Fastenal Co (NASDAQ:FAST) stock fell 3.89% (As on January 20, 11:27:06 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter earnings that met Wall Street expectations but missed on revenue. Fastenal’s fourth-quarter performance reflected improved customer contract signings since early 2024, which helped offset sluggish industrial production. The company experienced growth in unit sales, driven by an increase in customer sites spending $10,000 or more per month. Product pricing contributed 310 to 340 basis points to the quarter’s net sales increase. Gross profit margin decreased to 44.3% from 44.8% in the year-ago quarter, impacted by higher cost of goods sold and timing of supplier rebates. However, operating margin improved slightly to 19.0% from 18.9% a year earlier. The company’s direct product sales, including fasteners and hardware, outpaced indirect products, growing 13.1% compared to the previous year. Manufacturing customers showed particular strength with a 12.8% increase in daily sales rate.

Moreover, the company signed 5,966 weighted FASTBin and FASTVend devices in the fourth quarter of 2025, resulting in 25,892 new FASTBin and FASTVend signings for the full year. This was consistent with the goal of signings between 25,000 and 26,000 MEU’s in 2025. The goal for weighted FASTBin and FASTVend device signings in 2026 is between 28,000 and 30,000 MEU’s. Net cash provided by operating activities was $368.1 in the fourth quarter of 2025, an increase of 30.2% from the fourth quarter of 2024, representing 125.2% of the period’s net income versus 107.9% in the fourth quarter of 2024.

FAST in the fourth quarter of FY25 has reported the adjusted earnings per share of $0.26, which matches the analysts’ estimates for the adjusted earnings per share of $0.26. The company had reported the adjusted revenue growth of 11.1 percent to $2.03 billion in the fourth quarter of FY25, missing the analysts’ estimates for revenue of $2.04 billion. During the fourth quarter of 2025, direct products outpaced indirect products due to greater contribution in fastener sales as a result of the fastener expansion project and increased sales to manufacturing customers. The operating income, as a percentage of net sales, increased to 19.0% in the fourth quarter of 2025 from 18.9% in the fourth quarter of 2024.

Additionally, the company returned $252.6 million to shareholders through dividends during the quarter, compared to $223.4 million in the fourth quarter of 2024.

For 2026, Fastenal expects to increase its capital expenditures to between $310 million and $330 million, up from $230.6 million in 2025, as it plans to replace its Atlanta hub facility and increase investments in trucking and IT infrastructure.