# RB GLOBAL INC. (RBA) FY 2024 MD&A

Verbatim Item 7 Management's Discussion and Analysis from RB GLOBAL INC.'s 10-K for fiscal year 2024.

SEC filing source: https://www.sec.gov/Archives/edgar/data/1046102/000162828025008201/rba-20241231.htm
Accession: 0001628280-25-008201
Filing date: 2025-02-26
Report date: 2024-12-31
Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high

Company profile: /company/RBA/
All MD&A years: /company/RBA/mda/
Previous year: /company/RBA/mda/fy2023/ (FY 2023)
Next year: /company/RBA/mda/fy2025/ (FY 2025)

ITEM 7:    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This section of the Form 10-K generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023. Discussions of 2022 items and year-to-year comparisons between 2023 and 2022 that are not included in this Form 10-K can be found in “Part II, Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. This discussion and analysis should be read in conjunction with the “Cautionary Note Regarding Forward-Looking Statements” and the consolidated financial statements and the notes thereto included in “Part II, Item 8. Financial Statements and Supplementary Data” presented in this Annual Report on Form 10-K. This discussion and analysis contains forward-looking statements that involve risks and uncertainties.

Our actual results could differ materially from those expressed or implied in any forward-looking statements due to various factors, including those set forth under “Part I, Item 1A: Risk Factors” in this Annual Report on Form 10-K.

We prepare our consolidated financial statements in accordance with U.S. generally accepted accounting principles (“US GAAP”). Except for Gross Transaction Value ("GTV"), which is a measure of operational performance and not a measure of financial performance, liquidity, or revenue, the amounts discussed below are based on our consolidated financial statements. Unless indicated otherwise, all tabular dollar amounts, including related footnotes, presented below are expressed in millions of United States (“U.S.”) dollars.

In the accompanying analysis of financial information, we sometimes use information derived from consolidated financial data but not presented in our consolidated financial statements prepared in accordance with US GAAP. Certain of these data are considered “non-GAAP financial measures” under the SEC rules. The definitions and reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable US GAAP financial measures are included either with the first use thereof or in the “Non-GAAP Measures” section within “Part II, Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Overview

Established in 1958, RB Global, Inc. (NYSE and TSX: RBA) is a leading global marketplace that connects sellers and buyers of commercial assets and vehicles. Through our omnichannel platform, we facilitate transactions for customers primarily in our commercial, construction and transportation ("CC&T") and automotive sectors. We also provide our customers value-added marketplace services, technology solutions for vehicle merchandising, platforms for lifecycle management of assets, and a market data intelligence platform to help customers make more informed business decisions.

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, data-driven intelligence and performance benchmarking system; 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.

Our CC&T sector includes heavy equipment such as excavators, dozers, lift and material handling, vocational and commercial trucks and trailers. Our automotive sector includes all consumer automotive vehicles. The other sector primarily includes assets and equipment in the agricultural, forestry and energy industries, government surplus assets, smaller consumer recreational transportation items and parts sold in our vehicle dismantling business. All sectors include salvage and non-salvage transactions.

Our customers primarily include automotive insurance companies, as well as end users, dealers, fleet owners, and original equipment manufacturers (“OEMs”) of commercial assets and vehicles. We also serve customers in the agriculture, energy, and natural resources sectors, as well as government entities.

We have a global presence, primarily with operations in the United States, Canada, Australia and across Europe, and employ more than 7,800 full-time employees worldwide, of which approximately 67% are located in the United States.

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[["RB Global, Inc.","35"]]
[[/GREPCENT_TABLE]]

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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.

We define our key operating metrics as follows:

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.

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. Low value assets are sometimes bundled into a single lot, collectively referred to as “small value lots.”

Historically, we presented GTV from the sale of parts in our vehicle dismantling business within our automotive sector and excluded the number of parts sold from our total lots sold metric. Commencing in the second quarter of 2024, management began to review the number of parts sold in our vehicle dismantling business within our other sector and as part of our total lots sold metric.

Performance Overview and Consolidated Results

For the year ended December 31, 2024, as compared to the year ended December 31, 2023:

•Total GTV increased 14% to $15.9 billion.

•Total revenue increased 16% to $4.3 billion.

◦Service revenue increased 23% to $3.4 billion.

◦Inventory sales revenue decreased 3% to $920.6 million.

•Net income increased 100% to $412.8 million.

•Net income available to common stockholders increased 113% to $372.7 million.

•Diluted earnings per share (“EPS”) available to stockholders increased 93% to $2.01 per share.

•Diluted adjusted EPS available to stockholders increased 17% to $3.49 per share.

•Adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) increased 26% to $1.3 billion.

Operational Highlights

During 2024, we saw several changes in our executive leadership team. Eric J Guerin was appointed Chief Financial Officer, effective January 15, 2024. Eric J. Guerin brings extensive senior executive financial leadership experience, most recently serving as the Chief Financial Officer at a leading distributor of packaging, facility solutions and print products. Nancy King was appointed Chief Technology Officer, effective June 3, 2024, and brings extensive hands-on information technology leadership experience from her roles at multiple Fortune 100 organizations. Steve Lewis was appointed Chief Operating Officer, effective September 3, 2024, and brings extensive senior leadership experience in operations and supply chain management, as well as a honed approach to driving business growth through operational excellence.

Below are some other notable operational highlights during 2024:

•RB Global had strong operating results and growth, resulting in a 14% year-over-year increase in total GTV and 16% year-over year increase in total revenues.

•Through our continuous improvement program, we consistently delivered exceptional performance, as measured against our service level agreements, to our automotive insurance company customers. We also drove industry leading average selling prices for our partners, enabled by investment in technology and attracting record-high engagement from international buyers. These advancements and ongoing transparency initiatives have reinforced our leadership in salvage vehicles, resulting in significant partnership wins in the United States and in Australia.

[[GREPCENT_TABLE]]
[["RB Global, Inc.","36"]]
[[/GREPCENT_TABLE]]

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•On October 31, 2024, the Company completed the acquisition of Boom & Bucket, Inc ("Boom & Bucket"), a digital fixed price marketplace to add to our portfolio of selling solutions, serving the construction equipment industry. We believe that Boom & Bucket's technology, talent and market capabilities offer an exciting complement to our full-service disposition portfolio.

•In 2024, we continued to invest in the development of our technology, particularly in a new digital payments platform that replaces outdated manual processes and legacy technology with a modern financial backbone to offer our buyers and partners increased choice in our services, including self-serve access to critical financial tools, and provide our buyers and sellers the best in-class experience.

•In January 2024, we enhanced IAA's merchandising services to provide more accurate VIN decoding to our customers and improve the overall customer experience for all users, buyers and sellers, by providing more comprehensive data. Buyers of vehicles are now able to search for specific makes, models, and trims of vehicles with more confidence due to more data, configuration rules and industry-leading data-engineering capabilities.

•During the year, in our automotive sector, we continued to expand our international customer base with new market alliances in Oman in the Middle East and in Lithuania in Eastern Europe. These market alliances will help us connect with a base of new buyers and broaden our market share.

Results of Operations

[[GREPCENT_TABLE]]
[["","","Year ended December 31,"],["","","","","","","","","% Change"],["(in U.S. dollars in millions, except percentages)","","2024","","2023","","2022","","2024 over 2023","","2023 over 2022"],["Service revenue","","$","3,363.6","","","$","2,732.5","","","$","1,050.6","","","23","%","","160","%"],["Inventory sales revenue","","920.6","","","947.1","","","683.2","","","(3)","%","","39","%"],["Total revenue","","4,284.2","","","3,679.6","","","1,733.8","","","16","%","","112","%"],["Costs of services","","1,415.7","","","1,007.6","","","168.1","","","41","%","","499","%"],["Cost of inventory sold","","863.8","","","893.6","","","608.6","","","(3)","%","","47","%"],["Selling, general and administrative","","773.9","","","743.7","","","539.9","","","4","%","","38","%"],["Acquisition-related and integration costs","","29.0","","","216.1","","","37.3","","","(87)","%","","479","%"],["Depreciation and amortization","","444.4","","","352.2","","","97.2","","","26","%","","262","%"],["Total operating expenses","","3,526.8","","","3,213.2","","","1,451.1","","","10","%","","121","%"],["Gain on disposition of property, plant and equipment","","3.8","","","4.9","","","170.8","","","(22)","%","","(97)","%"],["Operating income1","","761.2","","","471.3","","","453.5","","","62","%","","4","%"],["Net income","","412.8","","","206.0","","","319.8","","","100","%","","(36)","%"],["Net income available to common stockholders","","372.7","","","174.9","","","319.7","","","113","%","","(45)","%"],["Effective tax rate","","25.0","%","","27.1","%","","21.2","%","","(210)bps","","590bps"],["Total GTV","","$","15,904.8","","","$","13,930.6","","","$","6,025.9","","","14","%","","131","%"],["Service GTV","","14,984.2","","","12,983.5","","","5,342.7","","","15","%","","143","%"],["Inventory GTV","","920.6","","","947.1","","","683.2","","","(3)","%","","39","%"],["Inventory return","","$","56.8","","","$","53.5","","","$","74.6","","","6","%","","(28)","%"],["Inventory rate","","6.2","%","","5.6","%","","10.9","%","","60bps","","(530)bps"]]
[[/GREPCENT_TABLE]]

1 Foreign exchange gain (loss) for the year ended 2022 has been reclassified from operating income to a separate line below operating income.

[[GREPCENT_TABLE]]
[["RB Global, Inc.","37"]]
[[/GREPCENT_TABLE]]

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Total GTV

Total GTV increased 14% to $15.9 billion in 2024 as compared to $13.9 billion in 2023.

The following summarizes our total GTV by geography and by sector for the periods indicated:

[[GREPCENT_TABLE]]
[["","","Year ended December 31,"],["","","","","","","","","% Change"],["(in U.S. dollars in millions, except percentages)","","2024","","2023","","2022","","2024 over 2023","","2023 over 2022"],["United States","","$","11,966.4","","","$","10,266.1","","","$","3,432.4","","","17","%","","199","%"],["Canada","","2,688.1","","","2,460.8","","","1,707.1","","","9","%","","44","%"],["International","","1,250.3","","","1,203.7","","","886.4","","","4","%","","36","%"],["Total GTV","","$","15,904.8","","","$","13,930.6","","","$","6,025.9","","","14","%","","131","%"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","","Year ended December 31,"],["","","","","","","","","% Change"],["(in U.S. dollars in millions, except percentages)","","2024","","2023","","2022","","2024 over 2023","","2023 over 2022"],["Automotive","","$","8,277.6","","","$","6,531.2","","","$","186.0","","","27","%","","3,411","%"],["CC&T","","5,805.8","","","5,446.5","","","4,252.9","","","7","%","","28","%"],["Other","","1,821.4","","","1,952.9","","","1,587.0","","","(7)","%","","23","%"],["Total GTV","","$","15,904.8","","","$","13,930.6","","","$","6,025.9","","","14","%","","131","%"]]
[[/GREPCENT_TABLE]]

The following table illustrates the breakdown of total lots sold by sector for the periods indicated:

[[GREPCENT_TABLE]]
[["","","Year ended December 31,"],["","","","","","","","","% Change"],["(in '000's of lots sold, except percentages)","","2024","","2023","","2022","","2024 over 2023","","2023 over 2022"],["Automotive","","2,297.2","","","1,788.4","","","21.0","","","28","%","","8,416","%"],["CC&T","","432.3","","","314.5","","","181.5","","","37","%","","73","%"],["Other","","617.3","","","591.1","","","415.3","","","4","%","","42","%"],["Total Lots Sold","","3,346.8","","","2,694.0","","","617.8","","","24","%","","336","%"]]
[[/GREPCENT_TABLE]]

In 2024, total GTV and lots sold increased primarily due to the full quarter inclusion of IAA in the first quarter of 2024, compared to the 11-day stub period in the first quarter of 2023. Excluding this impact, GTV remained primarily flat year over year. We saw higher GTV volumes from catastrophic events in our automotive sector, and higher GTV in our CC&T sector driven by higher lot volumes from our strategic accounts, primarily from a large consignor contract in transportation. These increases were primarily offset by unfavorable asset mix as well as price declines, predominantly observed within our CC&T and other sectors, and lower volumes from a shift in assignment volumes from a customer in our automotive sector.

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[[/GREPCENT_TABLE]]

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Total Revenue

Total revenue increased 16% to $4.3 billion in 2024 as compared to 2023, with total service revenue increasing by 23% and partially offset by a 3% decrease in inventory sales revenue.

Service Revenue

The following table summarizes key components of total service revenue for the periods indicated:

[[GREPCENT_TABLE]]
[["","","Year ended December 31,"],["","","","","","","","","% Change"],["(in U.S. dollars in millions, except percentages)","","2024","","2023","","2022","","2024 over 2023","","2023 over 2022"],["Transactional seller revenue","","$","939.4","","","$","851.7","","","$","514.6","","","10","%","","66","%"],["Transactional buyer revenue","","2,067.1","","","1,593.2","","","330.6","","","30","%","","382","%"],["Marketplace services revenue","","357.1","","","287.6","","","205.4","","","24","%","","40","%"],["Total service revenue","","$","3,363.6","","","$","2,732.5","","","$","1,050.6","","","23","%","","160","%"]]
[[/GREPCENT_TABLE]]

In the third quarter of 2024, we updated our presentation of disaggregated revenue to align to how management evaluates its financial and business performance. As a result, transactional seller revenue now includes commissions, pre-negotiated or fixed, as well as certain auction-related fees earned from sellers to complete the sale of an asset, such as towing to our yards, liens search, title processing and online listing and inspection fees. Transactional buyer revenue now includes buyer transaction fees based on a tiered structure earned from purchasers upon purchase of an asset, as well as other auction-related fees earned from buyers to complete the purchase of an asset, such as title processing, late-pick up, salvage buyer platform registration and other administrative processing charges. Accordingly, certain auction-related fees were reclassified from marketplace services revenue to transactional seller or transactional buyer revenue, and prior period disaggregation of revenue amounts have been recast to conform with current period presentation.

In 2024, total service revenue increased 23%, with transactional buyer revenue increasing 30%, marketplace services revenue increasing 24% and transactional seller revenue increasing 10%.

Transactional buyer revenue increased 30%, primarily driven by the inclusion of IAA in the first quarter of 2024 for the full quarter compared to the 11-day stub period in the first quarter of 2023. Excluding the impact of the IAA acquisition in the first quarter, transactional buyer revenue growth exceeded the 14% increase in total GTV mainly from higher buyer fee rate structures implemented throughout 2024 across all sectors, but primarily within our automotive sector.

Marketplace services revenue increased 24%, driven primarily from higher fees earned from transportation services provided to a large consignor contract in the United States in our CC&T sector, as well as due to the increase in fees from the inclusion of IAA in the first quarter of 2024 for the full quarter compared to the 11-day stub period in the first quarter of 2023.

Transactional seller revenue increased 10%, primarily due to the inclusion of IAA in the first quarter of 2024 for the full quarter compared to the 11-day stub period in the first quarter of 2023. Excluding the impact of the IAA acquisition in the first quarter, transactional seller revenue growth was less than the 15% increase in service GTV due to softer performances primarily in our guarantee contracts in Canada within our CC&T sector.

Inventory Sales Revenue

Inventory sales revenue decreased 3% in 2024, primarily driven by lower volumes in our CC&T sector in the United States from softer year-over-year performance due to lower price realization and an unfavorable contract mix, as well as due to the non-repeat of a large inventory package in the utilities sector. We also saw softer performances in our GovPlanet business driven primarily from a higher volume of low value assets and pricing pressure. These decreases were partially offset by the inclusion of inventory sales revenue from IAA in the first quarter of 2024 for the full quarter compared to the 11-day stub period in the first quarter of 2023 and favorable performances in Canada in our CC&T sector driven by a few significant inventory contracts.

Costs of Services

Costs of services increased 41% to $1.4 billion, primarily due to the full quarter inclusion of IAA in the first quarter of 2024 compared to the 11-day stub period in the the first quarter of 2023, which contributed 85% of the increase, and primarily relates to costs to provide towing services to buyers, building and facility costs including operating lease costs for auction sites, as well as employee compensation expenses. We also incurred higher costs of services in connection with a large consignor contract in transportation in the United States, which included higher costs to provide transportation services and higher payments to a third party as part of a profit-

[[GREPCENT_TABLE]]
[["RB Global, Inc.","39"]]
[[/GREPCENT_TABLE]]

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sharing arrangement. Further, we saw higher costs of services in our automotive sector as prior year included a benefit related to a fair value adjustment made to prepaid consigned vehicle charges on the opening balance sheet of IAA at acquisition. In addition, we saw higher employee compensation expenses as a result of changes made to our employee benefit plans and higher employee labor costs to support increased activity. In our automotive sector, in line with higher volumes, we also saw higher cost of services due to increases in yard lease expense, title search costs, new digital services tax and operating branch costs.

Cost of Inventory Sold

Cost of inventory sold decreased 3% to $863.8 million, primarily in line with the decrease in inventory sales revenue of 3%.

Selling, General and Administrative

Selling, general and administrative expenses increased 4% to $773.9 million, mainly due to the full quarter inclusion of IAA in the first quarter of 2024 compared to the 11-day stub period in the first quarter of 2023. We also saw higher share-based payments expense due to an increase in the size and fair value of share units granted. In addition, our costs increased due to a new digital services tax enacted in Canada on certain in-scope revenues which was retroactively applied to the period from January 1, 2022 to June 30, 2024. These increases were partially offset by lower short-term incentive-based compensation expense, lower travel, advertising and promotional expenses, lower employee compensation expenses as a result of a reduced headcount from our integration activities and lower costs due to strategic cost reduction initiatives.

Acquisition-related and Integration Costs

Acquisition-related and integration costs decreased 87% to $29.0 million, primarily given the significant investment banking, consulting, financing, legal and other acquisition-related costs incurred in the prior year to complete the acquisition of IAA on March 20, 2023. We have also incurred lower severance and integration costs as integration activities and restructuring is being completed. In addition, we recognized a net $16.3 million expense as settlement for the termination of a non-compete agreement bound by IAA prior to the acquisition in the prior year.

Operating Income

Operating income increased 62% to $761.2 million, primarily driven by the significant decrease in acquisition-related and integration costs and the inclusion of IAA operating income in the first quarter of 2024 for a full quarter compared to the 11-day stub period in the first quarter of 2023. In addition, we saw a higher flow-through of service revenue driven by the CC&T sector. These increases are partially offset by higher depreciation and amortization driven by the acquisition of IAA.

Income Tax Expense and Effective Tax Rate

Income tax expense increased 80% to $137.3 million in 2024, compared to $76.4 million in 2023. Our effective tax rate was 25.0%, compared to 27.1% in 2023. The decrease in the effective tax rate over the prior year was primarily due to a decrease in non-deductible expenses. Partially offsetting this decrease was a lower proportionate benefit related to Foreign-Derived Intangible Income (“FDII”).

Net Income

Net income attributable to controlling interests increased 100% to $413.1 million, compared to $206.5 million in 2023. The increase was primarily driven by higher operating income, partially offset by higher income tax expense and higher interest expense due to an increase in long-term debt from funding the IAA acquisition on March 20, 2023.

Diluted EPS

Diluted EPS available to stockholders increased 93% to $2.01 per share compared to $1.04 in 2023. The increase is primarily due to an increase in net income attributable to controlling interests, as described above, partially offset by an increase in the weighted average number of dilutive shares outstanding primarily driven by the shares issued for the acquisition of IAA on March 20, 2023.

[[GREPCENT_TABLE]]
[["RB Global, Inc.","40"]]
[[/GREPCENT_TABLE]]

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U.S. Dollar Exchange Rate Comparison

We conduct global operations in many different currencies, with our presentation currency being the U.S dollar. The following table presents the variance in select foreign exchange rates over the comparative reporting periods:

[[GREPCENT_TABLE]]
[["","","","","","","","","% Change"],["Value of one local currency to U.S. dollar","","2024","","2023","","2022","","2024 over 2023","","2023 over 2022"],["Period-end exchange rate - December 31,"],["Canadian dollar","","0.6969","","0.7558","","0.7378","","(8)","%","","2","%"],["Euro","","1.0406","","1.1067","","1.0661","","(6)","%","","4","%"],["British pound sterling","","1.2548","","1.2734","","1.2054","","(1)","%","","6","%"],["Australian dollar","","0.6219","","0.6826","","0.6765","","(9)","%","","1","%"],["Average exchange rate - Year ended December 31,"],["Canadian dollar","","0.7302","","0.7411","","0.7690","","(1)","%","","(4)","%"],["Euro","","1.0823","","1.0820","","1.0543","","\u2014","%","","3","%"],["British pound sterling","","1.2780","","1.2434","","1.2376","","3","%","","\u2014","%"],["Australian dollar","","0.6598","","0.6645","","0.6949","","(1)","%","","(4)","%"]]
[[/GREPCENT_TABLE]]

In 2024, approximately 27% of our revenues and 29% of our operating expenses were denominated in currencies other than the U.S. dollar, compared to 29% and 30%, respectively, in 2023.

We recognized $1.9 million in foreign exchange losses in 2024 and $1.8 million of losses in 2023. Foreign exchange had an unfavorable impact on total revenue and a favorable impact on expenses. These impacts were mainly due to the fluctuations in the Canadian dollar, British pound sterling, and Australian dollar exchanges rates relative to the U.S. dollar during the year.

Non-GAAP Measures

As part of management’s non-GAAP measures, we may eliminate the financial impact of certain items that we do not consider to be part of our normal operating results.

Adjusted net income available to common stockholders increased 29% to $646.8 million, compared to $502.2 million in 2023.

Diluted adjusted EPS available to common stockholders increased 17% to $3.49 per share, compared to $2.99 per share in 2023.

Adjusted EBITDA increased 26% to $1.3 billion, compared to $1.0 billion in 2023.

Refer to the non-GAAP measures section below on pages 45-51 for further information.

Debt

We have a credit agreement (the "Credit Agreement"), which is comprised of multicurrency revolving facilities and the Term Loan A facility (the “TLA Facility”). The TLA Facility is comprised of a facility denominated in US dollars (the "USD TLA Facility"), and a facility denominated in Canadian dollars (the "CAD TLA Facility"). TLA Facility borrowings bear interest at a benchmark rate plus an applicable margin. The Credit Agreement matures on September 21, 2026.

The TLA Facility loans are subject to quarterly installments of 1.25% of principal, with the balance payable at maturity. During 2024, the Company repaid $450.0 million (2023: $150.0 million) of principal on the USD TLA Facility. At December 31, 2024, there are no mandatory principal repayments remaining on the USD TLA Facility until maturity of the debt. We continue to seek opportunities to prepay our debt.

At December 31, 2024, the Company also had $550.0 million aggregate principal amount of 6.750% senior secured notes due March 15, 2028 (the "Secured Notes"), and (ii) $800.0 million aggregate principal amount of 7.750% senior unsecured notes due March 15, 2031 (the "Unsecured Notes") (collectively, the "Notes"). These Notes were used, along with the USD TLA Facility, to fund the acquisition of IAA, and accrue interest to be paid in cash semi-annually in arrears. The Secured Notes are jointly and severally guaranteed on a senior secured basis and the Unsecured Notes are jointly and severally guaranteed on a senior unsecured basis by

[[GREPCENT_TABLE]]
[["RB Global, Inc.","41"]]
[[/GREPCENT_TABLE]]

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certain of the Company’s subsidiaries.

The below were our committed and uncommitted revolving credit facilities at December 31, 2024 and 2023:

[[GREPCENT_TABLE]]
[["(in U.S. dollars in millions)","","December 31, 2024","","December 31, 2023"],["Committed"],["Multicurrency revolving credit facilities","","$","750.0","","","$","750.0"],["Uncommitted"],["Foreign demand revolving credit facilities","","15.0","","","5.0"],["Total revolving credit facilities","","$","765.0","","","$","755.0"],["Unused"],["Multicurrency revolving credit facilities","","$","705.9","","","$","724.7"],["Foreign demand revolving credit facilities","","15.0","","","$","5.0"],["Total credit facilities unused","","$","720.9","","","$","729.7"]]
[[/GREPCENT_TABLE]]

Debt Covenants

We were in compliance with all financial and other covenants applicable to our credit facilities at December 31, 2024.

Our ability to borrow under the Credit Agreement is subject to compliance with financial covenants of a consolidated leverage ratio and a consolidated interest coverage ratio. In the event of sustained deterioration of global markets and economies, we expect the covenants pertaining to our leverage ratio would be the most restrictive to our ability to access funding under our Credit Agreement. We continue to evaluate courses of action to maintain current levels of liquidity and compliance with our debt covenants.

For more information on our debt, see "Item 8: Financial Statements and Supplementary Data - Note 21 Debt" in our consolidated financial statements.

Liquidity and Capital Resources

Our short-term cash requirements include (i) payment of quarterly dividends to common shareholders on an as-declared basis, and payment of participating dividends and preferential dividends to preferred equity holders, (ii) settlement of contracts with consignors, partners and other suppliers, (iii) personnel expenditures, with a majority of short-term incentive compensation paid annually in the first quarter following each fiscal year, (iv) income tax payments, primarily paid in quarterly installments, (v) payments on our short-term debt, as well as interest payments on both our short-term and long-term debt, (vi) payment of amounts committed under certain service agreements to build our modern IT architecture, (vii) payments on our operating and finance lease obligations, (viii) other capital expenditures and working capital needs, and (ix) advances.

On December 3, 2024, the Canadian Revenue Agency ("CRA") issued the Company a Notice of Assessment and Statement of Interest (“NOA”) for CA$79.1 million (Canadian dollars) (approximately $55.1 million) for additional taxes, interest and penalties with respect to the Company's Luxembourg subsidiary relating to taxation years 2010 through 2015. In early February 2025, to begin the appeal process, the Company paid a required deposit of CA$39.5 million (approximately $27.6 million) to the CRA, 50% of the assessed amount. In the event the Company's tax filing position is not upheld, the Company would be required to pay the remaining 50% of the assessed amount, plus interest. However, in the event that the Company prevails in its objection or subsequent legal proceedings, the deposit would be refunded with interest to the Company. The matter is expected to take years to resolve. The CRA has also requested information regarding the 2016 to 2020 taxation years for the same matter. For more information on the matter, see "Part II, Item 8: Financial Statements and Supplementary Data - Note 8 Income Taxes" in our consolidated financial statements.

We believe that our existing working capital and availability under our credit facilities are sufficient to satisfy our present operating requirements and contractual obligations, including the CRA matter noted above. In the current interest rate environment, the Company intends to continue to evaluate and pursue the most financially beneficial arrangements to fund future capital expenditures, which may include lease agreements or cash purchases.

Our long-term cash requirements include scheduled principal repayments of long-term debt upon maturity relating to the TLA Facility and the Notes, repayment of any drawn funds under our revolving credit facilities, as well as scheduled repayments of operating and finance lease obligations relating to the Company’s commercial leases for various auctions sites, branches and offices, operating leases for computer equipment, software, motor vehicles and small office equipment, and finance lease arrangements for certain vehicles, computers, yard equipment, fixtures, and office furniture. In addition, we also have scheduled repayments due on our equipment

[[GREPCENT_TABLE]]
[["RB Global, Inc.","42"]]
[[/GREPCENT_TABLE]]

Table of Contents

financing obligations. For more information on our debt and leases, see "Part II, "Item 8: Financial Statements and Supplementary Data - Note 21 Debt" and "Item 8: Financial Statements and Supplementary Data - Note 25 Leases" respectively, in our consolidated financial statements.

Cash provided by operating activities can fluctuate significantly from period to period. We assess our liquidity based on our ability to generate cash and secure credit to fund operating, investing, and financing activities. Our liquidity is primarily affected by fluctuations in cash provided by operating activities, significant acquisitions of businesses, payment of dividends, our net capital spending1, and repayments of debt. We are also committed under various letters of credit and provide certain guarantees in the normal course of business. We believe our principal sources of liquidity, which include cash flow from operations and our unused capacity under our revolving credit facilities of $720.9 million, is sufficient to fund our current and planned operating activities.

Book overdrafts represent outstanding checks and other pending disbursements, which are in excess of cash account balances with a right of offset. The excess of such amounts is included within trade and other liabilities in our consolidated balance sheets.

If we were to consider further acquisitions to deliver on our strategic growth drivers, we may seek financing through equity markets or additional debt markets. The issuance of additional equity securities may result in dilution to our shareholders. Issuance of preferred equity securities could provide for rights, preferences or privileges senior to those of our common stock. Further, this additional capital may not be available on reasonable terms, or at all.

Cash Flows

[[GREPCENT_TABLE]]
[["","","Year ended December 31,"],["","","","","","","","","Change"],["(in U.S. dollars in millions)","","2024","","2023","","2022","","2024 over 2023","","2023 over 2022"],["Cash provided by (used in):"],["Operating activities","","$","932.0","","","$","544.0","","","$","463.1","","","$","388.0","","","$","80.9"],["Investing activities","","(301.6)","","","(3,108.3)","","","77.2","","","2,806.7","","","(3,185.5)"],["Financing activities","","(645.5)","","","2,676.2","","","(1,258.1)","","","(3,321.7)","","","3,934.3"],["Effect of changes in foreign currency rates","","(24.0)","","","10.1","","","(18.8)","","","(34.1)","","","28.9"],["Net increase (decrease) in cash, cash equivalents, and restricted cash","","$","(39.1)","","","$","122.0","","","$","(736.6)","","","$","(161.1)","","","$","858.6"]]
[[/GREPCENT_TABLE]]

Net cash provided by operating activities was $932.0 million in 2024, as compared to net cash provided by operating activities of $544.0 million in 2023. The increase of $388.0 million is mainly due to an increase in net income, as discussed above, and a lower cash outflow from the net change in operating assets and liabilities of $43.9 million. The decrease in cash outflow from the net change in operating assets and liabilities was primarily driven by an increase in book overdrafts, due to timing, prepaid consigned vehicle charges due to the inclusion of IAA, and lower tax payments due to the non-repeat of taxes paid in 2023 for the taxable gain portion on the sale of the Bolton property. In addition, we also saw lower cash outflows relating to timing of payments for inventory purchases and timing of recovery of advances from customers. These decreases in cash outflows were partially offset by timing and settlement of higher interest payments on our debt, as well as the size and timing of our auctions. In addition, as a result of the inclusion of IAA from its acquisition on March 20, 2023, in the current year, we saw higher cash outflows in incentive-based employee compensation, higher payments for indirect taxes, lower reimbursement of leasehold improvements from lessors, as well as higher operating lease payments.

Net cash used in investing activities was $301.6 million in 2024, as compared to net cash used in investing activities of $3.1 billion in 2023. Net cash used in investing activities decreased by $2.8 billion primarily due to cash used in the prior year to fund the acquisitions of IAA and VeriTread, as well as lower net capital expenditures on property, plant and equipment and investments in intangible assets as we shift to more cloud computing arrangements. These decreases were offset by an increase in cash outflow of approximately $8.6 million for the acquisition of Boom & Bucket.

Net cash used in financing activities was $645.5 million in 2024, as compared to net cash provided by financing activities of $2.7 billion in 2023. The change is primarily driven by higher cash inflows in the prior period, as we raised $3.1 billion in debt to fund the acquisition of IAA through the TLA Facility and the Notes, net of debt issuance costs, and received $496.9 million in net proceeds from the issuance of the Series A Senior Preferred Shares and common stock. In addition, we repaid $600.0 million of long-term debt in the first half of 2023 for the redemption of our 2016 Notes and $100.0 million repayment of debt on our USD TLA Facility, as

1 We calculate net capital spending as property, plant and equipment additions plus intangible asset additions less proceeds on disposition of property, plant and equipment.

[[GREPCENT_TABLE]]
[["RB Global, Inc.","43"]]
[[/GREPCENT_TABLE]]

Table of Contents

compared to $450.0 million repayment on our USD TLA Facility in the current year. We also paid less dividends to common stockholders in the current year, primarily due to the payment of a one-time special dividend in connection with the IAA acquisition in the prior year, higher cash inflows from our employee share purchase plan and higher proceeds from the exercise of stock options, driven by a higher share price.

Dividend Information

We declared and paid a regular cash dividend of $0.29 per common share for the quarters ended September 30, 2024, and June 30, 2024, and $0.27 per common share for the quarters ended March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023. On March 7, 2023, we declared a special cash dividend of $1.08 per share, payable to stockholders of record at the close of business on March 17, 2023, excluding holders of Series A Senior Preferred Shares (the “Special Dividend”). The Special Dividend was paid in cash on March 28, 2023, following the acquisition of IAA. We have declared, but not yet paid, a dividend of $0.29 per common share for the quarter ended December 31, 2024. All dividends that we pay are “eligible dividends” for Canadian income tax purposes unless indicated otherwise.

Critical Accounting Policies, Judgments, Estimates and Assumptions

In preparing our consolidated financial statements in conformity with US GAAP, we must make decisions that impact the reported amounts and related disclosures. Such decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. In reaching such decisions, we apply judgments based on our understanding and analysis of the relevant circumstances and historical experience.

The following discussion of critical accounting policies and estimates is intended to supplement the significant accounting policies presented in the notes to our consolidated financial statements included in “Part II, Item 8: Financial Statements and Supplementary Data” presented in this Annual Report on Form 10-K, which summarize the accounting policies and methods used in the preparation of those consolidated financial statements. The policies and the estimates discussed below are included here because they require more significant judgments and estimates in the preparation and presentation of our consolidated financial statements than other policies and estimates. Actual amounts could differ materially from those estimated by us at the time our consolidated financial statements are prepared.

Business Combinations

Accounting for business combinations requires estimates with respect to the fair value of the assets acquired and liabilities assumed. Such estimates of fair value require valuation methods, which rely on significant estimates and assumptions, especially for intangible assets. In connection with the IAA purchase price allocation, which was finalized in the first quarter of 2024, the valuation of intangible assets required significant estimates and assumptions, and the valuations of property, plant, and equipment, and operating lease right-of-use assets also required estimates and assumptions.

The valuation of customer relationship intangible assets was performed using the multi-period excess earnings method of the income approach and required significant estimates and assumptions regarding revenue growth rates and discount rates, and the valuation of other acquired intangible assets was performed using the relief from royalty method of the income approach and required estimates and assumptions regarding revenue growth rates, royalty rates, customer attrition rates, and discount rates, as applicable. The Company based these estimates on historical and anticipated results, industry trends, economic analysis, and various other assumptions, including assumptions as to the occurrence of future events. The discount rates used to discount expected cash flows to present values were derived from a weighted average cost of capital analysis and adjusted to reflect inherent risks. The valuation of most acquired property, plant, and equipment, other than land, was performed using the replacement cost method of the cost approach and required certain estimates and assumptions regarding estimates of replacement cost and adjustments to account for physical deterioration and obsolescence. The fair value of most acquired land and the off-market component of right-of-use assets were estimated using sales comparison method of the market approach and included certain estimates and assumptions with respect to market value or market rents, growth rates, and discount rates, as applicable.

Goodwill

We test goodwill for impairment as at December 31, or more frequently whenever events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. We have the option to first perform a qualitative assessment of a reporting unit by assessing qualitative factors. If it is determined that it is more likely than not that the reporting unit’s fair value is less than its carrying value, a quantitative impairment assessment is performed to identify potential goodwill impairment. The reporting unit’s fair value is determined using various valuation approaches and techniques that involve assumptions based on what management believes a hypothetical marketplace participant would use in estimating fair value on the measurement date. Fair value determinations require considerable judgment and can be sensitive to changes in underlying assumptions. Typically, for our reporting units, under an income approach method, the key assumptions and estimates that impact the estimated fair value include

[[GREPCENT_TABLE]]
[["RB Global, Inc.","44"]]
[[/GREPCENT_TABLE]]

Table of Contents

revenue, earnings growth rates and the discount rate. For valuations performed under the market approach, the key assumptions and estimates would include the selection of guideline public companies and transactions comparable to the reporting unit.

An impairment loss is recognized as the difference between the reporting unit’s carrying amount and its fair value. If the difference between the reporting unit’s carrying amount and fair value is greater than the amount of goodwill allocated to the reporting unit, the impairment loss is restricted by the amount of the goodwill allocated to the reporting unit.

Prior to December 31, 2024, we had the following reporting units: Ritchie Bros., IAA, Listings Services, Rouse, SmartEquip and VeriTread; however, in the fourth quarter of 2024, based on a change in how management evaluates these businesses, the former Rouse, SmartEquip, VeriTread and Listings Services businesses were combined into our Services reporting unit. As the Company reorganized its reporting structure as at December 31, 2024, we performed goodwill impairment testing immediately before (Listings Services and Rouse reporting units using a qualitative approach, and SmartEquip and VeriTread reporting units using a quantitative approach that utilizes both income and market approaches) and after the reorganization of the reporting units that were impacted by performing a qualitative assessment, and concluded that there were no impairment indicators. In addition, at December 31, 2024, we performed goodwill impairment testing for our Ritchie Bros. reporting unit using a qualitative approach and for our IAA reporting unit using a quantitative approach, and also concluded that there was no impairment.

Based on the Company’s annual goodwill impairment testing as of December 31, 2024, management concluded that there are no reporting units that are at material risk of being impaired.

Income Taxes

The accounting for the Company's position in regards to the NOA received from the CRA, described in Item 8: Financial Statements and Supplementary Data - Note 3 Significant Judgments, Estimates and Assumptions, also required significant judgment and an assessment over whether it is more likely than not that the Company's tax position will be sustained. The matter required management to evaluate the tax technical merits and assess the likelihood of its resolution at appeals or through litigation.

Adoption of New Standards

For a discussion of our new and amended accounting standards refer to "Part II, Item 8: Financial Statements and Supplementary Data - Note 2 Significant Accounting Policies" of this Annual Report on Form 10-K.

Recent Accounting Pronouncements

Recent accounting pronouncements that significantly impact our accounting policies or the presentation of our consolidated financial position or performance have been disclosed in the notes to our consolidated financial statements included in "Part II, Item 8: Financial Statements and Supplementary Data - Note 2 Significant Accounting Policies" of this Annual Report on Form 10-K.

Non-GAAP Measures

We reference various non-GAAP measures throughout this Annual Report on Form 10-K. 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 US

GAAP.

[[GREPCENT_TABLE]]
[["RB Global, Inc.","45"]]
[[/GREPCENT_TABLE]]

Table of Contents

Adjusted Net Income Attributable to Common Stockholders and Diluted Adjusted EPS Attributable to Common Stockholders Reconciliation

We believe that adjusted net income available to common stockholders provides useful information about the growth or decline of our

net income available to common stockholders for the relevant financial period, and eliminates the financial impact of adjusting items

we do not consider to be part of our 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 we do not consider to be part of our 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 share-based payments expense,

acquisition-related and integration 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 and allocated earnings to participating securities.

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.

Please refer to page 50 for a summary of adjusting items.

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:

[[GREPCENT_TABLE]]
[["","Year ended December 31,"],["","","","","","","","% Change"],["(in U.S. dollars in millions, except share, per share data, and percentages)","2024","","2023","","2022","","2024 over 2023","","2023 over 2022"],["Net income available to common stockholders","$","372.7","","","$","174.9","","","$","319.7","","","113","%","","(45)","%"],["Share-based payments expense","56.3","","","45.5","","","37.0","","","24","%","","23","%"],["Acquisition-related and integration costs","29.0","","","216.1","","","37.3","","","(87)","%","","479","%"],["Amortization of acquired intangible assets","274.9","","","226.2","","","33.4","","","22","%","","577","%"],["(Gain) on disposition of property, plant and equipment and related costs","(1.2)","","","(0.8)","","","(166.9)","","","50","%","","(100)","%"],["Prepaid consigned vehicle charges","(4.7)","","","(67.0)","","","\u2014","","","(93)","%","","NM"],["Loss on redemption of the 2016 and 2021 Notes and certain related interest expense","\u2014","","","3.3","","","9.7","","","NM","","(66)","%"],["Change in fair value of derivatives","\u2014","","","\u2014","","","(1.3)","","","NM","","NM"],["Other legal, advisory, restructuring and non-income tax expenses","13.4","","","2.0","","","5.0","","","570","%","","(60)","%"],["Executive transition costs","6.7","","","12.0","","","\u2014","","","(44)","%","","NM"],["Remeasurements in connection with business combinations","1.2","","","(2.9)","","","\u2014","","","NM","","NM"],["Related tax effects of the above","(91.4)","","","(95.8)","","","(4.0)","","","(5)","%","","2295","%"],["Related allocation of the above to participating securities","(10.1)","","","(11.3)","","","\u2014","","","(11)","%","","NM"],["Adjusted net income available to common stockholders","$","646.8","","","$","502.2","","","$","269.9","","","29","%","","86","%"],["Weighted average number of dilutive shares outstanding","185,254,557","","168,203,981","","111,886,025","","10","%","","50","%"],["Diluted earnings per share available to common stockholders","$","2.01","","","$","1.04","","","$","2.86","","","93","%","","(64)","%"],["Diluted adjusted earnings per share available to common stockholders","$","3.49","","","$","2.99","","","$","2.41","","","17","%","","24","%"]]
[[/GREPCENT_TABLE]]

NM = Not meaningful

[[GREPCENT_TABLE]]
[["RB Global, Inc.","46"]]
[[/GREPCENT_TABLE]]

Table of Contents

Adjusted EBITDA

We believe adjusted EBITDA provides useful information about the growth or decline of our net income when compared between

different financial periods. We use adjusted EBITDA as a key performance measure because we believe 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, income tax expense, and subtracting

interest income from net income, as well as adding back the adjusting items as described on page 50.

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:

[[GREPCENT_TABLE]]
[["","","Year ended December 31,"],["","","","","","","","","% Change"],["","","","","","","","","2024 over","","2023 over"],["(in U.S. dollars in millions, except percentages)","","2024","","2023","","2022","","2023","","2022"],["Net income","","$","412.8","","","$","206.0","","","$","319.8","","","100","%","","(36)","%"],["Add: depreciation and amortization","","444.4","","","352.2","","","97.2","","","26","%","","262","%"],["Add: interest expense","","233.7","","","213.8","","","57.9","","","9","%","","269","%"],["Less: interest income","","(26.2)","","","(22.0)","","","(7.0)","","","19","%","","214","%"],["Add: income tax expense","","137.3","","","76.4","","","86.2","","","80","%","","(11)","%"],["EBITDA","","1,202.0","","","826.4","","","554.1","","","45","%","","49","%"],["Share-based payments expense","","56.3","","","45.5","","","37.0","","","24","%","","23","%"],["Acquisition-related and integration costs","","29.0","","","216.1","","","37.3","","","(87)","%","","479","%"],["(Gain) loss on disposition of property, plant and equipment and related costs","","(1.2)","","","(0.8)","","","(166.9)","","","50","%","","(100)","%"],["Prepaid consigned vehicle charges","","(4.7)","","","(67.0)","","","\u2014","","","(93)","%","","NM"],["Change in fair value of derivatives","","\u2014","","","\u2014","","","(1.3)","","","NM","","NM"],["Other legal, advisory, restructuring and non-income tax expenses","","13.4","","","2.0","","","5.0","","","570","%","","(60)","%"],["Executive transition costs","","6.7","","","12.0","","","\u2014","","","(44)","%","","NM"],["Remeasurements in connection with business combinations","","1.2","","","(1.4)","","","\u2014","","","NM","","NM"],["Adjusted EBITDA","","$","1,302.7","","","$","1,032.8","","","$","465.2","","","26","%","","122","%"]]
[[/GREPCENT_TABLE]]

NM = Not meaningful

[[GREPCENT_TABLE]]
[["RB Global, Inc.","47"]]
[[/GREPCENT_TABLE]]

Table of Contents

Adjusted Net Debt and Adjusted Net Debt/ Adjusted EBITDA Reconciliation

We believe that comparing adjusted net debt/adjusted EBITDA on a trailing twelve-month basis for different financial periods

provides useful information about the performance of our operations, as an indicator of the amount of time it would take us to settle

both our short and long-term debt. We do not consider this to be a measure of our liquidity, which is our ability to settle only short-term obligations, but rather a measure of how well we fund liquidity. Measures of liquidity are noted under “Liquidity and Capital

Resources".

Adjusted net debt is calculated by subtracting cash and cash equivalents from short and long-term debt and long-term debt in escrow.

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. Please refer to page 50 for a summary of adjusting items.

[[GREPCENT_TABLE]]
[["","","Year ended December 31,"],["","","","","","","","","% Change"],["(in U.S. dollars in millions, except percentages)","","2024","","2023","","2022","","2024 over 2023","","2023 over 2022"],["Short-term debt","","$","27.7","","","$","13.7","","","$","29.1","","","102","%","","(53)","%"],["Long-term debt","","2,626.2","","","3,075.8","","","581.5","","","(15)","%","","429","%"],["Debt","","2,653.9","","","3,089.5","","","610.6","","","(14)","%","","406","%"],["Less: cash and cash equivalents","","(533.9)","","","(576.2)","","","(494.3)","","","(7)","%","","17","%"],["Adjusted net debt","","2,120.0","","","2,513.3","","","116.3","","","(16)","%","","2061","%"],["Net income","","$","412.8","","","$","206.0","","","$","319.8","","","100","%","","(36)","%"],["Add: depreciation and amortization","","444.4","","","352.2","","","97.1","","","26","%","","263","%"],["Add: interest expense","","233.7","","","213.8","","","57.9","","","9","%","","269","%"],["Less: interest income","","(26.2)","","","(22.0)","","","(7.0)","","","19","%","","214","%"],["Add: income tax expense","","137.3","","","76.4","","","86.2","","","80","%","","(11)","%"],["EBITDA","","1,202.0","","","826.4","","","554.0","","","45","%","","49","%"],["Share-based payments expense","","56.3","","","45.5","","","37.0","","","24","%","","23","%"],["Acquisition-related and integration costs","","29.0","","","216.1","","","37.3","","","(87)","%","","479","%"],["(Gain) on disposition of property, plant and equipment and related costs","","(1.2)","","","(0.8)","","","(166.9)","","","50","%","","(100)","%"],["Prepaid consigned vehicle charges","","(4.7)","","","(67.0)","","","\u2014","","","(93)","%","","NM"],["Change in fair value of derivatives","","\u2014","","","\u2014","","","(1.3)","","","NM","","NM"],["Other legal, advisory, restructuring and non-income tax expenses","","13.4","","","2.0","","","5.1","","","570","%","","(61)","%"],["Executive transition costs","","6.7","","","12.0","","","\u2014","","","(44)","%","","NM"],["Remeasurements in connection with business combinations","","1.2","","","(1.4)","","","\u2014","","","NM","","NM"],["Adjusted EBITDA","","$","1,302.7","","","$","1032.8","","","$","465.2","","","26","%","","122","%"],["Debt/net income","","6.4 x","","15.0 x","","1.9 x","","(57)","%","","689","%"],["Adjusted net debt/adjusted EBITDA","","1.6 x","","2.4 x","","0.3 x","","(33)","%","","700","%"]]
[[/GREPCENT_TABLE]]

NM = Not meaningful

Adjusted Return and Adjusted ROIC Reconciliation

We believe that comparing adjusted ROIC on a trailing twelve-month basis for different financial periods provides useful information

about the after-tax return generated by our investments. Adjusted ROIC is a measure used by management to determine how

productively the Company uses its long-term capital to gauge investment decisions.

ROIC is calculated as reported return divided by average invested capital. Reported return is defined as net income attributable to

controlling interests excluding the impact of net interest expense and tax effected at the Company’s adjusted annualized effective tax rate. Adjusted ROIC is calculated as adjusted return divided by adjusted average invested capital. Adjusted return is defined as reported return and adjusted for items that we do not consider to be part of our normal operating results and tax effected at the applicable tax rate.

[[GREPCENT_TABLE]]
[["RB Global, Inc.","48"]]
[[/GREPCENT_TABLE]]

Table of Contents

Adjusted average invested capital is calculated as average invested capital but excludes any long-term debt in escrow. Please refer to page 50 for a summary of adjusting items.

The following table reconciles adjusted return and adjusted ROIC to net income attributable to controlling interests and adjusted

average invested capital to average invested capital, which are the most directly comparable GAAP measures in, or calculated from,

our consolidated financial statements:

[[GREPCENT_TABLE]]
[["","","Year ended December 31,"],["","","","","","","","","% Change"],["(in U.S. dollars in millions, except percentages)","","2024","","2023","","2022","","2024 over 2023","","2023 over 2022"],["Net income attributable to controlling interests","","$","413.1","","","$","206.5","","","$","319.7","","","100","%","","(35)","%"],["Add:"],["Interest expense","","233.7","","","213.8","","","57.9","","","9","%","","269","%"],["Interest income","","(26.2)","","","(22.0)","","","(7.0)","","","19","%","","214","%"],["Interest, net","","207.5","","","191.8","","","50.9","","","8","%","","277","%"],["Tax on interest, net","","(51.3)","","","(46.0)","","","(12.7)","","","12","%","","262","%"],["Reported return","","$","569.3","","","$","352.3","","","$","357.9","","","62","%","","(2)","%"],["Add:"],["Share-based payments expense","","56.3","","","45.5","","","37.0","","","24","%","","23","%"],["Acquisition-related and integration costs","","29.0","","","216.1","","","37.3","","","(87)","%","","479","%"],["Amortization of acquired intangible assets","","274.9","","","226.2","","","33.4","","","22","%","","577","%"],["(Gain) loss on disposition of property, plant and equipment and related costs","","(1.2)","","","(0.8)","","","(166.9)","","","50","%","","(100)","%"],["Prepaid consigned vehicle charges","","(4.7)","","","(67.0)","","","\u2014","","","(93)","%","","(100)","%"],["Change in fair value of derivatives","","\u2014","","","\u2014","","","(1.3)","","","\u2014","%","","(100)","%"],["Other legal, advisory, restructuring and non-income tax expenses","","13.4","","","2.0","","","5.1","","","570","%","","(61)","%"],["Executive transition costs","","6.7","","","12.0","","","\u2014","","","(44)","%","","100","%"],["Remeasurements in connection with business combinations","","1.2","","","(2.9)","","","\u2014","","","(143)","%","","(100)","%"],["Related tax effects of the above","","(91.4)","","","(95.8)","","","(4.0)","","","(5)","%","","2295","%"],["Adjusted return","","$","853.5","","","$","687.6","","","$","298.5","","","24","%","","130","%"],["Short-term debt - opening balance","","$","13.7","","","$","29.1","","","$","6.1","","","(53)","%","","377","%"],["Short-term debt - ending balance","","27.7","","","13.7","","","29.1","","","102","%","","(53)","%"],["Average short-term debt","","20.7","","","21.4","","","17.6","","","(3)","%","","22","%"],["Long-term debt - opening balance","","3,075.8","","","581.5","","","1,737.4","","","429","%","","(67)","%"],["Less: long-term debt in escrow","","\u2014","","","\u2014","","","(933.5)","","","\u2014","%","","(100)","%"],["Adjusted opening long-term debt","","3,075.8","","","581.5","","","803.9","","","429","%","","(28)","%"],["Long-term debt - ending balance","","2,626.2","","","3,075.8","","","581.5","","","(15)","%","","429","%"],["Less: long-term debt in escrow","","\u2014","","","\u2014","","","\u2014","","","\u2014","%","","\u2014","%"],["Adjusted ending long-term debt","","2,626.2","","","3,075.8","","","581.5","","","(15)","%","","429","%"],["Average long-term debt","","2,851.0","","","1,828.7","","","1,159.5","","","56","%","","58","%"],["Adjusted average long-term debt","","2,851.0","","","1,828.7","","","692.7","","","56","%","","164","%"],["Preferred equity - opening balance","","482.0","","","\u2014","","","\u2014","","","100","%","","\u2014","%"],["Preferred equity - ending balance","","482.0","","","482.0","","","\u2014","","","\u2014","%","","100","%"],["Average preferred equity","","482.0","","","241.0","","","\u2014","","","100","%","","100","%"],["Stockholders' equity - opening balance","","5,016.7","","","1,289.6","","","1,070.7","","","289","%","","20","%"],["Stockholders' equity - ending balance","","5,224.0","","","5,016.7","","","1,289.6","","","4","%","","289","%"],["Average stockholders' equity","","5,120.4","","","3,153.2","","","1,180.2","","","62","%","","167","%"],["Average invested capital","","$","8,474.1","","","$","5,244.3","","","$","2,357.3","","","62","%","","122","%"],["Adjusted average invested capital","","$","8,474.1","","","$","5,244.3","","","$","1,890.5","","","62","%","","177","%"],["ROIC","","6.7","%","","6.7","%","","15.2","%","","0bps","","(850)bps"],["Adjusted ROIC","","10.1","%","","13.1","%","","15.8","%","","(300)bps","","(270)bps"]]
[[/GREPCENT_TABLE]]

NM = Not meaningful

[[GREPCENT_TABLE]]
[["RB Global, Inc.","49"]]
[[/GREPCENT_TABLE]]

Table of Contents

Adjusting items for the year ended December 31, 2024:

Recognized in the fourth quarter of 2024

•$15.2 million share-based payments expense.

•$6.1 million of acquisition-related and integration costs, primarily relating to severance and integration activities in connection with the acquisition of IAA.

•$68.5 million amortization of acquired intangible assets from acquisitions.

•$0.7 million relating to a fair value adjustment made to the prepaid consigned vehicle charges on the opening balance sheet of IAA at acquisition.

•$1.3 million of other legal, advisory, restructuring and non-income tax expenses, including costs incurred with the CRA dispute.

•$2.4 million of estimated executive transition costs, primarily estimated settlement and legal amounts associated with the departure of our former CEO on August 1, 2023.

Recognized in the third quarter of 2024

•$9.7 million share-based payments expense.

•$6.0 million of acquisition-related and integration costs, primarily relating to the acquisition of IAA.

•$67.9 million amortization of acquired intangible assets from past acquisitions.

•$0.2 million loss on disposition of property, plant and equipment and related costs, primarily driven by non-cash costs arising from the accounting for the sale of the Bolton property, recorded in selling, general and administrative cost, partially offset by a $0.5 million gain on the disposition of property, plant and equipment.

•$0.6 million relating to a fair value adjustment made to the prepaid consigned vehicle charges on the opening balance sheet of IAA at acquisition.

•$2.2 million of other legal, advisory, restructuring and non-income tax expenses, which primarily includes an estimated accrual for the settlement amount of an unusual legal claim recorded in other income (loss), as well as terminated and ongoing transaction costs recorded in selling, general and administrative costs.

•$0.6 million of estimated executive transition costs, primarily legal costs, associated with the departure of our former CEO on August 1, 2023.

•$1.2 million of remeasurements in connection with a business combination which relates to the revaluation of a contingent consideration liability for IAA's acquisition of Marisat, Inc. in 2021.

Recognized in the second quarter of 2024

•$18.1 million share-based payments expense.

•$4.1 million of acquisition-related and integration costs, primarily relating to the acquisition of IAA.

•$69.0 million amortization of acquired intangible assets from past acquisitions.

•$0.4 million loss on disposition of property, plant and equipment and related costs, primarily driven by non-cash costs arising from the accounting for the sale of the Bolton property, recorded in selling, general and administrative costs.

•$1.3 million relating to a fair value adjustment made to the prepaid consigned vehicle charges on the opening balance sheet of IAA at acquisition.

•$7.7 million of other legal, advisory, restructuring and non-income tax expenses, which includes an estimated accrual for a new digital services tax in Canada on certain in-scope revenues earned for the period from January 1, 2022 to June 30, 2024, legal costs in connection with the settlement of an unusual legal claim accrued in the first quarter of 2024, as well as terminated and ongoing transaction costs.

•$2.0 million of estimated executive transition costs associated with the departure of our former CEO on August 1, 2023, which includes estimated settlement amounts and related costs.

Recognized in the first quarter of 2024

•$13.3 million share-based payments expense.

•$12.8 million of acquisition-related and integration costs primarily relating to the acquisition of IAA.

•$69.6 million amortization of acquired intangible assets from past acquisitions, of which $61.9 million related to the acquired intangible assets from the acquisition of IAA.

•$1.8 million gain on disposition of property, plant and equipment and related costs, primarily driven by a $2.2 million gain on a lease modification, offset by non-cash costs arising from the accounting for the sale of the Bolton property, recorded in selling, general and administrative costs.

•$2.1 million relating to a fair value adjustment made to the prepaid consigned vehicle charges on the opening balance sheet of IAA, which do not have a future benefit at acquisition, and therefore has created a favorable reduction to our cost of services in the quarter.

[[GREPCENT_TABLE]]
[["RB Global, Inc.","50"]]
[[/GREPCENT_TABLE]]

Table of Contents

•$2.2 million of other advisory, legal and restructuring costs, which primarily includes a $1.9 million loss on the settlement of an unusual legal claim recorded in other income, $0.3 million of terminated and ongoing transaction costs and $0.1 million of costs incurred with the CRA's investigation.

•$1.7 million of estimated executive transition costs associated with the departures of certain executives on August 1, 2023, which includes severance, estimated settlement amounts and related costs.

The adjusting items recognized in our 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, 2023.