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WINONA, Minn. - On Monday, Fastenal Company (NASDAQ:FAST) reported third-quarter earnings that missed analyst expectations, despite posting solid revenue growth.
The industrial supplies distributor’s shares fell 4% in pre-market trading after the release.
The company reported earnings per share of $0.29 for the third quarter ended September 30, 2025, falling short of the $0.30 analyst consensus. Revenue came in at $2.13 billion, in line with analyst estimates and up 11.7% compared to the same period last year.
Fastenal’s revenue growth was driven by improved customer contract signings since early 2024 and a 14.4% increase in fastener product sales. The company noted that product pricing contributed 240 to 270 basis points to the quarter’s sales growth. Despite sluggish industrial production, Fastenal saw growth across all major product categories.
"We experienced an increase in unit sales in the third quarter of 2025," said CEO Dan Florness. "This was due to growth in the number of customer sites spending $10,000 or more per month with Fastenal and, to a lesser degree, growth in average monthly sales per customer site across all customer spend categories."
Gross profit margin improved to 45.3% from 44.9% in the prior-year quarter, while operating income rose 13.7% to $441.5 million. The company maintained its SG&A expenses at 24.6% of sales, unchanged from the year-ago period.
Fastenal’s manufacturing end markets outperformed, with heavy manufacturing sales up 12.4% and other manufacturing sales increasing 12.9% YoY. The non-residential construction end market grew for only the second time in twelve consecutive quarters.
For 2025, Fastenal expects capital expenditures between $235 million and $255 million, up from $214.1 million in 2024, as the company invests in distribution center upgrades and technology improvements.
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