Fastenal(US:FAST)2026-01-20 13:17Financial 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]