Fastenal Company · NASDAQ:FAST
Fastenal — Q1 2025 Earnings Presentation
15 slides from Fastenal's earnings presentation, Apr 11, 2025
Slide 1: First Quarter Investor Teleconference
2025 FIRST QUARTER INVESTOR TELECONFERENCE APRIL 11, 2025 1
Slide 2: Safe Harbor Statement
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 devi
Slide 3: Bob Kierlin's 10 Rules About Leadership
Bob Kierlin's 10 Rules About Leadership 1. CHALLENGE rather than CONTROL. 2. Treat everyone as your equal. 3. Stay out of the spotlight. 4. Share the rewards. 5. LISTEN rather than SPEAK. 6. See the unique humanness in all persons. 7. Develop empathy. 8. Suppress your ego. 9. Let people learn. 10. R
Slide 4: CEO Messages on 1Q25
CEO MESSAGES ON 1Q25 • 1Q25 net sales were +3.4%. Taking into consideration Daily Sales Rate (DSR) Growth one less selling day, our daily sales increased 5.0%. 12% While optimism is higher, business activity remains sluggish. EPS of $0.52 was unchanged from 1Q24. 10% 9.1% • The full quarter DSR is a
Slide 5: 1Q25 Supplemental Data Update
1Q25 SUPPLEMENTAL DATA UPDATE Weighted FMI Device Signings • FMI Technology: We signed 6,418 weighted devices and Installations (MEUs) (1) (102/day) in 1Q25, versus 6,726 (105/day) in 1Q24. Our 12K 160K installed base was 129,996 weighted devices, +12.4% 129,996 140K 10K 115,653 from 1Q24. Activity
Slide 6: 1Q25 Business Cadence
1Q25 BUSINESS CADENCE • U.S. PMI averaged 50.1 in 1Q25, though the 49.0 End Market Daily Sales Rate (DSR) Growth reading in March was disappointing. U.S. Industrial 20% Production was +1.5% in Jan./Feb. 2025 over 1Q24. Heavier production series, like Fabricated Metal (-1.9%), 10% 9.7% Primary Metal
Slide 7: 1Q25 Margin Summary
1Q25 MARGIN SUMMARY • 1Q25 operating margin was 20.1%, down from 20.6% in Gross Profit Margin 50% 1Q24. Our inability to leverage was adversely impacted by the presence of one fewer selling day in 1Q25 versus 1Q24, as well as net sales growth of 3.4%. 45.7% 45.5% 45.1% 45% • Gross margin declined to
Slide 8: 1Q25 Cash Flow Profile
1Q25 CASH FLOW PROFILE Operating Cash Flow (OCF) (in millions) • 1Q25 OCF was $262.2, or 87.8% of net income, below 400 131.7% 1Q24 (112.7%). Cash generation was below traditional 350 112.7% first quarter levels (five-year average of 115.8%) due to 300 increased investment in working capital. 87.8%
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 profit less income tax expense divided by average invested capital over the trailing 12 months. We believe ROIC is
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) 1Q25 1Q24 (Amounts in millions) 1Q25 1Q24 Operating Income $ 1,513.7 1,525.7 Net Income $ 1,151.6 1,157.6 Income Tax Expense (359.8) (36
Slide 11: Customer Site Performance
CUSTOMER SITE PERFORMANCE 1Q25 1Q24 Customer Sites Mo. Sales per Customer Sites Mo. Sales per (#) (1) (2) Sales Customer Site (3) (#) (1) (2) Sales Customer Site (3) Manufacturing $50K+/Mo. (4) 2,114 $ 874.0 $ 137,811 1,987 $ 819.2 $ 137,427 $10K+/Mo. 8,500 1,293.1 50,710 8,263 1,230.0 49,619 $5K-$1
Slide 12: 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** 0.2% 1.3% 2.9% 4.2% (1.5%) 2.7% 0.9% 6.4% (3.5%) 2.5% 4.0% 9.5% (2.2%) 7.1% (2.
Slide 13: Employee Statistics
EMPLOYEE STATISTICS Absolute Count FTE Count (1) Change Change Change Change HEADCOUNT Since Since Since Since STATISTICS 1Q25 4Q24 (2) 4Q24 1Q24 (2) 1Q24 1Q25 4Q24 (2) 4Q24 1Q24 (2) 1Q24 Selling personnel (3) 16,995 16,669 2.0% 16,726 1.6% 15,236 15,014 1.5% 15,064 1.1% Distribution/Transportation
Slide 14: End Market Profile
END MARKET PROFILE End Market Mix - Full Year 2024 Transportation/ Other, 2.3% Warehousing, 5.2% Gov't/Education, 3.8% Heavy Manufacturing, 43.0% Reseller, 5.2% Non-Residential Construction, 8.5% All Other Manufacturing, 32.0% MAJOR SEGMENT GROWTH Year- Full (Daily Sales Rates) Jan. Feb. Mar. to-dat
Slide 15: Thank You
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