Fastenal Co. (NASDAQ:FAST) shares jumped Monday after the company reported stronger-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 billion consensus 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.
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Weighted 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.
Capital 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.
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