Fastenal (FAST) Beats Revenue and EPS Expectations, Lowers Outlook

by MarketNewsData

Headline Results

  • EPS: $0.29 vs est. $0.28 ✅
  • Revenue: $2.08B vs est. $2.07B ✅
  • YoY Revenue Growth: +8.6%
  • YoY EPS Growth: +12.7%

Guidance & Strategic Adjustments

  • Lowered 2025 device deployment goal to 25,000–26,000 MEUs (from 28,000–30,000)
  • Cut FY25 Capex to $250M–$270M (prior: $265M–$285M)
  • No EPS or revenue guidance provided in the 8-K

Operational Highlights

  • Digital channels (FMI) up 14.4% YoY, now 44% of total sales
  • Strong growth in safety supplies (+10.7%) and non-fasteners
  • Manufacturing-heavy customers driving performance
  • No buybacks; $253M in dividends paid

Margin & Profitability

  • Gross margin held steady at 45.3%
  • Operating margin expanded to 21.0% (+80 bps YoY)
  • SG&A margin declined 50 bps to 24.4% despite 6.3% cost growth
  • Free cash flow remained solid; operations generated $279M

Risks & Management Commentary

  • Market conditions “subdued”; softness in industrial production
  • Inflation pressure noted in fleet, wages, and supplier incentives
  • OBBBA tax law impact expected to be minimal
  • Inventory and trade working capital rose in anticipation of future demand

Stock Reaction

  • +45.28 USD +2.01 (4.65%)

Takeaway
Fastenal’s execution remains strong in a muted macro environment. However, caution on Capex and digital expansion reflects realistic management response to slower industrial activity. Investors should watch customer demand trends and digital uptake momentum in the back half of the year.

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