Insurance Auto Auctions, one of North America’s largest sellers of total-loss vehicles, reported higher auction activity in the final quarter of 2025, with results released on Feb. 17 by parent company RB Global, Inc.
IAA, which was formerly known as Impact Auto Auctions, runs online and in-yard auctions that sell damaged and written-off vehicles for insurers, fleets and other consignors. For Canada’s auto recycling sector, it is a key supply pipeline. When insurers declare a vehicle a total loss, many of those units move through IAA lanes before ending up in dismantling yards.
In the fourth quarter, the total value of vehicles sold through IAA’s marketplace increased 4.0% year over year to US$4.3 billion. That figure, known as gross transaction value, reflects the combined selling price of all vehicles sold on the platform. Revenue, which represents the fees IAA earns for running auctions, storing vehicles and arranging transportation, rose 5.0% to US$1.2 billion.
Net income declined 8.0% to US$109.4 million and diluted earnings per share from continuing operations fell 9.0% to US$0.53. Adjusted diluted earnings per share increased 17% to US$1.11 and adjusted EBITDA rose 10% to US$379.6 million. Adjusted results remove certain one-time or non-recurring items, offering a clearer view of core operating performance.
Several market forces supported performance. Used-vehicle prices remained elevated compared with historical norms, helping lift average selling prices for salvage units. Repair costs continued to rise due to advanced driver-assistance systems, more complex vehicle construction and higher parts and labour costs. As repair bills increase relative to vehicle values, insurers are more likely to write vehicles off, sending more units into salvage auctions. Severe weather events also contributed to total-loss volumes.
In other public statements, IAA's CEO and president John Kett (pictured), has indicated the company is pursuing a strategy focused on combining digital marketplace tools with physical yard capacity and transportation logistics.
For auto recyclers, the 4.0% rise in marketplace sales value suggests steady to growing salvage throughput. Continued investment in yards, logistics and digital tools indicates vehicles are likely moving efficiently through auction channels, influencing buying conditions and competition for inventory.
Insurance Auto Auctions traces its roots to 1982, when it was founded as Impact Auto Auctions in Illinois. The company rebranded in 1994 to reflect its growing focus on insurer total-loss vehicles, expanded nationally through the 1990s and 2000s and built out digital bidding capabilities alongside its physical yard network.
It became a standalone public company in 2019 following its separation from KAR Auction Services and was acquired by RB Global in 2023, placing it within a larger global asset disposition group.
