Fastenal 2025 Q3 Earnings Strong Performance as Net Income Grows 12.5%

Fastenal reported its fiscal 2025 Q3 earnings on October 13, 2025. The company delivered strong results, with earnings and revenue both rising, though post-earnings stock price action has been mixed.

Fastenal's Q3 results beat expectations, with net income rising 12.5% year-over-year and EPS increasing 11.5%. The company maintained profitability for over two decades and provided guidance in line with expectations, signaling continued confidence in growth initiatives.

Revenue
Fastenal's total revenue climbed 11.7% to $2.13 billion in Q3 2025, compared to $1.91 billion in the same period the prior year. The increase reflects broad-based strength across the company’s business lines.

Earnings/Net Income
Earnings per share (EPS) rose 11.5% to $0.29, while net income surged to $335.50 million, a 12.5% increase from $298.10 million in 2024 Q3. This marks continued earnings growth and underscores the company’s strong operational resilience and long-term profitability.

Price Action
The stock price of Fastenal fell 2.90% on the latest trading day, 11.41% over the past full trading week, and 10.56% month-to-date, despite the strong earnings report.

Post Earnings Price Action Review
Daniel Florness, CEO, highlighted Fastenal's strong Q3 performance, driven by double-digit sales growth, margin expansion, and market share gains, even amid a flat industrial economy. He credited strategic alignment, customer service, and technology for the company’s success. Florness noted challenges from pricing pressures due to tariffs and inflation but expressed confidence in cost management and customer retention. While acknowledging potential margin challenges in Q4 due to rising costs, he remained optimistic about long-term returns, particularly from inventory investments and fastener expansion. He also expressed appreciation for the team's execution and adaptability and emphasized a culture of growth through customer service and operational excellence.

Guidance
Looking ahead, Fastenal expects gross margin to remain flat in 2025 compared to 2024, with a potential slight dip in Q4 due to pricing delays and cost pressures. The company anticipates continued sales growth driven by market share gains, digital initiatives, and contract signings. Capital expenditures for 2025 are projected between $235 million and $255 million, with a focus on FMI devices, distribution centers, IT projects, and vehicle purchases. Management emphasized prudent expense management while investing in growth-enabling areas.

Additional News
Fastenal released its 2025 Third Quarter Earnings report on October 13, 2025, under the title *Fastenal Company Reports 2025 Third Quarter Earnings*. The announcement was posted on the company’s investor relations website and included links to investor resources such as financial results, SEC filings, governance documents, and ESG information. There were no disclosed M&A activities, C-level executive changes, or dividend/buyback announcements within the three-week period following the earnings release. The content primarily focused on earnings disclosures and provided access to historical stock quotes, analyst coverage, and tax reporting information.