10-QPeriod: Q3 FY2025

FASTENAL CO Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 16, 2025For Securities:FAST

Summary

Fastenal Company reported a solid third quarter for fiscal year 2025, demonstrating robust sales growth and improved profitability. Net sales increased by 11.7% to $2.13 billion compared to the prior year, driven by a 11.7% rise in daily sales. This growth was supported by strong performance across most end markets, with manufacturing leading the way, and a notable uptick in sales to contract customers. Profitability also saw a healthy expansion, with gross profit increasing by 12.5% and operating income growing by 13.7%. The company's operating margin improved to 20.7% from 20.3% in the prior year. Net income rose by 12.6% to $335.5 million, leading to diluted earnings per share of $0.29, up from $0.26 in the third quarter of 2024. The company continues to invest in technology and infrastructure, with plans for increased capital expenditures in the coming year to support growth initiatives.

Financial Highlights

49 data points
Beta

Revenue

$2.13B

45.3% Gross Margin

Net Income

$335.50M

15.7% Net Margin

EPS (Diluted)

$0.29

Total Assets

$5.12B

Cash & Equivalents

$288.10M

Free Cash Flow

$326.60M

Financial Statements
Beta
Revenue$2.13B
Cost of Revenue$1.17B
Gross Profit$965.80M
SG&A Expenses$524.30M
Operating Income$441.50M
Net Income$335.50M
EPS (Basic)$0.29
EPS (Diluted)$0.29
Shares Outstanding (Basic)1.15B
Shares Outstanding (Diluted)1.15B

Key Highlights

  • 1Net sales for the third quarter of 2025 grew by 11.7% year-over-year to $2.13 billion.
  • 2Gross profit increased by 12.5% to $965.8 million, with gross margin improving slightly to 45.3% from 44.9%.
  • 3Operating income rose by 13.7% to $441.5 million, and operating margin expanded to 20.7% from 20.3%.
  • 4Net income saw a significant increase of 12.6% to $335.5 million.
  • 5Diluted earnings per share (EPS) increased to $0.29 from $0.26 in the prior year's third quarter.
  • 6The company's 'Digital Footprint' sales, encompassing FMI technology and eBusiness, grew by 12.0% to $1.32 billion, representing 61.3% of total sales.
  • 7Net cash provided by operating activities increased by 30.3% to $386.9 million, indicating strong cash generation.

Frequently Asked Questions

Fastenal Company demonstrated strong financial performance in the third quarter of 2025, with net sales increasing by 11.7% to $2.13 billion and net income growing by 12.6% to $335.5 million. This growth was accompanied by an expansion in operating margin to 20.7% and an increase in diluted EPS to $0.29.

Sales growth was driven by an 11.7% increase in daily sales, influenced by improved customer contract signings since early 2024 and growth in customer sites. The manufacturing end market showed particular strength, and sales to contract customers also outperformed. Product pricing positively impacted net sales by 240-270 basis points in Q3 2025, a contrast to the prior year.

Fastenal's investment in technology, particularly its 'Digital Footprint' which includes FMI (FASTStock, FASTBin, FASTVend) and eBusiness tools, continues to perform well. Digital Footprint sales grew by 12.0% to $1.32 billion, comprising 61.3% of total sales. Sales through FASTBin/FASTVend specifically increased by 19.9%.

The company expects net capital expenditures for 2025 to be between $235 million and $255 million, an increase from $214.1 million in 2024. This is driven by higher spending on distribution centers, FMI hardware, and IT projects.