Fastenal Co. posted double-digit profit and sales gains in the third quarter as stronger demand for fasteners, improved pricing, and growth among large contract customers lifted results despite continued softness in U.S. manufacturing.
The industrial and construction supply distributor reported third-quarter sales of $2.13 billion, up 11.7% from $1.91 billion a year earlier. Net income rose 12.6% to $335.5 million, compared with $298.1 million in Q3 2024. For the first nine months of 2025, sales increased 7.9% to $6.17 billion, while net income grew 8.5% to $964.4 million.
Daily sales rose 11.7% year after year, as the company benefited from higher volumes with large manufacturing and construction accounts and stronger pricing momentum. “We put up a great quarter,” said president and CEO Dan Florness. “Our teams executed well, and we’re seeing the results of pricing decisions and customer relationships we built over the past 18 months.”
Florness said the company’s pricing moves, implemented gradually this year to offset tariff-related costs, helped boost margins without slowing customer demand. “Some of those pricing steps were delayed because of uncertainty earlier in the year,” he said. “We’re now seeing that benefit in our results.”
Fastenal’s gross profit margin rose to 45.3% from 44.9% a year ago, helped by sourcing initiatives and improved supplier incentives. Operating income climbed 13.7% to $441.5 million, reflecting steady expense control even as wages and transportation costs increased. Selling, general, and administrative expenses remained stable at 24.6% of sales.
Fastener products — the company’s largest category — led growth, with sales up more than 14%. Safety supplies rose 10%, helped by steady demand in maintenance and data center markets. Other product categories, including tools, abrasives, and janitorial supplies, also grew despite sluggish industrial output.
Manufacturing customers made up 76% of total sales, led by double-digit increases in heavy and other manufacturing segments. Nonresidential construction, which had been flat for most of the past year, grew for the second straight quarter.
Digital tools continued to expand their footprint. Sales through Fastenal Managed Inventory systems rose 17.7%, and the company said its broader digital channels — including e-commerce and vending systems — accounted for about 61% of quarterly sales.
Fastenal’s operating cash flow jumped 30% to $386.9 million in the quarter, reflecting better working capital management and lower tax payments. The company returned $252.5 million to shareholders in dividends, up from $223.4 million a year earlier.
Florness said the company remains focused on serving larger customers through its onsite and digital supply programs. “Fastenal has historically been able to win market share during periods of disruption,” he said. “That’s exactly what we’re doing right now — growing faster than the market by staying close to customers and keeping supply chains running.”
The company ended the quarter with $195 million in total debt, down from $240 million a year ago, and 1,590 branch locations, unchanged from last quarter. Fastenal plans to update its product reporting structure later this year to give investors more visibility of customer and end-market trends.
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