10-QPeriod: Q1 FY2026

FASTENAL CO Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 16, 2026For Securities:FAST

Summary

Fastenal Company (FAST) reported a strong first quarter for 2026, with net sales increasing by 12.4% year-over-year to $2,201.7 million. This growth was driven by a combination of improved customer contract signings, a slight uptick in industrial production, and a positive impact from foreign exchange rates. The company demonstrated effective cost management, with Selling, General, and Administrative (SG&A) expenses growing at a slower pace than sales, leading to an operating income increase of 13.6% and net income growth of 13.8% to $339.8 million. Diluted earnings per share rose to $0.30 from $0.26 in the prior year's first quarter. The balance sheet shows total assets of $5,209.8 million as of March 31, 2026. While trade receivables increased due to sales growth, inventory levels were managed effectively. The company maintained a solid liquidity position with cash and cash equivalents of $308.6 million. Fastenal's commitment to returning value to shareholders is evident through its dividend payments and share repurchase program, with $295.7 million returned in Q1 2026. The company also provided guidance for capital expenditures, expecting between $310.0 million and $330.0 million for the full year 2026, reflecting investments in facility upgrades and IT infrastructure.

Financial Highlights

50 data points
Beta

Revenue

$2.20B

44.6% Gross Margin

Net Income

$339.80M

15.4% Net Margin

EPS (Diluted)

$0.30

Total Assets

$5.21B

Cash & Equivalents

$308.60M

Free Cash Flow

$319.50M

Financial Statements
Beta
Revenue$2.20B
Cost of Revenue$1.22B
Gross Profit$982.90M
SG&A Expenses$535.30M
Operating Income$447.60M
Net Income$339.80M
EPS (Basic)$0.30
EPS (Diluted)$0.30
Shares Outstanding (Basic)1.15B
Shares Outstanding (Diluted)1.15B

Key Highlights

  • 1Net sales grew by 12.4% to $2,201.7 million in Q1 2026 compared to Q1 2025.
  • 2Operating income increased by 13.6% to $447.6 million, while net income rose by 13.8% to $339.8 million.
  • 3Diluted earnings per share improved to $0.30 from $0.26 year-over-year.
  • 4Gross profit margin slightly decreased to 44.6% from 45.1% due to unfavorable price/cost and customer mix, partially offset by fastener project benefits.
  • 5SG&A expenses as a percentage of net sales improved to 24.3% from 25.0%, demonstrating operational leverage.
  • 6Net cash provided by operating activities significantly increased by 44.3% to $378.4 million.
  • 7The company returned $295.7 million to shareholders through dividends and share repurchases in Q1 2026.

Frequently Asked Questions

Fastenal's sales growth of 12.4% in Q1 2026 was driven by improved customer contract signings since Q1 2024, a slight recovery in industrial production, and a positive contribution from foreign exchange rates. Direct materials sales slightly outpaced indirect materials, reflecting strength in fastener sales and manufacturing customers. Contract sales also continued to outperform non-contract sales.

Despite a slight decrease in gross profit margin (44.6% vs. 45.1%) due to price/cost pressures and customer mix, Fastenal improved its overall profitability. This was achieved through effective management of SG&A expenses, which as a percentage of net sales decreased to 24.3% from 25.0%. This operational leverage contributed to a 13.6% increase in operating income and a 13.8% increase in net income.

Fastenal expects full-year 2026 net capital expenditures to be in the range of $310.0 million to $330.0 million, an increase from $230.6 million in 2025. This planned increase is attributed to investments in replacing the Atlanta hub facility, enhancing picking capacity, increased trucking spend, and elevated IT spending.

Fastenal actively monitors economic conditions, including evolving trade policies and supply chain challenges. The company endeavors to offset impacts from tariffs and import shipping costs by considering them in pricing and operational models. While the effect on net income was immaterial in Q1 2026, they note that lower-tariff inventory is being depleted, which could make these costs more impactful in future quarters. A recent Supreme Court decision invalidating certain tariffs also introduces uncertainty regarding potential refunds.