Fastenal on Wednesday reported stronger sales, profit and earnings in the third quarter of the year, but its gross margin declined compared to the same period last year.
The Minnesota fastener and industrial supply giant — no. 4 on ID’s newest Big 50 List — posted net sales of $2.46 billion, which was 15.5% higher than the previous July-September window.
Fastenal officials credited the increase to improved customer contract signings, pricing, and “a modest improvement” in industrial production over the course of 2026. Sales were up across all of the company’s end markets — led by heavy manufacturing, its largest — while sales to MRO and OEM customers rose by 14.3% and 18.6%, respectively.
Gross profit for the quarter came in at just over $1.1 billion, an increase of 14.4%, while operating income rose by 20.2% to $530.8 million. Net income was up by 19.7% to $401.6 million.
Fastenal’s operating margin climbed by 80 basis points to 21.5%, but its gross margin dipped by 50 basis points to 44.8%. Although the latter benefited from direct sourcing savings, supplier rebates and tariff refunds, those factors were more than offset by price/cost and a shift toward larger customers in its customer mix.
“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,” company officials said in a statement.
Fastenal also issued its monthly sales disclosure for September on Wednesday. Net sales were up 14.4% compared to September of 2025 — with increases across all customer segments, end markets and geographic territories.
