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FASTENAL CO 8-K Report, Financial Results (Jul 14, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed July 14, 2025
Period End
July 14, 2025
Security
FAST
In the record · 2016–202610-K1210-Q348-K100

FAST filed 12 annual reports (10-K), 34 quarterly reports (10-Q) and 100 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’17Mar ’17
  2. Leadership change8-K · Aug ’20Aug ’20
  3. Material agreement8-K · Sep ’22Sep ’22
  4. Leadership change8-K · Jul ’26Jul ’26

01—Abstract

Summary

Summary of the 8-K filed July 14, 2025. Cited figures are marked; the original filing is the authoritative source.

Fastenal (FAST) reported Q2 2025 results on July 14, 2025, with net sales up 8.6% year-over-year to $2,080.3 milliona and daily sales growth of 8.6% to $32.5 million per day.

Growth was broad-based across contract and non-contract customers, manufacturing and non-manufacturing end markets, and fastener and non-fastener product lines, with pricing contributing an estimated 140 to 170 basis points. Management attributed the improvement largely to customer contract signings over the past six quarters, while noting that overall market conditions remain sluggish. The company's first non-contraction in non-residential construction in ten quarters and a 12.6%b rise in trade working capital were notable details.

Profitability improved meaningfully. Gross margin edged up to 45.3% from 45.1%, and operating margin expanded to 21.0% from 20.2% in the quarter, as SG&A grew only 6.3% against 8.6% sales growth. Diluted EPS was $0.29c versus $0.25 a year earlier (split-adjusted following a two-for-one stock split effective May 21, 2025).

Operating cash flow of $278.6 milliond in the quarter was up 8.1%, though it represented a lower 84.4% of net income, reflecting heavier working capital investment in receivables and inventory. Management also lowered its 2025 weighted FASTBin/FASTVend signing goal to 25,000-26,000 MEUs from 28,000-30,000 and trimmed its property and equipment investment range to $250-270 million. The balance sheet remains conservative, with total debt of $230.0 million representing 5.7% of total capital.

Shareholder dividends of $252.5 million were paid in the quarter, and no share repurchases were made. The company also flagged the One Big Beautiful Bill Act, which it expects to affect deferred tax balances but not its ongoing tax rate of approximately 24.5%.

02—Key points

Key Highlights

  1. Net sales rose 8.6% to $2,080.3 million in Q2 2025 (daily sales up 8.6%), with six-month sales up 6.0% to $4,039.7 million.
  2. Operating income increased 12.7% to $436.1 million, with operating margin expanding to 21.0% from 20.2%, driven by SG&A growth (6.3%) lagging sales growth.
  3. Diluted EPS of $0.29 rose 12.7% year-over-year (split-adjusted for the two-for-one split effective May 21, 2025); net income grew 12.8% to $330.3 million.
  4. Pricing contributed an estimated 140-170 basis points to sales growth versus a 30-60 basis point decline a year earlier, while contract customer sales grew 11.0% in the quarter versus 2.6% for non-contract customers.
  5. FASTBin/FASTVend sales grew 17.3% and FMI sales rose 14.4%, while weighted FASTBin/FASTVend signings declined 10.2% and the 2025 signing goal was lowered to 25,000-26,000 MEUs from 28,000-30,000.
  6. Operating cash flow of $278.6 million (up 8.1%) was 84.4% of net income versus 88.1% a year earlier, as receivables and inventory absorbed cash; trade working capital rose 12.6% year-over-year.
  7. Total debt of $230.0 million equals 5.7% of total capital; $252.5 million in dividends was paid, and no shares were repurchased. The 2025 capex range was trimmed to $250-270 million.

03—Questions

Frequently Asked Questions

  1. What drove Fastenal's sales growth in the second quarter of 2025?

    Management attributed most of the 8.6% growth to customer contract signings made over the past six quarters, along with a 140-170 basis point contribution from pricing actions. Market conditions remained sluggish and contributed little. Growth was led by contract customers (up 11.0%), manufacturing end markets (up 9.2%), and fasteners (up 6.6%) and non-fasteners (up 9.5%).

  2. Did Fastenal's profitability improve?

    Yes. Gross margin rose slightly to 45.3% from 45.1%, and operating margin increased to 21.0% from 20.2%, as SG&A grew 6.3% against 8.6% sales growth. Operating income rose 12.7% to $436.1 million. Management cited lower supplier marketing credits and insurance costs offsetting higher employee-related expenses.

  3. Why did operating cash flow conversion decline?

    Operating cash flow of $278.6 million was 84.4% of net income, down from 88.1% a year earlier. The decline reflected greater cash use for operating assets and liabilities, particularly higher receivables from sales growth with large customers and inventory added to support growth, fastener expansion, and anticipated tariff impacts.

  4. Did Fastenal change its 2025 guidance or capital plans?

    Fastenal lowered its 2025 weighted FASTBin/FASTVend signing goal to 25,000-26,000 MEUs from 28,000-30,000. It also narrowed its property and equipment investment outlook to $250-270 million, down from $265-285 million. The company expects its ongoing tax rate to be about 24.5% and does not expect a material change from the One Big Beautiful Bill Act.

04—Continue

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