Fastenal saw double-digit jumps in sales, earnings and profit in the second quarter of the year, but its margin numbers were uneven amid “unfavorable price/cost,” company officials said Tuesday.
The Minnesota fastener and industrial supply distributor — no. 4 on ID’s latest Big 50 list — reported $2.39 billion in net sales between April and June, an increase of 14.7% compared to the same period in 2025. The company credited “improved customer contract signings since the first quarter of 2024, product pricing, and a modest improvement in industrial production in the first half of 2026;” product pricing, officials said, contributed about 290 basis points to the overall sales jump.
Fastenal’s sales increased across both OEM and MRO categories and across all end markets, with the strongest growth in its largest segment: an 18.1% increase in heavy manufacturing on a daily average basis.
The company’s gross profit increased 12.8% year over year to $1.06 billion in the quarter, while operating income rose to $501.8 million and net income climbed to $382.8 million — increases of 15.1% and 15.9%, respectively.
Its operating margin, however, was flat at 21% after its expense leverage offset headwinds in gross margin, which fell by 70 basis points to 44.6%. Gross margin, the company said, was affected by “unfavorable net price/cost of approximately 40 basis points,” as well as “smaller headwinds” from customer mix, transportation costs driven by fuel inflation, and timing-related factors in customer rebate activity.
“Customer mix continued to shift toward larger customers, consistent with our strategic focus,” Fastenal officials said in the company’s earnings statement. “While these relationships typically carry lower gross margins, they generate higher absolute profit dollars and are accretive to operating margin through fixed-cost leverage, higher volumes and operating efficiencies.”
Fastenal also released its latest monthly sales results for June on Tuesday; the company’s net sales were up 20.5% overall and 15% on a daily average basis.
