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Fastenal
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Latest analysis
Updated Oct 19, 2026
Fastenal Q3 2026: 15.5% net sales growth and 80bps operating margin expansion driven by contract customer momentum and FMI digital penetration.
Fastenal delivered Q3 2026 net sales of $2,463.3 million, up 15.5% year-over-year, with operating margin expanding 80 basis points to 21.5% — the clearest evidence yet that contract-customer-led share gains are translating into operating leverage. Heavy manufacturing DSR grew 20.2%, contract customer DSR ran at 18.8% versus 7.8% for non-contract, and digital footprint sales reached 61.4% of total sales. Gross margin contracted 40 basis points to 44.8%, partially from customer mix shift toward larger accounts, but the SG&A improvement of 130 basis points more than offset it, validating the fixed-cost leverage thesis embedded in Fastenal's 'high-touch, high-tech' model.
Tone: bullishRevenue
$8.2B
FAST 10-K · FY 2025
Employees
24,489
Revenue growth YoY
+8.7%
Founded
1967
Profile
FAST 10-K Item 1 · Feb 5, 2026Fastenal is a global wholesale distributor of industrial and construction supplies, serving primarily manufacturing and non-residential construction customers through approximately 1,600 branch locations in 25 countries. The company distributes fasteners, safety supplies, and nine other major product lines, supported by proprietary inventory management technologies including vending devices, bin stock systems, and digital analytics platforms. Its model emphasizes high-touch, on-site customer service integrated with a fully owned distribution and trucking network.
Read filing description ↓ Collapse description ↑
Fastenal is a global leader in the wholesale distribution of industrial and construction supplies. We distribute these supplies through a network of approximately 1,600 branch locations. Our largest end market is manufacturing. Sales to these customers include products for both direct materials, where our products are consumed in the final products of our customers, and indirect materials, where our products are consumed to support the facilities and ongoing operations of our customers. We also service general and commercial contractors in non-residential end markets as well as farmers, truckers, railroads, oil exploration companies, oil production and refinement companies, mining companies, federal, state, and local government entities, schools, warehouse and storage, data centers, and certain retail trades. Geographically, our selling locations and customers are primarily located in North America, though we continue to grow our non-North American presence as well. It is helpful to appreciate several aspects of our marketplace: First, it is big and fragmented. We estimate the North American marketplace for industrial supplies is in excess of $140 billion per year (and we have expanded beyond North America) and no company has a significant portion of this market. Second, many of the products we sell are individually inexpensive, but the cost and time to manage, procure, and transport these products can be quite meaningful. Third, many customers prefer to reduce their number of indirect and direct suppliers to simplify their business, while also utilizing various technologies and models (including our local branches when they need something quickly or unexpectedly) to improve availability and reduce waste.
Primary products
- Fasteners (threaded fasteners, bolts, nuts, screws, studs, washers)
- Safety supplies
- FASTVend industrial vending devices
- FASTBin electronic bin stock inventory management
- FASTStock bin stock programs
- FASTCrib cloud-based crib management software
End markets
Geographies
Named customers
During 2025, no single customer represented 5% or more of our consolidated net sales.
“We believe the combination of our broad product offering, physical presence on a global scale, and toolbox of services, specialists, and digital capabilities, produces a customer engagement model that is difficult for large and small competitors to replicate.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Net sales grew 8.7% year-over-year in 2025, driven primarily by market share gains and approximately 170 to 200 basis points of tariff-related pricing contribution, against a backdrop of sluggish manufacturing market conditions with the U.S. PMI averaging below 50 for the full year.
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