Fastenal(US:FAST)2025-10-16 15:00Financial Performance - Net sales for the nine-month period ended September 30, 2025, increased by 7.9% to $6,173.1 million compared to $5,721.5 million in 2024[60]. - Daily sales for the three-month period ended September 30, 2025, rose by 11.7% to $33.3 million, up from $29.8 million in 2024[64]. - Gross profit for the nine-month period increased by 8.1% to $2,792.5 million, maintaining a gross profit margin of 45.2%[60]. - Operating income for the three-month period ended September 30, 2025, was $441.5 million, reflecting a 13.7% increase from $388.1 million in 2024[60]. - In Q3 2025, net income was $333.5 million, a 12.6% increase compared to Q3 2024, with diluted net income per share rising to $0.29 from $0.26[85]. - Net income for the first nine months of 2025 was $964.4 million, an increase of 8.5% compared to $889.5 million in the same period of 2024[114]. Sales and Revenue Growth - Total sales through FMI Technology reached $978.4 million in Q3 2025, a 17.7% increase from $831.5 million in Q3 2024[71]. - Contract sales grew by 13.2% year-over-year, accounting for 73.8% of total sales in Q3 2025, while non-contract sales declined by 7.2%[69]. - Total fasteners sales increased by 14.4% year-over-year, representing 31.0% of total sales in Q3 2025[67]. - Non-residential construction sales grew by 7.5% in Q3 2025, marking the second growth in twelve quarters[67]. - Fastener product line growth improved by 7.3% in the first nine months of 2025, compared to a decline of 3.8% in the same period of 2024[103]. - Total non-fasteners experienced a growth of 9.0% in the first nine months of 2025, up from 4.7% in the prior year[103]. - Contract sales increased by 11.0% in the first nine months of 2025, while non-contract sales only grew by 2.0%[103]. Expenses and Profitability - SG&A expenses for the nine-month period increased by 7.2% to $1,521.1 million, maintaining a consistent percentage of net sales at 24.6%[60]. - SG&A expenses as a percentage of net sales decreased to 24.6% in the first nine months of 2025 from 24.8% in 2024[99]. - Operating income as a percentage of net sales increased to 20.7% in Q3 2025 from 20.3% in Q3 2024[81]. - Gross profit as a percentage of net sales remained stable at 45.2% for both the first nine months of 2025 and 2024[105]. Inventory and Accounts Receivable - Accounts receivable increased by $146.6 million (12.2%) to $1,347.3 million as of September 30, 2025, compared to $1,200.6 million in 2024[88]. - Inventories grew by $163.3 million (10.5%) to $1,722.8 million as of September 30, 2025, up from $1,559.5 million in 2024[88]. Capital and Shareholder Returns - Total debt decreased to $195.0 million at the end of Q3 2025, representing 4.8% of total capital, down from $240.0 million (6.3%) at the end of Q3 2024[96]. - Cash returned to shareholders in the form of dividends increased to $252.5 million in Q3 2025, compared to $223.4 million in Q3 2024[95]. - The company returned $751.6 million to shareholders in dividends during the first nine months of 2025, compared to $669.9 million in the same period of 2024[119]. Operational Metrics - The number of $50k+ customer sites increased by 3.3% to 2,771 compared to the previous quarter, indicating growth in high-value customer engagements[61]. - The weighted Fastenal Managed Inventory (FMI) devices installed count rose by 1.3% to 133,910, supporting inventory management solutions[61]. - The number of customer sites in the manufacturing sector increased to 42,321 in Q3 2025, generating total sales of $1.61 billion, compared to 44,028 sites and $1.45 billion in Q3 2024[69]. - Weighted FASTBin and FASTVend installations reached 133,910 units by the end of Q3 2025, an 8.7% increase from 123,193 units in Q3 2024[71]. - The company signed 19,925 weighted FASTBin and FASTVend devices in the first nine months of 2025, a decrease of 6.0% from 21,194 in 2024[104]. Economic and Market Conditions - The company is actively monitoring macroeconomic conditions, including inflationary pressures and geopolitical developments, to mitigate potential adverse effects on operations[57]. - The company reported that the effect of tariffs and import shipping costs on net income was immaterial in the first nine months of 2025, but future impacts may arise as lower tariff inventory is depleted[123]. - Commodity steel prices were higher than the prior year period, but the effect on net income was estimated to be immaterial in the first nine months of 2025[124]. - Energy prices during the first nine months of 2025 were below the prior year period, with an immaterial effect on net income related to commodity energy prices[125]. - The dollar strengthened against foreign currencies in the first nine months of 2025, but the impact on net income was also immaterial[127]. - A one percentage point increase in floating rate debt would have resulted in approximately $0.4 million of additional interest expense in the first nine months of 2025[128].