10-KPeriod: FY2025

FASTENAL CO Annual Report, Year Ended Dec 31, 2025

Filed February 5, 2026For Securities:FAST

Summary

Fastenal Company (FAST) reported strong performance in its 2025 10-K filing, demonstrating robust revenue growth of 8.7% to $8.2 billion, with daily sales increasing by 9.1%. This growth was primarily driven by market share gains, particularly with large key account customers and in fastener products, amidst a sluggish manufacturing environment and uncertain tariff landscape. The company effectively managed gross profit, which remained stable at 45.0% despite a shift towards lower-margin large accounts, while improving operating margins by 20 basis points through leveraged SG&A expenses. Strategic investments in technology and growth initiatives, including FMI (FASTVend, FASTStock, FASTBin) solutions and digital footprint expansion, continue to be a focus. The installed base of FMI devices grew by 7.6%, and the Digital Footprint accounted for 62.4% of sales in December 2025. Fastenal also saw meaningful growth in average spend per customer site, particularly for those exceeding $5k monthly. The company generated strong operating cash flow and maintained a healthy financial position, reflecting its resilience and strategic execution in a dynamic economic climate.

Financial Highlights

49 data points
Beta

Revenue

$8.20B

45.0% Gross Margin

Net Income

$1.26B

15.3% Net Margin

EPS (Diluted)

$1.09

Total Assets

$5.05B

Cash & Equivalents

$276.80M

Free Cash Flow

$1.05B

Financial Statements
Beta
Revenue$8.20B
Cost of Revenue$4.51B
Gross Profit$3.69B
SG&A Expenses$2.04B
Operating Income$1.66B
Net Income$1.26B
EPS (Basic)$1.10
EPS (Diluted)$1.09
Shares Outstanding (Basic)1.15B
Shares Outstanding (Diluted)1.15B

Key Highlights

  • 1Achieved 8.7% net sales growth in 2025, reaching $8.2 billion, driven by market share gains.
  • 2Expanded FMI (FASTVend, FASTStock, FASTBin) installed base by 7.6% to 136,638 units.
  • 3Digital Footprint accounted for 62.4% of sales in December 2025, an increase from the prior year.
  • 4Manufacturing end markets showed strength, outperforming overall company growth, largely due to success with key accounts.
  • 5Maintained gross profit margin at 45.0% despite headwinds from a shift towards lower-margin large customers.
  • 6Leveraged Selling, General, and Administrative (SG&A) expenses, improving operating margin by 20 basis points.
  • 7Generated strong net cash from operating activities of $1.3 billion, a 103.0% ratio to net income.

Frequently Asked Questions

Fastenal's sales growth of 8.7% in 2025 was primarily driven by market share gains, particularly with large key account customers and in fastener products. The company also benefited from increased adoption of its FMI technology and digital solutions, as well as growth in average spend per customer site.

Fastenal continues to invest in its Fastenal Managed Inventory (FMI) solutions, including FASTVend, FASTStock, and FASTBin, which saw a 7.6% increase in installed units in 2025. The company's Digital Footprint, encompassing FMI and eBusiness sales, reached 62.4% of total sales in December 2025. These investments aim to enhance customer supply chain visibility, automate replenishment, and reduce procurement costs.

Fastenal acknowledges the ongoing volatility in global economies, including trade policies and tariffs, which have created disruptions. However, the company's broad customer base and its ability to innovate with customers provide resilience. Fastenal actively monitors economic conditions and has implemented strategies to mitigate adverse effects, aiming for price/cost neutrality and maintaining market competitiveness. They also note that tariff-related pricing contributed 170 to 200 basis points to sales growth in 2025.

Daniel L. Florness, the CEO, announced his decision to step down effective July 16, 2026. Jeffery M. Watts, the current President and Chief Sales Officer, has been appointed as the next CEO. This transition is expected to be managed smoothly, with Mr. Florness potentially remaining on the board as a director. The company's long history of internal promotions suggests a continuity in its operational philosophy.