Fastenal(FAST) - 2025 Q1 - Quarterly Report

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]