Fastenal Co. on Friday reported a 2.7% increase in annual sales after bringing in more than $7.5 billion in revenue in 2024.
The Minnesota fastener and industrial product distributor also saw an increase in sales in the final quarter of the year, although its Q4 numbers nonetheless fell short of analysts’ expectations.
The company — no. 4 on ID’s 2024 Big 50 — also reported a jump in full-year gross profit, which climbed from $3.35 billion in 2023 to more than $3.4 billion last year, but both operating income and net income declined year-over-year. Net income slid from $1.16 billion down to $1.15 billion, which translated to earnings that dropped from $2.02 per diluted share down to $2.
In the fourth quarter, Fastenal posted $1.82 billion in sales, up from $1.76 billion in the final quarter of 2023; on a daily average basis, quarterly sales rose 2.1%. The company’s Q4 net income, however, fell 1.6% year-over-year from $266 million down to $262 million. Operating income was off by 2.6% over that span as gross profit climbed by 2.3%.
The revenue and earnings totals each fell short of Wall Street forecasts for the quarter, according to reports.
Company officials pointed to a persistently soft manufacturing environment that was “exacerbated” by “unusually sharp production cuts” during the holidays by many of its largest customers. Fastenal also outlined its December sales on Friday, which were flat on a daily average basis compared with the final month of 2023.
The company attributed its quarterly sales growth to recently opened “Onsite” locations within customer facilities, along with other larger customers — despite the late December slowdowns. Its numbers were slower with smaller customers and in non-manufacturing segments. Foreign exchange rates also dented Q4 sales by some 20 basis points.
Fastenal officials said that contraction in its fastener portfolio eased in the quarter but “continued to lag our non-fastener product lines” — reflecting continued weakness in the broader industrial market. In addition, the company’s OEM products, including tools, welding supplies and abrasives, lagged behind its janitorial supplies, electrical products and other MRO-related offerings.
The company’s safety lineup, meanwhile, benefited from “lower volatility” in demand for PPE products, officials said.
