By Denny Jacob
Fastenal saw a jump in sales in its latest quarter as signed contracts from customers have improved over the last year and a half despite sluggish market conditions.
The Winona, Minn., fastener maker on Monday said it recorded net income of $330.3 million, or 29 cents a share, compared with $292.7 million, or 25 cents a share, in the prior-year period. Analysts polled by FactSet expected 28 cents a share.
Sales rose to $2.08 billion from $1.92 billion. Analysts polled by FactSet expected $2.07 billion.
Fastenal said the increase in sales largely reflected the contribution from improved customer contract signings over the past six quarters.
Inventories grew to $1.73 billion from $1.50 billion, a roughly 15% increase from the prior-year period. The company said the increase in inventory was primarily attributable to three factors, one being an effort to support projected growth in its business and, to a lesser extent, the anticipated impact of tariffs.
Fastenal said it expects its investment in property and equipment, net of proceeds from sales, to be within a range of $250 million to $270 million, down from its prior anticipated range of $265 million to $285 million but an increase from $214.1 million in 2024. It expects higher distribution-center spending to complete its replacement Utah hub facility, the beginning of construction on a replacement Atlanta hub facility, and an improvement in its picking capacity and efficiency across its hub network, among other expectations.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
July 14, 2025 07:36 ET (11:36 GMT)
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