%
Add: income tax expense 37.6 29.6 27%
----- ----- ------
EBITDA 341.3 304.3 12%
Stock-based compensation expense 15.3 14.4 6%
Acquisition-related and integration
costs 6.2 3.1 100%
Restructuring costs 2.4 1.8 33%
Gain on disposition of property, plant
and equipment and related costs (1.8) (0.2) (800)%
Executive transition costs -- 2.7 NM
Other legal, advisory and non-income
tax expense (recovery) (0.7) 1.8 NM
----- ----- ------
Adjusted EBITDA $362.7 $327.9 11%
===== ===== ======
__________________
NM = Not meaningful
Adjusted Net Debt and Adjusted Net Debt/Adjusted EBITDA Reconciliation
The Company believes that comparing adjusted net debt to adjusted EBITDA on a trailing twelve-month basis, across different periods, provides useful information to investors about the Company's operational performance and financial flexibility. This ratio indicates the period of time it would take to repay both our short- and long-term debt from operating earnings. The Company does not consider this to be a measure of its liquidity, which is its ability to meet short-term obligations, but rather a measure of how well it manages its liquidity position. Measures of liquidity are noted under "Liquidity and Capital Resources" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.
Adjusted net debt is calculated by subtracting cash and cash equivalents from short and long-term debt. Adjusted net debt/adjusted EBITDA is calculated by dividing adjusted net debt by adjusted EBITDA.
The following table reconciles adjusted net debt to debt, adjusted EBITDA to net income, and adjusted net debt/ adjusted EBITDA to debt/ net income, respectively, which are the most directly comparable GAAP measures in, or calculated from, our consolidated financial statements.
At and for the twelve months ended
March 31, 2026 2025 % Change
------------------------------------ ------- ------- ----------
Short-term debt $ 282.0 $ 62.8 349%
Long-term debt 2,322.2 2,626.7 (12)%
------- ------- -----
Debt 2,604.2 2,689.5 (3)%
Less: cash and cash equivalents (667.2) (578.1) 15%
------- ------- -----
Adjusted net debt 1,937.0 2,111.4 (8)%
------- ------- -----
Net income $ 449.9 $ 418.7 7%
Add: depreciation and amortization 495.6 451.2 10%
Add: interest expense 185.7 219.7 (15)%
Less: interest income (14.5) (22.6) (36)%
Add: income tax expense 116.0 134.4 (14)%
------- ------- -----
EBITDA 1,232.7 1,201.4 3%
Stock-based compensation expense 77.6 57.4 35%
Acquisition-related and
integration costs 22.5 19.3 17%
Restructuring costs 17.8 1.8 889%
(Gain) loss on disposition of
property, plant and equipment and
related costs (3.6) 0.4 NM
Executive transition costs 51.0 7.7 562%
Loss on divestiture 15.8 -- NM
Debt refinancing costs 3.9 -- NM
Remeasurements in connection with
business combinations 0.1 1.2 (92)%
Other legal, advisory and
non-income tax expense 16.7 10.3 62%
------- ------- -----
Adjusted EBITDA $1,434.5 $1,299.5 10%
------- ------- -----
Debt/net income 5.8 x 6.4 x (9 )%
Adjusted net debt/adjusted EBITDA 1.4 x 1.6 x (13 )%
========= ========= ===== ===
__________________
NM = Not meaningful
View source version on businesswire.com: https://www.businesswire.com/news/home/20260504895661/en/
CONTACT: For further information, please contact:
Sameer Rathod | Vice President, Investor Relations and Market Intelligence
1-510-381-7584 | srathod@rbglobal.com
(END) Dow Jones Newswires
May 04, 2026 16:05 ET (20:05 GMT)
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