Fastenal : Q2 2026 Investor Teleconference Presentation

About this update from Fastenal Company

2026 Second Quarter Investor Teleconference July 14, 2026 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 FMI technology signings, operating costs (including SG&A), capital expenditures, sales through our Digital Footprint, cash flow generation, our anticipated progress on our strategic objectives, our ability to grow large customer sites and sales, the declaration and payment of dividends and any future share repurchases, the impact of tariffs and any pricing actions) are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially. More information regarding such risks can be found in the most recent annual and quarterly reports of Fastenal Company (the 'Company,' 'Fastenal,' 'we,' 'our,' or 'us') filed with the Securities and Exchange Commission. Any numerical or other representations in this presentation do not represent guidance by management and should not be construed as such. The appendix to the following presentation includes non-GAAP financial measures. Information required by Regulation G with respect to such non-GAAP financial measures can be found in the appendix including a comparison and reconciliation to the comparable GAAP measures. 2 Q2 2026: Strategic Progress & Results 15% 12% 9% 6% 3% 0% 4,000 3,600 3,200 2,800 2,400 2,000 Q1 Q2 24 24 Daily Sales Rate (DSR) Growth 14.7% 1.8% 8.6% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 24 24 25 25 25 25 26 26 3,694 3,146 3,446 Total Contract Count Q3 Q4 26 26 Summary: Strong mid-teen daily sales growth; ROIC expansion; strong cash generation. Continued progress on our strategic objectives. Increasing sales effectiveness - Share gains driven by our key account strategy and new contract wins. Enhancing our services - Expanding FMI device base and digital footprint, improving customer experience, retention, and operating efficiency. Expanding our addressable market - Growth driven by new customer site wins and deeper penetration across our segments. DSR +14.7% in Q2, extending Q1's momentum. Market conditions improved at a pace similar to Q1. Pricing of ~2.9% (~4.5% stacked) compares to ~3.5% in Q1 2026; lower sequentially due to lapping the onset of pricing in Q2 2025. Pricing actions to mitigate cost inflation continue. Customer site data highlights progress with large customers (new and existing). Contract count in Q2 was up 7.2% from last year. Number of sites with $50k+ monthly spend grew Q1 Q2 24 24 Q3 Q4 Q1 24 24 25 Q2 Q3 25 25 Q4 Q1 Q2 25 26 26 Q3 Q4 26 26 16.5% over last year. 3 Q2 2026: Technology Update 200 175 150 125 100 75 50 25 0 80% 70% 60% 50% 40% 30% 20% 10% 0% FMI Device Signings per Day and Total Installations (MEUs) (1) 132,174 140,789 119,306 112 101 109 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 24 24 24 24 25 25 25 25 26 26 Signings per Day Installations eBusiness DSR Growth and eBusiness % of Sales Q3 Q4 26 26 160K 140K 120K 100K 80K 60K 40K 20K 0K 28.7% 30.0% 29.4% 25.5% 13.5% 12.6% 40% 35% 30% 25% 20% 15% 10% 5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 24 24 24 24 25 25 DSR Growth 25 25 26 26 % of Sales 26 26 0% Digital Footprint DSR grew 16.2%, outpacing total company DSR. Digital Footprint now represents 61.6% of total sales, up from 61.0% last year. Our Digital Footprint estimate for 2026 is 63-64% (our original goal was 66%). Our digital initiatives improve customer experience, increase retention, and enable scalable growth - key factors in our long-term strategy. FMI technology signings increased 8.3% , with 109 weighted devices signed per day (6,993 total) in Q2, versus 101 per day (6,458 total) in the same period last year, reflecting continued customer demand for our solutions. These signings drove a 6.5% increase in the installed base over last year. FMI sales represented 44.6% of Q2 sales , an increase of ~60 bps compared to the same period last year. Our signings estimate for 2026 is 27,000 - 29,000 MEUs (our original goal was 28,000 - 30,000 MEUs). eBusiness DSR increased 12.6% , as customers continue to integrate their systems and consolidate spend with us, strengthening our long-term relationships and improving operational efficiency for both parties. (1) Machine equivalent units (MEUs) 4 Q2 2026: Business Trends & Market Drivers 20% 10% 0% -10% Q1 Q2 24 24 End Market DSR Growth 18.1% 10.8% 15.1% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 24 24 25 25 25 25 26 26 Q3 Q4 26 26 U.S. PMI and industrial production were positive , with non-manufacturing segments also showing strong improvement. PMI averaged 53.3 for Q2, while industrial production was slightly positive in Apr./May 2026 over Q2 2025. DSR in Q2 was 14.7% over last year, driven by new customer wins, strong share gains, pricing, and improvements in industrial production; customer confidence remains favorable despite Heavy Mfg (44.1% of Sales) All Other Mfg (31.8% of Sales) All Other End Markets (24.1% of Sales) ongoing economic uncertainty. Heavy manufacturing end markets continued 20% 10% 0% -10% Q1 Q2 24 24 Direct vs. Indirect DSR Growth 14.1% 16.5% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 24 24 25 25 25 25 26 26 Q3 Q4 26 26 to outperform , led by sustained momentum in key accounts and expanding fastener sales, while construction, transportation, and warehousing also contributed meaningfully. Direct materials slightly outpaced indirect materials , supported by a greater contribution in fastener sales from large customer signings, improved product availability, and pricing actions. Categories such as tools, hydraulics/pneumatics, welding/abrasives, and material handling also outpaced total company DSR. Direct Materials (39.2% of Sales) Indirect Materials (60.8% of Sales) 5

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