Fastenal Company (NASDAQ: FAST) reported first-quarter results that came in line with analyst expectations, though shares declined more than 5% intraday Monday as investors focused on moderating growth trends and margin pressures.
The industrial distributor posted adjusted earnings per share of $0.30, matching consensus estimates, while revenue totaled $2.2 billion, also in line with expectations. Sales increased 12.4% compared to the first quarter of 2025, supported by market share gains and broad-based demand across key end markets. Daily sales rose 12.4% year over year to $34.9 million.
Operating margin expanded 20 basis points to 20.3%, driven by operating leverage and cost discipline, though partially offset by changes in customer mix. Gross margin declined to 44.6% from 45.1% a year earlier, pressured by approximately 50 basis points of unfavorable price-cost dynamics as well as headwinds from transportation costs and customer rebates.
Net income increased 13.8% to $339.8 million, while operating cash flow surged 44.3% to $378.4 million, representing 111% of net income, supported by disciplined working capital management.
The company added 6,950 weighted FASTBin and FASTVend devices during the quarter and maintained its full-year 2026 guidance of 28,000 to 30,000 machine-equivalent units. Sales through FMI Technology rose 16.6% to $1.0 billion, accounting for 44.9% of total revenue.
