--- title: "RB Global (RBA) Margin Slippage Tests Bullish Multi Year Earnings Growth Narrative" type: "News" locale: "en" url: "https://longbridge.com/en/news/276307164.md" description: "RB Global (RBA) reported FY 2025 Q4 revenue of $1.2 billion and EPS of $0.53, with net income of $99.1 million. Despite a slight decline in net profit margins from 8.7% to 8.3%, analysts remain bullish, forecasting 21.4% annual earnings growth driven by technology upgrades and acquisitions. However, concerns arise from a high P/E ratio of 52.3x compared to peers and a revenue growth forecast of 7.8%, below the market average. Critics highlight potential competition pressures, while supporters point to strategic acquisitions as growth drivers." datetime: "2026-02-19T06:34:18.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276307164.md) - [en](https://longbridge.com/en/news/276307164.md) - [zh-HK](https://longbridge.com/zh-HK/news/276307164.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/276307164.md) | [繁體中文](https://longbridge.com/zh-HK/news/276307164.md) # RB Global (RBA) Margin Slippage Tests Bullish Multi Year Earnings Growth Narrative RB Global (RBA) has wrapped up FY 2025 with fourth quarter revenue of US$1.2 billion and basic EPS of US$0.53, alongside net income excluding extra items of US$99.1 million. This sets a clear marker for how the year finished. Across recent periods, the company has seen quarterly revenue range from US$981.8 million in Q3 2024 to US$1.2 billion in Q4 2025, while basic EPS moved between US$0.36 and US$0.56 over that span. This gives investors a concrete view of how the top and bottom lines have tracked into the latest print. With trailing twelve month net profit margins easing slightly from 8.7% to 8.3%, this set of results puts the focus on how efficiently the business is converting that revenue base into profit. See our full analysis for RB Global. With the headline numbers on the table, the next step is to see how this earnings profile lines up with the stories investors usually tell about RB Global, and where the latest figures might support or challenge those narratives. See what the community is saying about RB Global NYSE:RBA Revenue & Expenses Breakdown as at Feb 2026 ## TTM profit growth vs slowing one year pace - Over the last twelve months, net income excluding extra items was US$382.2 million on US$4.6b of revenue, while one year earnings growth cited in the analysis is 2.5% compared with a 5 year earnings growth rate of 16.8% per year. - Analysts with a bullish view point to that 16.8% multi year growth and forecast around 21.4% annual earnings growth. However, the more modest 2.5% one year earnings growth and TTM net margin of 8.3% create a tension between the longer trend and the most recent pace. - Bulls argue that technology upgrades, global expansion and acquisitions like Boom & Bucket and J.M. Wood can drive higher transaction volumes and recurring service revenue. This lines up with the TTM revenue base of US$4.6b, which is larger than the US$4.3b to US$4.4b levels cited a year earlier in the data. - At the same time, the recent margin reading of 8.3% compared with 8.7% a year earlier means the latest profitability snapshot is a bit softer than the long run earnings growth figures that bullish investors focus on. Some bulls see the recent 2.5% one year earnings growth as a pause in a longer multi year story, while the numbers here lay out exactly how much of that story currently shows up in reported profit. **🐂 RB Global Bull Case** ## Premium 52.3x P/E and 45% DCF gap - The shares trade on a 52.3x P/E compared with a peer average of 32.1x and industry level of 25.1x. The US$107.47 share price sits well below the US$196.51 DCF fair value estimate, which implies roughly a 45% gap to that modelled fair value. - Critics highlight that a P/E this far above peers can be hard to reconcile with revenue that is forecast to grow 7.8% per year versus a 10.3% US market forecast, even if some models and price targets see room for upside from the current US$107.47 price. - Bears argue that competition from digital first platforms and peer to peer marketplaces could pressure fees, which would matter for a business currently earning an 8.3% net margin on US$4.6b of TTM revenue. - On the other hand, analysts in the data are cited as expecting around 21.4% annual earnings growth, which helps explain why some investors might accept a 52.3x P/E despite the share price sitting well below the US$196.51 DCF fair value and below the allowed US$129.40 analyst target reference. The mix of a premium 52.3x P/E, an 8.3% TTM net margin and a share price near US$107 that is below both peers’ multiples and an internal DCF fair value is exactly what bearish investors are watching. **🐻 RB Global Bear Case** ## Margins at 8.3% with revenue growth forecasts - Net profit margin over the last twelve months is 8.3% on US$4.6b of revenue, slightly below the prior year’s 8.7%. Revenue is forecast to grow about 7.8% per year, below the 10.3% annual growth forecast for the wider US market. - The consensus style narrative that focuses on global expansion and more value added services suggests scope for higher quality earnings, and the current margin and growth forecasts provide a concrete way to judge that view. - Supporters of the consensus case point to acquisitions such as IAA and J.M. Wood and the build out in markets like Australia as potential drivers for increasing higher margin service revenue on top of the existing US$4.6b TTM revenue base. - At the same time, the margin slip from 8.7% to 8.3% and revenue growth expected to trail the wider US market mean any improvement in earnings quality would need to come from mix and efficiency rather than simply growing faster than peers. ## Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for RB Global on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. If the mix of bullish, bearish and consensus views feels mixed, it is a good moment to look through the numbers yourself and move quickly to your own takeaway. To round out that view, it is worth checking the 4 key rewards that our work has flagged as a positive part of the story. ## See What Else Is Out There RB Global pairs a 52.3x P/E and easing margins with revenue growth forecasts below the wider US market, which raises questions about valuation support. If that mix of a rich earnings multiple and softer growth outlook makes you uneasy, compare it with our 53 high quality undervalued stocks that screen stronger value stories right now. _This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._ ### **New:** AI Stock Screener & Alerts Our new AI Stock Screener scans the market every day to uncover opportunities. • Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI Companies Or build your own from over 50 metrics. Explore Now for Free ### Related Stocks - [RB Global, Inc. (RBA.US)](https://longbridge.com/en/quote/RBA.US.md) ## Related News & Research - [Are Investors Undervaluing RB Global, Inc. 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