Press release
Fastenal Company Reports 2025 Second Quarter Earnings
WINONA, Minn.--(BUSINESS WIRE)-- Fastenal Company (Nasdaq:FAST) ('Fastenal', 'we', 'our', or 'us'), a leader in the wholesale distribution of industrial and
About this update from Fastenal Company
WINONA, Minn. --(BUSINESS WIRE)-- Fastenal Company (Nasdaq:FAST) ('Fastenal', 'we', 'our', or 'us'), a leader in the wholesale distribution of industrial and construction supplies, today announced its financial results for the quarter ended June 30, 2025 . Except for share and per share information, or as otherwise noted below, dollar amounts are stated in millions. All historical common stock share and per share information and stockholders' equity balances for all periods presented in this release, including the financial statements attached to this release, have been retroactively adjusted to reflect a two-for-one stock split effective at the close of business on May 21, 2025 . Percentage and dollar calculations, which are based on non-rounded dollar values, may not be able to be recalculated using the dollar values included in this document due to the rounding of those dollar values. References to daily sales rate (DSR) change may reflect either growth (positive) or contraction (negative) for the applicable period. PERFORMANCE SUMMARY Six-month Period Three-month Period 2025 2024 Change 2025 2024 Change Net sales $ 4,039.7 3,811.3 6.0 % $ 2,080.3 1,916.2 8.6 % Business days 127 128 64 64 Daily sales $ 31.8 29.8 6.8 % $ 32.5 29.9 8.6 % Gross profit $ 1,826.7 1,725.1 5.9 % $ 942.8 863.5 9.2 % % of net sales 45.2 % 45.3 % 45.3 % 45.1 % Selling, general, and administrative (SG&A) expenses $ 996.7 948.0 5.1 % $ 506.7 476.6 6.3 % % of net sales 24.7 % 24.9 % 24.4 % 24.9 % Operating income $ 830.0 777.1 6.8 % $ 436.1 386.9 12.7 % % of net sales 20.5 % 20.4 % 21.0 % 20.2 % Income before income taxes $ 829.8 776.2 6.9 % $ 436.6 386.4 13.0 % % of net sales 20.5 % 20.4 % 21.0 % 20.2 % Net income $ 628.9 590.4 6.5 % $ 330.3 292.7 12.8 % Diluted net income per share $ 0.55 0.51 6.4 % $ 0.29 0.25 12.7 % Note – Daily sales are defined as the total net sales for the period divided by the number of business days (in the U.S. ) in the period. QUARTERLY RESULTS OF OPERATIONS Sales Net sales increased $164.1 , or 8.6%, in the second quarter of 2025 when compared to the second quarter of 2024. Both periods had the same number of selling days. The results largely reflect the contribution from improved customer contract signings over the past six quarters. Market conditions remained sluggish, providing minimal contribution. Changes in foreign exchange rates positively affected sales in the second quarter of 2025 by approximately 10 basis points and negatively affected sales in the second quarter of 2024 by approximately 20 basis points. We experienced an increase in unit sales in the second quarter of 2025. This was due to a growth in the number of customer sites spending $10K or more per month with Fastenal and, to a lesser degree, growth in average monthly sales per customer site across all customer spend categories. The impact of product pricing on net sales in the second quarter of 2025 was an increase of 140 to 170 basis points, in contrast to the second quarter of 2024, which experienced a decline of 30 to 60 basis points. From a product standpoint, we have three categories: fasteners, including fasteners used in original equipment manufacturing (OEM) and maintenance, repair, and operations (MRO), safety supplies, and other product lines, the latter of which includes eight smaller product categories, such as tools, janitorial supplies, and cutting tools. With industrial production still sluggish in the second quarter of 2025, the performance of our fastener product line continued to lag our non-fastener product lines. The fastener category experienced improved growth in the second quarter of 2025, as compared to the second quarter of 2024. This was driven by easier comparisons, increased contribution from large customer signings, better product availability in our distribution centers, and pricing actions implemented in the second quarter of 2025. We achieved growth in our safety category reflecting the lower volatility of PPE demand, which tends to be utilized in more MRO than OEM applications, growth of our vending installed base, and success with warehousing and data center customers. Other product lines experienced higher growth from MRO-oriented lines, such as electrical and janitorial, rather than from OEM-oriented lines, such as cutting tools and welding/abrasives, reflecting continued soft manufacturing demand. The DSR change when compared to the same period in the prior year and the percent of sales in the period were as follows: DSR Change Three-month Period % of Sales Three-month Period 2025 2024 2025 2024 OEM fasteners 8.4% -2.3% 19.4% 19.5% MRO fasteners 3.4% -4.3% 11.1% 11.5% Total fasteners 6.6% -3.0% 30.5% 31.0% Safety supplies 10.7% 7.1% 22.2% 21.8% Other product lines 9.0% 3.0% 47.3% 47.2% Total non-fasteners 9.5% 4.2% 69.5% 69.0% From an end market standpoint, we have four categories: heavy manufacturing, other manufacturing, non-residential construction, and other, the latter of which includes reseller, government/education, transportation, warehousing and storage, and data centers. Our manufacturing end markets outperformed primarily due to the relative strength we are experiencing with key account customers with significant managed spend where our service model and technology are particularly impactful. This disproportionately benefits manufacturing customers. The non-residential construction end market experienced growth for the first time in ten consecutive quarters. Other end market sales were favorably impacted by growth with warehousing and storage, and data center customers, which were partially offset by declining sales with resellers. The DSR change when compared to the same period in the prior year and the percent of sales in the period were as follows: DSR Change Three-month Period % of Sales Three-month Period 2025 2024 2025 2024 Heavy manufacturing 7.5% 1.8% 42.9% 43.3% Other manufacturing 11.5% 4.0% 33.0% 32.2% Total manufacturing 9.2% 2.7% 75.9% 75.5% Non-residential construction 3.0% -5.5% 8.1% 8.5% Other end markets 8.7% 1.5% 16.0% 16.0% Total non-manufacturing 6.7% -1.0% 24.1% 24.5% From a customer standpoint, we have two categories: contracts, which include national multi-site, local and regional, and government customers with significant revenue potential, and non-contracts, which include all other customers. Sales with our contract customers continue to outperform as we realize incremental sales from implementing strong customer signings that we have achieved over the last six quarters, which was partially offset by subdued business activity. Non-contract customers tend to be smaller and utilize fewer of our tools and capabilities, providing fewer avenues for share gains and therefore more closely reflect overall business trends, which remain sluggish. The DSR change when compared to the same period in the prior year and the percent of sales in the period were as follows: DSR Change Three-month Period % of Sales Three-month Period 2025 2024 2025 2024 Contract sales 11.0% 6.9% 73.2% 71.2% Non-contract sales 2.6% -9.0% 26.8% 28.8% Supplemental Data Prior to 2025, our disclosed metrics primarily addressed development of capabilities, including branch openings, geographic expansion, growth of national accounts, growth of non-fastener products, FMI installations, and Onsite signings, to name a few. The data provided in the chart below measures the number of customer sites that are served throughout our in-market network, categorizing them by monthly customer spend categories and end market, and the sales and average sales per site. We believe this supplemental information may be useful to investors in evaluating Fastenal's business trends and whether and to what degree we are being successful. Historical end market sales have been updated in the table below to categorize by customer site and may not be able to be recalculated due to the rounding of those dollar values. Three-month Period 2025 Three-month Period 2024 Customer Sites (#) (1) (2) Sales Mo. Sales per Customer Site (3) Customer Sites (#) (1) (2) Sales Mo. Sales per Customer Site (3) Manufacturing $50K+/Mo. (4) 2,250 $937.5 $138,889 2,021 $835.8 $137,853 $10K+/Mo. 8,827 1,373.6 51,871 8,369 1,250.3 49,799 $5K-$10K /Mo. 4,456 95.9 7,174 4,434 94.9 7,134