Fastenal Company (NASDAQ:FAST) saw its stock drop 4% in pre-market trading Monday after reporting third-quarter earnings that came in slightly below analyst forecasts, even as revenue showed double-digit growth.
For the quarter ended September 30, 2025, the company posted earnings per share of $0.29, missing the consensus estimate of $0.30. Revenue totaled $2.13 billion, matching analyst projections and marking an 11.7% increase from the same period a year earlier.
The company attributed the top-line growth to stronger customer contract activity since early 2024 and a 14.4% jump in fastener product sales. Pricing initiatives added between 240 and 270 basis points to quarterly sales growth. Fastenal also noted steady demand across all major product lines, despite a muted industrial production environment.
“We experienced an increase in unit sales in the third quarter of 2025,” said CEO Dan Florness. “This was due to growth in the number of customer sites spending $10,000 or more per month with Fastenal and, to a lesser degree, growth in average monthly sales per customer site across all customer spend categories.”
Gross profit margin rose to 45.3% from 44.9% in the same quarter last year, while operating income climbed 13.7% to $441.5 million. Selling, general, and administrative expenses remained flat at 24.6% of sales.
By segment, the company’s manufacturing end markets were a bright spot: heavy manufacturing revenue increased 12.4% year over year, while other manufacturing rose 12.9%. Non-residential construction posted growth for only the second time in 12 consecutive quarters.
Looking ahead, Fastenal expects capital expenditures to range between $235 million and $255 million in 2025, up from $214.1 million in 2024. The increased spending is aimed at modernizing distribution centers and upgrading technology infrastructure.
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