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 ...

Group 1 - Fastenal reported fiscal fourth-quarter earnings with earnings per share of $0.26 [1] - The company generated revenue of $2.03 billion in the same quarter [1]

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]

Fastenal reports fourth-quarter earnings per share of 26 cents from sales of $2 billion, meeting Wall Street estimates. ...

Core Viewpoint - Fastenal Company announced its financial results for the quarter and year ended December 31, 2025, highlighting its position as a leader in the wholesale distribution of industrial and construction supplies [1] Financial Performance - The financial results include detailed dollar amounts stated in millions, with a focus on share and per share information [1] - Historical common stock share and per share information, as well as stockholders' equity balances, are provided for all periods presented [1]

Earnings Report - Fastenal Company is set to release its fourth-quarter earnings results on January 20, with analysts expecting earnings of 26 cents per share, an increase from 23 cents per share in the same period last year [1] - The consensus estimate for quarterly revenue is $2.04 billion, up from $1.82 billion a year earlier [1] Leadership Change - Daniel L. Florness will step down as CEO on July 16, 2026, which led to a 2.6% increase in Fastenal shares, closing at $43.53 [2] Analyst Ratings - Jefferies analyst upgraded Fastenal from Hold to Buy, raising the price target from $45 to $52 [3] - Barclays analyst maintained an Equal-Weight rating but reduced the price target from $45 to $44 [3] - Baird analyst upgraded the stock from Neutral to Outperform, increasing the price target from $47 to $55 [3] - Stephens & Co. analyst maintained an Equal-Weight rating and raised the price target from $40 to $45 [3] - Loop Capital analyst maintained a Hold rating and increased the price target from $40 to $45 [3]

Earnings Report - Fastenal Company is set to release its fourth-quarter earnings results on January 20, with analysts expecting earnings of 26 cents per share, an increase from 23 cents per share in the same period last year [1] - The consensus estimate for quarterly revenue is $2.04 billion, up from $1.82 billion a year earlier [1] Leadership Change - Daniel L. Florness will step down as CEO on July 16, 2026, which led to a 2.6% increase in Fastenal shares, closing at $43.53 [2] Analyst Ratings - Jefferies analyst upgraded Fastenal from Hold to Buy, raising the price target from $45 to $52 [3] - Barclays analyst maintained an Equal-Weight rating but reduced the price target from $45 to $44 [3] - Baird analyst upgraded the stock from Neutral to Outperform, increasing the price target from $47 to $55 [3] - Stephens & Co. analyst maintained an Equal-Weight rating and raised the price target from $40 to $45 [3] - Loop Capital analyst maintained a Hold rating and increased the price target from $40 to $45 [3]

Core Insights - Fastenal Company (FAST) is set to report its fourth-quarter 2025 results on January 20, with previous quarter earnings per share (EPS) and net sales missing estimates by 3.3% and 0.5%, respectively, but showing growth of 11.5% and 11.7% [1] Group 1: Earnings and Sales Estimates - The Zacks Consensus Estimate for EPS for the fourth quarter remains unchanged at 26 cents per share, indicating a 13% year-over-year growth [2] - The consensus for net sales is projected at $2.05 billion, reflecting a 12.2% increase from the previous year's figure of $1.82 billion [2] Group 2: Sales Performance Factors - Fastenal's sales performance in Q4 is expected to improve year-over-year due to favorable pricing changes and various sales initiatives, including a focus on digital growth and inventory management [3] - Daily sales in November 2025 grew by 11.8% year-over-year to $33 million, although there was a 1.5% decline from October 2025 [4] - In November 2025, daily sales in Heavy Manufacturing and Other Manufacturing increased by 13% and 12.9%, respectively, while Non-residential Construction grew by 8.4% [5] Group 3: Margin and Cost Management - Fastenal's bottom line is expected to improve due to a favorable price-cost mix, ongoing expansion projects, and effective cost control strategies [7] - The company anticipates a sequential decline in gross margin by 40 basis points to 44.9% for the fourth quarter, although this represents a 10 basis point increase year-over-year [10] - Selling, general, and administrative expenses as a percentage of net sales are expected to contract by 90 basis points to 25% for the upcoming quarter [9] Group 4: Earnings Prediction and Model Insights - Fastenal's fourth-quarter EPS is projected to rise by 13% year-over-year, with net sales expected to increase by 12% driven by pricing strength and manufacturing demand [8] - The model indicates that Fastenal may not achieve an earnings beat this quarter, with an Earnings ESP of -0.64% [11]

Core Viewpoint - Fastenal (FAST) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on January 20, with a consensus estimate of quarterly earnings at $0.26 per share, reflecting a 13% increase year-over-year. Revenues are projected to reach $2.05 billion, marking a 12.2% increase from the previous year [3]. Estimate Revisions Trend - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial estimates during this period [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Fastenal is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.64%. This suggests a bearish outlook from analysts regarding the company's earnings prospects [12]. Historical Performance - In the last reported quarter, Fastenal was expected to post earnings of $0.30 per share but delivered $0.29, resulting in a surprise of -3.33%. Over the past four quarters, the company has only beaten consensus EPS estimates once [13][14]. Conclusion - Fastenal does not appear to be a strong candidate for an earnings beat based on current estimates and historical performance. Investors are advised to consider other factors when making decisions regarding this stock ahead of its earnings release [17].