Fastenal on Monday reported stronger quarterly sales, profit and earnings totals amid growth among its larger customers.
The Minnesota fastener and industrial supply distributor — no. 4 on ID’s latest Big 50 — reported second-quarter net sales of $2.08 billion, up 8.6% from the same quarter last year. Fastenal officials attributed the improved sales numbers primarily to growth among customers spending $10,000 or more with the company per month; average monthly sales per customer site were also up in the latest quarter.
Product pricing, meanwhile, impacted net sales by 140 to 170 basis points during the quarter. Fastenal CEO Dan Florness said in April that the company had raised some prices following announcements of new tariffs.
The company’s quarterly gross profit rose 9.2% in the quarter to $942.8 million — which exceeded expectations on Wall Street — while operating income and net income climbed 12.7% and 12.8%, respectively.
Fastenal officials said the company's fastener sales lagged those in other product categories due to continued “sluggish industrial production” in the quarter, although fasteners saw improvement year-over-year. Its safety category was helped by “lower volatility” in demand for personal protective equipment.
Sales to manufacturing end markets, which accounted for more than three-quarters Fastenal’s overall total, were up by more than 9%, and the non-residential construction market saw growth for the first time in 10 quarters. Other end markets, meanwhile, benefited from growth in warehousing and among data center customers.
“Our manufacturing end markets outperformed primarily due to the relative strength we are experiencing with key account customers with significant managed spend where our service model and technology are particularly impactful,” company officials said in a statement.
Through the first half of the year, Fastenal’s net sales were up 6% to $4.04 billion. Gross profit was up 5.9%, while net income jumped by 6.5%.
The company also released its June sales numbers on Monday, which showed a 15.3% increase in net sales — a figure helped by an extra selling day during the month. On a daily average basis, June sales rose by 9.8% year-over-year.
