Fastenal Company (NASDAQ: FAST) shares dropped 4% intra-day on Monday after the industrial supplies distributor reported third-quarter earnings that missed analyst expectations, even as revenue grew at a solid pace.
The company posted earnings per share of $0.29 for the quarter ended September 30, 2025, missing the consensus forecast of $0.30. Revenue totaled $2.13 billion, in line with analyst expectations and up 11.7% from the same period a year earlier.
Fastenal’s revenue gains were supported by stronger customer contract activity since early 2024 and a 14.4% increase in fastener product sales. The company said product pricing contributed between 240 and 270 basis points to quarterly sales growth. Despite sluggish industrial production, Fastenal recorded growth across all major product categories.
Gross profit margin rose to 45.3% from 44.9% a year earlier, while operating income climbed 13.7% to $441.5 million. Selling, general and administrative expenses remained steady at 24.6% of sales, unchanged from the prior-year period.
For 2025, the company projected capital expenditures between $235 million and $255 million, up from $214.1 million in 2024, as it plans continued investments in distribution center upgrades and technology infrastructure.
