FAST · Fastenal Company

Fastenal Company delivered strong first quarter 2026 results, with net sales increasing 12.4% to $2.2 billion, driven by share gains and broad-based demand across core end markets. Daily sales growth of 12.4% reflected contributions from improved customer contract signings and a slight improvement in industrial production. Foreign exchange rates positively impacted sales by approximately 60 basis points, while product pricing contributed roughly 350 basis points to growth. Operating margin expanded 20 basis points to 20.3%, as operating leverage and cost discipline offset headwinds from an ongoing shift in customer mix toward larger accounts. Gross margin contracted 50 basis points to 44.6%, primarily due to unfavorable price/cost dynamics and customer mix, though the fastener expansion project provided a meaningful offset. SG&A expenses leveraged 70 basis points as a percentage of sales, driven by improved FTE productivity and fixed cost leverage. The company generated robust operating cash flow of $378 million, representing 111% of net income, and returned $296 million to shareholders through dividends and repurchases. Strategic initiatives showed continued progress, with contract sales outperforming non-contract sales and digital footprint sales reaching 61.5% of total revenue. Management maintained its goal for weighted FASTBin and FASTVend device signings in 2026 between 28,000 and 30,000 MEUs.