Fastenal : First Quarter 2025 Presentation

Published: 2025-04-11 07:19:05 ET FAST

2025

FIRST QUARTER

INVESTOR

TELECONFERENCE

APRIL 11, 2025

SAFE HARBOR STATEMENT

All statements made herein that are not historical facts (e.g., future operating results, long-term share gains, and business activity, as well as expectations regarding operations, including gross and operating income margin, future inventory levels, pricing, weighted FMI device signings, operating costs (including SG&A), capital expenditures, sales through our digital footprint, cash flow generation, the potential impact of our growth drivers and sales trends with customers, the imposition of tariffs and the related impact on our pricing strategy, and supply chain matters) are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially. More information regarding such risks can be found in Fastenal Company's (collectively referred to as 'Fastenal' or by terms such as 'we', 'our', or 'us') most recent annual and quarterly reports filed with the Securities and Exchange Commission. Any numerical or other representations in this presentation do not represent guidance by management and should not be construed as such. The appendix to the following presentation includes non-GAAP financial measures. Information required by Regulation G with respect to such non-GAAP financial measures can be found in the appendix including a comparison and reconciliation to the comparable GAAP measures.

Bob Kierlin's 10 Rules About Leadership

10. Remember how little you know.

CEO MESSAGES ON 1Q25

12%

10%

$0.55 $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00

Daily Sales Rate (DSR) Growth

9.1%

5.9%

5.0%

4.0% 3.7%

1.9% 1.8% 1.9% 2.1%

1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25

Net Income Per Share

(Fully Diluted)

$0.52

1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25

1Q25 SUPPLEMENTAL DATA UPDATE

12K

10K

Weighted FMI Device Signings

and Installations (MEUs) (1)

160K

129,996

140K

115,653

120K

104,673

100K

6,726

6,418

5,902

80K

60K

40K

20K

1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25

Signings

Installations

eBusiness Daily Sales Rate (DSR) Growth

60%

48.7%

50%

40%

33.6%

30%

20%

12.9%

10%

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

2Q25

3Q25

4Q25

1Q25 BUSINESS CADENCE

End Market Daily Sales Rate (DSR) Growth

20%

10%

9.7%

4.8%

(0.6)%

-10%

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

2Q25

3Q25

4Q25

Heavy Mfg

All Other Mfg

All Other End Markets

(43.4% of Sales)

(33.0% of Sales)

(23.6% of Sales)

Product Category Daily Sales Rate (DSR) Growth

20%

10%

7.1%

6.7%

1.1%

-10%

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

2Q25

3Q25

4Q25

Fasteners

Safety Supplies

Remaining Products

(30.3% of Sales)

(22.0% of Sales)

(47.7% of Sales)

1Q25 MARGIN SUMMARY

50%

45%

40%

35%

Gross Profit Margin

45.7%

45.5%

45.1%

1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25

24%

22%

20%

18%

16%

Operating Income Margin

•

Price/cost was largely neutral, not materially affecting

gross margin in 1Q25. We believe our processes and

systems are sufficiently robust to sustain price/cost

neutrality and defend our gross margin percentage in

21.2%

an environment of higher tariffs.

20.6%

20.1%

•

SG&A costs wer

e 25.0% o

f sales compared to 24.9% in

1Q24. This was

by the loss of a selling day

affected

versus 1Q24, without which we believe we could have

achieved modest leverage. Every major cost category

leveraged or de-leveraged only modestly. As a result,

we believe we are effectively managing costs even as

1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 7

we continue to invest strategically in growth

1Q25 CASH FLOW PROFILE

400

350

300

250

200

150

100

Operating Cash Flow (OCF)

(in millions)

131.7%

112.7%

87.8%

1Q23

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

2Q25

3Q25

4Q25

Percentages above the bar represent OCF as a % of Net Income

Net Capital Expenditures

(in millions)

$53.8

$48.3

$30.9

1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 Net Capital Expenditures = Property & Equipment, net of Proceeds from Sales

2025(E) Net CapEx: $265.0 to $285.0; 2024(A) Net CapEx: $214.1

APPENDIX

Non-GAAP Financial Measures

The appendix includes information on our Return on Invested Capital ('ROIC'), which is a non-GAAP financial measure. We define ROIC as net operating profit less income tax expense divided by average invested capital over the trailing 12 months. We believe ROIC is a useful financial measure for evaluating the efficiency and effectiveness of our use of capital and believe ROIC is an important driver of shareholder return over the long-term. Our method of determining ROIC may differ from the methods of other companies, and therefore may not be comparable to those used by other companies. Management does not use ROIC for any purpose other than the reasons stated above. ROIC is a measure of performance not defined by accounting principles generally accepted in the United States, and should be considered in addition to, not in lieu of, GAAP reported measures.

The tables that follow on page 10 include a reconciliation of the calculation of our return on total assets ('ROA') (which is the most closely comparable GAAP financial measure) to the calculation of our ROIC for the periods presented.

RETURN ON INVESTED CAPITAL*

Calculation of Return on Invested Capital (ROIC)

Reconciliation of ROIC to Return on Assets (ROA)

(Amounts in millions)

TTM

1Q25

1Q24

Operating Income

1,513.7

1,525.7

Income Tax Expense

(359.8)

(364.5)

Net Operating Profit After Tax (NOPAT)

1,153.9

1,161.2

Total Current Assets

3,220.8

3,122.5

Cash and Cash Equivalents

(234.5)

(238.5)

Accounts Payable

(308.6)

(271.4)

Accrued Expenses

(211.6)

(218.4)

Property & Equipment, Net

1,044.4

1,008.3

Other Assets

436.7

424.1

Invested Capital

3,947.2

3,826.6

ROIC

29.2%

30.3%

(Amounts in millions)

TTM

1Q25

1Q24

Net Income

1,151.6

1,157.6

Total Assets

4,701.8

4,554.9

ROA

24.5%

25.4%

NOPAT

1,153.9

1,161.2

Add: Income Tax Expense

359.8

364.5

Operating Income

1,513.7

1,525.7

Add: Interest Income

4.7

5.3

Subtract: Interest Expense

(7.0)

(8.9)

Subtract: Income Tax Expense

(359.8)

(364.5)

Net Income

1,151.6

1,157.6

Invested Capital

3,947.2

3,826.6

Add: Cash and Cash Equivalents

234.5

238.5

Add: Accounts Payable

308.6

271.4

Add: Accrued Expenses

211.6

218.4

Total Assets

4,701.8

4,554.9

* Amounts may not foot due to rounding differences.

Disclaimer

Fastenal Company published this content on April 11, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on April 11, 2025 at 11:18 UTC.