Q4'25 and FY25 Earnings Presentation February 24, 2026 Disclaimer Forward-Looking Statements This presentation and the related conference call contain "forward-looking statements." All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe forward- looking statements are based upon reasonable assumptions, such stateme ...

Core Insights - Fastenal Company (NASDAQ:FAST) is recognized as one of the Dividend Growth Stocks: 25 Aristocrats [1] - Barclays has lowered its price target for Fastenal to $43 from $44, maintaining an Equal Weight rating due to volume growth being driven by lower pricing, which negatively impacts overall performance [2] Financial Performance - Fastenal reported fourth-quarter revenue of $2.03 billion, slightly below the expected $2.04 billion [3][4] - Earnings per share for the quarter were 26 cents, matching analyst estimates [4] - The company anticipates increased capital expenditures, projecting investments of $310 million to $330 million in 2026, up from $230.6 million in 2025 [4] Market Dynamics - Higher tariffs have led to increased prices, which have softened demand for some products [3] - Strong sales to contract customers were noted, but overall business activity was weaker, with gains in transportation and data center markets offset by reduced demand from resellers [3]

Core Insights - AMCON Distributing Company (DIT) reported a significant increase in earnings per share (EPS) for the first quarter of fiscal 2026, reaching $1.28 compared to $0.57 in the same quarter of the previous year, reflecting strong financial performance [1] - The company's stock has outperformed the S&P 500 index, gaining 0.4% since the earnings report, while the index declined by 0.9% during the same period [1] Financial Performance - Revenues for the quarter were $730.1 million, a 2.6% increase from $711.3 million year-over-year [2] - Gross profit rose to $48 million from $46.9 million, marking a 2.5% improvement [2] - Operating income increased to $3.9 million, up 7.4% from $3.7 million a year earlier [2] - Net income surged to $0.8 million, a 127.6% increase from $0.3 million in the same quarter of the prior year [2] Segment Performance - The wholesale distribution segment, AMCON's primary revenue driver, generated $719.3 million in sales and $6.9 million in operating income [3] - The retail health food segment reported revenues of $10.8 million but faced a $0.2 million operating loss, indicating challenges in this area [3] Operating Expenses - Total operating expenses amounted to $44.1 million, a slight increase from $43.2 million in the prior-year quarter [4] Management Strategy - The company is focused on investing in proprietary foodservice and merchandising programs to enhance competitive advantages for retail partners, as emphasized by Chairman and CEO Christopher H. Atayan [5] - President and COO Andrew C. Plummer highlighted the importance of integrated marketing tools that provide customers with a competitive edge, especially in adverse conditions [6] Financial Health - Shareholders' equity increased to $114.1 million as of December 31, 2025, up from $113.1 million at the end of September [7] - Inventory levels decreased from $153.3 million at the end of September to $144.4 million in December, indicating improved supply chain management [8] - Accounts payable were reduced by over $21 million quarter-over-quarter, suggesting better working capital management [8] Cost Pressures - Inflation continues to impact operating costs, with total interest expense remaining high at $2.7 million, only slightly lower than the $2.9 million recorded in the previous year [9]

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]

Core Insights - Fenimore Asset Management's Q4 2025 investor letter indicates a solid yet volatile stock market, influenced by AI enthusiasm, economic uncertainty, and monetary policy concerns [1] - The firm anticipates mixed market conditions in 2026, with many AI-related stocks appearing expensive while high-quality companies are trading at multi-year lows, presenting potential investment opportunities [1] Performance Summary - The S&P 500 Index rose by 2.66% in Q4 2025, driven by large-cap technology and communication services stocks [1] - Fenimore Small Cap Strategy returned -4.12%, underperforming the Russell 2000 Index, which returned 2.19% [1] - Fenimore Dividend Focus Strategy declined -4.41% compared to the Russell Midcap Index's 0.16% return [1] - Fenimore Value Strategy saw a decline of -1.17% in Q4, also underperforming the Russell Midcap Index [1] Sector Analysis - Underperformance in Fenimore's strategies was attributed to investments in the financial and industrial sectors, which were net neutral [3] - Fastenal Company (NASDAQ:FAST) was a significant detractor in the Fenimore Value Strategy due to weakness in U.S. industrial manufacturing and production cuts by major customers [3] - Fastenal's gross margin compression was linked to a shift towards lower-margin services and higher inventory costs due to tariff concerns [3] Company Spotlight: Fastenal Company - Fastenal Company (NASDAQ:FAST) had a market capitalization of $49.97 billion and closed at $43.53 per share on January 15, 2026 [2] - The stock experienced a one-month return of 2.79% and a 52-week gain of 14.43% [2]

Core Insights - Fastenal Company, based in Winona, Minnesota, specializes in the wholesale distribution of industrial and construction supplies, with a market cap of approximately $46.9 billion [1] Performance Overview - Fastenal's stock has underperformed compared to the broader market, gaining 13.6% year-to-date but dropping 1.7% over the past 52 weeks, while the S&P 500 Index gained 14.4% in 2025 and 12.7% over the past year [2] - The company also lagged behind the Industrial Select Sector SPDR Fund, which surged 16.4% in 2025 and gained 9.1% over the past year [3] Recent Financial Results - Following the release of mixed Q3 results on October 13, Fastenal's stock price fell 7.5% in one trading session. The company's Q3 topline increased by 11.7% year-over-year to $2.1 billion, but missed expectations by 11 basis points. Adjusted EPS rose 12.3% year-over-year to $0.29, missing consensus estimates by 3.3% [4] Future Earnings Expectations - For the full fiscal year 2025, analysts project an adjusted EPS of $1.11, reflecting an 11% year-over-year increase. Fastenal has a mixed earnings surprise history, missing bottom-line estimates twice in the past four quarters while meeting projections on two occasions [5] Analyst Ratings and Price Targets - Among 17 analysts covering Fastenal, the consensus rating is a "Hold," consisting of four "Strong Buys," 12 "Holds," and one "Strong Sell" [5] - Barclays analyst Guy Hardwick maintained an "Equal-Weight" rating on Fastenal but reduced the price target from $49 to $45. The mean price target of $45.82 indicates a 12.2% premium to current price levels, while the highest target of $50 suggests a 22.4% upside potential [7]

Core Viewpoint - Bri-Chem Corp. has announced the immediate departure of its CEO, Don Caron, and is initiating a leadership transition process to find a suitable successor [1][2]. Company Overview - Bri-Chem Corp. is a leading North American wholesale distributor of drilling fluids and related products, serving the energy, construction, and industrial sectors. The company was founded in 1985 and is headquartered in Edmonton, Alberta [4]. Leadership Transition - The Board of Directors is overseeing interim management responsibilities during the search for a new CEO, ensuring that there will be no disruption to ongoing operations [2]. - Barry Hugghins, Chairman of the Board, emphasized the company's commitment to operational discipline, customer service, and long-term growth, while focusing on alignment and performance across the organization [3].

Q3 2025 Financial Performance - Resideo's Q3 2025 net revenue reached $1864 million, a 2% increase year-over-year[35] - Adjusted earnings per share for Q3 2025 were $089, a 51% increase year-over-year[35] - Adjusted EBITDA for Q3 2025 was $229 million, a 21% increase year-over-year[35] - Products & Solutions (P&S) revenue in Q3 2025 was $661 million, a 2% increase year-over-year, with an adjusted EBITDA of $165 million, a 5% increase year-over-year[35] - ADI Global Distribution revenue in Q3 2025 was $1203 million, a 2% increase year-over-year, with an adjusted EBITDA of $92 million, flat year-over-year[35] Strategic Separation and Financial Restructuring - Resideo made a one-time cash payment of $159 billion to Honeywell in Q3 2025 to terminate the Indemnification Agreement[24] - The termination of the Indemnification Agreement immediately unlocked $35 million of quarterly EBITDA[24] - The company is separating into two independent companies to create strategic alignment and management focus[24] 2025 Outlook - The company anticipates total net revenue between $7430 million and $7470 million for 2025[57] - Adjusted EBITDA is projected to be between $818 million and $832 million for 2025[57]

Core Insights - Fastenal Company, a leader in wholesale distribution of industrial and construction supplies, announced its financial results for the quarter ended September 30, 2025 [1] Financial Performance - The financial results are presented in millions, with all historical common stock share and per share information and stockholders' equity balances included for all periods [1]

Core Insights - Fastenal Company, based in Winona, Minnesota, is a major player in the wholesale distribution of industrial and construction supplies, with a market capitalization of approximately $54.6 billion [1] Earnings Expectations - Fastenal is expected to release its third-quarter results on October 13, with analysts predicting an adjusted EPS of $0.30, reflecting a 15.4% increase from $0.26 in the same quarter last year [2] - For the full fiscal year 2025, analysts forecast an EPS of $1.11, an 11% increase from $1 in 2024, and a further growth to $1.23 in fiscal 2026, representing a 10.8% year-over-year increase [3] Stock Performance - Fastenal's stock has increased by 35.3% over the past 52 weeks, outperforming the S&P 500 Index's 15.4% gains and the Industrial Select Sector SPDR Fund's 12.9% returns during the same period [4] - Following the release of better-than-expected Q2 results, Fastenal's stock gained 4.2%, with Q2 topline revenue rising 8.6% year-over-year to $2.1 billion, exceeding expectations by 88 basis points [5] Analyst Ratings - The consensus rating for Fastenal is "Hold," with 16 analysts covering the stock, including four "Strong Buys," 11 "Holds," and one "Strong Sell" [6] - The stock is currently trading slightly above its mean price target of $46.40 [6]