RB Global Reports First Quarter 2025 Results
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WESTCHESTER, Ill. — 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, 2025.
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'I want to recognize our teammates' dedication to our partners and customers, particularly in this rapidly evolving macroeconomic environment.' said Jim Kessler, CEO of RB Global. 'We have not changed our approach and are focused on factors we control to help ensure we are consistently working to overdeliver on our commitments.'
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'We remain committed to advancing our long-term growth strategy by investing in key initiatives that we expect to create lasting value,' said Eric J. Guerin, Chief Financial Officer. 'Concurrently, we are exercising prudent expense management and limiting discretionary spending to navigate the current environment.'
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First Quarter Financial Highlights 123:
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Total gross transaction value ('GTV') decreased 6% year over year to $3.8 billion.
Total revenue increased 4% year over year to $1.1 billion.
Service revenue remained flat year over year at $852.5 million.
Inventory sales revenue increased 19% year over year to $256.1 million.
Net income increased 5% year-over-year to $113.3 million.
Net income available to common stockholders increased 6% year over year to $102.9 million.
Diluted earnings per share available to common stockholders increased 4% to $0.55 per share.
Diluted adjusted earnings per share available to common stockholders decreased 1% year over year to $0.89 per share.
Adjusted earnings before interest, taxes, depreciation and amortization ('EBITDA') decreased 1% year over year to $327.9 million.
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The table below outlines the Company's outlook for select full-year 2025 financial data, which remains unchanged.
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The Company has not provided a reconciliation of Adjusted EBITDA outlook for fiscal 2025 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) acquisition-related or integration costs relating to our mergers and acquisition activity, including severance costs, (c) other legal, advisory, restructuring and non-income tax expenses, (d) share-based payments compensation expense which value is directly impacted by the fluctuations in our share price and other variables, and (e) 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 2025.
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For the First Quarter:
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GTV decreased 6% year over year to $3.8 billion, primarily due to a decline in the commercial construction and transportation ('CC&T') sector, partially offset by an increase in the automotive sector. The decrease in CC&T GTV was primarily driven by the anticipated lower volume of our enterprise customers, as we benefited in the prior period from certain significant large customer contracts. Partially offsetting lower volumes, the average price per lot sold increased due to an improved mix. Automotive GTV increased due to continued growth from existing partners, as well as year-over-year market share gains, partially offset by a lower average price per lot sold.
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Service revenue remained flat year over year at $852.5 million. A higher service revenue take rate was offset by the lower GTV volume. Service revenue take rate expanded 150 basis points year over year to 22.3% driven by a higher buyer fee rate structure, partially offset by lower marketplace services revenue and a lower average commission rate. The decline in marketplace services revenue was driven by lower fees earned from transportation services compared to the prior period.
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Inventory sales revenue increased 19% year over year to $256.1 million primarily due to higher inventory revenue from the CC&T sector. Inventory rate declined 60 basis points year over year to 8.2%, attributable to weaker performance in all sectors.
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Total Lots Sold by Sector
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Reconciliation of Operating Expenses
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Dividend Information
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Quarterly Dividend
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On May 6, 2025, the Company declared a quarterly cash dividend of $0.29 per common share, payable on June 20, 2025, to shareholders of record on May 29, 2025.
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Other Company Developments
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On March 10, 2025, the Company entered into an agreement to acquire J.M. Wood Auction Co., Inc. ('J.M. Wood'), an auction business located in Alabama, United States, for approximately $235 million, subject to certain adjustments and an agreed upon amount for inventory held at the time of closing. The acquisition is expected to be completed in the second or third quarter of 2025, subject to customary closing conditions and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
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On April 3, 2025, the Company amended and restated its Credit Agreement dated October 27, 2016, to increase the aggregate principal amount of our multi-currency senior secured revolving credit facilities from $750.0 million to $1.3 billion, and reduce our USD Term Loan A facility aggregate principal amount from $1.2 billion to $950.0 million. As part of the amendment, we also extended the maturity date of the Credit Agreement from September 2026 to April 2030, and reduced our bank spread by approximately 85 basis points and the undrawn revolver fee by approximately 20 basis points.
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RB Global is hosting a conference call to discuss its financial results for the quarter ended March 31, 2025 at 4:30 PM ET on May 7, 2025. The replay of the webcast will be available through May 7, 2026.
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Conference call and webcast details are available at the following link:
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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, 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.
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Forward-looking Statements
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This news release contains forward-looking statements and forward-looking information within the meaning of applicable US 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: the effects of the business combination with IAA, including the Company's future financial condition, results of operations, strategy and plans; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the merger; the diversion of management time on transaction-related issues; the response of competitors to the merger; the ultimate difficulty, timing, cost and results of integrating the operations of IAA; 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/or 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, 2024, 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.
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Key Operating Metrics
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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.
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We define our key operating metrics as follows:
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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.
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Condensed Consolidated Statements of Cash Flows
(Expressed in millions of U.S. dollars)
(Unaudited)
Three months ended March 31,
2025
2024
Cash provided by (used in):
Operating activities:
Net income
$
113.3
$
107.4
Adjustments for items not affecting cash:
Depreciation and amortization
114.5
107.7
Share-based payments expense
15.6
15.1
Deferred income tax benefit
(5.0
)
(9.8
)
Unrealized foreign exchange (gain) loss
(0.3
)
0.5
Gain on disposition of property, plant and equipment
(0.4
)
(2.4
)
Allowance for expected credit losses
1.1
3.2
Amortization of debt issuance costs
2.1
3.7
Amortization of right-of-use assets
38.7
37.5
Other, net
2.6
3.7
Net changes in operating assets and liabilities
(125.4
)
(141.8
)
Net cash provided by operating activities
156.8
124.8
Investing activities:
Property, plant and equipment additions
(54.3
)
(45.2
)
Proceeds on disposition of property, plant and equipment
1.1
0.5
Intangible asset additions
(27.7
)
(28.4
)
Proceeds from repayment of loans receivable
1.4
0.9
Issuance of loans receivable
(22.1
)
(4.4
)
Other, net
(0.3
)
(0.9
)
Net cash used in investing activities
(101.9
)
(77.5
)
Financing activities:
Dividends paid to common stockholders
(53.5
)
(49.3
)
Dividends paid to Series A Senior Preferred shareholders
(8.6
)
(8.5
)
Proceeds from exercise of options and share option plans
4.3
22.1
Payment of withholding taxes on issuance of shares
(15.2
)
(10.4
)
Net increase in short-term debt
34.5
11.7
Repayment of long-term debt
(1.0
)
(151.1
)
Repayment of finance lease and equipment financing obligations
(6.5
)
(6.5
)
Proceeds from equipment financing obligations
1.0
1.1
Net cash used in financing activities
(45.0
)
(190.9
)
Effect of changes in foreign currency rates on cash, cash equivalents, and restricted cash
3.1
(6.9
)
Net increase (decrease) in cash, cash equivalents, and restricted cash
13.0
(150.5
)
Cash, cash equivalents, and restricted cash, beginning of period
708.8
747.9
Cash, cash equivalents, and restricted cash, end of period
$
721.8
$
597.4
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Non-GAAP Measures
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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 US GAAP.
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Please refer to the quarterly report on Form 10-Q for the quarter ended March 31, 2025 for a summary of adjusting items during the trailing twelve months ended March 31, 2025 and March 31, 2024.
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Adjusted Net Income Available to Common Stockholders and Diluted Adjusted EPS Available to Common Stockholders Reconciliation
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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.
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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.
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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.
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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:
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Three months ended March 31,
% Change
(in U.S. dollars in millions, except share, per share data, and percentages)
2025
2024
2025 over 2024
Net income available to common stockholders
$
102.9
$
97.1
6
%
Share-based payments expense
14.4
13.3
8
%
Acquisition-related and integration costs
3.1
12.8
(76
)%
Amortization of acquired intangible assets
68.3
69.6
(2
)%
Gain on disposition of property, plant and equipment and related costs
(0.2
)
(1.8
)
(89
)%
Prepaid consigned vehicles charges
(0.3
)
(2.1
)
(86
)%
Loss on redemption of the 2016 and 2021 Notes and certain related interest expense
—
—
—
%
Other legal, advisory, restructuring and non-income tax expenses
3.9
2.2
77
%
Executive transition costs
2.7
1.7
59
%
Related tax effects of the above
(27.3
)
(24.8
)
10
%
Related allocation of the above to participating securities
(2.3
)
(2.5
)
(8
)%
Adjusted net income available to common stockholders
$
165.2
$
165.5
—
%
Weighted average number of dilutive shares outstanding
186,352,974
184,581,054
1
%
Diluted earnings per share available to common stockholders
$
0.55
$
0.53
4
%
Diluted adjusted earnings per share available to common stockholders
$
0.89
$
0.90
(1
)%
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The Company believes adjusted EBITDA provides useful information about the growth or decline of its net income when compared between different financial periods. The Company uses adjusted EBITDA as a key performance measure because the Company believes it facilitates operating performance comparisons from period to period and provides management with the ability to monitor its controllable incremental revenues and costs.
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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.
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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:
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Adjusted Net Debt and Adjusted Net Debt/Adjusted EBITDA Reconciliation
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The Company believes that comparing adjusted net debt/adjusted EBITDA on a trailing twelve-month basis for different financial periods provides useful information about the performance of its operations as an indicator of the amount of time it would take to settle both the Company's short and long-term debt. The Company does not consider this to be a measure of its liquidity, which is its ability to settle only short-term obligations, but rather a measure of how well it funds liquidity. Measures of liquidity are noted under 'Liquidity and Capital Resources' in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.
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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.
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At and for the twelve months ended March 31,
% Change
(in U.S. dollars in millions, except percentages)
2025
2024
2025 over 2024
Short-term debt
$
62.8
$
24.8
153
%
Long-term debt
2,626.7
2,926.2
(10
)%
Debt
2,689.5
2,951.0
(9
)%
Less: cash and cash equivalents
(578.1
)
(462.8
)
25
%
Adjusted net debt
2,111.4
2,488.2
(15
)%
Net income
$
418.7
$
341.6
23
%
Add: depreciation and amortization
451.2
423.7
6
%
Add: interest expense
219.7
256.8
(14
)%
Less: interest income
(22.6
)
(22.3
)
1
%
Add: income tax expense
134.4
118.1
14
%
EBITDA
1,201.4
1,117.9
7
%
Share-based payments expense
57.4
52.2
10
%
Acquisition-related and integration costs
19.3
102.7
(81
)%
Loss (gain) on disposition of property, plant and equipment and related costs
0.4
(2.5
)
NM
Remeasurements in connection with business combinations
1.2
—
NM
Prepaid consigned vehicles charges
(3.0
)
(56.6
)
(95
)%
Other legal, advisory, restructuring and non-income tax expenses
15.1
4.1
268
%
Executive transition costs
7.7
13.7
(44
)%
Adjusted EBITDA
$
1,299.5
$
1,231.5
6
%
Debt/net income
6.4x
8.6x
(26
)%
1.6x
2.0x
(20
)%
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NM = Not meaningful
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1 For information regarding RB Global's use and definition of certain measures, see 'Key Operating Metrics' and 'Non-GAAP Measures' sections in this press release.
2 All figures are presented in U.S. dollars.
3 For the first quarter of 2025 as compared to the first quarter of 2024.
4 Capital expenditures is defined as property, plant and equipment, net of proceeds on disposals, plus intangible asset additions
5 For information regarding RB Global's use and definition of this measure, see 'Key Operating Metrics' and 'Non-GAAP Measures' sections in this press release.
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Additionally, Apple has the world's leading share-repurchase program. Since kicking off its buyback initiative in 2013, Apple has spent more than $750 billion to reduce its outstanding share count by 43.3%. Lowering its share count has undoubtedly had a positive impact on the company's earnings per share. 2. American Express: $45.7 billion (16.2% of invested assets) Credit-services titan American Express (NYSE: AXP) is one of eight holdings Berkshire's chief has no intention of ever selling, based on his 2023 annual letter to shareholders. Shares of AmEx, as American Express is more-commonly known, have been held continuously by Berkshire Hathaway since 1991. What's made AmEx so special is its ability to benefit from both sides of a transaction. In the U.S., it's the third-largest payment processor by credit card network purchase volume, which allows it to collect fees from merchants. However, it's also a lender, which means it's able to double dip by collecting fees and/or interest income from personal and corporate cardholders. Furthermore, American Express has a knack for attracting high-earning clientele. High earners are less likely to alter their spending habits or fail to pay their bill during modest economic downturns. On paper, AmEx is well positioned to navigate short-lived recessions. Coca-Cola has increased its base annual dividend for 63 consecutive years. KO Dividend data by YCharts. Above chart only goes back as far as 1990. 3. Coca-Cola: $28.7 billion (10.2% of invested assets) Consumer staples giant Coca-Cola (NYSE: KO) is another of the "indefinite" holdings listed by Buffett in his 2023 annual letter to shareholders. It's also Berkshire Hathaway's longest-tenured holding (since 1988). Coca-Cola's long-term outperformance is a reflection of its relatively unrivaled geographic diversity. It has operations in every country, save for North Korea, Cuba, and Russia, the latter of which stems from its 2022 invasion of Ukraine. Servicing almost the entire globe ensures predictable operating cash flow in developed countries, as well as moves the organic growth needle in faster-paced emerging markets. Although Apple has the best capital-return program on the planet, it's Coca-Cola that's the dividend gem of Buffett's eye. Coca-Cola has raised its base annual dividend for 63 consecutive years and is currently paying $0.51/quarter, or $2.04 annually. With Berkshire's cost basis in Coca-Cola stock a microscopic $3.2475 per share, Buffett's company is more than doubling its initial investment from dividends alone every 21 months! 4. Bank of America: $28.3 billion (10% of invested assets) Since July 17, 2024, Buffett has overseen the sale of more than 401 million shares of Bank of America (NYSE: BAC) stock. Yet even with this somewhat aggressive profit-taking that's reduced Berkshire's stake in BofA by 39%, it still accounts for 10% of invested assets. The reason Berkshire's chief loves financials (and specifically bank stocks) so much is their cyclical ties to the U.S. economy. Rather than trying to time when inevitable recessions will occur, Buffett has packed his company's portfolio with businesses that can take advantage of the fact that economic expansions last considerably longer than recessions. Bank of America's ability to prudently expand its loan portfolio during long-winded expansions has made it a clear winner. Bank of America is also the most interest-sensitive of America's money-center banks. When the nation's central bank was increasing interest rates at the fastest pace in four decades between March 2022 and July 2023, no large bank saw its interest income climb faster than BofA. Even though the Fed is now in a rate-easing cycle, it's slow-stepping its moves and allowing Bank of America to generate plenty of high-interest loans. 5. Chevron: $16.7 billion (5.9% of invested assets) Energy stocks haven't played a big role in Berkshire Hathaway's investment portfolio in decades, until somewhat recently. Integrated oil and gas goliath Chevron (NYSE: CVX) is currently a top-five holding for the Oracle of Omaha. Warren Buffett wouldn't have $16.7 billion invested in an energy company if he and his top advisors weren't optimistic about the future spot price of crude oil. A lack of capital investment by global energy majors for a three-year period during the COVID-19 pandemic, coupled with Russia's invasion of Ukraine, creates a situation where crude oil supply may remain constrained for years to come. A higher spot price for oil can supercharge Chevron's drilling segment, which generates its juiciest margins. However, Chevron is one of the most ideally positioned of all integrated operators. It also oversees transmission pipelines, as well as chemical plants and refineries. If the spot price of crude oil declines, Chevron's cash flow from its midstream and downstream segments can pick up the slack. 6. Moody's: $12 billion (4.2% of invested assets) The third longest-tenured stock in Berkshire Hathaway's $283 billion investment portfolio is credit-rating agency Moody's (NYSE: MCO), which has been a continuous holding since it was spun off from Dun & Bradstreet on Sept. 30, 2000. It's also a stock that Buffett's company has gained more than 4,760% on, relative to its cost basis. What made Moody's such a phenomenal business for so long is its Investors Service segment, which encompasses credit ratings and risk analysis for public companies and governmental entities. More than a decade of historically low lending rates encouraged businesses and local, state, and federal governments to borrow, which in turn kept credit-rating agencies like Moody's busy. With interest rates meaningfully climbing since 2022, Moody's Analytics has come into focus and picked up the slack. This is the division that provides intelligence and analytical tools to help businesses navigate changing regulatory environments and assess risk. Occidental Petroleum is highly sensitive to changes in the spot price of crude oil. WTI Crude Oil Spot Price data by YCharts. 7. Occidental Petroleum: $11.5 billion (4.1% of invested assets) The seventh and final stock that, along with Apple, AmEx, Coca-Cola, BofA, Chevron, and Moody's, collectively helps to account for 72% of Warren Buffett's investment wagers at Berkshire Hathaway is integrated oil and gas company Occidental Petroleum (NYSE: OXY). The Oracle of Omaha has purchased almost 265 million shares of Occidental common stock since the beginning of 2022, which is worth about $11.5 billion, as of the closing bell on June 9, 2025. Though it's an integrated energy company like Chevron, Occidental Petroleum generates an outsized percentage of its net sales from its drilling operations. If the spot price of crude oil is rising, Occidental's operating cash flow will enjoy disproportional benefits, relative to other integrated operators. But the reciprocal is also true, with Occidental getting punished more than its peers if the price of oil declines. Another factor that makes Occidental Petroleum somewhat of an odd pick for Warren Buffett is its relatively debt-heavy balance sheet. While it did manage to reduce its long-term debt since the height of the pandemic, Occidental has far less financial flexibility than energy majors like Chevron. Should you invest $1,000 in Apple right now? Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,871!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $875,479!* Now, it's worth noting Stock Advisor 's total average return is998% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Chevron, and Moody's. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
Globe and Mail
2 hours ago
- Globe and Mail
Government Mandate Sends eVTOL Stocks Flying
For years, the promise of electric air taxis existed primarily in prototypes and investor presentations. In 2025, that reality has changed, and the electric vertical takeoff and landing (eVTOL) industry is now poised to accelerate dramatically. On June 6, 2025, the White House issued a sweeping Executive Order designed to expedite advanced aviation in the United States. This directive gave the fledgling Urban Air Mobility (UAM) sector a powerful federal green light. The policy sent immediate ripples through the market, validating the industry at the highest level of government. The reaction was swift. On the next trading day, June 9, shares of Joby Aviation (NYSE: JOBY) were up 13.79% on a spike in trading volume. Its primary rival, Archer Aviation (NYSE: ACHR), saw its stock climb 10.99%, also on higher-than-normal trading volume. This clear market enthusiasm signals the belief among eVTOL industry observers that a new, more certain investment era has begun for this transformative industry. Why the Executive Order Is a Game-Changer The market's reaction is rooted in specific policies that directly address the sector's most significant risks. For investors, these changes create a more transparent and predictable path to commercial operations. First, the order creates the "eVTOL Integration Pilot Program" (ePIPP). This is the most significant development. The program directs the Federal Aviation Administration (FAA) to select at least five U.S.-based eVTOL projects by December 3, 2025. These projects, covering cargo, medical, and passenger transport, can begin limited operations. This creates a formal, government-sanctioned pathway for companies to prove their business model and gather crucial operational data years ahead of schedule. Second, the order establishes a clearer regulatory runway. A significant risk for eVTOL investors has been the uncertain and potentially lengthy FAA certification timeline. This new government mandate imposes firm deadlines on the FAA. This federal tailwind helps reduce investor concern over indefinite delays that can stall progress in capital-intensive industries. Finally, the order gives a Made in America advantage. The policy explicitly directs federal agencies to prioritize U.S.-manufactured aircraft. This helps secure the valuable domestic market for companies like Joby and Archer against foreign competitors, supporting a more robust national supply chain. The Pioneer vs. the Scaler: Choosing Your eVTOL Investment The Executive Order lifted both leading stocks, but the companies offer different approaches to capitalizing on this new opportunity. For investors, the choice comes down to which business model seems best positioned to win in this accelerated environment. Joby Aviation: A Bet on Technical Leadership [content-module:Forecast|NYSE:JOBY] Joby's strategy is built on deep, vertical integration. The company maintains complete control over its aircraft's performance and intellectual property by designing and building its technology stack in-house. This makes Joby an investment in long-term technical superiority. Evidence of this strategy's effectiveness can be seen in its operational progress. Joby is the frontrunner in the FAA certification process and has accumulated over 40,000 miles in flight testing, including complex piloted flights that demonstrate the maturity of its aircraft. The company is well-capitalized, with a cash position exceeding $1 billion after its latest infusion from Toyota (NYSE: TM). This manufacturing partnership with an industrial giant like Toyota is critical, as it underpins Joby's ability to scale its advanced, proprietary technology. Archer Aviation: A Bet on Rapid Scalability [content-module:Forecast|NYSE:ACHR] Archer's strategy prioritizes capital efficiency and speed to market through powerful partnerships. By teaming up with industrial leaders, Archer aims to de-risk the challenges of mass production. This makes Archer an investment in a faster, more capital-light path to commercial scale. This approach is validated by its exclusive contract manufacturing agreement with automotive giant Stellantis (NYSE: STLA), a partnership aimed at producing up to 650 aircraft per year. Archer's commercial viability is further supported by a massive conditional order book, highlighted by a $1.0 - $1.5 billion deal with United Airlines. The company has also proven its ability to execute by delivering its first Midnight aircraft to the U.S. Air Force, meeting a key government milestone. Final Approach: Opportunity in the Updraft The June 6 Executive Order is undeniably one of the most significant catalysts in the eVTOL sector's history. It validates the industry at a national level and significantly accelerates the timeline for demonstrating commercial potential. While the new ePIPP program creates a vital near-term pathway, investors must remember that it does not replace the need for full FAA Type Certification. This final regulatory approval remains the ultimate gatekeeper for widespread, unrestricted passenger service. The primary question for investors is no longer if a path to early operations exists, but which company is best positioned to leverage this pilot program to its advantage while continuing to advance toward final certification and scaled manufacturing. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now...
