Financial Performance - Net sales for Q1 2025 were $1,959.4 million, a 3.4% increase from $1,895.1 million in Q1 2024[57] - Daily sales increased by 5.0% to $31.1 million in Q1 2025, compared to $29.6 million in Q1 2024, despite one less business day[62] - Gross profit for Q1 2025 was $883.9 million, representing 45.1% of net sales, down from 45.5% in Q1 2024[57] - Total net sales for the first quarter of 2025 were $101,044, a decrease of 7.3% compared to $109,644 in the first quarter of 2024[68] - Net income for Q1 2025 was $298.7 million, a slight increase of 0.3% compared to $297.5 million in Q1 2024, with diluted net income per share remaining at $0.52[86] Expenses and Profitability - SG&A expenses rose to $490.0 million, accounting for 25.0% of net sales, compared to 24.9% in Q1 2024[57] - Gross profit margin decreased to 45.1% in Q1 2025 from 45.5% in Q1 2024, impacted by customer and product mix, higher fleet and transportation costs, and inflation[71] - SG&A expenses as a percentage of net sales increased to 25.0% in Q1 2025 from 24.9% in Q1 2024, with a 3.9% growth in SG&A compared to a 3.4% growth in net sales[73] - Operating income as a percentage of net sales decreased to 20.1% in Q1 2025 from 20.6% in Q1 2024[83] Cash Flow and Investments - Cash flow from operating activities decreased by 21.8% to $262.2 million in Q1 2025 from $335.6 million in Q1 2024[87] - Net cash provided by operating activities decreased by $73.1 million in Q1 2025 compared to Q1 2024[88] - Net cash used in investing activities increased by $5.5 million in Q1 2025, attributed to higher property and equipment purchases[93] - Net capital expenditures were $53.8 million in Q1 2025, up from $48.3 million in Q1 2024, mainly for facility construction and upgrades[94] - Expected net capital expenditures for 2025 are projected to be between $265.0 million and $285.0 million, an increase from $214.1 million in 2024[95] Customer and Market Growth - The number of $50K+ customer sites grew by 7.4% to 2,502 in Q1 2025, up from 2,340 in Q1 2024[59] - Contract sales increased by 8.5% in Q1 2025, making up 73.1% of total sales, compared to 70.6% in Q1 2024[65] - Total FMI sales increased to $859.0 million in Q1 2025, up 9.5% from $796.7 million in Q1 2024[70] - eBusiness sales grew to $607.6 million in Q1 2025, reflecting a 12.9% increase from $549.3 million in Q1 2024[70] Inventory and Accounts Receivable - Accounts receivable increased by $65.5 million (5.4%) to $1,278.7 million as of March 31, 2025, primarily due to sales growth with larger customers[89][90] - Inventories rose by $177.5 million (11.9%) to $1,673.9 million, driven by projected business growth and stock additions for customer support[89][91] - Trade working capital increased by $243.0 million (9.0%) to $2,952.6 million, reflecting higher accounts receivable and inventory levels[89] Debt and Shareholder Returns - Total debt remained at $200.0 million at the end of Q1 2025, representing 5.1% of total capital, down from 5.5% in Q1 2024[98] - Cash returned to shareholders in the form of dividends was $246.7 million in Q1 2025, compared to $223.2 million in Q1 2024[97] - The company did not repurchase any common stock during either period, maintaining authorization for up to 6,200,000 shares[97] Operational Metrics - Total personnel headcount increased by 2.0% to 24,181 in Q1 2025 from 23,695 in Q1 2024[59] - Daily sales were negatively impacted by currency fluctuations, which reduced sales by approximately 0.5% in Q1 2025[62] - Weighted FASTBin and FASTVend signings were 6,418 in Q1 2025, a decrease of 4.6% from 6,726 in Q1 2024[70] - The company experienced a 2.4% increase in weighted Fastenal Managed Inventory (FMI) devices, totaling 129,996 at the end of Q1 2025[59]

Fastenal NASDAQ: FAST faces headwinds and hurdles like any business in 2025, but it navigates the situation better than most, driven by execution and technology. The company leaned into an FMI or Fastenal Managed Inventory footprint expansion in FQ1, compounded by improving client counts and penetration tied to execution and technology, to sustain growth in a tepid-growth environment. The outlook remains favorable for this supply distribution stock because of the diversified business model and efforts to mi ...

Core Insights - Fastenal Company's first-quarter 2025 adjusted earnings met the Zacks Consensus Estimate and remained flat year over year, while net sales exceeded expectations and grew year over year [1][3]. Financial Performance - Earnings per share (EPS) was reported at 52 cents, aligning with the consensus estimate, while net sales reached $1.96 billion, surpassing the consensus mark of $1.95 billion by 0.5% and increasing by 3.4% from the previous year [3]. - Daily sales averaged $31.1 million, reflecting a 5% year-over-year increase despite one less selling day [4]. - The gross margin for the quarter was 45.1%, down 40 basis points year over year, attributed to an unfavorable customer/product mix and higher fleet/freight costs [10]. Sales Breakdown - Daily sales of Fasteners, which accounted for approximately 30.3% of net sales, increased by 1.1% year over year. Sales of Safety Supplies (22% of net sales) grew by 7.1%, while Other Product Lines (47.7%) saw a 6.7% increase [5]. - Daily sales in Heavy Manufacturing, which represented about 43.4% of net sales, rose by 4.8% year over year, while Other Manufacturing (33% of net sales) grew by 9.7% [5]. Customer Engagement - The number of customer sites spending $10K or more per month with Fastenal contributed to unit sales growth, although overall customer sites declined in both manufacturing and non-manufacturing segments [4][8][9]. - The company's Digital Footprint increased to 61% of sales from 59.2% in the previous year, with expectations to reach 66-68% by 2025 [7]. Operational Metrics - Selling, general and administrative expenses as a percentage of net sales rose to 25% from 24.9% year over year, influenced by one less selling day and increased employee compensation [11]. - Operating margin was reported at 20.1%, slightly below the projected 20.4%, down 50 basis points from the previous year [12]. Cash Flow and Shareholder Returns - As of March 31, 2024, Fastenal had cash and cash equivalents of $231.8 million, a decrease from $255.8 million at the end of 2023. The company returned $246.7 million to shareholders in dividends during the quarter [13].

2025 FIRST QUARTER INVESTOR TELECONFERENCE APRIL 11, 2025 1 SAFE HARBOR STATEMENT All statements made herein that are not historical facts (e.g., future operating results, long-term share gains, and business activity, as well as expectations regarding operations, including gross and operating income margin, future inventory levels, pricing, weighted FMI device signings, operating costs (including SG&A), capital expenditures, sales through our digital footprint, cash flow generation, the potential impact of ...

Core Insights - Fastenal reported revenue of $1.96 billion for the quarter ended March 2025, marking a year-over-year increase of 3.4% and a surprise of +0.63% over the Zacks Consensus Estimate of $1.95 billion [1] - The company's EPS for the same period was $0.52, unchanged from the previous year, indicating no EPS surprise [1] Financial Performance Metrics - Fastenal's shares have returned +2.9% over the past month, contrasting with the Zacks S&P 500 composite's -6.1% change, suggesting relative outperformance [3] - The company had 63 business days in the quarter, slightly below the estimated 63.17 days [4] - Daily sales were reported at $31.10, lower than the average estimate of $31.51 [4] - The number of branch locations was 1,587, slightly above the two-analyst average estimate of 1,583 [4] - Weighted FASTBin/FASTVend signings were 6,418, below the estimated 7,281 [4] - Weighted FASTBin/FASTVend installations at the end of the period totaled 129,996, slightly above the average estimate of 129,887 [4]

Financial Data and Key Metrics Changes - Sales in Q1 2025 grew by approximately 3.5%, with daily sales growth at about 5% due to one less selling day [22][54] - Operating margin for Q1 2025 was 20.1%, down 50 basis points year-over-year, while gross margin was 45.1%, down 40 basis points from the previous year [63][64] - Earnings per share (EPS) for Q1 2025 remained flat at 52 cents compared to Q1 2024 [68] Business Line Data and Key Metrics Changes - Fastenal's fastener segment saw its first quarter of growth since Q1 2023, indicating a recovery in manufacturing end markets [56] - The company reported a 12.5% growth in the number of FMI devices deployed, totaling approximately 130,000 devices [45] - Safety sales growth was nearly 10% in March, attributed to effective execution and the FMI process [45] Market Data and Key Metrics Changes - The marketplace remains sluggish, with customer tone shifting to a plateau due to trade policy uncertainties [55] - Approximately 15% of Fastenal's revenue comes from Canada and Mexico, where sourcing strategies are being adjusted to mitigate tariff impacts [34] Company Strategy and Development Direction - Fastenal is focusing on diversifying its supply chain and enhancing direct sourcing capabilities to manage costs and improve customer relationships [60][89] - The company aims to increase its digital sales footprint to 66-68% of total sales by October 2025 [45] - Fastenal is investing in technology and infrastructure to support growth, including higher capital spending for FMI devices and IT projects [71] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about future growth, citing improved sentiment and internal momentum despite external uncertainties [62] - The company anticipates that pricing actions taken in April could contribute 3-4% to revenue in Q2 2025, with potential for further increases in the second half of the year [60][134] - Fastenal's historical ability to gain market share during disruptions is expected to continue, supported by a nimble sales force and strong supply chain resources [62] Other Important Information - The company increased its dividend from 43 to 44 cents, aiming to surpass a billion in regular dividends for the first time [42] - Fastenal's accounts receivable increased by 5.4%, while inventories rose by 11.9% to improve product availability [69][70] Q&A Session Summary Question: Discussion on tariffs and customer contracts - Management confirmed that customer contracts allow for price adjustments in response to tariffs, emphasizing the importance of sourcing options [78][84] Question: Impact of unprecedented tariff increases - Management acknowledged the challenges posed by high tariffs but highlighted their direct sourcing capabilities and inventory buffers to manage costs effectively [95][100] Question: SG&A expenses and freight costs - Management discussed elevated freight expenses and the ongoing vehicle fleet upgrades, indicating expectations for SG&A leverage in upcoming quarters [111][115] Question: Customer site disaggregation between manufacturing and non-manufacturing - Management clarified that the distinction lies more in the services utilized rather than the manufacturing status, with larger customers benefiting more from Fastenal's solutions [124][126]

Company Performance - Fastenal reported quarterly earnings of $0.52 per share, matching the Zacks Consensus Estimate, and unchanged from the previous year [1] - The company posted revenues of $1.96 billion for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 0.63% and up from $1.9 billion a year ago [2] - Over the last four quarters, Fastenal has not surpassed consensus EPS estimates and has topped revenue estimates only once [2] Stock Outlook - Fastenal shares have increased approximately 5.4% since the beginning of the year, contrasting with a -10.4% decline in the S&P 500 [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.55 for the coming quarter and $2.16 for the current fiscal year [4][7] - The current Zacks Rank for Fastenal is 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Building Products - Retail industry, to which Fastenal belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Fastenal's stock may be influenced by the overall outlook for the industry [8]

Financial Performance - Net sales for the first quarter of 2025 reached $1,959.4 million, a 3.4% increase compared to $1,895.1 million in the first quarter of 2024[3] - Daily sales increased by 5.0% to $31.1 million in the first quarter of 2025, up from $29.6 million in the same period last year[4] - Gross profit for the quarter was $883.9 million, representing 45.1% of net sales, slightly down from 45.5% in the previous year[3] - Operating income increased to $393.9 million, or 20.1% of net sales, compared to $390.2 million and 20.6% in the first quarter of 2024[3] - Net income rose to $298.7 million, a 0.3% increase from $297.7 million year-over-year[3] Customer Metrics - The number of customer sites spending $10K or more per month increased, contributing to unit sales growth in the first quarter of 2025[5] - Sales from contract customers grew by 8.5%, accounting for 73.1% of total sales, while non-contract sales declined by 3.6%[6] - The fastener product line saw a 1.1% increase in sales, marking the first growth after seven consecutive quarters of flat or declining performance[6] Product and Service Initiatives - Fastenal signed 6,418 weighted FASTBin and FASTVend devices in the first quarter of 2025, with a goal of 28,000 to 30,000 MEUs for the year[10] - Weighted FASTBin/FASTVend installations increased by 12.4% to 129,996 MEUs at the end of Q1 2025 compared to Q1 2024[11] Financial Ratios and Margins - Gross profit margin decreased to 45.1% in Q1 2025 from 45.5% in Q1 2024, impacted by customer mix and increased transportation costs[12] - SG&A expenses as a percentage of net sales increased to 25.0% in Q1 2025 from 24.9% in Q1 2024, with a 3.9% growth in SG&A expenses[14] Cash Flow and Working Capital - Net cash provided by operating activities decreased by 21.8% to $262.2 million in Q1 2025 compared to Q1 2024[22] - Accounts receivable increased by 5.4% to $1,278.7 million as of March 31, 2025, compared to March 31, 2024[23] - Inventories increased by 11.9% to $1,673.9 million as of March 31, 2025, compared to March 31, 2024[23] - Cash and cash equivalents decreased to $231.8 million from $255.8 million at the end of 2024[38] Debt and Equity - Total debt remained at $200.0 million at the end of Q1 2025, representing 5.1% of total capital[30] - Total stockholders' equity increased to $3,690.3 million as of March 31, 2025, compared to $3,616.3 million at the end of 2024[38] Future Investments - The company plans to invest between $265.0 million and $285.0 million in property and equipment in 2025, up from $214.1 million in 2024[28]

Fastenal Company FAST will release earnings results for the first quarter, before the opening bell on Friday, April 11. Analysts expect the Winona, Minnesota-based company to report quarterly earnings at 52 cents per share, compared to 52 cents per share in the year-ago period. Fastenal projects to report quarterly revenue at $1.95 billion, compared to $1.9 billion a year earlier, according to data from Benzinga Pro. On Jan. 17, Fastenal reported sales growth of 3.7% year-over-year to $1.825 billion, missin ...

Core Viewpoint - Analysts project that Fastenal (FAST) will report quarterly earnings of $0.52 per share, indicating no change year over year, with revenues expected to reach $1.94 billion, reflecting a 2.5% increase from the same quarter last year [1] Earnings Estimates - Over the past 30 days, there has been a downward revision of 0.3% in the consensus EPS estimate for the quarter, indicating a collective reconsideration by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions to the stock, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3] Key Metrics Forecast - Analysts predict 'Business days' will total 63.00 Days, down from 64 Days a year ago [5] - 'Daily sales' are expected to reach $30.75, compared to $29.60 in the same quarter last year [5] - The 'Number of in-market locations' is forecasted to be 3,676, up from 3,464 a year ago [5] - 'Weighted FASTBin/FASTVend installations (MEUs; end of period)' are estimated at 129,887, compared to 115,653 last year [6] - The 'Number of active Onsite locations' is expected to reach 2,094, up from 1,872 in the same quarter last year [6] - Analysts forecast 'Number of branch locations' to be 1,583, slightly down from 1,592 reported last year [7] - 'Weighted FASTBin/FASTVend signings (MEUs)' are expected to reach 7,281, compared to 6,726 in the same quarter last year [7] Stock Performance - Fastenal shares have decreased by 9.6% over the past month, while the Zacks S&P 500 composite has declined by 12.2% [7] - Fastenal holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [7]