AI Takeaway
Fastenal (FAST) delivered solid FY2025 results with revenue growing 8.7% to $8.20B and net income rising 9.4% to $1.26B, supported by strong operating cash flow of $1.30B and a healthy current ratio of 4.85.
Revenue
$8.2B
++8.67% YoY
EPS (Basic)
$1.10
++10.00% YoY
Gross Margin
45.0%
-0.07% YoY
Operating Income
$1.66B
++9.65% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Fastenal grew total revenue by 8.7% year-over-year to $8.20B in FY2025, up from $7.55B in the prior year, reflecting continued demand across its industrial distribution network and ongoing penetration of its Onsite and FMI (Fastenal Managed Inventory) programs.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating income grew 9.6% to $1.66B, outpacing revenue growth of 8.7%, which pushed the operating margin slightly higher to 20.19% from 20.01% in the prior year. SG&A expenses grew at a slower pace of 7.6% to $2.04B, indicating some operating leverage.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Gross margin was essentially flat at 45.01% versus 45.08% in the prior year, a decline of just 7 basis points, suggesting Fastenal maintained pricing discipline and managed cost of revenue (up 8.8% to $4.51B) in line with revenue growth.
Source: Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
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Upgrade to unlockFastenal's revenue is heavily tied to the health of industrial and manufacturing sectors. A slowdown in U.S. or global manufacturing activity could materially reduce demand for fasteners and related products. The company's 8.7% revenue growth could reverse quickly in a recessionary environment.
Source: Source: 10-K Financial Data (XBRL)
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Upgrade to unlockReported EPS of $0.26 versus the $0.26 analyst consensus — a -1.6% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $8.2B | $7.55B | +8.67% |
Cost of Revenue | $4.51B | $4.14B | +8.81% |
Gross Profit | $3.69B | $3.4B | +8.50% |
Operating Income | $1.66B | $1.51B | +9.65% |
Net Income | $1.26B | $1.15B | +9.37% |
EPS (Basic) | $1.10 | $1.00 | +10.00% |
EPS (Diluted) | $1.09 | $1.00 | +9.00% |
SG&A Expense | $2.04B | $1.89B | +7.59% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $5.05B | $4.7B | +7.55% |
Current Assets | $3.47B | $3.21B | +8.10% |
Current Liabilities | $715.6M | $687.1M | +4.15% |
Stockholders' Equity | $3.94B | $3.62B | +9.05% |
Cash & Equivalents | $276.8M | $255.8M | +8.21% |
Long-Term Debt | $125M | $200M | -37.50% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.3B | $1.17B | +10.45% |
Investing Cash Flow | $-231M | $-214.5M | -7.69% |
Financing Cash Flow | $-1.05B | $-913.7M | -15.45% |
Dividends Paid | $1B | $893.3M | +12.41% |
D&A | $179.2M | $175.4M | +2.17% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 45.0% | 45.1% | -0.07% |
Operating Margin | 20.2% | 20.0% | +0.18% |
Net Margin | 15.3% | — | — |
ROE | 31.9% | — | — |
ROA | 24.9% | — | — |
Current Ratio | $4.852 | — | — |
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Fastenal's revenue grew 8.7% year-over-year to $8.20B in FY2025, up from $7.55B in the prior year. This growth reflects continued expansion of its industrial distribution network, including Onsite locations and Fastenal Managed Inventory (FMI) programs.
Fastenal delivered broad-based growth in FY2025, with revenue up 8.7%, net income up 9.4% to $1.26B, and operating cash flow up 10.4% to $1.30B. The company also reduced long-term debt by 37.5% to $125M and raised its dividend payout by 12.4% to $1.00B, signaling financial confidence.
Fastenal's financial health is very strong: it holds a current ratio of 4.85, long-term debt of only $125M versus equity of $3.94B, and generates over $1.30B in annual operating cash flow. ROE of 31.91% and ROA of 24.90% further highlight the company's exceptional capital efficiency.
Fastenal's gross margin was essentially flat at 45.01% (versus 45.08% prior year), while operating margin improved slightly to 20.19% from 20.01%, reflecting modest operating leverage from controlled SG&A growth. Net margin came in at 15.35%, consistent with the company's historically strong profitability profile.
Fastenal paid $1.00B in dividends in FY2025, a 12.4% increase from $893.3M in the prior year. This represents approximately 77% of operating cash flow, reflecting the company's strong commitment to returning capital to shareholders while maintaining a conservative balance sheet.