Fastenal’s sales increased by double-digits in the fourth quarter of the year as its full-year sales climbed past $8 billion, the company reported Tuesday.
But its Q4 revenue total reportedly missed expectations on Wall Street, and shares of the company’s stock slid in premarket trading.
The Minnesota fastener and industrial supply distributor — no. 4 on ID’s 2025 Big 50 — posted just over $2 billion in net sales in the October-December period, an increase of 11.1% compared to the same span in 2024. Its gross profit climbed by 9.8% year-over-year to $899 million, while operating income rose by 11.4% to $384 million. Net income, at $294 million, was up 12.2% in the quarter.
Overall 2025 sales came in at $8.2 billion, an increase of 8.7% from 2024’s $7.5 billion in net sales. Annual gross profit, operating income and net income also increased over 2024 levels.
Fastenal officials attributed the stronger numbers to improved customer contract signings since the beginning of 2024, although industrial production was “still sluggish” in the latest reporting period. Sales increased amid growth among its larger customers, and the company saw jumps in its data center and transportation end markets. Sales with resellers, however, were softer during the quarter.
Fastenal said that product pricing impacted Q4 sales by 310 to 340 basis points in the fourth quarter, although Reuters reported that inflated prices, spurred in part by tariffs, dented demand.
The company’s Q4 report featured a new breakdown of its product segments, which outlined its OEM-focused business — or “direct” — by fasteners and hardware, cutting tools and abrasives, and other supplies, and its “indirect” MRO-focused segment by fasteners and hardware, safety products, and other categories.
“During the fourth quarter of 2025, direct products outpaced indirect products due to greater contribution in fastener sales as a result of our fastener expansion project and increased sales to manufacturing customers,” Fastenal officials wrote in the company’s earnings statement.
Fastenal also announced that it expects higher property and equipment spending this year compared to 2025 due to delayed IT projects, higher spending on trucking, and the replacement of a hub in Atlanta.
The distributor issued its December numbers on Tuesday, as well, which showed a 16.2% increase in sales compared to the final month of 2024.
