Fastenal Co (NASDAQ:FAST) Reports Mixed Q3 2025 Results, Missing Revenue and EPS Estimates

Fastenal Co (NASDAQ:FAST) reported its financial results for the third quarter of 2025, delivering a performance that presented a mixed picture for investors. The industrial supplies distributor posted sales growth but fell short of analyst expectations on the top and bottom lines, leading to a notable negative reaction in pre-market trading.

Earnings Snapshot Versus Estimates

The company's Q3 2025 results showed a clear divergence from Wall Street's forecasts. While Fastenal demonstrated fundamental growth, it was not enough to meet the market's elevated expectations.

• Revenue: Reported $2.13 billion, missing the analyst consensus estimate of $2.17 billion.
• Earnings Per Share (EPS): Reported $0.29 per share, coming in below the estimated $0.30 per share.

This dual miss appears to be the primary driver behind the stock's pre-market decline of over 4%. The market's reaction underscores the heightened sensitivity to earnings surprises, even when a company is growing in absolute terms.

Quarterly Performance Highlights

Despite the earnings miss, Fastenal's third quarter showed robust underlying business activity. Net sales increased by 11.7% to $2.13 billion, up from $1.91 billion in the same period last year. The company attributed this growth to improved customer contract signings and an increase in unit sales.

Profitability metrics also showed strength, with several key figures outpacing sales growth:

• Gross profit rose 12.5% to $965.8 million, with the gross margin improving to 45.3% from 44.9% a year ago.
• Operating income increased 13.7% to $441.5 million.
• Net income grew 12.6% to $335.5 million.

The company's performance was notably driven by its fastener product line, which saw a significant rebound, and continued strength in its manufacturing end markets. Growth with contract customers continued to outpace non-contract sales, reflecting the success of the company's strategic focus on larger, managed relationships.

Operational and Strategic Developments

Fastenal continues to advance its digital and in-market service initiatives, which are central to its growth strategy. The company signed 7,050 weighted FASTBin and FASTVend devices during the quarter, contributing to a total of 19,925 signings in the first nine months of 2025.

From a financial health perspective, the company generated strong operating cash flow of $386.9 million during the quarter, representing 115.3% of net income. Fastenal also returned $252.5 million to shareholders through dividends, maintaining its commitment to capital returns.

Looking Ahead

The press release did not provide a specific quantitative financial outlook for the coming quarters beyond certain operational targets. The company reaffirmed its goal for weighted FASTBin and FASTVend device signings in 2025 to be between 25,000 to 26,000 machine equivalent units.

For context, analysts currently estimate Q4 2025 revenue of $2.09 billion and full-year 2025 sales of $8.38 billion. The absence of company-provided guidance against these estimates leaves investors to interpret the Q3 results as the best indicator of near-term trajectory.

For a detailed view of Fastenal's historical earnings performance and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any securities. The information presented should not be used as the sole basis for any investment decisions.