Fastenal Reports Modest Revenue Growth

By Bobby Samwell • Saturday, January 18 15:14 • Permanent Link

Fastenal Company, a leader in the wholesale distribution of industrial and construction supplies, has reported its financial results for the year and quarter ended December 31, 2024. Here are the key metrics that have changed compared to the prior period:

Net sales for the twelve-month period ended 2024 increased to $7,546.0 million, up 2.7% from the prior year.
Gross profit as a percentage of net sales decreased to 44.8% in the fourth quarter of 2024 from 45.5% in the fourth quarter of 2023.
Selling, general, and administrative (SG&A) expenses as a percentage of net sales increased to 25.9% in the fourth quarter of 2024 from 25.3% in the fourth quarter of 2023.
Operating income as a percentage of net sales decreased to 18.9% in the fourth quarter of 2024 from 20.1% in the fourth quarter of 2023.
Net income for the twelve-month period ended 2024 decreased to $1,150.6 million, down 0.4% from the prior year.
Diluted net income per share for the twelve-month period ended 2024 decreased to $2.00, down 0.6% from the prior year.

In terms of sales performance, the company noted that net sales increased by 3.7% in the fourth quarter of 2024 compared to the same period in 2023. This growth was driven by an increase in unit sales, primarily due to growth at onsite locations opened in the last two years.

From a product standpoint, the rate of contraction of the fastener line eased in the fourth quarter of 2024, but continued to lag the non-fastener product lines. The company also achieved growth in its safety category, reflecting lower volatility of demand for personal protective equipment (PPE).

In terms of end markets, the manufacturing end markets outperformed, while weakness was observed in the reseller end market due to efforts in many industries to reduce channel inventories.

The company's digital footprint, including sales through its digital capabilities, represented 62.2% of its sales in the fourth quarter of 2024, an increase from 58.1% of sales in the same period of 2023. Daily sales through eprocurement and ecommerce grew by 37.6% and 2.0%, respectively.

Today the company's shares have moved 1.8% to a price of $76.08. For the full picture, make sure to review Fastenal's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.