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Fastenal (NASDAQ: FAST) Q1 2026 net income climbs to $339.8M

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(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Fastenal Company reported strong results for the quarter ended March 31, 2026. Net sales reached $2,201.7 million, up 12.4% from $1,959.4 million as daily sales grew 12.4%, helped by contract customers, manufacturing end markets, and digital solutions.

Net income rose to $339.8 million from $298.7 million, with diluted earnings per share increasing to $0.30 from $0.26. Operating margin edged up to 20.3% from 20.1%, as SG&A leverage more than offset a modest decline in gross margin to 44.6%.

Operating cash flow was $378.4 million, up 44.3% and equal to 111.4% of net income, supported by tighter inventory management. The company returned $295.7 million, or 87.0% of net income, to shareholders via $275.6 million in dividends and $20.1 million of share repurchases, while total debt stood at $125.0 million, or 3.0% of total capital.

Positive

  • Strong top- and bottom-line growth: Net sales increased 12.4% to $2,201.7 million while net income grew 13.8% to $339.8 million and diluted EPS rose from $0.26 to $0.30.
  • Exceptional cash generation and returns: Operating cash flow rose 44.3% to $378.4 million (111.4% of net income), and the company returned $295.7 million, or 87.0% of net income, to shareholders via dividends and buybacks.

Negative

  • None.

Insights

Fastenal delivered double-digit growth, robust cash generation, and disciplined capital returns in Q1 2026.

Fastenal grew net sales 12.4% to $2,201.7 million, with daily sales up the same rate and broad strength across manufacturing and non-residential construction. Net income increased 13.8% to $339.8 million, and operating margin improved slightly to 20.3%, showing good cost control.

Gross margin slipped to 44.6% due mainly to price/cost pressure and customer mix, but SG&A fell to 24.3% of net sales, producing higher operating profitability. Digital and technology-driven channels were important contributors, with FMI sales up 16.6% to $1,001.4 million and Digital Footprint sales up 13.6% to $1,371.8 million.

Operating cash flow rose 44.3% to $378.4 million, or 111.4% of net income, aided by inventory optimization. Fastenal returned $295.7 million (including $275.6 million in dividends and $20.1 million of buybacks) and kept total debt modest at $125.0 million. Management also outlined 2026 capital spending plans of $310.0 to $330.0 million for facilities, trucking, and IT.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net sales $2,201.7 million Quarter ended March 31, 2026; up 12.4% year-over-year
Net income $339.8 million Quarter ended March 31, 2026; up 13.8% year-over-year
Diluted EPS $0.30 per share Quarter ended March 31, 2026; up from $0.26 in 2025
Operating margin 20.3% Q1 2026, compared with 20.1% in Q1 2025
Operating cash flow $378.4 million Q1 2026, 44.3% higher and 111.4% of net income
Shareholder returns $295.7 million Q1 2026 dividends and repurchases; 87.0% of net income
Total debt $125.0 million End of Q1 2026; 3.0% of total capital
Digital Footprint sales $1,371.8 million Q1 2026; 13.6% growth and 61.5% of total sales
daily sales financial
"Daily sales increased 12.4% year-over-year, primarily driven by share gains"
operating margin financial
"Operating margin was 20.3% (an increase of 20 basis points year-over-year)"
Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.
FMI Technology technical
"FMI Technology comprises our FASTStock℠, FASTBin®, and FASTVend® offerings"
Digital Footprint financial
"Digital Footprint is a combination of our sales through FMI plus that portion of our eBusiness sales"
Digital footprint is the record of a company’s online presence and activity—everything from its website, social media posts and customer reviews to the data it collects and the traces left by employees and customers. Investors care because this online footprint shapes reputation, customer reach, regulatory and privacy exposure, and cyber risk; like a public profile or résumé, it helps predict future sales, costs and potential liabilities that affect company value.
trade working capital financial
"Trade working capital, net was $2,774.5, an increase of 6.2%"
Trade working capital is the amount of money a company has tied up in its everyday trading cycle — mainly the value of inventory plus customer receivables minus supplier payables. Think of it as cash stuck in products on shelves and invoices waiting to be paid, offset by bills the company can defer. Investors watch it because rising needs for trade working capital can choke cash flow, require extra borrowing, and signal changes in operating efficiency.
operating lease right-of-use assets financial
"Operating lease right-of-use assets were $312.3 and $309.0"
An operating lease right-of-use (ROU) asset is an accounting entry that shows the value of a leased item you have the legal right to use—like a building, vehicle, or equipment—recorded on a company’s balance sheet along with the corresponding lease obligation. Investors care because it adds to reported assets and liabilities, changing measures like leverage and return on assets much like bringing a long-term rental onto the company’s financial snapshot, which can affect credit terms and valuation.
Net sales $2,201.7 million +12.4% year-over-year
Net income $339.8 million +13.8% year-over-year
Diluted EPS $0.30 +13.6% year-over-year
Operating margin 20.3% +0.2 percentage points year-over-year
Operating cash flow $378.4 million +44.3% year-over-year
Guidance

For 2026, Fastenal expects investment in property and equipment, net of proceeds from sales, to be in the range of $310.0 to $330.0 million and believes its ongoing tax rate will be approximately 24.6%, absent discrete items or tax law changes.

Understanding 8-K Material Events →
0000815556false00008155562026-04-132026-04-13


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) April 13, 2026
FASTENAL COMPANY
(Exact name of registrant as specified in its charter)
Minnesota0-1612541-0948415
(State or other jurisdiction
of incorporation)		(Commission File Number)(IRS Employer Identification No.)
2001 Theurer Boulevard, Winona, Minnesota
55987-1500
      (Address of principal executive offices) (Zip Code)
(507) 454-5374
 (Registrant's telephone number, including area code)
        
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 ☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 ☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 ☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 ☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $.01 per shareFASTThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933
(17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging Growth Company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition.
 
On April 13, 2026, the Registrant issued a press release announcing the results of its most recently ended fiscal quarter, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
 
Item 9.01. Financial Statements and Exhibits.

INDEX TO EXHIBITS
Exhibit
Number		Description of Document
99.1
Press release dated April 13, 2026.
104The cover page from the Current Report on Form 8-K formatted in Inline XBRL.


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
  Fastenal Company
(Registrant)
April 13, 2026By:/s/   SHERYL A. LISOWSKI
(Date)
Sheryl A. Lisowski
Executive Vice President - Chief Accounting Officer and Treasurer


EXHIBIT 99.1
Fastenal Company Reports 2026 First Quarter Earnings
•Daily sales increased 12.4% year-over-year, primarily driven by share gains and broad-based demand across core end markets.
•Operating margin was 20.3% (an increase of 20 basis points year-over-year), reflecting operating leverage and cost discipline, partially offset by an ongoing shift in customer mix.
•Operating cash flow was $378 million, representing 111% of net income, supported by disciplined working capital management.
•Returned $296 million to shareholders through dividends and share repurchases.
•Continued progress on strategic initiatives, including increased sales effectiveness through key account wins, expansion of technology, and deeper penetration through new customer site growth.
WINONA, Minn., April 13, 2026 (BUSINESS WIRE) -- Fastenal Company (Nasdaq:FAST) ('Fastenal,' 'we,' 'our,' or 'us'), a leader in the wholesale distribution of industrial and construction supplies, today reported its financial results for the quarter ended March 31, 2026. Except for share and per share information, or as otherwise noted below, dollar amounts in this release are stated in millions. All historical common stock share and per share information and stockholders' equity balances for all periods presented in this release, including the financial statements attached to this release, have been retroactively adjusted to reflect a two-for-one stock split effective at the close of business on May 21, 2025. Percentage and dollar calculations, which are based on non-rounded dollar values, may not be recalculated or footed using the dollar values included 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.
PERFORMANCE SUMMARY
 Three-month Period
 20262025Change
Net sales$2,201.7 1,959.4 12.4%
Business days63 63 
Daily sales$34.9 31.1 12.4%
Gross profit$982.9 883.9 11.2%
 % of net sales44.6%45.1%
Selling, general, and administrative (SG&A) expenses $535.3 490.0 9.3%
% of net sales24.3%25.0%
Operating income$447.6 393.9 13.6%
 % of net sales20.3%20.1%
Income before income taxes$448.3 393.1 14.0%
 % of net sales20.4%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.
QUARTERLY RESULTS OF OPERATIONS
Sales
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.
1

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
2026202520262025
Direct fasteners/hardware13.8%3.5%21.0%20.7%
Direct cutting tools and abrasives11.3%4.6%5.1%5.2%
Direct non-fasteners/hardware12.7%9.1%12.7%12.8%
Total direct materials13.1%5.4%38.8%38.7%
Indirect fasteners/hardware17.3%1.1%10.0%9.7%
Indirect safety11.3%6.9%20.8%21.3%
Indirect non-fasteners/hardware and non-safety11.7%6.1%30.4%30.3%
Total indirect materials12.4%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
2026202520262025
Heavy manufacturing14.1%4.8%44.0%43.4%
Other manufacturing 9.9%9.7%32.2%33.0%
Total manufacturing12.3%6.8%76.2%76.4%
Non-residential construction17.2%-3.4%8.2%7.8%
Other end markets11.3%0.8%15.6%15.8%
Total non-manufacturing13.2%-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
2026202520262025
Contract sales14.6%8.5%75.4%73.1%
Non-contract sales6.7%-3.6%24.6%26.9%
2

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 manufacturing40,864 $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-manufacturing51,581 $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 
All Sites per month92,445 $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.
3

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
20262025
DSR
Change (3)
Weighted FASTBin/FASTVend signings (MEUs)6,950 6,418 8.3%
Signings per day110 102 
Weighted FASTBin/FASTVend installations (MEUs; end of period)137,702 129,996 5.9%
FASTStock sales$279.8 239.1 17.0%
% of sales12.5%12.1%
FASTBin/FASTVend sales$721.6 619.9 16.4%
% of sales32.3%31.3%
FMI sales$1,001.4 859.0 16.6%
FMI daily sales$15.9 13.6 
% of sales44.9%43.3%
 eBusiness sales$648.8 607.6 6.8%
% of sales29.1%30.7%
Less: eBusiness and FMI sales overlap$278.4 258.6 7.6%
% of sales12.5%13.1%
Digital Footprint sales$1,371.8 1,208.0 13.6%
% of sales61.5%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.
Employee-related expenses, which typically represent 70% to 75% of total SG&A expenses, remained stable as a percentage of net sales in the first quarter of 2026 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.
Occupancy-related expenses, which typically represent 15% to 20% of total SG&A expenses, improved 30 basis points as a percentage of net sales in the first quarter of 2026 compared to the first quarter of 2025, driven mainly by fixed cost leverage.
Combined, all other SG&A expenses, which typically represent 10% to 15% of total SG&A expenses, improved 40 basis points as a percentage of net sales in the first quarter of 2026 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.
4

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.
CASH FLOW AND BALANCE SHEET
Net cash provided by operating activities was $378.4 in the first quarter of 2026, an increase of 44.3% from the first quarter of 2025, representing 111.4% of net income versus 87.8% in the first quarter of 2025. Our five-year first quarter average is 109.6% of net income. 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 31Twelve-month Dollar ChangeTwelve-month Percentage Change
 2026202520262026
Accounts receivable, net$1,445.2 1,278.7 $166.5 13.0%
Inventories1,692.5 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.
During the first quarter of 2026, our investment in property and equipment, net of proceeds from sales, was $57.6, which was a slight increase from $53.8 in the first quarter of 2025. This was mainly related to an increase in spending for facility construction and upgrades, information technology (IT), and vehicles.
For 2026, we continue to expect our investment in property and equipment, net of proceeds from sales, 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.
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%.
Total debt on our balance sheet was $125.0 at the end of the first quarter of 2026, or 3.0% of total capital (the sum of stockholders' equity and total debt), compared to $200.0, or 5.1% of total capital, at the end of the first quarter of 2025.
5

ADDITIONAL INFORMATION
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 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 headcount17,235 17,166 0.4 %16,995 1.4 %
Selling personnel - FTE employee headcount15,450 15,439 0.1 %15,236 1.4 %
Total personnel - absolute employee headcount24,675 24,489 0.8 %24,181 2.0 %
Total personnel - FTE employee headcount21,763 21,602 0.7 %21,339 2.0 %
6

CONFERENCE CALL TO DISCUSS QUARTERLY RESULTS
As we previously disclosed, we will host a conference call today to review the quarterly results, as well as current operations. This conference call will be broadcast live over the Internet at 9:00 a.m., central time. To access the webcast, please go to our Investor Relations Website at https://investor.fastenal.com/events.cfm.
ADDITIONAL MONTHLY AND QUARTERLY INFORMATION
We publish on the 'Investor Relations' page of our website at www.fastenal.com both our monthly consolidated net sales information and the presentation for our quarterly conference call (which includes information, supplemental to that contained in our earnings announcement, regarding results for the quarter). We expect to publish the consolidated net sales information for each month, other than the third month of a quarter, at 6:00 a.m., central time, on the fourth business day of the following month. We expect to publish the consolidated net sales information for the third month of each quarter and the conference call presentation for each quarter at 6:00 a.m., central time, on the date our earnings announcement for such quarter is publicly released.
ANNUAL MEETING OF SHAREHOLDERS WEBCAST
On Thursday, April 23, 2026, we will be holding our Annual Meeting of Shareholders (the 'Annual Meeting') at the Remlinger Muscle Car Museum located at 3560 Service Drive, Winona, Minnesota. The Annual Meeting will be webcast from 10:00 a.m., central time, until the conclusion of the meeting. To access the webcast, please go to the Fastenal Company Investor Relations Website at https://investor.fastenal.com/events.cfm.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this document 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 historical fact, including estimates, projections, future 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, and our expectations about future capital expenditures, future tax rates, future inventory levels, pricing, weighted FMI technology signings, future sales attributable to our Digital Footprint, investment in property and equipment, the impact of inflation or deflation on our cost of goods, and future operating results and business activity. You should understand that forward-looking statements involve a variety of risks and uncertainties, known and unknown (including risks disclosed in our most recent annual and quarterly reports), 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, those detailed in 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. FAST-E
7

FASTENAL COMPANY
Condensed Consolidated Balance Sheets
(Amounts in millions except share and per share information)
(Unaudited)
AssetsMarch 31,
2026		December 31,
2025
Current assets:  
Cash and cash equivalents$308.6 276.8 
Trade accounts receivable, net of allowance for credit losses of $6.3 and $5.3, respectively
1,445.2 1,245.3 
Inventories1,692.5 1,748.0 
Prepaid income taxes12.1 20.1 
Other current assets161.4 181.9 
Total current assets3,619.8 3,472.1 
Property and equipment, net1,140.3 1,131.6 
Operating lease right-of-use assets312.3 309.0 
Other assets137.4 140.2 
Total assets$5,209.8 5,052.9 
Liabilities and Stockholders' Equity
Current liabilities:  
Current portion of debt$25.0 25.0 
Accounts payable363.2 316.8 
Accrued expenses242.6 264.7 
Current portion of operating lease liabilities106.1 106.1 
Income taxes payable87.2 3.0 
Total current liabilities824.1 715.6 
Long-term debt100.0 100.0 
Operating lease liabilities214.4 210.8 
Deferred income taxes65.5 67.4 
Other long-term liabilities16.4 15.5 
Stockholders' equity:  
Preferred stock: $0.01 par value, 5,000,000 shares authorized, no shares issued or outstanding
— — 
Common stock: $0.01 par value, 1,600,000,000 shares authorized, 1,148,000,984 and 1,148,057,473 shares issued and outstanding, respectively
11.5 11.5 
Additional paid-in capital105.3 115.5 
Retained earnings3,931.9 3,867.7 
Accumulated other comprehensive loss(59.2)(51.1)
Total stockholders' equity3,989.5 3,943.6 
Total liabilities and stockholders' equity$5,209.8 5,052.9 
8

FASTENAL COMPANY
Condensed Consolidated Statements of Income
(Amounts in millions except income per share)
(Unaudited)
Three Months Ended
March 31,
20262025
Net sales$2,201.7 1,959.4 
Cost of sales1,218.8 1,075.5 
Gross profit982.9 883.9 
Selling, general, and administrative expenses535.3 490.0 
Operating income447.6 393.9 
Interest income1.6 0.9 
Interest expense(0.8)(1.7)
Income before income taxes448.3 393.1 
Income tax expense108.6 94.4 
Net income$339.8 298.7 
Basic net income per share$0.30 0.26 
Diluted net income per share$0.30 0.26 
Basic weighted average shares outstanding1,148.2 1,146.9 
Diluted weighted average shares outstanding1,150.9 1,149.5 
9

FASTENAL COMPANY
Condensed Consolidated Statements of Cash Flows
(Amounts in millions)
(Unaudited)
Three Months Ended
March 31,
20262025
Cash flows from operating activities:
Net income$339.8 298.7 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment41.9 42.0 
Loss (gain) on sale of property and equipment1.0 (0.3)
Bad debt expense1.4 1.8 
Deferred income taxes(1.8)0.7 
Stock-based compensation2.6 2.0 
Amortization of intangible assets2.7 2.7 
Changes in operating assets and liabilities:
Trade accounts receivable, net(204.2)(170.0)
Inventories52.5 (26.5)
Other current assets20.3 10.2 
Accounts payable46.6 45.3 
Accrued expenses(17.1)(8.8)
Income taxes92.2 70.9 
Other0.5 (6.5)
Net cash provided by operating activities378.4 262.2 
Cash flows from investing activities:
Purchases of property and equipment(58.9)(55.7)
Proceeds from sale of property and equipment1.3 1.9 
Other0.0 0.0 
Net cash used in investing activities(57.6)(53.8)
Cash flows from financing activities:
Proceeds from debt obligations47.0 155.0 
Payments against debt obligations(47.0)(155.0)
Proceeds from exercise of stock options7.6 11.2 
Purchases of common stock (20.3)— 
Cash dividends paid(275.6)(246.7)
Net cash used in financing activities(288.3)(235.5)
Effect of exchange rate changes on cash and cash equivalents(0.6)3.1 
Net increase (decrease) in cash and cash equivalents31.9 (24.0)
Cash and cash equivalents at beginning of period276.8 255.8 
Cash and cash equivalents at end of period$308.6 231.8 
Supplemental information:
Cash paid for interest$0.7 1.5 
Net cash paid for income taxes$16.0 21.9 
Leased assets obtained in exchange for new operating lease liabilities$32.0 30.4 
10

CONTACT:Dray Schreiber
Accounting Manager
507.313.7324
11

Source: View Original Filing on SEC EDGAR

FAQ

How did Fastenal (FAST) perform financially in Q1 2026?

Fastenal delivered strong Q1 2026 results, with net sales of $2,201.7 million, up 12.4% year-over-year. Net income rose 13.8% to $339.8 million, and diluted earnings per share increased to $0.30 from $0.26, reflecting both revenue growth and operating leverage.

What happened to Fastenal (FAST) margins in the first quarter of 2026?

Fastenal’s gross margin edged down to 44.6% in Q1 2026 from 45.1%, mainly due to price/cost pressure and customer mix. However, SG&A expenses fell to 24.3% of net sales, improving operating margin slightly to 20.3% from 20.1%, showing effective cost discipline.

How strong was Fastenal’s (FAST) cash flow in Q1 2026?

Operating cash flow was very strong at $378.4 million in Q1 2026, up 44.3% from the prior year period. This represented 111.4% of net income, compared to 87.8% a year earlier, driven largely by focused inventory optimization and solid underlying profitability.

How much capital did Fastenal (FAST) return to shareholders in Q1 2026?

Fastenal returned $295.7 million to shareholders in Q1 2026, equal to 87.0% of net income. This included $275.6 million paid in cash dividends and $20.1 million used for share repurchases, exceeding the company’s five-year average payout ratio of 73.6% of net income.

How are Fastenal’s (FAST) digital and FMI Technology businesses performing?

Digital and technology-enabled channels continued to expand. FMI sales reached $1,001.4 million in Q1 2026, up 16.6% year-over-year, while Digital Footprint sales were $1,371.8 million, up 13.6%. These channels represented 44.9% and 61.5% of total sales, respectively, highlighting their growing importance.

What is Fastenal’s (FAST) balance sheet position after Q1 2026?

Fastenal ended Q1 2026 with total assets of $5,209.8 million and stockholders’ equity of $3,989.5 million. Total debt was $125.0 million, representing 3.0% of total capital, down from $200.0 million, or 5.1% of total capital, a year earlier, indicating modest leverage.

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