Fastenal: Fastenal Beats Revenue Estimates In Q1 But Margins Narrow As Costs Rise

Fastenal Co. FAST on Friday reported first-quarter 2025 revenue of $1.959 billion, a 3.4% year-over-year increase and slightly above the $1.95 billion consensus estimate. Adjusting for one less selling day and the absence of Good Friday in March, net daily sales grew 5.0%. Foreign exchange rates reduced sales by around 50 basis points, unlike the minimal impact in 2024. Unit sales increased, driven by more customer sites spending over $10K monthly and modest growth in average sales per site. Weighted FASTBin/FASTVend signings fell 4.6% YoY to 6,418; Weighted FASTBin/FASTVend installations rose 12.4% YoY to 129,996. Related: Top Wall Street Forecasters Revamp Fastenal Price Expectations Ahead Of Q1 Earnings In the first quarter, FAST's Digital Footprint represented 61% of sales, an increase from 59.2% a year earlier. The company also reported a 2.4% increase in customer sites, generating over $10,000 in monthly sales and 6.9% growth in Onsite-like locations. These high-value sites contributed 80.7% of total sales, up from 78.9% in Q1 2024. The gross margin contracted to 45.1% from 45.5% in the prior-year quarter, primarily due to a lower-margin customer/product mix and higher transport costs, partly offset by increased supplier incentives. Operating income was $393.9 million, down 0.9%, and the margin was 20.1%, a decline from 20.6% last year. The company reported first-quarter earnings per share of 52 cents, matching analyst expectations. Fastenal's operating cash flow for the quarter was $262.2 million, a decrease of 21.8% year over year. The company held cash and equivalents of $231.8 million as the end of March. The company returned $246.7 million in dividends during the quarter, up from $223.2 million last year, with no stock buybacks in either period. Total debt remained at $200 million, representing 5.1% of total capital, slightly down from 5.5% a year ago. Fastenal signed 6,418 weighted FASTBin and FASTVend devices in Q1 2025. The company maintains its full-year target of 28,000 to 30,000 MEUs. Full-year capex is expected between $265-$285 million, rising from $214.1 million in 2024 due to higher distribution, IT, and FMI spending. Dividend: Fastenal declared a second-quarter cash dividend of $0.44 per share, payable on May 23 to shareholders of record as of April 25-up one cent from the first quarter. Price Action: FAST shares were trading higher by 3.49% at $78.44 at the last check Friday. Photo: Shutterstock/T. Schneider Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Got Questions? Ask Which may benefit from Fastenal's growth? How will impact competitors? Are there in digital sales? Which are most affected by margins narrowing? Could attract more investors? What impact do have on sales? How might plans influence the market? Which could gain from increased incentives? What does the mean for future investments? Will drive stock prices higher?