01—Abstract
Summary
Summary of the 10-Q filed October 16, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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 millionb, 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.
02—Key points
Key Highlights
- Net sales for the third quarter of 2025 grew by 11.7% year-over-year to $2.13 billion.
- Gross profit increased by 12.5% to $965.8 million, with gross margin improving slightly to 45.3% from 44.9%.
- Operating income rose by 13.7% to $441.5 million, and operating margin expanded to 20.7% from 20.3%.
- Net income saw a significant increase of 12.6% to $335.5 million.
- Diluted earnings per share (EPS) increased to $0.29 from $0.26 in the prior year's third quarter.
- The company's 'Digital Footprint' sales, encompassing FMI technology and eBusiness, grew by 12.0% to $1.32 billion, representing 61.3% of total sales.
- Net cash provided by operating activities increased by 30.3% to $386.9 million, indicating strong cash generation.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Fastenal Co kept $0.16.
- Revenue$2.13B100.0%
- Cost of revenue−$1.17B54.7%
- Gross profit$965.8M45.3%
- Operating costs−$524.3M24.6%
- Operating income$441.5M20.7%
- Interest, other & tax−$106.0M5.0%
- Net income$335.5M15.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 16, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $2.13B$1.91B | +11.7% |
| Cost of Revenue | $1.17B$1.05B | +11.0% |
| Gross Profit | $965.80M$858.60M | +12.5% |
| SG&A Expenses | $524.30M$470.50M | +11.4% |
| Operating Income | $441.50M$388.10M | +13.8% |
| Net Income | $335.50M$298.10M | +12.5% |
| EPS (Basic) | $0.29$0.26 | +11.5% |
| EPS (Diluted) | $0.29$0.26 | +11.5% |
| Shares Outstanding (Basic) | 1.15B1.15B | +0.2% |
| Shares Outstanding (Diluted) | 1.15B1.15B | +0.2% |
05—Questions
Frequently Asked Questions
What is the overall financial performance of Fastenal Company in Q3 2025?
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.
What were the key drivers of the sales growth in Q3 2025?
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.
How is Fastenal's investment in technology and digital initiatives performing?
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%.
What is the outlook for capital expenditures?
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.
06—Continue