Shares of Fastenal Company (NASDAQ:FAST) gained over 3% in premarket trading Monday after the industrial and construction supplies distributor announced better-than-expected results for the second quarter, propelled by stronger customer contract signings and effective pricing strategies.
The Winona, Minnesota-based firm reported adjusted earnings per share of $0.29 for the quarter ending June 30, 2025, narrowly beating the $0.28 estimate from analysts. Revenue rose 8.6% year-over-year to $2.08 billion, slightly exceeding the consensus forecast of $2.07 billion and up from $1.92 billion in the prior year period.
The company credited its performance mainly to improved customer contract signings over the last six quarters, while product pricing added between 140 and 170 basis points to net sales. Contract sales increased 11% compared to the same quarter last year, significantly outpacing the 2.6% growth in non-contract sales.
“The results largely reflect the contribution from improved customer contract signings over the past six quarters,” Fastenal stated in its earnings report. “Market conditions remained sluggish, providing minimal contribution.”
Fastenal’s operating margin rose to 21.0% during the quarter, up from 20.2% a year earlier. Growth was reported across all product segments, led by safety supplies at 10.7%, followed by other product categories at 9.0%, and fasteners at 6.6%.
Additionally, the company noted a 12.4% increase in the number of customer sites spending $50,000 or more monthly compared to the same period in 2024.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.