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Key Takeaways FAST reported Q4 EPS of $0.26 and $2.03B in sales, matching estimates and rising over 11% year over year.Growth was fueled by contract customers, fastener expansion, and strength in manufacturing end markets.Gross margin fell 50 bps to 44.3% due to pricing headwinds, but operating margin edged up to 19.0%.Fastenal Company (FAST) reported fourth-quarter 2025 results that came in line with the Zacks Consensus Estimate for both earnings and revenues, supported by steady contract customer momentum ...

Core Insights - Fastenal reported record sales of $8.2 billion for the full year 2025, reflecting a nearly 9% increase compared to 2024, with net income rising 9.4% to $1.26 billion [2] - The company emphasized a strategy focused on key accounts and deeper relationships with large customers, resulting in a 7% growth in total contract customer count [1][4] - Fastenal's fourth-quarter sales increased by 11% year over year to $2.03 billion, with net income up 12.2% to $294.1 million [3][7] Sales and Growth - Daily sales in the fourth quarter were up just over 11%, contributing to the overall strong performance [3][7] - The company expects double-digit net sales growth in 2026, driven by ongoing market share gains and the expanding role of Fastenal Managed Inventory (FMI) technology [4][20] Digital and Inventory Management - FMI and digital channels accounted for 62.1% of fourth-quarter sales, with nearly half of sales transacted through FMI technology [6][11] - The installed base of FMI devices grew by 7.6% year over year, reaching approximately 136,600 units [10] Margin and Cost Management - Gross margin declined by 50 basis points in the fourth quarter due to timing effects, but pricing was neutral for the year [5][13] - Selling, General and Administrative (SG&A) expenses decreased to 25.4% of sales, reflecting cost discipline [15] Cash Flow and Shareholder Returns - Operating cash flow was approximately $370 million, representing 125% of net income, with net capital spending in 2025 at $230 million [16][17] - The company returned just over $1 billion in dividends during 2025, which was about 80% of net income [18] Market Conditions - The macroeconomic backdrop was described as mixed, with industrial production and PMI data showing softness, but improvement was noted late in the quarter [19]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Financial Data and Key Metrics Changes - Fastenal achieved net sales of $2.03 billion in Q4 2025, an increase of 11% year-over-year, with net income rising 12.2% to $294.1 million and earnings per share at $0.26 [8][9] - For the full year 2025, record annual sales reached $8.2 billion, up nearly 9% from 2024, with net income of $1.26 billion, reflecting a 9.4% increase [8][9] - Operating cash flow was approximately $370 million, representing 125% of net income, indicating strong cash generation [24] Business Line Data and Key Metrics Changes - The number of Active 50K Plus Sites rose 14% year-over-year, with these sites now accounting for over half of total revenues [9][10] - Fastenal's fastener product line growth outpaced non-fastener categories, driven by successful signings of large customers and improved product availability [19] - E-business sales grew 6.4% year-over-year, accounting for about 30% of total sales, while combined e-business and FMI technology sales represented 62.1% of total Q4 sales [14][15] Market Data and Key Metrics Changes - The U.S. economy showed mixed signals in Q4, with PMI averaging in the low 48s and industrial production close to flat compared to last year [17] - Sales to manufacturing markets outperformed other segments, with heavy manufacturing customers growing at double-digit rates [11][19] - Customer sentiment remained favorable despite trade and tariff uncertainties, contributing to the strong daily sales growth of over 11% [18] Company Strategy and Development Direction - Fastenal's strategy focuses on increasing sales effectiveness, enhancing services, and expanding market reach, particularly in manufacturing, construction, government, and transportation sectors [6][11] - The company aims to deepen relationships with key accounts and expand its digital footprint through FMI technology and e-commerce solutions [6][14] - Future growth objectives include increasing sales effectiveness, enhancing service, and expanding the total addressable market, with a vision of becoming a $15 billion organization [41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in industrial production but expressed confidence in achieving double-digit net sales growth in 2026, supported by FMI technology and digital solutions [36] - The company noted that while December saw below-normal sequential growth due to holiday shutdowns, January showed a normalization of operations [88] - Management emphasized the importance of maintaining profitability through disciplined pricing strategies and effective cost management [20][31] Other Important Information - Fastenal returned over $1 billion in dividends for the full year 2025, reflecting confidence in cash generation and commitment to shareholder returns [26] - The company plans to increase capital expenditures to approximately 3.5% of net sales in 2026, focusing on growth and efficiency [25] Q&A Session Summary Question: Is the double-digit net sales growth in 2026 guidance? - Management clarified that it is not guidance but reflects momentum and confidence in execution [45] Question: Can you elaborate on the broader economic assumptions underpinning the growth target? - Management refrained from providing specific pricing details but expressed confidence in executing their strategy despite past inaccuracies [48][49] Question: What was the impact of rebate timing factors on Q4 results? - Management explained that the rebate impact was lower than expected, with a negative true-up affecting gross margins [52][54] Question: Are large heavy manufacturing markets stabilizing? - Management indicated that there is no significant decline in manufacturing usage year-over-year, but growth remains flat [72] Question: How does the company view pricing expectations for 2026? - Management suggested that there will be some carryover pricing impacts, but specifics remain uncertain due to various market dynamics [92]

Fastenal (NasdaqGS:FAST) Q4 2025 Earnings call January 20, 2026 10:00 AM ET Company ParticipantsDray Schreiber - Accounting ManagerJeff Watts - President and Chief Sales OfficerChris Snyder - Executive DirectorDan Florness - CEOMax Tunnicliff - CFOConference Call ParticipantsStephen Volkmann - AnalystKen Newman - Equity Research AnalystTommy Moll - Equity Research AnalystRyan Merkel - Research AnalystChris Dankert - AnalystDavid Manthey - Senior Research AnalystOperatorWelcome to the Fastenal Fourth Quarter ...

Financial Data and Key Metrics Changes - Fastenal achieved net sales of $2.03 billion in Q4 2025, an increase of 11% year-over-year, with net income rising 12.2% to $294.1 million and earnings per share at $0.26 [8][18] - For the full year 2025, the company reported record annual sales of $8.2 billion, up nearly 9% from 2024, and net income of $1.26 billion, up 9.4% [8][27] - Operating cash flow was approximately $370 million, representing 125% of net income, indicating strong cash generation [24] Business Line Data and Key Metrics Changes - The number of Active 50K Plus Sites rose 14% year-over-year, with these sites now accounting for over half of total revenues [10] - Sales to manufacturing markets outperformed other segments, with double-digit growth in heavy manufacturing [11][19] - Fastener product line growth outpaced non-fastener categories, driven by successful signings of large customers and improved product availability [19] Market Data and Key Metrics Changes - The U.S. economy showed mixed signals in Q4, with PMI averaging in the low 48s and industrial production close to flat compared to last year [17] - Customer sentiment remained favorable despite trade and tariff uncertainties, contributing to the strong daily sales growth of over 11% [18] Company Strategy and Development Direction - Fastenal's strategy focuses on increasing sales effectiveness, enhancing services, and expanding market reach, particularly through key account growth and digital solutions [5][11] - The company aims to achieve double-digit market share gains and is exploring new growth drivers, including potential expansions in services [41] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges in industrial production but expressed confidence in achieving double-digit net sales growth in 2026, supported by FMI technology and digital solutions [35][39] - The company anticipates a normalization of sales activity following holiday shutdowns and expects to see continued momentum in January [58] Other Important Information - Fastenal returned over $1 billion in dividends for the full year 2025, reflecting confidence in cash generation and commitment to shareholder returns [26] - The company plans to increase capital expenditures to approximately 3.5% of net sales in 2026 to support growth expectations [24] Q&A Session Summary Question: Is the double-digit net sales growth in 2026 guidance? - Management clarified that it reflects momentum rather than formal guidance [42] Question: What are the broader economic assumptions underpinning the sales growth target? - Management refrained from providing specific pricing contributions but emphasized alignment with sales teams and market execution [43][45] Question: What was the impact of rebate timing factors in Q4? - Management explained that supplier rebates were lower than expected, affecting gross margins, but anticipated normalization going forward [47][50] Question: Are large heavy manufacturing markets stabilizing? - Management indicated that there were no significant declines, with manufacturing usage remaining flat year-over-year [54] Question: What are the expectations for pricing in 2026? - Management suggested that there would be incremental price increases, but specifics were not provided due to market uncertainties [62][63]

2025 Fourth Quarter Investor Teleconference January 20, 2026 1 Safe Harbor Statement All statements made herein that are not historical facts (e.g., future operating results, net sales growth, long-term share gains, and business activity, as well as expectations regarding operations, including gross and operating income margin, eBusiness DSR sales growth, weighted FMI technology signings, operating costs (including SG&A), capital expenditures, sales through our digital footprint, cash flow generation, our a ...

Fastenal ( NASDAQ:FAST ) reported fiscal fourth-quarter earnings this morning, posting earnings per share of $0.26 on revenue of $2.03 billion. ...

Financial Performance - Fastenal's net sales for 2025 reached $8,200.5 million, an increase of 8.7% compared to $7,546.0 million in 2024[3] - In Q4 2025, net sales increased by $202.9 million, or 11.1%, compared to Q4 2024, with both periods having the same number of selling days[4] - Daily sales rate (DSR) for 2025 was $32.3, reflecting a 9.1% increase from $29.6 in 2024[3] - Gross profit for 2025 was $3,691.2 million, an 8.5% increase from $3,401.9 million in 2024, with a gross profit margin of 45.0%[3] - Operating income for 2025 was $1,655.7 million, up 9.6% from $1,510.0 million in 2024, representing 20.2% of net sales[3] - Net income for 2025 was $1,258.4 million, a 9.4% increase from $1,150.6 million in 2024, with diluted net income per share rising to $1.09[3] - Net income for Q4 2025 was $294.1 million, a 12.2% increase compared to Q4 2024, with diluted net income per share rising to $0.26[21] - The company reported a net income of $294.1 million for Q4 2024, up 12.2% from $262.1 million in Q4 2023[40] Sales and Revenue Composition - The impact of product pricing on net sales in Q4 2025 was an increase of 310 to 340 basis points, contrasting with Q4 2024 when the impact was not material[5] - Direct fasteners/hardware sales saw a DSR change of 12.1% in Q4 2025, accounting for 20.4% of total sales[8] - Contract sales increased by 12.9% in Q4 2025, representing 74.7% of total sales, while non-contract sales grew by 6.0%, making up 25.3%[8] - Sales through FMI Technology reached $3,712.7 million in 2025, a 14.6% increase from 2024, with FASTBin and FASTVend sales contributing $2,675.0 million, up 17.0%[12] Cost and Profitability - Gross profit margin decreased to 44.3% in Q4 2025 from 44.8% in Q4 2024, impacted by higher cost of goods sold and supplier rebates[13] - SG&A expenses as a percentage of net sales improved to 25.4% in Q4 2025 from 25.9% in Q4 2024[14] Assets and Liabilities - Total assets increased to $5,052.9 million in 2025, compared to $4,698.0 million in 2024, reflecting a growth of 7.5%[38] - Total current liabilities increased to $715.6 million in 2025 from $687.1 million in 2024, marking a rise of 4.0%[38] - Accounts receivable increased by 12.3% to $1,245.3 million as of December 31, 2025, reflecting growth in sales[24] Cash Flow and Investments - Net cash provided by operating activities was $368.1 million in Q4 2025, a 30.2% increase from Q4 2024, representing 125.2% of the period's net income[22] - The company plans to invest between $310.0 million and $330.0 million in property and equipment in 2026, up from $230.6 million in 2025[28] Shareholder Returns - The company returned $1,004.2 million to shareholders in 2025 through dividends, equating to 79.8% of net income[29] Employee and Operational Metrics - The total FTE employee headcount rose by 644 over the last twelve months, with selling personnel increasing by 425 to support growth initiatives[32] - The company expects to continue investing in IT, quality control, and supply chain support, with a focus on enhancing operational efficiency[32] - The number of $50k+ customer sites decreased by 4.1% to 2,657 from 2,771 in the previous quarter, while $10k+ customer sites also fell by 4.0%[32] Device Signings - In Q4 2025, the company signed 5,966 weighted FASTBin and FASTVend devices, totaling 25,892 signings for the full year, aligning with the goal of 25,000 to 26,000 MEUs[11]