Fastenal Company, based in Winona, Minnesota, is a leader in the wholesale distribution of industrial and construction supplies, with a strong focus on safety products and maintenance, repair, and operations (MRO) supplies. The company operates through a network of over 1,500 branches and supplies a significant number of vending machines across various facilities globally.

For the fourth quarter of 2024, Fastenal reported net sales of $1.824 billion, marking a 3.7% increase from $1.759 billion in the same period in 2023. Daily sales grew by 2.1%, influenced by an extra business day in the current quarter. The company’s earnings per share (EPS) were flat year-over-year at $0.46, reflecting a decrease of 1.9% when adjusted for the previous year’s results.

The company’s gross profit for Q4 stood at $818.2 million, up from $799.4 million in Q4 2023, but the gross margin as a percentage of net sales fell to 44.8%, down from 45.5%. Sales growth was primarily driven by larger customers as national account sales grew by 4.2% while non-national accounts decreased by 1%. Fastener sales, integral to the company’s offerings, declined by 1.4%.

Looking at operating income, it decreased to $344.8 million, with an operating margin of 18.9%, down from 20.1% year-over-year. This decline was attributed to higher selling, general, and administrative (SG&A) expenses, which increased by 6.2% to $473.4 million, rising as a percentage of sales from 25.3% to 25.9%.

Fastenal’s cash flows reflect a similar trend; net cash provided by operating activities was reported at $282.8 million for the quarter, a decrease of 20.1% from $354.0 million a year ago. For the entire year, operating cash flow was $1.173 billion, down 18.1% from 2023. Accounts receivable increased by 1.9% to $1.109 billion, and inventories rose by 8% to $1.645 billion.

The company maintained a conservative capital structure, with total debt accounting for 5.2% of total capital as of year-end 2024, down from 7.2% in 2023. Fastenal also announced a 10% increase in its quarterly dividend to an annualized rate of $1.72.

In terms of growth initiatives, Fastenal signed 56 new Onsite locations in Q4, bringing total active Onsite sites to 2,031—an increase of 11.5% year-over-year. Daily sales through these Onsite locations grew at a mid-single-digit rate. FMI Technology sales increased by 10.0% year-over-year, contributing to 42.5% of total sales in Q4.

Overall, Fastenal continues to navigate a challenging economic environment while focusing on expanding its customer base and increasing digital capabilities, as evidenced by a digital sales footprint now representing 62.2% of total sales, increased from 58.1% in the previous year.