Fastenal Company (NASDAQ:FAST) stock fell Tuesday after the industrial and construction supplies distributor reported mixed fourth-quarter results: earnings improved, but revenue came in slightly below expectations.
For the quarter ended Dec. 31, 2025, Fastenal posted double-digit sales growth and operating-level margin expansion. The company said momentum from customer contract signings continued, even as the broader industrial production environment remained sluggish.
Quarterly and Full-Year Revenue Performance
Net sales rose 11.1% year over year to $2.03 billion. That missed the $2.044 billion analyst estimate. For the full year, net sales increased 8.7% to $8.20 billion.
Fourth-quarter net income climbed 12.2% to $294.1 million, or 26 cents per diluted share, up from $262.1 million, or 23 cents per diluted share, a year earlier. The quarter's EPS result was in line with consensus.
For the full year, Fastenal reported net income of $1,258.4 million, equal to $1.09 per diluted share, compared with $1,150.6 million, or $1.00 per diluted share, in 2024.
Margins and Profitability Trends
Gross profit in the quarter totaled $898.7 million, representing 44.3% of sales, down from 44.8% a year earlier. Operating income improved to $384.3 million, or 19.0% of sales, from 18.9% in the prior-year period.
Fastenal attributed sales performance to "the contribution from improved customer contract signings since the first quarter of 2024." The company also noted foreign exchange provided a modest lift, positively affecting fourth-quarter 2025 sales by roughly 20 basis points.
On the operational front, Fastenal signed 5,966 weighted FASTBin and FASTVend devices in the quarter and 25,892 for the year, aligning with its 2025 goal. Looking ahead, the company set a 2026 target of "between 28,000 and 30,000 MEUs."
Operating cash flow was $368.1 million in the quarter and $1,295.9 million for the year. Cash and cash equivalents ended the year at $276.8 million, while total debt stood at $125.0 million.
The company said inventory rose in part because "tariffs and general inflation led to increased inventory valuation." Fastenal also forecast 2026 capital investment of $310.0 million to $330.0 million.
FAST Price Action: Fastenal shares were down 4.82% at $41.63 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo by T. Schneider via Shutterstock
