• Daily sales increased 14.7% year-over-year, primarily driven by share gains with larger customers, pricing actions, and broad-based demand across core end markets.
• Operating margin was 21.0%, consistent year-over-year, as selling, general, and administrative expense leverage fully offset gross margin headwinds, which were primarily related to unfavorable price/cost.
• Operating cash flow was $266 million, representing 69% of net income, reflecting the timing of working capital changes associated with strong sales growth.
• Returned $305 million to shareholders through dividends and share repurchases, representing 80% of net income.
• Continued progress on strategic initiatives, including increased sales effectiveness through key account wins, expansion of digital technologies, and deeper penetration through new customer site growth.

WINONA, Minn.: Fastenal Company (Nasdaq:FAST) ('Fastenal,' 'we,' 'our,' or 'us'), a global leader in supply chain services, today reported results for the second quarter ended June 30, 2026. Results reflected strong daily sales growth, operating expense leverage, and continued growth with larger customers supported by our onsite, digital, and supply chain solutions. Except for share and per share information, or as otherwise noted, amounts are stated in millions. Percentage and dollar calculations, which are based on non-rounded dollar values, may not be recalculated or footed using the dollar values included in this document due to the rounding of those dollar values.

PERFORMANCE SUMMARY

QUARTERLY RESULTS OF OPERATIONS

Sales

Net sales increased $306.6, or 14.7%, in the second quarter of 2026 when compared to the second quarter of 2025 (both periods had the same number of selling days). Sales performance reflects the contribution from improved customer contract signings since the first quarter of 2024, product pricing, and a modest improvement in industrial production in the first half of 2026. Foreign exchange rates contributed approximately 10 basis points to sales growth in both periods. The impact of product pricing on net sales in the second quarter of 2026 was an increase of approximately 290 basis points, compared to an increase of 140 to 170 basis points in the second quarter of 2025.

From a product portfolio standpoint, we classify our offerings into four primary categories: fasteners, safety supplies, cutting tools and other product lines. 'Other product lines' encompasses seven smaller product segments, including tools and janitorial supplies.

Beginning in the fourth quarter of 2025, we expanded our reporting to provide a more comprehensive view of direct (original equipment manufacturing/production) and indirect (maintenance, repair, and operations/facilities maintenance) business across product categories. Direct materials generally include products incorporated into finished goods or that directly support customers' production processes, while indirect materials support customers' facility operations, maintenance, and safety needs. During the second quarter of 2026, direct materials slightly outpaced indirect materials, reflecting greater contribution from fastener sales and continued strength with manufacturing customers.

The DSR change when compared to the same period in the prior year and the percent of sales in the period were as follows:

From an end market standpoint, we have four categories: heavy manufacturing, other manufacturing, non-residential construction, and other, the latter of which includes reseller, government/education, transportation, warehousing and storage, and data centers. Our manufacturing end market growth was mainly due to the relative strength we are experiencing with key account customers with significant managed spend, where our service model and technology are particularly impactful. The non-residential construction end market experienced continued growth for the fifth time in fifteen consecutive quarters. Other end market sales were favorably impacted by growth with transportation and warehousing customers.

The DSR change when compared to the same period in the prior year and the percent of sales in the period were as follows:

From a customer standpoint, we have two categories: 1) contracts, which include national multi-site, local and regional, and government customers with significant revenue potential, and 2) non-contracts. Sales with our contract customers continue to outperform as we realize incremental sales from implementing customer signings that we have achieved since the first quarter of 2024. Non-contract customers tend to be smaller and utilize fewer of our tools and capabilities, providing fewer avenues for share gains and therefore more closely reflect overall business trends.

The DSR change when compared to the same period in the prior year and the percent of sales in the period were as follows:

Customer Sites and Sales Segmentation

We engage customers in the local market by delivering services and solutions within or near the customer's business (Sites). Sites represent distinct customer locations where we maintain inventory tailored to local demand, supported by our regional distribution networks. Our strategy prioritizes customer Sites with monthly sales potential of $50,000 or more. Segmentation by spend level provides insight into the scale and potential of customer relationships served through our network. The following table summarizes average customer Site counts by monthly spend band and related sales metrics.

Three-month Period 2026

Three-month Period 2025

Sites (#) (1) (2)

Sales

Mo. Sales per Site (3)

Sites (#) (1) (2)

Sales

Mo. Sales per Site (3)

Manufacturing

$50k+/Mo. (4)

2,568

$

1,155.0

$

149,922

2,250

$

937.5

$

138,889

$10k+/Mo.

9,338

1,607.5

57,382

8,827

1,373.6

51,871

$5k+/Mo.

If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter. Related news Vonage Recognized for Identity Insights API at Merit Awards for Business Bed Bath & Beyond, Inc. Scheduled to Release Second Quarter 2026 Financial Results RXO Partners with Highway to Enhance Freight Security and Streamline Carrier Onboarding The Octus MCP Connector Puts the Most Expansive, Accurate and Verified Credit Intelligence and Data Directly Inside Claude, ChatGPT and Other LLMs New York Yankees Choose Lumen to Power Game-Day Connectivity, Data Resilience, and the Fan Experience SS&C GlobeOp Hedge Fund Performance Index and Capital Movement Index Intapp expands strategic partnership with Moody’s to bring counterparty intelligence directly into professional workflows via Intapp Celeste Lumen Technologies to Hold Second Quarter 2026 Earnings Conference Call Last News RSA at Cybertech Europe 2024 Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for… Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurity G11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes How Austria is making its AI ecosystem grow Always keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries Sparkle and Telsy test Quantum Key Distribution in practice Successfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing… Most read Federal Bureau of Prisons Selects Securus Technologies to Deliver Communications… Securus Technologies today announced it will deploy communications and digital infrastructure solutions across the Federal Bureau of Prisons (BOP or Bureau),… Qtis.ai Launches AI-Native Clinical Research Division, Enters Fast-Growing… #CTMS--Qtis.ai, an applied artificial intelligence company focused on healthcare, medical research, and aesthetics, today announced the launch of its… Upland Software, Inc. Regains Compliance with Nasdaq Minimum Bid Price… Upland Software, Inc. (Nasdaq: UPLD) (the “Company”), a provider of enterprise intelligence that turns knowledge, content, and data into actionable AI-powered… DDN, Nebul, and NVIDIA Collaborate to Advance AI Inference Economics Through… #AI--DDN, the global leader in AI and data intelligence solutions, today announced continued progress in its collaboration with Nebul, a European leader… Newsletter signup Join our mailing list to get weekly updates delivered to your inbox. Sign me up! G11 Media Networks BitCity ChannelCity ImpresaCity SecurityOpenLab GreenCity ImpresaGreen ItalianChannelAwards AgendaIct Home Newsletter Staff Copyright Contact us InnovationOpenLab is a channel of BitCity, a newspaper registered at the court of Como , n. 21/2007 del 11/10/2007- Registration ROC n. 15698 G11 MEDIA S.R.L. Registered office Via NUOVA VALASSINA, 4 22046 MERONE (CO) - P.IVA/C.F.03062910132 Como business register n. 03062910132 - REA n. 293834 CAPITALE SOCIALE Euro 30.000 i.v. Cookie Privacy