Fastenal Company · NASDAQ:FAST
Fastenal — Q2 2026 Earnings Presentation
15 slides from Fastenal's earnings presentation, Jul 14, 2026
Slide 1: Second Quarter Investor Teleconference
2026 Second Quarter Investor Teleconference July 14, 2026
Slide 2: Safe Harbor Statement
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 growth, weighted FM
Slide 3: Q2 2026: Strategic Progress & Results
Q2 2026: Strategic Progress & Results Daily Sales Rate (DSR) Growth Summary: Strong mid-teen daily sales growth; ROIC 15% 14.7% expansion; strong cash generation. Continued progress on our strategic objectives. 12% • Increasing sales effectiveness - Share gains driven by 8.6% 9% our key account stra
Slide 4: Q2 2026: Technology Update
Q2 2026: Technology Update FMI Device Signings per Day and Total Installations (MEUs) (1) Digital Footprint DSR grew 16.2%, outpacing total 200 140,789 160K company DSR. Digital Footprint now represents 61.6% of 132,174 175 119,306 140K total sales, up from 61.0% last year. Our Digital Footprint 150
Slide 5: Q2 2026: Business Trends & Market Drivers
Q2 2026: Business Trends & Market Drivers End Market DSR Growth 20% • U.S. PMI and industrial production were positive, with non-manufacturing segments also 18.1% 10% showing strong improvement. PMI averaged 53.3 15.1% for Q2, while industrial production was slightly positive in Apr./May 2026 over Q
Slide 6: Q2 2026: Margin Performance & Drivers
Q2 2026: Margin Performance & Drivers Gross Profit Margin Margin Summary: Maintained operating margin despite 50% ongoing inflation pressure. Gross margin declined ~75 bps compared to Q2 2025, 45.1% 45.3% 44.6% primarily due to unfavorable net price/cost, with smaller 45% headwinds from customer mix
Slide 7: Q2 2026: Cash Flow & Capital Allocation
Q2 2026: Cash Flow & Capital Allocation Operating Cash Flow (OCF) (in millions) Cash Flow & Working Capital 400 • Operating cash flow was $265.7 in Q2, representing 69.4% 350 84.4% of net income (vs. 84.4% in Q2 2025). 300 69.4% 88.1% 250 • The lower percentage reflects higher receivables from 200 s
Slide 8: CEO Summary / Recap
CEO Summary / Recap Mid-teens DSR, ROIC expansion to 31.4%, and strong cash generation. Market Outlook • Broader market conditions continue to improve, as they did in the first quarter. • Ongoing focus on pricing neutrality and managing tariff impacts to defend profitability. Financial Discipline •
Slide 9: Appendix: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures The appendix includes information on our Return on Invested Capital ('ROIC'), which is a non-GAAP financial measure. We define ROIC as net operating income less income tax expense divided by average invested capital over the trailing 12 months ('TTM'). We believe
Slide 10: Return on Invested Capital
Return on Invested Capital Calculation of Return on Invested Capital (ROIC) Reconciliation of ROIC to Return on Assets (ROA) TTM TTM TTM TTM (Amounts in millions) Q2 2026 Q2 2025 (Amounts in millions) Q2 2026 Q2 2025 Operating Income $ 1,775.2 1,562.9 Net Income $ 1,352.2 1,189.2 Income Tax Expense
Slide 11: Sequential Trends
Sequential Trends* Cum. Cum. Cum. Cum. Chg., Chg., Chg., Chg., Jan. Jan. Jan. Jan. Daily Sales Rate (DSR) to to to to BENCHMARKS Jan.* Feb. Mar. Mar. Apr. May Jun. Jun. Jul. Aug. Sep. Sep. Oct. Oct. Nov. Dec. BENCHMARK** 0.0% 2.2% 2.7% 4.9% (1.6%) 3.0% 1.0% 7.5% (3.1%) 2.2% 4.0% 10.7% (1.8%) 8.7% (2
Slide 12: Employee Statistics
Employee Statistics Absolute Count FTE Count (1) Change Change Change Change Change Change HEADCOUNT Q2 Q1 Since Q4 Since Q2 Since Q2 Q1 Since Q4 Since Q2 Since STATISTICS 2026 2026 Q1 2026 2025 Q4 2025 2025 Q2 2025 2026 2026 Q1 2026 2025 Q4 2025 2025 Q2 2025 Selling personnel (2) 17,340 17,235 0.6%
Slide 13: End Market Profile
End Market Profile End Market Mix - Full Year 2025 Transportation/ Other, 2.6% Warehousing, 5.3% Gov't/Education, 3.8% Heavy Manufacturing, 43.0% Reseller, 4.4% Non-Residential Construction, 8.1% All Other Manufacturing, 32.8% MAJOR SEGMENTS GROWTH Year- Full Daily Sales Rates Jan. Feb. Mar. Apr. Ma
Slide 14: Q2 2026: Customer Site Supplemental
Q2 2026: Customer Site Supplemental Q2 2026 Q2 2025 Sites (#) (1) (2) Sales ($MM) Mo. Sales per Site (3) Sites (#) (1) (2) Sales ($MM) Mo. Sales per Site (3) Manufacturing $50k+/Mo. (4) 2,568 $ 1,155.0 $ 149,922 2,250 $ 937.5 $ 138,889 $10k+/Mo. 9,338 1,607.5 57,382 8,827 1,373.6 51,871 $5k+/Mo. 13,
Slide 15: Thank You
Thank You