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    Fastenal Co (FAST)

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    Fastenal Company is a leader in the wholesale distribution of industrial and construction supplies, operating through a network of over 3,400 in-market locations primarily in North America, with additional presence in Europe and Asia . The company offers a broad range of products across three main categories: fasteners, safety supplies, and other product lines. Fastenal's business model emphasizes proximity to customers through its extensive branch network and Onsite locations, which support both original equipment manufacturing (OEM) and maintenance, repair, and operations (MRO) needs .

    1. Other Product Lines - Encompasses a variety of products including tools, janitorial supplies, and cutting tools, catering to diverse industrial needs.
    2. Fasteners - Includes items like bolts, nuts, and screws, serving as essential components in construction and manufacturing.
    3. Safety Supplies - Offers a range of products designed to ensure workplace safety, benefiting from cross-selling and industrial vending initiatives.
    NamePositionStart DateShort Bio
    Daniel L. FlornessPresident, Chief Executive Officer, and DirectorJanuary 2016Daniel L. Florness has been with Fastenal since 1996. He served as CFO from June 1996 to December 2002, and as Executive Vice President and CFO from December 2002 to December 2015 .
    Anthony P. BroersmaExecutive Vice President – OperationsOctober 2023Anthony P. Broersma joined Fastenal in 2003. He has held various roles, including Senior Vice President – Operations and Vice President of Procurement and Supply Chain .
    William J. DrazkowskiExecutive Vice President – SalesOctober 2019William J. Drazkowski has been with Fastenal since 1995. He previously served as Executive Vice President – National Accounts Sales from December 2016 to September 2019 .
    James C. JansenExecutive Vice President – ManufacturingJanuary 2016James C. Jansen joined Fastenal in 1992. He has held various executive positions, including Executive Vice President - Operations and Executive Vice President – Internal Operations .
    Holden LewisSenior Executive Vice President and Chief Financial OfficerDecember 2022Holden Lewis joined Fastenal after a career as a senior equity analyst. He served as Executive Vice President and CFO from August 2016 to December 2022 .
    Sheryl A. LisowskiExecutive Vice President – Chief Accounting Officer and TreasurerDecember 2020Sheryl A. Lisowski has been with Fastenal since 1994. She served as controller, chief accounting officer, and treasurer from August 2016 to November 2020 .
    Charles S. MillerSenior Executive Vice President – SalesJanuary 2020Charles S. Miller has been with Fastenal since 1999. He was Executive Vice President – Sales from November 2015 to December 2019 .
    Noelle J. OasExecutive Vice President – Human ResourcesFebruary 2023Noelle J. Oas joined Fastenal in 2015 as Director of Compliance – Human Resources. She practiced employment law before joining Fastenal .
    John L. SoderbergSenior Executive Vice President – Information TechnologyDecember 2020John L. Soderberg has been with Fastenal since 1993. He served as Executive Vice President – Information Technology from May 2016 to November 2020 .
    Jeffery M. WattsChief Sales OfficerMay 2023Jeffery M. Watts has been with Fastenal since 1996. He served as Executive Vice President of International Sales from December 2016 to April 2023 .
    Jeffery M. WattsPresidentJuly 2024 (expected)Jeffery M. Watts was elevated to the position of President of Fastenal in July 2024 .
    1. Given the increased duties in Mexico and Canada that have negatively impacted your gross margin, how do you plan to mitigate these costs going forward, and what strategies are in place to address the risk of further trade barriers?
    2. With Onsite signings expected at the lower end of your 375 to 400 target range and a potential strategic shift toward customer acquisition, how will this impact your growth trajectory and the way you measure success moving forward?
    3. Branch performance in the Western U.S. has been slightly negative while the Eastern U.S. shows growth; what specific actions are you taking to address these regional disparities, and how confident are you in achieving branch growth in 2025?
    4. You've added inventory into your distribution network to improve availability and anticipate cost benefits starting next year; what risks do higher inventory levels pose if demand doesn't meet expectations, and how are you managing these risks?
    5. Capital expenditures are projected to decrease in 2025 after significant investments this year, particularly in your Utah hub; how are you prioritizing CapEx investments in an uncertain economic environment, and what returns do you expect from these investments in the near term?
    Program DetailsProgram 1
    Approval DateJuly 12, 2022
    End Date/DurationNo expiration date
    Total additional amountN/A
    Remaining authorization amount6,200,000 shares
    DetailsThe authorization does not have an expiration date
    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers LLP (PwC)March 31, 2025 PresentCurrent auditor.
    KPMG LLPN/ADecember 31, 2024 The Audit Committee conducted a competitive selection process.

    Recent developments and announcements about FAST.

    Financial Reporting

      Earnings Call

      ·
      Jan 17, 2025, 5:42 PM

      The Fastenal Company recently held its 2024 Annual and Fourth Quarter Earnings Conference Call, providing insights into its financial performance and strategic outlook for 2025. Here are the key points from the earnings call:

      1. Revenue and Profit Performance: Fastenal reported a 3.7% increase in sales for the fourth quarter of 2024, with daily sales up 2.1%. However, the company experienced a decline in operating margin to 18.9%, down 120 basis points year-over-year, primarily due to slow growth and seasonal factors. Gross margin was 44.8%, down 70 basis points from the previous year, affected by product margin pressure and higher shipping costs.

      2. Management’s Forward Guidance: Looking ahead to 2025, Fastenal anticipates leveraging growth to improve its financial performance. The company expects to see revenue from new customer signings continue to build, with a focus on expanding its contract base. Fastenal also plans to increase its dividend by 10%, reflecting confidence in its future cash-generating capabilities.

      3. Market Conditions and Strategic Initiatives: Fastenal highlighted challenges in the industrial economy, with significant shutdowns observed during the holiday season. However, there is optimism for 2025, with regional leadership citing post-election customer optimism and strong new business signings. The company is focusing on enhancing its eCommerce capabilities and expanding its Onsite program, which now represents nearly 45% of sales.

      4. Analyst Questions and Management Responses: Analysts inquired about the impact of tariffs and the company's strategy to manage them. Fastenal emphasized its expertise in supply chain management and its ability to provide visibility to customers, which is crucial in navigating tariff-related challenges. Additionally, questions about gross margins were addressed, with management indicating that product margin pressures experienced in Q4 2024 are expected to moderate in Q1 2025.

      Overall, Fastenal is positioning itself for growth in 2025 by leveraging its strong supply chain capabilities, expanding its digital footprint, and focusing on high-value customer relationships.

      Auditor Changes

      ·
      Jul 24, 2024, 12:00 AM

      Fastenal Company Auditor Change

      • Dismissal of KPMG LLP: Fastenal Company has decided to change its independent registered public accounting firm. KPMG LLP, which served as the auditor for the fiscal year ending December 31, 2024, has been dismissed effective immediately after completing the audit for that year .

      • Engagement of PricewaterhouseCoopers LLP (PwC): Fastenal has engaged PwC as its new independent registered public accounting firm for the fiscal year ending December 31, 2025. This engagement will begin with the review of the company's financial statements for the quarter ending March 31, 2025 .