Fastenal reported fiscal 2025 fourth‑quarter revenue of $2.03 billion, an 11.1% year‑over‑year increase, and diluted earnings per share of $0.26, matching the consensus estimate of $0.264. Revenue fell $10 million short of the $2.04 billion estimate, a miss that was largely driven by higher cost of goods sold and the timing of supplier rebates, which compressed gross margins.
Direct product sales grew 13.1% to $2.23 billion, while indirect product sales rose 10.1% to $1.80 billion. Manufacturing end‑market sales increased to $1.523 billion from $1.367 billion, reflecting the company’s strategic focus on managed‑spend relationships with key accounts and the continued strength of its larger customer base.
Gross profit margin contracted to 44.3% from 44.8% year‑ago, a decline attributable to higher raw‑material costs and the impact of supplier rebates. Operating margin improved modestly to 19.0% from 18.9% as disciplined cost controls offset the revenue miss and helped preserve profitability.
Full‑year 2025 net sales reached $8.20 billion, up 8.7% from $7.546 billion, and diluted earnings per share climbed to $1.09, a 9.2% increase from $1.00. The growth was driven by new and extended contracts, particularly in the manufacturing segment, and the company’s emphasis on high‑margin managed‑spend relationships.
Management guided 2026 capital expenditures to $310–$330 million, up from $230.6 million in 2025, to fund a new Atlanta distribution hub, expanded trucking capacity, and IT initiatives. The guidance signals confidence in sustaining growth while maintaining cost discipline, and it underscores the company’s commitment to investing in high‑return verticals.
Pre‑market trading reflected investor concern over the revenue miss, the year‑over‑year decline in EPS, margin compression, and the higher capital‑expenditure outlook, with the stock trading down 4.8% to $6.04.
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