Fastenal Co (NASDAQ:FAST) shares slipped almost 4% on Tuesday morning after the distributor of industrial and construction supplies reported fourth quarter results that met expectations on earnings but slightly missed on revenue.
The company posted earnings per share of $0.26, matching analyst forecasts, and revenue of $2.03 billion, just below the $2.04 billion consensus estimate.
Net income for the quarter rose to $294.1 million, up from $262.1 million in the same period a year earlier.
Revenue grew 11.1% year-over-year, driven by higher unit volumes, an increase in the number of high-spend customer sites, and pricing contributions estimated at 310 to 340 basis points.
Gross margin declined to 44.3% from 44.8% in the fourth quarter of 2024, attributed to higher costs and the timing of rebates. Despite the margin dip, operating margin edged up to 19% from 18.9% a year earlier.
Fastenal reported daily sales of $32.2 million in the quarter, up 11.1% from $29 million in the prior-year period, with both periods containing 63 selling days.
The company’s full-year 2025 results showed net income of $1.26 billion on revenue of $8.2 billion, compared with $1.15 billion in profit on $7.55 billion in revenue in 2024.