Fastenal Co. stock: Q3 sales rise 15.5% as margins improve

Fastenal Company reported strong third-quarter growth on October 14, with results showing continued demand from manufacturing customers and larger contract accounts. The company said daily sales rose 15.5 percent year over year, while operating margin improved as selling, general and administrative expenses leveraged higher volume. The earnings release is available from Fastenal Company.

Sales growth reaches core markets

Net sales increased to USD 2.4633 billion from USD 2.1333 billion a year earlier. The company attributed the advance to customer contract signings, product pricing and a modest improvement in industrial production. Both quarters had 64 business days, making the daily-sales comparison directly comparable.

Manufacturing remained the main growth engine. Daily sales in heavy manufacturing rose 20.2 percent, while total manufacturing increased 17.2 percent. Non-residential construction grew for the sixth consecutive quarter, with daily sales up 12.0 percent.

Margin leverage offsets mix pressure

Operating income increased 20.2 percent to USD 530.8 million, and operating margin widened to 21.5 percent from 20.7 percent. Fastenal said selling, general and administrative expenses improved to 23.3 percent of sales from 24.6 percent, more than offsetting pressure from customer mix and price-cost effects.

Gross margin declined to 44.8 percent from 45.3 percent. The shift toward larger customers reduced gross margin, but Fastenal said those relationships generate higher absolute profit dollars and support operating leverage through greater volume and efficiency. Net income rose to USD 401.6 million from USD 335.5 million, while diluted earnings per share increased to USD 0.35 from USD 0.29.

Digital expansion remains a watchpoint

Fastenal signed 7,484 weighted FASTBin and FASTVend devices during the quarter. The company now targets 27,000 to 29,000 machine-equivalent units for 2026, below its earlier goal of 28,000 to 30,000. Digital Footprint sales increased 16.1 percent in the quarter and represented 61.4 percent of sales.

Capital investment is also rising. Fastenal expects 2026 spending on property and equipment, net of sale proceeds, to total USD 310 million to USD 330 million, compared with USD 230.6 million in 2025. The planned spending includes a replacement Atlanta hub, distribution-network upgrades, information technology and trucking capacity.

Fastenal Co. stock traded at 46.46 euros on Lang & Schwarz at 12:09 CET on Monday, November 2, 2026.

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