FASTENAL CO SEC 10-Q Report

Fastenal Co., a leading distributor of industrial and construction supplies, has released its Form 10-Q report for the third quarter of 2025. The report highlights significant growth in both financial and operational metrics, driven by strategic initiatives and robust market demand.

Financial Highlights

Fastenal Co. reported impressive financial results for the nine-month period ended September 30, 2025:

• Net sales: $6,173.1 million, an increase of 7.9% compared to the same period in 2024, driven by growth with large customers and pricing actions.
• Gross profit: $2,792.5 million, representing 45.2% of net sales, consistent with the prior year, supported by supplier-focused initiatives and improved customer incentives.
• Operating income: $1,271.4 million, up 9.1% from the previous year, reflecting effective cost management and leveraging of SG&A expenses.
• Net income: $964.4 million, an increase of 8.5% over the prior year, benefiting from improved sales and profit growth.
• Diluted net income per share: $0.84, up 8.4% from the previous year, reflecting strong financial performance and efficient cost management.

Business Highlights

Fastenal Co. also reported notable operational achievements and strategic initiatives:

• Revenue Segments: Fastenal's revenue is segmented into three main product categories: fasteners, safety supplies, and other product lines. Fasteners accounted for 30.6% of sales, safety supplies for 22.1%, and other product lines for 47.3% in the nine-month period ended September 30, 2025.
• Geographical Performance: The United States remains the largest market, contributing 83.3% of total revenues. Canada and Mexico contributed 13.5%, while all other foreign countries accounted for 3.2% of revenues.
• Sales Units: The company reported an increase in unit sales, driven by growth in the number of customer sites spending $10k or more per month and growth in average monthly sales per customer site across all customer spend categories.
• New Production Launches: Fastenal completed construction of a replacement Utah hub facility in the third quarter of 2025 and began construction on a replacement Atlanta hub facility, enhancing its distribution capabilities.
• Future Outlook: Fastenal anticipates continued growth in its FMI technology offerings, with a goal of signing between 25,000 to 26,000 MEUs of FASTBin and FASTVend devices in 2025. The company also expects its ongoing tax rate to be approximately 24.5%, absent any discrete tax items or broader changes to tax law.
• Operational Efficiency: The company has focused on controlling growth in operating expenses, resulting in a 7.2% expansion of total SG&A expenses, which was below the growth in net sales, allowing for cost leveraging.
• Customer Segments: Contract sales, which include national multi-site, local and regional, and government customers, continue to outperform, contributing 73.4% of sales in the nine-month period ended September 30, 2025.
• Digital and Technology Integration: Fastenal's Digital Footprint, which includes sales through FMI and eBusiness tools, accounted for 61.1% of total sales, reflecting the company's emphasis on integrating technology into its sales processes.

SEC Filing: FASTENAL CO [ FAST ] - 10-Q - Oct. 16, 2025