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Mar 31
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.
Fastenal
Fastenal
Fastenal Revenue by Segment
Fastenal Revenue by Geographic Location
Revenue by Segment
Fastener products Revenue
CapyFin.comNon-fastener products Revenue
CapyFin.comRevenue by Geographic Location
Contract customers Revenue
CapyFin.comNon-contract customers Revenue
CapyFin.com 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.
- Macroeconomic uncertainty impacting smaller non-contract customers.
Revenue & Expenses
Visualization of income flow from segment revenue to net income