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Mar 31, 2025
Fastenal Q1 2025 Earnings Report
Fastenal reported modest revenue and income growth in Q1 2025 despite a sluggish industrial environment.
Key Takeaways
Fastenal saw a 3.4% year-over-year increase in revenue and flat earnings, driven by strong contract customer growth and improved performance in non-fastener products, while OEM demand and fastener product lines remained relatively weak.
Net sales rose 3.4% YoY to $1.96B, with a daily sales increase of 5.0%.
Contract customers drove the bulk of growth, now accounting for over 73% of sales.
Fastener products returned to growth after seven quarters of stagnation.
Gross margin declined slightly due to product mix and higher transportation costs.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Fastenal expects steady growth through 2025 driven by expansion in digital solutions, Onsite services, and investment in distribution infrastructure.
Positive Outlook
- Continued investment in FASTBin and FASTVend technology.
- Strong pipeline of contract customer signings.
- Increasing sales contribution from warehousing and data center customers.
- Growth in safety and other MRO-oriented product lines.
- Higher customer retention with $50K+/month sites.
Challenges Ahead
- Sluggish OEM demand continues to weigh on fastener performance.
- Gross margin pressure due to mix shift and transportation inflation.
- Lower operating leverage due to fewer business days.
- Cash flow from operations declined YoY.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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