Core Viewpoint - Fastenal's recent earnings report indicates steady growth in revenues and earnings, supported by strong customer demand and operational improvements, despite a challenging industrial environment [3][11]. Financial Performance - Fastenal reported Q4 2025 earnings per share (EPS) of 26 cents, matching expectations and reflecting a 12.2% increase from 23 cents in the prior year [4]. - Net income rose to $294.1 million from $262.1 million year-over-year [4]. - Quarterly net sales reached $2.03 billion, meeting estimates and showing an 11.1% year-over-year increase [5]. Sales and Growth Drivers - Average daily sales increased by 11.1% year-over-year to $32.2 million, driven by higher unit volumes and growth in customer spending [5]. - Direct products, including fasteners and cutting tools, saw daily sales growth of 13.1%, accounting for 38.4% of net sales [8]. - Manufacturing remained the primary growth driver, with heavy manufacturing sales up 12.6% year-over-year [9]. Margin and Expense Trends - Gross profit increased by 9.8% year-over-year to $898.7 million, while gross margin slightly declined to 44.3% [6]. - Selling, general and administrative expenses improved to 25.4% of sales, leading to an operating profit of $384.3 million and an operating margin of 19% [7]. Digital and Technological Growth - Fastenal's digital sales channels grew significantly, with sales through FMI technology up 16.6% year-over-year, representing 46.1% of net sales [10]. - Overall digital footprint sales accounted for 62.1% of net sales, indicating a continued shift towards technology-enabled distribution [10]. Balance Sheet and Capital Allocation - Fastenal ended 2025 with $276.8 million in cash and cash equivalents, and long-term debt decreased to $100 million [12]. - The company returned $252.6 million to shareholders via dividends during the quarter, with no share repurchases made in 2025 [13]. Future Outlook - Management expressed confidence in long-term growth drivers, including contract customer wins and digital expansion, with expectations for increased capital spending in 2026 [14]. - Estimates for Fastenal have been trending upward, indicating a positive outlook for the stock [15][17].

Core Insights - Fastenal Company reported fourth-quarter 2025 results that met Zacks Consensus Estimates for both earnings and revenues, driven by steady contract customer momentum and improved operating leverage, although margin pressures and cautious investor sentiment led to a 5.4% decline in stock price in pre-market trading [1] Financial Performance - Fastenal's earnings per share (EPS) for Q4 was 26 cents, matching the Zacks Consensus Estimate and reflecting a 12.2% increase from 23 cents in the same quarter last year. Net income rose to $294.1 million from $262.1 million year-over-year [2] - Quarterly net sales reached $2.03 billion, aligning with Zacks Consensus Estimates and showing an 11.1% year-over-year increase. Average daily sales also increased by 11.1% to $32.2 million, supported by higher unit volumes and a favorable pricing contribution of approximately 310–340 basis points [3] Margin Trends - Gross profit amounted to $898.7 million, a 9.8% year-over-year increase, while gross margin decreased by 50 basis points to 44.3%, attributed to timing-related costs and lower supplier rebates [4] - Selling, general and administrative expenses improved to 25.4% of sales from 25.9% a year ago, leading to an operating profit of $384.3 million and a slight increase in operating margin to 19% from 18.9% [5] Segment & Customer Highlights - Fastenal experienced broad-based growth across product categories, particularly in manufacturing customers, with direct products achieving daily sales growth of 13.1% year-over-year, accounting for 38.4% of net sales [6] - Manufacturing remained the primary growth driver, with heavy manufacturing sales increasing by 12.6% year-over-year, contributing 42.9% of total sales [7] Digital Channels - Fastenal's digital channels saw significant growth, with sales through FMI technology rising 16.6% year-over-year, representing 46.1% of net sales. eBusiness sales grew 6.3%, accounting for 29.6% of total sales, indicating a continued shift towards technology-enabled distribution [8] Annual Highlights - For the full year 2025, Fastenal reported net sales of $8.20 billion, an 8.7% increase year-over-year, with EPS rising 9.2% to $1.09. Gross margin slightly decreased to 45.0%, while operating margin improved to 20.2% [10][11] Balance Sheet & Capital Allocation - At the end of 2025, Fastenal had $276.8 million in cash and cash equivalents, with long-term debt reduced to $100 million. Total liquidity remained strong, supported by operating cash flow of $368.1 million for the quarter [12] - The company returned $252.6 million to shareholders through dividends during the quarter, with no share repurchases made in 2025 [13] Outlook & Commentary - Management expressed confidence in long-term growth drivers, including contract customer wins and digital expansion, while anticipating higher capital spending in 2026 to enhance distribution capacity and technology investments [14]

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 ...

Core Insights - Fastenal Company (FAST) reported lower-than-expected third-quarter 2025 results, with earnings per share (EPS) of 29 cents and net sales of $2.13 billion, both missing the Zacks Consensus Estimate, but showing year-over-year growth [1][3][9] - The year-over-year growth was driven by improved customer contract signings and favorable foreign exchange rates, despite sluggish industrial production activity [1][9] - The stock experienced a decline of 3.9% in pre-market trading following the results announcement [2] Financial Performance - EPS of 29 cents missed the Zacks Consensus Estimate by 3.3%, while net sales of $2.13 billion fell short of the consensus mark by 0.5%, but increased by 11.7% year-over-year [3][9] - Daily sales reached $33.3 million, reflecting an 11.7% year-over-year increase, with foreign exchange rates contributing positively by 10 basis points [4] - Daily sales of Fasteners increased by 14.4%, Safety Supplies grew by 9.8%, and Other Product Lines rose by 10.7% year-over-year [5] Market Segmentation - Daily sales in Heavy Manufacturing rose by 12.4%, while Other Manufacturing grew by 12.9% year-over-year [6] - Non-Residential Construction sales increased by 7.5%, and Other End-Markets saw an 8.9% growth compared to the prior year [6] Sales Channels - Daily sales through weighted FMI devices grew by 17.7%, accounting for 45.3% of net sales, while eBusiness sales increased by 8%, representing 29.1% of total net sales [7] - The company's Digital Footprint sales rose to 61.3% of net sales from 61.1% in the previous year [7] Margin Analysis - Gross margin improved to 45.3%, up 40 basis points year-over-year, attributed to better customer and supplier incentives and benefits from the fastener expansion project [8] - Selling, general and administrative expenses remained flat at 24.6% of net sales, with operating margin at 20.7%, slightly lower than projections but up from 20.3% a year ago [10] Financial Position - As of September 30, 2025, Fastenal had cash and cash equivalents of $288.1 million, an increase from $255.8 million at the end of 2024, with long-term debt reduced to $100 million from $125 million [11] - Net cash provided by operating activities totaled $927.8 million, up from $890.5 million in the prior year [12]

Core Viewpoint - Fastenal's second-quarter 2025 earnings and revenues exceeded estimates and showed year-over-year growth, reflecting operational discipline and customer expansion despite a sluggish macro environment [2][4]. Financial Performance - The company reported adjusted earnings per share (EPS) of 29 cents, surpassing the Zacks Consensus Estimate of 28 cents, and representing a 12.7% increase from 25 cents in the previous year [3]. - Net sales increased by 8.6% year over year to $2.08 billion, exceeding the consensus estimate of $2.06 billion [4]. - Daily sales also rose by 8.6%, driven by improved customer contract momentum and increased unit sales, with foreign exchange rates contributing positively by 10 basis points [4]. Sales Breakdown - Unit sales growth was supported by more customer sites spending over $10K per month and modest growth in average sales per site, with product pricing adding 140-170 basis points to net sales [5]. - Daily sales of Fasteners increased by 6.6%, Safety Supplies by 10.7%, and Other Product Lines by 9% year over year [5]. End-Market Performance - Daily sales in Heavy Manufacturing rose by 7.5%, while Other Manufacturing grew by 11% year over year [6]. - Non-Residential Construction sales increased by 3%, and Other End-Markets saw an 8.7% growth compared to the prior year [6]. Digital Sales and Technology - Daily sales through weighted FMI devices grew by 14.4%, accounting for 44.1% of net sales, while eProcurement sales rose by 19.3% [7]. - Digital Footprint sales represented 61% of total sales, up from 59.4% in the previous year, with a revised target for 2025 penetration set at 63%-64% [7]. Margin Analysis - Gross margin improved to 45.3%, up 20 basis points year over year, attributed to increased fastener product availability [8]. - Selling, general and administrative expenses as a percentage of net sales decreased to 24.4% from 24.9% in the prior year, with operating margin at 21%, higher than the projected 20.6% [8]. Financial Position - As of June 30, 2025, cash and cash equivalents were $237.8 million, down from $255.8 million at the end of 2024, while long-term debt decreased to $100 million from $125 million [9]. - The company returned $252.5 million to shareholders in dividends during the quarter, with net cash provided by operating activities totaling $278.6 million, an 8.1% increase from the previous year [9]. Market Outlook - Estimates for Fastenal have been trending upward, indicating a promising outlook, with the company holding a Zacks Rank 2 (Buy) [10][12].

Core Insights - Fastenal Company's second-quarter 2025 adjusted earnings and revenues exceeded the Zacks Consensus Estimate and showed year-over-year growth [1] - The company's stock rose by 3.3% following the earnings announcement [1] Earnings & Sales Performance - Fastenal reported earnings per share (EPS) of 29 cents, surpassing the Zacks Consensus Estimate of 28 cents, and reflecting a 12.7% increase from 25 cents per share in the previous year [2] - Net sales increased by 8.6% year over year to $2.08 billion, exceeding the consensus estimate of $2.06 billion [3] - Daily sales also rose by 8.6%, driven by improved customer contract momentum and increased unit sales, despite a sluggish industrial environment [3] Product and Market Performance - Unit sales growth was supported by more customer sites spending over $10K per month and modest growth in average sales per site [4] - Daily sales of Fasteners increased by 6.6%, Safety Supplies by 10.7%, and Other Product Lines by 9% year over year [4] - Heavy Manufacturing sales rose by 7.5%, Other Manufacturing by 11%, Non-Residential Construction by 3%, and Other End-Markets by 8.7% [5] Digital Sales and Strategy - Daily sales through weighted FMI devices grew by 14.4%, accounting for 44.1% of net sales [6] - eProcurement sales increased by 19.3%, while eCommerce sales declined by 4.2% [6] - Digital Footprint sales represented 61% of total sales, up from 59.4% in the previous year, with a revised target for 2025 penetration set at 63%–64% [6] Margin Analysis - Gross margin improved to 45.3%, up 20 basis points year over year, exceeding the predicted margin of 44.9% [7] - Selling, general and administrative expenses as a percentage of net sales improved to 24.4% from 24.9% in the previous year [7] - Operating margin was reported at 21%, higher than the projected 20.6% and up from 20.2% a year ago [9] Financial Position - As of June 30, 2025, Fastenal had cash and cash equivalents of $237.8 million, down from $255.8 million at the end of 2024 [10] - Long-term debt decreased to $100 million from $125 million at the end of 2024 [10] - The company returned $252.5 million to shareholders in dividends during the quarter [10] - Net cash provided by operating activities totaled $278.6 million, reflecting an 8.1% increase from the previous year [10]

Financial Performance - Second quarter net sales increased by 8.6%, primarily driven by improved customer contract signings over the past six quarters[6] - Earnings per share (EPS) for the second quarter improved 12.7% to $0.29, compared to $0.25 in the second quarter of the previous year[12] - The operating margin improved to 21.0% in the second quarter, up from 20.2% in the second quarter of the previous year[12] - Gross profit margin increased to 45.3% from 45.1% in the second quarter of the previous year, reflecting favorable price/cost dynamics and improved fastener sales margins[28] - Operating cash flow (OCF) for the second quarter was $278.6 million, representing 84.4% of net income[31] Customer Site Performance - The number of customer sites with sales over $10,000 per month grew by 6.7%, led by Onsite-like locations which increased by 12.4%[6] - Sites with sales over $10,000 per month accounted for 81.4% of net sales in the second quarter, up from 79.2% in the second quarter of the previous year[6] - Total manufacturing customer sites were 43,138 with sales of $1,575.4 million, while total non-manufacturing customer sites were 58,302 with sales of $504.9 million[7] Digital Footprint and Technology - Daily sales through eBusiness rose 13.5% in the second quarter[18] - Activity through the company's FMI (Fastenal Managed Inventory) technology platform represented 44.1% of sales in the second quarter, compared to 41.8% and 39.8% in the second quarter of the previous year and the year before, respectively[17] - Sales through the digital footprint (FMI technology plus non-FMI-related eBusiness) accounted for 61.0% of total sales in the second quarter, versus 59.4% and 55.3% in the second quarter of the previous year and the year before, respectively[18]

2025 FIRST QUARTER INVESTOR TELECONFERENCE APRIL 11, 2025 1 SAFE HARBOR STATEMENT All statements made herein that are not historical facts (e.g., future operating results, long-term share gains, and business activity, as well as expectations regarding operations, including gross and operating income margin, future inventory levels, pricing, weighted FMI device signings, operating costs (including SG&A), capital expenditures, sales through our digital footprint, cash flow generation, the potential impact of ...