Core Insights - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] - Fastenal (FAST) currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [2][3] Price Performance - Over the past week, Fastenal shares increased by 3.09%, while the Zacks Industrial Services industry rose by 3.51% [5] - In a longer timeframe, Fastenal's shares have appreciated by 22.8% over the past quarter and 48.94% over the last year, significantly outperforming the S&P 500's gains of 9.72% and 16.49%, respectively [6] Trading Volume - Fastenal's average 20-day trading volume is 5,864,943 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Estimates - In the last two months, 8 earnings estimates for Fastenal have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $1.09 to $1.11 [9] - For the next fiscal year, 8 estimates have also moved higher without any declines [9] Conclusion - Considering the positive price trends, trading volume, and favorable earnings outlook, Fastenal is positioned as a strong candidate for near-term investment with a Momentum Score of B [11]

Company Performance - Fastenal has gained approximately 36.7% year-to-date, significantly outperforming the average gain of 5.7% in the Industrial Products group [4] - Fastenal currently holds a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - Over the past three months, the Zacks Consensus Estimate for Fastenal's full-year earnings has increased by 2.4%, reflecting improved analyst sentiment [3] Industry Context - Fastenal is part of the Industrial Services industry, which consists of 18 stocks and is currently ranked 45 in the Zacks Industry Rank [5] - The Industrial Services industry has seen an average gain of 9.4% year-to-date, with Fastenal outperforming this group [5] - Another stock in the Industrial Products sector, Gorman-Rupp, has also shown strong performance with a year-to-date return of 8.7% and a Zacks Rank of 2 (Buy) [4][5]

Investors interested in stocks from the Industrial Services sector have probably already heard of Siemens AG (SIEGY) and Fastenal (FAST) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis o ...

Financial Data and Key Metrics Changes - The company reported a strong revenue growth of 44% year-on-year, reaching a revenue run rate of over €100 million [53][54] - Gross margin per kilowatt hour increased to €0.54, the highest level ever, up from €0.47 in the first quarter [38] - Operational EBITDA expanded by more than 20%, with underlying EBITDA remaining positive despite a net loss of €19.9 million primarily due to network expansion costs [56][57] Business Line Data and Key Metrics Changes - The company opened 17 new stations and expanded 11 existing stations in the first half of 2025, totaling 29 new stations added to the network [28][29] - Energy delivered per station grew by 8.2% year-on-year, with organic volume growth at the stations at 16% year-on-year [38] - The average sales per station were reported to be eight times the market average in Belgium, indicating strong performance [46] Market Data and Key Metrics Changes - Electric vehicle (EV) stock grew by 28% year-on-year, while the company delivered 30% more energy in the same period [9] - EV sales across the EU increased by 22% in 2025, driven by supportive policies and incentives [13] - The company holds a 20% sales market share in Belgium despite having only 3% of the charging locations [46] Company Strategy and Development Direction - The company aims to continue expanding its network, with a target of building over 100 stations annually in the coming years [56] - Initiatives such as the Spark Alliance and the "See You There" marketing campaign are designed to enhance brand awareness and drive EV adoption [11][30] - The company is focused on fast charging as the fastest growing segment, which aligns with its strategy to optimize station economics [48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing the expected acceleration in EV sales and the company's strategic positioning [61] - The company anticipates that seasonal effects will lead to increased energy needs in the latter half of the year, contributing to revenue growth [78] - Management emphasized the importance of maintaining a balance between network expansion and operational efficiency to achieve long-term profitability [56] Other Important Information - The company has a strong funding position with a cash balance of €113 million and plans to fund a significant portion of its 2026 rollout from current resources [59][60] - The company is assessing bank financing options to support its expansion plans [60] Q&A Session Summary Question: Cash flow dynamics and CapEx increase - Management explained that the increase in CapEx to €43 million in the first half was due to the construction of new stations and expansions, with expectations for positive free cash flow in the future [64][66][71] Question: Charging volumes and seasonal effects - Management clarified that Q2 typically sees lower volumes due to seasonal temperature effects, with expectations for growth in Q3 and Q4 driven by increased energy needs [75][78] Question: CO2 emissions and sales mix - Management provided insights on how CO2 targets influence the sales mix, indicating that compliance with emissions regulations will require a significant increase in electric vehicle sales [86][92] Question: Charge speeds and operational EBITDA margins - Management discussed expectations for increasing charge speeds with new vehicle models and the impact of operational leverage on EBITDA margins in mature markets [100][108]

Core Viewpoint - Fastenal's second-quarter 2025 earnings and revenues exceeded estimates and showed year-over-year growth, reflecting operational discipline and customer expansion despite a sluggish macro environment [2][4]. Financial Performance - The company reported adjusted earnings per share (EPS) of 29 cents, surpassing the Zacks Consensus Estimate of 28 cents, and representing a 12.7% increase from 25 cents in the previous year [3]. - Net sales increased by 8.6% year over year to $2.08 billion, exceeding the consensus estimate of $2.06 billion [4]. - Daily sales also rose by 8.6%, driven by improved customer contract momentum and increased unit sales, with foreign exchange rates contributing positively by 10 basis points [4]. Sales Breakdown - Unit sales growth was supported by more customer sites spending over $10K per month and modest growth in average sales per site, with product pricing adding 140-170 basis points to net sales [5]. - Daily sales of Fasteners increased by 6.6%, Safety Supplies by 10.7%, and Other Product Lines by 9% year over year [5]. End-Market Performance - Daily sales in Heavy Manufacturing rose by 7.5%, while Other Manufacturing grew by 11% year over year [6]. - Non-Residential Construction sales increased by 3%, and Other End-Markets saw an 8.7% growth compared to the prior year [6]. Digital Sales and Technology - Daily sales through weighted FMI devices grew by 14.4%, accounting for 44.1% of net sales, while eProcurement sales rose by 19.3% [7]. - Digital Footprint sales represented 61% of total sales, up from 59.4% in the previous year, with a revised target for 2025 penetration set at 63%-64% [7]. Margin Analysis - Gross margin improved to 45.3%, up 20 basis points year over year, attributed to increased fastener product availability [8]. - Selling, general and administrative expenses as a percentage of net sales decreased to 24.4% from 24.9% in the prior year, with operating margin at 21%, higher than the projected 20.6% [8]. Financial Position - As of June 30, 2025, cash and cash equivalents were $237.8 million, down from $255.8 million at the end of 2024, while long-term debt decreased to $100 million from $125 million [9]. - The company returned $252.5 million to shareholders in dividends during the quarter, with net cash provided by operating activities totaling $278.6 million, an 8.1% increase from the previous year [9]. Market Outlook - Estimates for Fastenal have been trending upward, indicating a promising outlook, with the company holding a Zacks Rank 2 (Buy) [10][12].

Fastenal split its stock 2:1 in May and the stock has continued to climb higher. Is it worth buying this rather boring business? Over roughly the last 30 years, Fastenal's (FAST 1.27%) share price has risen by a massive 7,300%. For comparison, the S&P 500 index (^GSPC 1.13%) rose "only" 1,300% or so over the same span. What's interesting here is that Fastenal's business is, at its core, not very exciting. And yet this "boring" company has managed to be a huge growth machine. But is it worth buying after its ...

Investors looking for stocks in the Industrial Services sector might want to consider either Ashtead Group PLC (ASHTY) or Fastenal (FAST) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with p ...

Core Viewpoint - Fastenal's international operations are crucial for understanding its financial strength and growth potential, with significant contributions from foreign markets impacting overall revenue performance [1][2][3]. Revenue Performance - Fastenal's total revenue for the quarter ending June 2025 was $2.08 billion, reflecting an increase of 8.6% compared to previous periods [4]. - Revenue from Other foreign countries was $66.1 million, accounting for 3.18% of total revenue, surpassing analyst expectations of $62.64 million [5]. - Canada and Mexico contributed $281.4 million, representing 13.53% of total revenue, slightly below the consensus estimate of $281.7 million [6]. Future Projections - Analysts project Fastenal's total revenue for the current fiscal quarter to be $2.11 billion, indicating a 10.7% increase year-over-year, with expected contributions of $63.58 million from Other foreign countries and $283.05 million from Canada and Mexico [7]. - For the full year, total revenue is anticipated to reach $8.18 billion, an 8.4% increase from the previous year, with Other foreign countries and Canada and Mexico expected to contribute $250.08 million and $1.11 billion, respectively [8]. Market Context - Fastenal's reliance on international markets presents both opportunities and risks, making it essential to monitor international revenue trends for forecasting the company's prospects [9]. - In the context of increasing global interdependencies and geopolitical tensions, analysts are closely tracking these trends to refine earnings predictions [10]. Stock Performance - Over the past month, Fastenal's stock has increased by 10.6%, outperforming the Zacks S&P 500 composite, which rose by 5.4% [13]. - In the last three months, Fastenal's stock price has risen by 11.8%, while the S&P 500 index increased by 19.7% [13].

Joby Aviation (Air Taxi Industry) - Joby's stock experienced a significant increase, rising over 40% in a week and 104% since June 17th [1] - The company doubled its air taxi production capacity in California and made a major announcement in Ohio, focusing on electric vertical takeoff and landing (EVTOL) vehicles [2] - Joby delivered its first production aircraft to Dubai and is running an EVTOL trial there, pending final FAA certification in the United States [3][4] - The company is considered a leader in the EVTOL space, which is described as a cross between a helicopter and a plane for short trips [3] Fastenal (Industrial Distribution) - Fastenal's stock shows a strong upward trend, with buyers consistently supporting dips since early 2023 [5][6] - The company has effectively "Amazoned" the construction business with its Fastenal Managed Inventory (FMI) digital tech platform [6] - FMI technology accounted for 44% of total sales in the last quarter [8] - Fastenal is viewed as a well-managed industrial company, not a high-growth tech company [8] - Market expected margins to drop, but they've continued to expand, aiding company outperformance [10]

PART I - FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The company's financial statements for Q2 and H1 2025 reflect overall growth in assets, revenue, and net income, alongside a two-for-one stock split [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$5.02 billion** as of June 30, 2025, driven by receivables and inventories, with corresponding increases in liabilities and equity Balance Sheet Summary (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $3,461.7 | $3,211.9 | | **Total Assets** | $5,016.2 | $4,698.0 | | **Total Current Liabilities** | $820.3 | $687.1 | | **Total Liabilities** | $1,208.8 | $1,081.7 | | **Total Stockholders' Equity** | $3,807.4 | $3,616.3 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2025 net sales grew **8.6%** to **$2.08 billion** and net income rose **12.8%** to **$330.3 million**, with similar growth for the six-month period Income Statement Highlights (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $2,080.3 | $1,916.2 | 8.6% | $4,039.7 | $3,811.3 | 6.0% | | **Gross Profit** | $942.8 | $863.5 | 9.2% | $1,826.7 | $1,725.1 | 5.9% | | **Operating Income** | $436.1 | $386.9 | 12.7% | $830.0 | $777.1 | 6.8% | | **Net Income** | $330.3 | $292.7 | 12.8% | $628.9 | $590.4 | 6.5% | | **Diluted EPS** | $0.29 | $0.25 | 16.0% | $0.55 | $0.51 | 7.8% | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q2 2025 significantly increased to **$361.4 million**, driven by higher net income and favorable currency adjustments Comprehensive Income (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $330.3 | $292.7 | | Foreign currency translation adjustments | $31.1 | $(7.8) | | **Comprehensive Income** | **$361.4** | **$284.9** | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased to **$3.81 billion** by June 30, 2025, driven by net income, partially offset by increased cash dividends - Cash dividends paid per share increased to **$0.220** in Q2 2025 from **$0.195** in Q2 2024[17](index=17&type=chunk) Change in Retained Earnings - H1 2025 (in millions) | Description | Amount | | :--- | :--- | | Balance at beginning of period | $3,613.5 | | Net income | $628.9 | | Cash dividends paid | $(499.1) | | **Balance at end of period** | **$3,743.3** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to **$540.8 million** in H1 2025, while investing and financing activities remained significant Cash Flow Summary - Six Months Ended June 30 (in millions) | Category | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $540.8 | $593.6 | | **Net cash used in investing activities** | $(118.3) | $(101.1) | | **Net cash used in financing activities** | $(451.8) | $(452.9) | | Net (decrease) increase in cash | $(18.0) | $34.2 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes include a May 2025 two-for-one stock split, U.S. as the dominant revenue segment, and **$230.0 million** in total debt outstanding - The company announced and completed a two-for-one stock split of its common stock, effective May 21, 2025. All historical share and per-share data have been retroactively adjusted[23](index=23&type=chunk) - On July 11, 2025, the board declared a quarterly dividend of **$0.22 per share**, payable on August 26, 2025[29](index=29&type=chunk) - Total debt outstanding as of June 30, 2025, was **$230.0 million**, up from **$200.0 million** at year-end 2024. This includes borrowings under an **$835.0 million** unsecured revolving credit facility and senior unsecured promissory notes[42](index=42&type=chunk)[43](index=43&type=chunk)[45](index=45&type=chunk) Revenue by Geography - Q2 2025 vs Q2 2024 (in millions) | Region | Q2 2025 Revenue | % of Total | Q2 2024 Revenue | % of Total | | :--- | :--- | :--- | :--- | :--- | | United States | $1,732.8 | 83.3% | $1,594.1 | 83.2% | | Canada and Mexico | $281.4 | 13.5% | $263.9 | 13.8% | | All other foreign | $66.1 | 3.2% | $58.2 | 3.0% | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=15&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Q2 2025 sales growth driven by contract signings, improved gross margin, operating leverage, and strategic focus on 'high-touch, high-tech' initiatives [Executive Overview](index=16&type=section&id=Executive%20Overview) Q2 2025 saw net sales grow **8.6%** to **$2.1 billion**, operating income increase **12.7%**, and operating margin expand, supported by growth in key operational metrics Q2 2025 Performance Summary (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | | Net sales | $2,080.3 | $1,916.2 | 8.6% | | Daily sales | $32.5 | $29.9 | 8.6% | | Gross profit % | 45.3% | 45.1% | +20 bps | | Operating income % | 21.0% | 20.2% | +80 bps | | Diluted net income per share | $0.29 | $0.25 | 12.7% | Key Operational Metrics (as of Q2 2025) | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Total FTE employee headcount | 21,807 | +2.6% | | Number of branch locations | 1,596 | -0.2% | | Number of $50K+ customer sites | 2,683 | +12.4% | | Weighted FMI devices | 132,174 | +10.8% | [Q2 2025 vs. Q2 2024 Analysis](index=17&type=section&id=SECOND%20QUARTER%20OF%202025%20VERSUS%20SECOND%20QUARTER%20OF%202024) Q2 2025 net sales increased **8.6%** due to contract customer performance, with gross margin expanding and operating leverage improving, leading to higher net income - Net sales increased **8.6%** in Q2 2025, largely reflecting the contribution from improved customer contract signings over the past six quarters[65](index=65&type=chunk) - The impact of product pricing on net sales in Q2 2025 was a positive **140 to 170 basis points**[66](index=66&type=chunk) - Gross profit margin increased to **45.3%** from **45.1%** in Q2 2024, helped by favorable price/cost, improved fastener margins, and other supplier initiatives[73](index=73&type=chunk) - SG&A as a percentage of sales decreased to **24.4%** from **24.9%** in Q2 2024, indicating operating leverage as sales grew faster than expenses[74](index=74&type=chunk) Q2 Daily Sales Rate (DSR) Change by Product Line | Product Line | DSR Change 2025 vs 2024 | % of Sales 2025 | | :--- | :--- | :--- | | Total fasteners | 6.6% | 30.5% | | Safety supplies | 10.7% | 22.2% | | Other product lines | 9.0% | 47.3% | [H1 2025 vs. H1 2024 Analysis](index=25&type=section&id=SIX%20MONTHS%20ENDED%20JUNE%2030%2C%202025%20VERSUS%20SIX%20MONTHS%20ENDED%20JUNE%2030%2C%202024) H1 2025 net sales grew **6.0%** to **$4.0 billion**, with slight gross margin decrease due to mix, improved SG&A efficiency, and a decrease in operating cash flow - Net sales for the first six months of 2025 increased **6.0%** to **$4,039.7 million**, with daily sales growing **6.8%**[104](index=104&type=chunk) - Gross profit margin decreased slightly to **45.2%** from **45.3%** in H1 2024, mainly due to customer and product mix, with stronger growth from lower-margin Onsite customers and non-fastener products[109](index=109&type=chunk) - SG&A as a percentage of sales improved to **24.7%** from **24.9%** in H1 2024, as expense growth of **5.1%** was below net sales growth[111](index=111&type=chunk) H1 Daily Sales Rate (DSR) Change by End Market | End Market | DSR Change 2025 vs 2024 | % of Sales 2025 | | :--- | :--- | :--- | | Total manufacturing | 8.0% | 76.1% | | Non-residential construction | -0.1% | 8.0% | | Other end markets | 4.8% | 15.9% | [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces market risks from tariffs, commodity prices, foreign currency, and interest rates, with immaterial impact in H1 2025 but potential future tariff exposure - The company is exposed to risks from tariffs on imported products. While the effect was immaterial in H1 2025, exposure may become more impactful as lower-tariff inventory is depleted[128](index=128&type=chunk) - Impacts from commodity steel prices, energy prices, and foreign currency exchange rates were estimated to be immaterial on net income for the first six months of 2025[129](index=129&type=chunk)[130](index=130&type=chunk)[132](index=132&type=chunk) - The company has floating rate debt; a one percentage point increase in rates would have added approximately **$0.3 million** in interest expense in H1 2025[133](index=133&type=chunk) [Controls and Procedures](index=32&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures are effective[134](index=134&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[135](index=135&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=33&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) As of June 30, 2025, the company reported no litigation matters with a probable or reasonably possible material adverse outcome - As of June 30, 2025, there were no litigation matters considered probable or reasonably possible to have a material adverse outcome[54](index=54&type=chunk)[138](index=138&type=chunk) [Risk Factors](index=33&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes have occurred regarding the risk factors previously disclosed in the company's 2024 annual report on Form 10-K - No material changes from the risk factors described in the 2024 annual report on Form 10-K have occurred[139](index=139&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company did not repurchase common stock in Q2 2025, retaining authority to repurchase an additional **12.4 million** shares Issuer Purchases of Equity Securities - Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1-30, 2025 | 0 | $0.00 | | May 1-31, 2025 | 0 | $0.00 | | June 1-30, 2025 | 0 | $0.00 | | **Total** | **0** | **$0.00** | - As of June 30, 2025, the company has authority to repurchase an additional **12,400,000 shares** of its common stock[140](index=140&type=chunk) [Other Information](index=33&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or officers adopted, modified, or terminated any Rule 10b5-1 trading plans during the fiscal quarter ended June 30, 2025 - No directors or officers adopted, modified, or terminated any Rule 10b5-1 trading plans during Q2 2025[141](index=141&type=chunk) [Exhibits](index=33&type=section&id=ITEM%206.%20EXHIBITS) This section indexes exhibits filed with the Form 10-Q, including Sarbanes-Oxley certifications and Inline XBRL financial data