Fastenal Co. has recently released its 10-K report, revealing a detailed look into the company's financial performance and operational overview. The company, headquartered in Winona, Minnesota, is a global leader in the wholesale distribution of industrial and construction supplies, with a network of approximately 1,600 branch locations. Its customer base includes original equipment manufacturers, maintenance, repair, and operations customers, non-residential construction markets, and various other industries.
In its 10-K report, Fastenal Co. discussed its management's discussion and analysis of financial condition and results of operations. The company highlighted its focus on growth through customer service and innovation, aiming to provide value to its customers through a high-touch, high-tech approach. The report also emphasized the company's efforts to mitigate the impact of macroeconomic factors, such as evolving trade policies and global economic volatility, on its operations, financial condition, and results.
The report provided a detailed breakdown of the company's financial performance for the year ended December 31, 2025. Fastenal Co. reported a 8.7% increase in net sales, reaching $8,200.5 million, compared to $7,546.0 million in the previous year. The company's daily sales also saw a significant increase of 9.1%, reaching $32.3 million compared to $29.6 million in the prior year. The gross profit was reported at $3,691.2 million, representing 45.0% of net sales, and operating income stood at $1,655.7 million, accounting for 20.2% of net sales.
The company's sales growth was driven by higher unit sales of direct (OEM/Production) materials, indirect (MRO/Facilities Maintenance) materials, and construction supplies. Fastenal Co. attributed its net sales growth to its ability to gain market share and the impact of changes in product pricing, which resulted in 170 to 200 basis points of growth in net sales. The company also highlighted its focus on expanding its sales through its Digital Footprint, with the proportion of sales running through its digital resources reaching 62.4% in December 2025.
In addition to its financial performance, the report also provided insights into the company's employee headcount, branch locations, customer sites, and weighted FMI devices. Fastenal Co. increased its total full-time equivalent (FTE) employee headcount by 644 during the last twelve months, with a focus on supporting growth and sales initiatives to target customer acquisition.
The 10-K report also included a breakdown of the company's product portfolio, with a focus on fasteners, safety supplies, and other product lines. Fastenal Co. reported that its direct materials, including fasteners, cutting tools, and non-fasteners/hardware, outpaced overall company growth, driven by improved availability and expanded contract penetration with large manufacturing customers.
The market has reacted to these announcements by moving the company's shares 0.48% to a price of $43.74. If you want to know more, read the company's complete 10-K report here.
