Fastenal Tops Q2 Expectations On Digital Growth, Contract Strength

Zinger Key PointsFastenal’s Q2 revenue rose 8.6% to $2.08B, topping estimates despite weak market conditions.Gross margin, operating income, and digital sales all improved, helping EPS beat forecasts at 29 cents.PPI and Industrial Production drop Wednesday morning — see how Matt Maley is trading the reaction, live at 6 PM ET.Fastenal Co.FASTshares jumped Monday after the company reportedstronger-than-expected second-quarter 2025 results.The industrial supplies distributor posted revenue of $2.08 billion, up 8.6% from a year ago and topping the $2.07 billionconsensus estimate. The number of selling days remained unchanged from the prior year.The increase was driven by improved customer contract signings over the past six quarters, despite ongoing sluggish market conditions. Foreign exchange rates contributed roughly 10 basis points to second-quarter 2025 sales and reduced sales by about 20 basis points in the year-ago period.Also Read:Fastenal, FB Financial And 3 Stocks To Watch Heading Into MondayWeighted FASTBin/FASTVend signings fell 10.2% year-over-year (YoY) to 6,458; Weighted FASTBin/FASTVend installations rose 10.8% YoY to 132,174. FAST’s Digital Footprint represented 61% of sales, an increase from 59.4% a year earlier.Gross margin rose slightly to 45.3% of net sales, driven by modest price/cost benefits and improved fastener margins tied to product expansion and supplier programs. Operating income increased to 21% of sales, up from 20.2% in the second quarter of 2024.Fastenal reported earnings per share of 29 cents, above the analyst expectations of 28 cents.Net cash from operating activities totaled $278.6 million, up 8.1% from a year earlier. That represented 84.4% of net income, down from 88.1% in the prior-year period, due to higher cash use in working capital.For the first half of 2025, operating cash flow fell 8.8% to $540.8 million, or 86.0% of net income, compared with 100.5% a year earlier. The decline also reflected increased use of cash in operating assets and liabilities.Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100.Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get StartedCapital expenditures totaled $64.3 million in the quarter, up from $52.6 million last year. Spending focused on FMI hardware, facilities, IT systems, and vehicles.The company paid $252.5 million in dividends in the quarter and $499.1 million year to date. No shares were repurchased during either period. Total debt was $230 million at quarter-end, or 5.7% of total capital, compared with $235 million, or 6.3%, a year earlier.Total debt stood at $230 million, or 5.7% of capital, down slightly from $235 million, or 6.3%, a year earlier.For 2025, net capital outlays are expected to range from $250 million to $270 million, below earlier guidance but above 2024 levels. The increase reflects distribution center upgrades, delayed IT initiatives, and hardware deployments.Fastenal declared a third-quarter cash dividend of 22 cents per share, payable August 26, 2025, to shareholders of record at the close of business on July 29, 2025. Share and per share information in this release has been adjusted following a two-for-one split effective May 21, 2025.Price Action:FAST shares were trading higher by 5.17% to $45.51 at last check Monday.Loading...Loading...Read Next:Southwest Airlines Adds St. Thomas To Growing Caribbean NetworkPhoto via ShutterstockFASTFastenal Co$45.284.65%Stock Score Locked: Edge Members OnlyBenzinga Rankings give you vital metrics on any stock – anytime.Unlock RankingsEdge RankingsMomentum83.23Growth75.39Quality45.86Value25.19Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. . .EarningsAnalyst RatingsOptionsDividendsIPOsDate▲▼ticker▲▼name▲▼Actual EPS▲▼EPS Surprise▲▼Actual Rev▲▼Rev Surprise▲▼Click to see moreEarningsupdatesEarnings CalendarNever Miss Important CatalystsSort by estimates, projected upside, profit surprises, and more to easily find new stocks to invest in or check up on your portfolio.Click to JoinPosted In:EarningsNewsTop StoriesMoverswhy it's moving