Fastenal Reports 8.6% Revenue Growth in Q2 2025, Net Income Increases 12.8%

Fastenal Company reported a notable increase in financial performance for the second quarter and first half of 2025, with net sales reaching $2,080.3 million for the quarter, up 8.6% from $1,916.2 million in the same period last year. For the first six months, net sales totaled $4,039.7 million, reflecting a 6.0% increase compared to $3,811.3 million in the first half of 2024. The company's gross profit margin remained stable, with gross profit at $942.8 million for the second quarter, representing 45.3% of net sales, and $1,826.7 million for the first half, at 45.2% of net sales.

The company experienced significant changes in its operational metrics, including a 12.8% increase in net income for the second quarter, amounting to $330.3 million, compared to $292.7 million in the prior year. Diluted net income per share also rose to $0.29 from $0.25. Fastenal's selling, general, and administrative (SG&A) expenses increased by 6.3% in the second quarter, but the growth in net sales outpaced this increase, allowing for a reduction in SG&A as a percentage of net sales to 24.4% from 24.9% year-over-year.

Strategically, Fastenal has focused on expanding its customer base and enhancing its product offerings. The company reported an increase in the number of customer sites spending $50,000 or more per month, which rose to 2,683, a 7.2% increase from the previous year. Additionally, the number of branch locations grew slightly to 1,596, and the total employee headcount increased to 24,362, reflecting a commitment to supporting growth initiatives. The company also launched new product lines and expanded its Fastenal Managed Inventory (FMI) technology, which includes vending solutions and inventory management systems.

Fastenal's balance sheet showed total assets of $5,016.2 million as of June 30, 2025, up from $4,698.0 million at the end of 2024. The company reported a current ratio of 4.22, indicating strong liquidity. However, current liabilities also increased, primarily due to a rise in accounts payable and accrued expenses. The company’s long-term debt decreased to $100 million from $125 million, reflecting a strategic approach to managing its capital structure.

Looking ahead, Fastenal remains cautious about the economic environment, which is characterized by volatility and uncertainty. The company is actively monitoring market conditions, including inflationary pressures and changes in trade policies, which may impact operations. Fastenal anticipates continued growth driven by its customer-centric approach and ongoing investments in technology and infrastructure. The company expects to maintain its focus on enhancing customer service and expanding its market share in the fragmented industrial distribution sector.