Latest news with #FastenalCo
Yahoo
21 hours ago
- Business
- Yahoo
Fastenal Co (FAST) Q2 2025 Earnings Call Highlights: Record Revenue and Strong Digital Growth
Revenue: Exceeded $2 billion for the first time, with an 8.6% increase in Q2 2025. Daily Sales Growth: Highest since early 2023, with a growth rate of 8.6%. Contract Customer Sales: Increased by 11%, representing 73.2% of total revenues. Operating Margin: Achieved 21%, up 80 basis points year-over-year. Gross Margin: 45.3%, up 20 basis points from the previous year. Earnings Per Share (EPS): $0.29, a 12.7% increase from the previous year. Operating Cash Flow: $279 million, representing 84.4% of net income. Inventory Growth: Increased by 14.7% to improve product availability and efficiency. Accounts Receivable: Up 9.9%, reflecting sales growth and deferred payments. FMI Technology Sales: Represented 44.1% of sales, with an 11% increase in installed devices. E-business Sales: Grew by 13.5%, surpassing 30% of total sales for the first time. Warning! GuruFocus has detected 7 Warning Signs with BOM:540595. Release Date: July 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Fastenal Co (NASDAQ:FAST) achieved over $2 billion in revenue for the first time in its history, marking a significant milestone. Sales in the second quarter increased by 8.6%, with the highest daily growth since early 2023. Contract customer sales increased by 11%, now representing 73.2% of revenues, up from 71.2% the previous year. The company saw a 30% year-over-year revenue increase in non-manufacturing sites generating $50,000 or more per month. E-business sales grew by 13.5%, surpassing 30% of total sales for the first time, indicating strong digital growth. Market conditions remain sluggish, with trade policy creating caution and uncertainty among customers. There was a decline in the number of accounts generating under $5,000, particularly those under $500, which could impact smaller customer segments. The FMI Technology adoption was softer than expected, with a slight decrease in new customer signings compared to previous years. Higher import duty fees and transportation costs negatively impacted gross margins. The company faces challenges in managing price costs due to ongoing tariff uncertainties, which could affect future profitability. Q: Could you discuss the evolution of profitability as relationships with customers generating $10,000 or more per month mature and grow? A: Daniel Florness, CEO: The contribution margins for customers generating $10,000 or more per month align closely with the historical company average. While gross margins can challenge the company number slightly, the SG&A leverage is much better due to the rationalization of our branch network and the shift to on-site and large customer services. This has led to a leaner operating expense structure, particularly in people and occupancy costs. Q: Does the inventory investment imply a higher mix of fasteners, and how does it impact margins? A: Daniel Florness, CEO: The inventory investment has been paying off in the first half of the year, providing an attractive return. The deeper inventory allows for better customer engagement and more efficient operations. As we move into the latter half of 2025 and into 2026, we plan to rationalize some of this inventory, which should improve returns further. Q: Should we expect flattish gross margins year over year in the second half, and how is deeper inventory of fasteners helping margins? A: Sheryl Lisowski, CFO: We expect our margin for 2025 to remain essentially flat with 2024. Daniel Florness, CEO: The deeper inventory of fasteners helps margins by allowing us to capture more MRO fastener business, which carries a better gross margin profile due to its spot buy nature. This also frees up labor, allowing us to leverage sales and improve mix. Q: What's your confidence level in achieving double-digit sales growth in the second half of 2025? A: Daniel Florness, CEO: We are confident in achieving double-digit sales growth for the rest of the year. The pipeline is strong across all categories, and the momentum from contract signings supports this outlook. Q: Can you provide more insight into the enhancements for and the opportunity to capture more spot buy needs? A: Daniel Florness, CEO: Enhancements to aim to improve the capture of spot buy needs, particularly from existing customers. We believe there's a significant opportunity to capture additional business from our 10,000-plus customers, as well as stabilize and grow our under 5,000 customer base. Enhancements include improved checkout processes, search functionality, and a clear strategy for e-commerce offerings. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
San Francisco Chronicle
2 days ago
- Business
- San Francisco Chronicle
Fastenal: Q2 Earnings Snapshot
WINONA, Minn. (AP) — WINONA, Minn. (AP) — Fastenal Co. (FAST) on Monday reported second-quarter earnings of $330.3 million. On a per-share basis, the Winona, Minnesota-based company said it had net income of 29 cents. The results topped Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 28 cents per share. The maker of industrial and construction fasteners posted revenue of $2.08 billion in the period, which also beat Street forecasts. Six analysts surveyed by Zacks expected $2.06 billion. _____
Yahoo
2 days ago
- Business
- Yahoo
Fastenal: Q2 Earnings Snapshot
WINONA, Minn. (AP) — WINONA, Minn. (AP) — Fastenal Co. (FAST) on Monday reported second-quarter earnings of $330.3 million. On a per-share basis, the Winona, Minnesota-based company said it had net income of 29 cents. The results topped Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 28 cents per share. The maker of industrial and construction fasteners posted revenue of $2.08 billion in the period, which also beat Street forecasts. Six analysts surveyed by Zacks expected $2.06 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on FAST at Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Globe and Mail
2 days ago
- Business
- Globe and Mail
Housing, Car Sales Due Next Week in Canada
Monday U.S. Featured Earnings Fastenal Co (NASDAQ: FAST) (Q2) EPS of 28 cents, compared to 25 cents in the prior-year quarter. FB Financial Corporation (NYSE:FBK) (Q2) EPS of 89 cents, compared to 84 in the prior-year quarter. Equity BancShares Inc. (NYSE: EQBK) (Q2) EPS of 90 cents, compared to 99 cents in the prior-year quarter. CANADA Economic Lookahead Wholesale Trade (May) Wholesale sales (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) fell 2.3% to $84.0 billion in April. Featured Earnings PrairieSky Royalty Ltd. ( (Q2) EPS of 57 cents, compared to 25 cents in the prior-year quarter. Tuesday U.S. Economic Lookahead Consumer price index (June) Empire State manufacturing survey (July) Industrial production (June) Capacity utilization (June) Featured Earnings JP Morgan Chase & Co. (NYSE:JPM) (Q2) EPS of $4.49, compared to $4.40 in the prior-year quarter. Wells Fargo (NYSE:WFC) (Q2) EPS of $1.41 compared to $1.33 in the prior-year quarter. BlackRock (NYSE:BLK) (Q2) EPS of $10.58, compared to $10.36 in the prior-year quarter. CANADA Economic Lookahead New Motor Vehicle Sales (May) Statistics Canada reported 195,659 new motor vehicles were sold in Canada in April, increasing 11.3% from one year earlier. Gains were widespread, with all provinces observing a higher number of units sold. April 2025 represented the month with the highest sales on record in dollar terms, at nearly $10.8 billion. Monthly Survey of Manufacturing (May) Manufacturing sales decreased 2.8% in April, the third consecutive monthly decline, driven largely on lower sales of petroleum and coal products, motor vehicles, and primary metals. Excluding the petroleum and coal product subsector, total manufacturing sales were down 1.8%. Housing Starts (June) The six-month trend in housing starts was flat (0.8%) in May (243,407 units), according to Canada Mortgage and Housing Corporation. Consumer Price Index (June) CPI rose 1.7% on a year-over-year basis in May, matching the 1.7% increase in April. On a monthly basis, the CPI rose 0.6% in May. On a seasonally adjusted monthly basis, the CPI was up 0.2%. Featured Earnings Cogeco Communications Inc. ( (Q3) EPS of $1.92, compared to $1.90 in the prior-year quarter. Wednesday U.S. Economic Lookahead Producer price index (June) Fed Beige Book Featured Earnings Johnson & Johnson (NYSE: JNJ) (Q2) EPS of $2.64, compared to $2.82 in the prior-year quarter. Bank of America Corp (NYSE: BAC) (Q2) EPS of 87 cents, compared to 83 cents in the prior-year quarter. ASML Holding (NASDAQ:ASML) (Q2) EPS of $5.94, compared to $4.32 in the prior-year quarter. CANADA Economic Lookahead CREAstats (June) The number of home sales recorded over Canadian MLS® Systems climbed 3.6% between April and May 2025, marking the first gain in activity since last November. Featured Earnings Li-FT Power Ltd. ( (Q2) EPS for loss of four cents, compared to loss of one cent in the prior-year quarter. Thursday U.S. Economic Lookahead Initial jobless claims (July 12) U.S. retail sales (June) Import price index (June) Business inventories (May) Home builder confidence index (July) Featured Earnings Taiwan Semiconductr Mfg Co Ltd (NYSE: TSM) (Q2) EPS of $2.32, compared to $1.48 in the prior-year quarter. Netflix (NASDAQ:NFLX) (Q2) EPS of $7.05, compared to $4.88 in the prior-year quarter. GE Aerospace (NYSE:GE) (Q2) EPS of $1.42 compared to $1.20 in the prior-year quarter. CANADA Economic Lookahead International Transactions in Securities (May) Canadian investors acquired $4.1 billion of foreign securities in April, led by the highest investment in US government bonds since November 2023. Meanwhile, foreign investors reduced their exposure to Canadian securities by $9.4 billion in April 2025, led by the highest monthly divestment in Canadian bonds since December 2018. Friday U.S. Economic Lookahead Housing starts (June) Building permits (June) Consumer sentiment (prelim) (July) Featured Earnings American Express Co (NYSE:AXP) (Q2) EPS of $3.85, compared to $3.49 in the prior-year quarter. HDFC Bank (NYSE:HDB) (Q1) EPS of 75 cents, compared to 78 cents in the prior-year quarter. Charles Schwab Corporation (NYSE:SCHW) (Q2) EPS of $1.05, compared to 73 cents in the prior-year quarter. CANADA Featured Earnings
Bloomberg
5 days ago
- Business
- Bloomberg
Investors Take ‘See No Evil' Approach to Industrial Earnings
To get Industrial Strength delivered directly to your inbox, sign up here. Actual results from manufacturing companies in the upcoming earnings season are likely to reflect the same surprising stability of the last period — even as the industrial economy continues to show signs of pressure. Earnings season kicks into high gear next week with Fastenal Co., General Electric Co., Snap-on Inc. and 3M Co. reporting their second-quarter results. The average tariff rates paid in the period — particularly as it relates to China — ended up lower than what was anticipated when companies formulated their profit guidance in the immediate aftermath of Trump's 'Liberation Day' announcement in early April. The worst start to the year for the US dollar since 1973 is also helping offset some of the tariff drag: A weaker domestic currency makes American goods cheaper abroad, boosting their appeal, while also increasing the dollar value of international sales that are repatriated.
