Fastenal Company

04/16/2026 | Press release | Distributed by Public on 04/16/2026 08:47

Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain significant factors which have affected our financial position and operating results during the periods included in the accompanying condensed consolidated financial statements and should be read in conjunction with those condensed consolidated financial statements. Dollar amounts are stated in millions except for share and per share amounts and where otherwise noted. All historical common stock share and per share information in this quarterly report on Form 10-Q have been retroactively adjusted to reflect the two-for-one stock split effective at the close of business on May 21, 2025. Percentages, values, and dollar change calculations, which are based on non-rounded dollar values, may not be able to be recalculated or footed using the dollar values in this document due to the rounding of those dollar values. References to daily sales rate (DSR) change may reflect either growth (positive) or contraction (negative) for the applicable period.
Business
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.
Our motto is Growth Through Customer Service® and our tagline is Where Industry Meets Innovation™. We are a customer- and growth-centric organization focused on identifying unique technologies, capabilities, and supply chain solutions that get us closer to our customers and reduce the total cost of their global supply chain. We believe this close-to-the-customer, 'high-touch, high-tech' partnership approach is differentiated in the marketplace and allows us to gain market share in what remains a fragmented industrial distribution market.
The global economy continues to experience elevated levels of volatility and uncertainty, including within the commodity, labor, and transportation markets, driven by a combination of geopolitical developments and macroeconomic factors. Recent imposition of new and expanded tariffs have further contributed to disruptions in global capital markets and global supply chains. These developments may impact our operations, financial condition, and results of operations. We are actively monitoring economic conditions in the U.S. and internationally, including evolving trade policies, changes in interest rates, foreign currency exchange rate fluctuations, inflationary pressures, and the risk of a global or regional economic recession.
In response to these factors, we have implemented various strategies designed to mitigate certain adverse effects of changing inflationary conditions and supply chain challenges, while continuing to maintain market price competitiveness and price/cost neutrality. Historically, our broad and diverse customer base combined with our ability to innovate with our customers have provided a degree of resilience during periods of economic contraction in the industrial market. However, the ultimate impact of ongoing macroeconomic conditions, including recent tariff-related developments, remains uncertain and cannot be predicted at this time.
On February 20, 2026, the United States Supreme Court issued a decision invalidating the broad-based tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Significant uncertainty exists regarding the timing and amount of any potential tariff refunds. We will continue to assess these developments as additional information becomes available.
Executive Overview
The following table presents a performance summary of our results of operations for the three-month periods ended March 31, 2026 and 2025.
Three-month Period
2026 2025 Change
Net sales $ 2,201.7 1,959.4 12.4 %
Business days 63 63
Daily sales $ 34.9 31.1 12.4 %
Gross profit $ 982.9 883.9 11.2 %
% of net sales 44.6 % 45.1 %
SG&A expenses $ 535.3 490.0 9.3 %
% of net sales 24.3 % 25.0 %
Operating income $ 447.6 393.9 13.6 %
% of net sales 20.3 % 20.1 %
Income before income taxes $ 448.3 393.1 14.0 %
% of net sales 20.4 % 20.1 %
Net income $ 339.8 298.7 13.8 %
Diluted net income per share $ 0.30 0.26 13.6 %
Note - Daily sales are defined as the total net sales for the period divided by the number of business days (in the U.S.) in the period.
During the last twelve months, we increased our total full-time equivalent (FTE; based on 40 hours per week) employee headcount by 424. Our total FTE selling personnel increased by 214 to support growth and sales initiatives to target customer acquisition. We had an increase in our distribution and transportation FTE personnel of 14 to support increased product throughput at our distribution facilities. We had an increase in our remaining FTE personnel of 196, which related primarily to personnel investments in information technology (IT), finance, and supply chain support.
The table below summarizes our absolute and FTE employee headcount at the end of the periods presented and the percentage change compared to the end of the prior periods.
Change
Since: 		Change
Since:
Q1
2026 		Q4
2025 		Q4
2025 		Q1
2025 		Q1
2025
Selling personnel - absolute employee headcount 17,235 17,166 0.4 % 16,995 1.4 %
Selling personnel - FTE employee headcount 15,450 15,439 0.1 % 15,236 1.4 %
Total personnel - absolute employee headcount 24,675 24,489 0.8 % 24,181 2.0 %
Total personnel - FTE employee headcount 21,763 21,602 0.7 % 21,339 2.0 %
FIRST QUARTER OF 2026 VERSUS FIRST QUARTER OF 2025
Results of Operations
The following table sets forth condensed consolidated statements of income information (as a percentage of net sales) for the periods ended March 31:
Three-month Period
2026 2025
Net sales 100.0 % 100.0 %
Gross profit 44.6 % 45.1 %
SG&A expenses 24.3 % 25.0 %
Operating income 20.3 % 20.1 %
Net interest 0.0 % 0.0 %
Income before income taxes 20.4 % 20.1 %
Sales
The table below sets forth net sales and daily sales for the periods ended March 31, and changes in such sales from the prior period to the more recent period:
Three-month Period
2026 2025
Net sales $ 2,201.7 1,959.4
Percentage change 12.4 % 3.4 %
Business days 63 63
Daily sales $ 34.9 31.1
Percentage change 12.4 % 5.0 %
Daily sales impact of currency fluctuations 0.6 % -0.5 %
Net sales increased $242.2, or 12.4%, in the first quarter of 2026 when compared to the first quarter of 2025 (both periods had the same number of selling days.) Sales performance reflects the contribution from improved customer contract signings since the first quarter of 2024, as well as a slight improvement in industrial production in the first quarter of 2026. Foreign exchange rates positively affected sales in the first quarter of 2026 by approximately 60 basis points, compared to a negative impact in the first quarter of 2025 of approximately 50 basis points. The impact of product pricing on net sales in the first quarter of 2026 was an increase of approximately 350 basis points, compared to being immaterial in the first quarter of 2025.
From a product portfolio standpoint, we classify our offerings into four primary categories: fasteners, safety supplies, cutting tools and other product lines. 'Other product lines' encompasses seven smaller product segments, including tools and janitorial supplies.
Beginning in the fourth quarter of 2025, we expanded our reporting to provide a more comprehensive view of direct (original equipment manufacturing/production) and indirect (maintenance, repair, and operations/facilities maintenance) business across product categories. Direct materials generally include products incorporated into finished goods or that directly support customers' production processes, while indirect materials support customers' facility operations, maintenance, and safety needs. During the first quarter of 2026, direct materials slightly outpaced indirect materials, reflecting greater contribution from fastener sales and continued strength with manufacturing customers.
The DSR change when compared to the same period in the prior year and the percent of sales in the period were as follows:
DSR Change
Three-month Period 		% of Sales
Three-month Period
2026 2025 2026 2025
Direct fasteners/hardware 13.8 % 3.5 % 21.0 % 20.7 %
Direct cutting tools and abrasives 11.3 % 4.6 % 5.1 % 5.2 %
Direct non-fasteners/hardware 12.7 % 9.1 % 12.7 % 12.8 %
Total direct materials 13.1 % 5.4 % 38.8 % 38.7 %
Indirect fasteners/hardware 17.3 % 1.1 % 10.0 % 9.7 %
Indirect safety 11.3 % 6.9 % 20.8 % 21.3 %
Indirect non-fasteners/hardware and non-safety 11.7 % 6.1 % 30.4 % 30.3 %
Total indirect materials 12.4 % 5.5 % 61.1 % 61.3 %
From an end market standpoint, we have four categories: heavy manufacturing, other manufacturing, non-residential construction, and other, the latter of which includes reseller, government/education, transportation, warehousing and storage, and data centers. Our manufacturing end markets growth was mainly due to the relative strength we are experiencing with key account customers with significant managed spend, where our service model and technology are particularly impactful. The non-residential construction end market experienced growth for the fourth time in fourteen consecutive quarters. Other end market sales were favorably impacted by growth with transportation and warehousing customers.
The DSR change when compared to the same period in the prior year and the percent of sales in the period were as follows:
DSR Change
Three-month Period 		% of Sales
Three-month Period
2026 2025 2026 2025
Heavy manufacturing 14.1 % 4.8 % 44.0 % 43.4 %
Other manufacturing 9.9 % 9.7 % 32.2 % 33.0 %
Total manufacturing 12.3 % 6.8 % 76.2 % 76.4 %
Non-residential construction 17.2 % -3.4 % 8.2 % 7.8 %
Other end markets 11.3 % 0.8 % 15.6 % 15.8 %
Total non-manufacturing 13.2 % -0.6 % 23.8 % 23.6 %
From a customer standpoint, we have two categories: 1) contracts, which include national multi-site, local and regional, and government customers with significant revenue potential, and 2) non-contracts. Sales with our contract customers continue to outperform as we realize incremental sales from implementing customer signings that we have achieved since the first quarter of 2024. Non-contract customers tend to be smaller and utilize fewer of our tools and capabilities, providing fewer avenues for share gains and therefore more closely reflect overall business trends.
The DSR change when compared to the same period in the prior year and the percent of sales in the period were as follows:
DSR Change
Three-month Period 		% of Sales
Three-month Period
2026 2025 2026 2025
Contract sales 14.6 % 8.5 % 75.4 % 73.1 %
Non-contract sales 6.7 % -3.6 % 24.6 % 26.9 %
Supplemental Data
Customer Sites and Sales Segmentation
We engage customers in the local market by delivering services and solutions within or near the customer's business (Sites). Sites represent distinct customer locations where we maintain inventory tailored to local demand, supported by our regional distribution networks. Our strategy prioritizes customer Sites with monthly sales potential of $50,000 or more. Segmentation by spend level provides insight into the scale and potential of customer relationships served through our network. The following table summarizes customer Sites averaged by monthly spend band and related monthly sales metrics.
Three-month Period
2026 		Three-month Period
2025
Sites (#) (1) (2)
Sales
Mo. Sales per Site (3)
Sites (#) (1) (2)
Sales
Mo. Sales per Site (3)
Manufacturing
$50k+/Mo. (4)
2,422 $1,037.8 $142,830 2,114 $874.0 $137,811
$10k+/Mo. 9,009 1,475.4 54,590 8,500 1,293.1 50,710
$5k+/Mo. 13,407 1,570.0 39,034 12,951 1,388.7 35,742
Other sales (5)
27,457 100.7 1,223 30,308 104.3 1,147
Total manufacturing 40,864 $1,670.7 $13,628 43,259 $1,493.0 $11,484
Non-manufacturing
$50k+/Mo. (4)
487 $187.0 $127,995 388 $136.6 $117,354
$10k+/Mo. 3,293 357.6 36,198 2,918 288.5 32,956
$5k+/Mo. 6,112 417.2 22,753 5,667 346.7 20,393
Other sales (5)
45,469 113.8 834 52,118 119.7 766
Total non-manufacturing 51,581 $531.0 $3,431 57,785 $466.4 $2,633
Total
$50k+/Mo. (4)
2,909 $1,224.8 $140,346 2,502 $1,010.6 $134,639
$10k+/Mo. 12,302 1,833.0 49,667 11,418 1,581.6 46,173
$5k+/Mo. 19,519 1,987.2 33,936 18,618 1,735.4 31,070
Other sales (5)
72,926 214.5 980 82,426 224.0 906
Grand total 92,445 $2,201.7 $7,939 101,044 $1,959.4 $6,422
(1)Sites represent the number of customer locations served by our network. Individual customers with multiple locations will have multiple customer Sites.
(2)Sites numbers reflect the monthly average of active Site counts.
(3)Monthly sales per Site totals are not rounded to the millions and represents the exact dollar amount.
(4)$50k+ Sites are disclosed as a representation of Onsite-like customers and are also a subset of $10k+ and $5k+ Sites.
(5)Other sales represent sales to Sites under $5k+ per month and sales that are not tied to a specific Site. This includes certain service fees, cash sales, direct material sales, etc.
Digital Technology
FMI Technology comprises our FASTStock℠ (scanned stocking locations), FASTBin® (infrared, RFID, and scaled bins), and FASTVend® (vending devices) offerings. FASTStock's fulfillment processing technology is not embedded, is relatively less expensive and highly flexible in application, and is delivered using our proprietary mobility technology. FASTBin and FASTVend incorporate highly efficient and powerful embedded data tracking and fulfillment processing technologies. The first statistic below is a weighted FMI® measure, which combines the signings and installations of FASTBin and FASTVend in a standardized machine equivalent unit (MEU) based on the expected output of each type of device. We do not include FASTStock in this measurement because scanned stocking locations can take many forms, such as bins, shelves, cabinets, pallets, etc., that cannot be converted into a standardized MEU.
We signed 6,950 weighted FASTBin and FASTVend devices in the first quarter of 2026. Our goal for weighted FASTBin and FASTVend device signings in 2026 remains between 28,000 and 30,000 MEUs.
The second statistic is sales through FMI Technology, which combines the sales through FASTStock, FASTBin, and FASTVend. A portion of the growth in sales experienced by FMI, particularly FASTStock and FASTBin, reflects the migration of products from less efficient non-digital stocking locations to more efficient, digital stocking locations.
The table below summarizes signings and installations of our FMI devices and sales through our FMI devices, eBusiness (1) tools, and Digital Footprint (2).
Three-month Period
2026 2025
DSR
Change (3)
Weighted FASTBin/FASTVend signings (MEUs) 6,950 6,418 8.3 %
Signings per day 110 102
Weighted FASTBin/FASTVend installations (MEUs; end of period) 137,702 129,996 5.9 %
FASTStock sales $ 279.8 239.1 17.0 %
% of sales 12.5 % 12.1 %
FASTBin/FASTVend sales $ 721.6 619.9 16.4 %
% of sales 32.3 % 31.3 %
FMI sales $ 1,001.4 859.0 16.6 %
FMI daily sales $ 15.9 13.6
% of sales 44.9 % 43.3 %
eBusiness sales $ 648.8 607.6 6.8 %
% of sales 29.1 % 30.7 %
Less: eBusiness and FMI sales overlap $ 278.4 258.6 7.6 %
% of sales 12.5 % 13.1 %
Digital Footprint sales $ 1,371.8 1,208.0 13.6 %
% of sales 61.5 % 61.0 %
(1)Our eBusiness includes eProcurement activities, which are integrated transactions, including electronic data interchange (EDI), and eCommerce (transactional website sales).
(2)Digital Footprint is a combination of our sales through FMI (FASTStock, FASTBin, and FASTVend) plus that portion of our eBusiness sales that does not represent billings of FMI services.
(3)Weighted FASTBin/FASTVend signings and installations reflects the percent change compared to the same period in the prior year.
Gross Profit
Gross profit, as a percentage of net sales, decreased to 44.6% in the first quarter of 2026 from 45.1% in the first quarter of 2025, driven primarily by unfavorable price/cost of approximately 50 basis points, and smaller headwinds from transportation and certain customer rebates. Customer mix remained a structural headwind to gross margin, as growth skewed toward larger customers that carry lower gross margins but remain positive to operating margin due to strong fixed-cost leverage. Our fastener expansion project benefits continued to provide a meaningful offset, mitigating some underlying gross margin pressure; these benefits will anniversary early in the second quarter of 2026.
SG&A Expenses
SG&A expenses, as a percentage of net sales, were 24.3% in the first quarter of 2026 versus 25.0% in the first quarter of 2025.
The approximate change as a percentage of net sales in employee-related, occupancy-related, and all other SG&A expenses compared to the same period in the preceding year, is outlined in the table below.
Approximate Percentage of Total SG&A Expenses Three-month Period
2026
Employee-related expenses 70% to 75% 0 bps
Occupancy-related expenses 15% to 20% -30 bps
All other SG&A expenses 10% to 15% -40 bps
Employee-related expenses include: (1) payroll (which includes cash compensation, stock option expense, and profit sharing), (2) health care, (3) personnel development, and (4) social taxes.
In the first quarter of 2026, our employee-related expenses remained stable as a percentage of net sales when compared to the first quarter of 2025. We realized about 60 basis points of leverage from improved FTE productivity. Bonuses and commissions increased 55 basis points as a result of improved business activity and financial performance versus the same period in the prior year.
The table below summarizes our FTE headcount at the end of the periods presented and the percentage change compared to the end of the prior periods:
Change
Since: 		Change
Since:
Q1
2026 		Q4
2025 		Q4
2025 		Q1
2025 		Q1
2025
Selling personnel (1)
15,450 15,439 0.1 % 15,236 1.4 %
Distribution/Transportation personnel 3,125 3,056 2.3 % 3,111 0.5 %
Manufacturing personnel 1,001 958 4.5 % 957 4.6 %
Organizational support personnel (2)
2,187 2,149 1.8 % 2,035 7.5 %
Total personnel 21,763 21,602 0.7 % 21,339 2.0 %
(1)
Of our Selling personnel, 80%-85% are attached to a specific location.
(2)
Organizational support personnel consists of: (1) Sales Support personnel (37% to 42% of category), which includes sourcing, purchasing, supply chain, product development, etc.; (2) IT personnel (34% to 39% of category); and (3) Administrative Support personnel (22% to 27% of category), which includes human resources, Fastenal School of Business, accounting and finance, senior management, etc.
Occupancy-related expenses include: (1) building rent and depreciation, (2) building utility costs, (3) equipment related to our selling and distribution locations, and (4) industrial vending equipment and bins utilized as part of FMI services (we consider this hardware to be a logical extension of our in-market operations and classify the depreciation and repair costs as occupancy expenses).
In the first quarter of 2026, our occupancy-related expenses improved 30 basis points as a percentage of net sales when compared to the first quarter of 2025, driven mainly by fixed cost leverage.
All other SG&A expenses include: (1) selling-related transportation, (2) IT expenses, (3) general corporate expenses, which consist of legal expenses, general insurance expenses, travel and marketing expenses, etc., and (4) sales of property and equipment.
Combined, all other SG&A expenses improved 40 basis points as a percentage of net sales in the first quarter of 2026 when compared to the first quarter of 2025. The improvement was mainly driven by reductions in expense related to currency revaluation of certain assets and increases in joint marketing efforts with our suppliers.
Operating Income
Operating income, as a percentage of net sales, increased to 20.3% in the first quarter of 2026 from 20.1% in the first quarter of 2025.
Net Interest
Net interest income was $0.8 in the first quarter of 2026, compared to net interest expense of $0.8 in the first quarter of 2025, reflecting lower debt balances and higher interest income.
Income Taxes
We recorded income tax expense of $108.6 in the first quarter of 2026, or 24.2% of income before income taxes. Income tax expense was $94.4 in the first quarter of 2025, or 24.0% of income before income taxes. We believe our ongoing tax rate, absent any discrete tax items or broader changes to tax law, will be approximately 24.6%.
Net Income
Net income was $339.8 in the first quarter of 2026, an increase of 13.8% compared to the first quarter of 2025. Diluted net income per share was $0.30 compared to $0.26 in the first quarter of 2025.
Liquidity and Capital Resources
Cash flow activity was as follows for the periods ended March 31:
Three-month Period
Five-Year Average (1)
2026 2025 Change
Net cash provided by operating activities $ 378.4 262.2 44.3 %
% of net income 109.6 % 111.4 % 87.8 %
Net cash used in investing activities $ 57.6 53.8 7.1 %
% of net income 14.3 % 17.0 % 18.0 %
Net cash used in financing activities $ 288.3 235.5 22.4 %
(1) Five-year average includes first quarter average for 2021 to 2025.
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $116.2 in the first quarter of 2026 when compared to the first quarter of 2025. This increase in operating cash flow compared to last year, as a percent of net income, primarily reflects a focused effort to optimize inventory levels.
The dollar and percentage change in accounts receivable, net, inventories, and accounts payable as of March 31, 2026 when compared to March 31, 2025 were as follows:
March 31 Twelve-month Dollar Change Twelve-month Percentage Change
2026 2025 2026 2026
Accounts receivable, net $ 1,445.2 1,278.7 $ 166.5 13.0 %
Inventories 1,692.5 1,673.9 18.6 1.1 %
Accounts payable (363.2) (341.1) (22.1) 6.5 %
Trade working capital, net $ 2,774.5 2,611.5 $ 163.0 6.2 %
Net sales in last three months $ 2,201.7 1,959.4 $ 242.2 12.4 %
The increase in our accounts receivable balance in the first quarter of 2026 was mainly attributable to growth in sales with our customers, including relative growth with larger customers that tend to carry longer payment terms.
The slight increase in our inventory balance in the first quarter of 2026 reflects disciplined inventory management and optimization during the period.
The increase in our accounts payable balance in the first quarter of 2026 was mainly attributable to an increase in inventory spending to support growth which was partially offset by timing associated with capital expenditures and general insurance payment activity.
Net Cash Used in Investing Activities
Net cash used in investing activities increased $3.8 in the first quarter of 2026 when compared to the first quarter of 2025. This was mainly related to an increase in spending for facility construction and upgrades, IT, and vehicles.
Our capital spending typically falls into five categories: (1) purchases related to FMI hardware, (2) purchases of property and equipment related to expansion of and enhancements to distribution centers, owned or leased branch properties, and other company facilities, (3) spending on software and hardware for our information processing systems, (4) the addition of fleet vehicles, and (5) the addition of manufacturing equipment. Proceeds from the sales of property and equipment, typically for the planned disposition of pick-up trucks as well as distribution vehicles and trailers in the normal course of business, are netted
against these purchases and additions. During the first quarter of 2026, our net capital expenditures (purchases of property and equipment, net of proceeds from sales of property and equipment) were $57.6, which was a slight increase from $53.8 in the first quarter of 2025.
Cash requirements for capital expenditures were satisfied from cash generated from operations, available cash and cash equivalents, our borrowing capacity, and the proceeds of disposals. For 2026, we continue to expect our net capital expenditures to be within a range of $310.0 to $330.0, an increase from $230.6 in 2025. The expected growth on a year-to-year basis reflects three items. First, we expect increased spending to replace our Atlanta hub facility and improve our picking capacity and efficiency across our hub network. Second, we expect increased trucking spend. Third, we expect elevated IT spending as projects that were expected in 2025 experienced delays and are expected to continue throughout 2026.
Net Cash Used in Financing Activities
Net cash used in financing activities increased $52.8 in the first quarter of 2026 when compared to the first quarter of 2025. In the first quarter of 2026, we had lower average borrowings and a smaller proportion of those balances were part of a facility that was eligible for repayment. In contrast, during the first quarter of 2025, we had higher average borrowings outstanding and were using capital to reduce those balances. As a result, we used significantly less capital to reduce debt balances in the first quarter of 2026 relative to the first quarter of 2025. We also increased capital returned to shareholders through dividends and share repurchases in the period.
During the first quarter of 2026, we returned $295.7, or 87.0% of net income, to our shareholders in the form of dividends ($275.6) and share repurchases ($20.1), compared to the first quarter of 2025 when we returned $246.7, or 82.6% of net income, to our shareholders in the form of dividends. Our five-year average returned to our shareholders as a percentage of net income is 73.6%. During the first quarter of 2026, we purchased 425,000 shares of our common stock at an average price of approximately $47.27 per share. We did not purchase any shares of our common stock in the first quarter of 2025.
We have authority to purchase up to 11,975,000 shares of our common stock under the July 12, 2022 authorization. This authorization does not have an expiration date.
Our material cash requirements for known contractual obligations include capital expenditures, debt, and lease obligations, each of which are discussed in more detail earlier in this report in the Notes to Condensed Consolidated Financial Statements and in our 2025 annual report on Form 10-K.
An overview of our cash dividends paid or declared in 2026 and 2025 is contained in Note 3 of the Notes to Condensed Consolidated Financial Statements.
Critical Accounting Policies and Estimates - A discussion of our critical accounting policies and estimates is contained in our 2025 annual report on Form 10-K. There have been no material changes from the critical accounting policies and estimates disclosed in our annual report on Form 10-K.
Recently Issued and Adopted Accounting Pronouncements - A description of recently issued and adopted accounting pronouncements, if any, is contained in Note 1 of the Notes to Condensed Consolidated Financial Statements.
Forward-Looking Statements - Certain statements contained in this quarterly report on Form 10-Q do not relate strictly to historical or current facts. As such, they are considered 'forward-looking statements' that provide current expectations or forecasts of future events. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements can be identified by the use of terminology such as anticipate, believe, should, estimate, expect, intend, may, will, plan, goal, project, hope, trend, target, opportunity, and similar words or expressions, or by references to typical outcomes. Any statement that is not a purely historical fact, including estimates, projections, trends, and the outcome of events that have not yet occurred, is a forward-looking statement. Our forward-looking statements generally relate to our expectations and beliefs regarding the business environment in which we operate, our projections of future performance, our perceived marketplace opportunities, our strategies, goals, mission and vision, our expectations related to future capital expenditures, future investment in property and equipment, future tax rates, including anticipated tax impacts from recent legislation, future inventory levels, the declaration and payment of dividends, pricing, weighted FMI device signings, the impact of inflation on our cost of goods or SG&A expenses, the impact of price increases on overall sales growth or margin performance, and our ability to grow our business through the enhancement of sales through our Digital Footprint. You should understand that forward-looking statements involve a variety of risks and uncertainties, known and unknown, and may be affected by inaccurate assumptions. Consequently, no forward-looking statement can be guaranteed and actual results may vary materially. Factors that could cause our actual results to differ from those discussed in the forward-looking statements include, but are not limited to, economic downturns, weakness in the manufacturing or commercial construction industries or any of our end markets, competitive pressure on selling prices, changes in our current mix of products, customers, or geographic locations, changes in our average branch size, changes in our purchasing patterns, changes in customer needs, changes in fuel or commodity prices, inclement weather, changes in foreign currency exchange rates, difficulty in adapting our business model to different foreign business environments and the challenges of operating in foreign business environments, failure to accurately predict the market potential of our business strategies, the introduction or expansion of new business strategies, weak acceptance or adoption of our FMI offering, increased competition in FMI, difficulty in maintaining installation quality as our FMI business expands, the leasing to customers of a significant number of additional FMI devices, the failure to meet our goals and expectations regarding branch openings, branch closings, or expansion of our FMI offering, the failure to realize expected benefits from the completion of our strategic rationalization, changes in the implementation objectives of our business strategies, challenges in developing and expanding our digital capabilities, difficulty in hiring, relocating, training, or retaining qualified personnel, difficulty in controlling SG&A expenses, including FTE growth, difficulty in collecting receivables or accurately predicting future inventory needs, dramatic changes in sales trends, changes in supplier production lead times, short-term inefficiencies in our supply chain may not normalize or result in certain warehousing customer growth, changes in our cash position or our need to make capital expenditures, credit market volatility, changes in tax law or the impact of any such changes on future tax rates, changes in tariffs or the impact of any such changes on our financial results including any changes resulting from the recent U.S. Supreme Court decision affecting tariffs imposed under the IEEPA, changes in the availability or price of commercial real estate, changes in the nature, price, or availability of distribution, supply chain, or other technology (including software licensed from third parties) and services related to that technology, cyber-security incidents, potential liability and reputational damage that can arise if our products are defective, difficulties measuring the contribution of price increases on sales growth, acts of war, and other risks and uncertainties detailed in our filings with the Securities and Exchange Commission, including our most recent annual and quarterly reports. Each forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any such statement to reflect events or circumstances arising after such date.
Fastenal Company published this content on April 16, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on April 16, 2026 at 14:47 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]