Fastenal (FAST) investor relations material

Executive summary

• Achieved 12.4% daily sales growth in Q1 2026, marking the third consecutive quarter of double-digit growth, with strong ROIC expansion and robust cash generation.

• Growth driven by new customer wins, expanded key accounts, and increased international sales, especially in Europe and Asia.

• Strong performance in both manufacturing and non-manufacturing segments, with construction up 17% year-over-year and heavy manufacturing up 14.1%.

• Continued investment in digital initiatives and FMI technology, with digital channels representing 61.5% of sales and digital daily sales up 13.6%.

• Operating margin improved to 20.3%, up 20 basis points year-over-year, reflecting SG&A leverage and cost discipline.

Financial highlights

• Daily sales reached $34.9 million, up 12.4% year-over-year, and net sales totaled $2,201.7 million.

• Operating margin rose to 20.3%, a 20 basis point increase from last year.

• SG&A declined to 24.3% of sales from 25% a year ago, driven by productivity and cost leverage.

• Operating cash flow was $378.4 million, representing 111% of net income, up 44.3% year-over-year.

• Return on invested capital increased by 180 basis points to 31% on a trailing 12-month basis.

Outlook and guidance

• Management remains cautiously optimistic about continued growth, citing broad-based demand and strong customer acquisition.

• Q2 expected to remain challenging due to ongoing price-cost headwinds, but improvement anticipated in the second half of the year.

• Digital footprint on track to reach 66% of total sales in 2026, with continued investment in technology and analytics.

• Weighted FASTBin and FASTVend device signings target remains 28,000–30,000 MEUs for 2026.

• Ongoing tax rate expected to be approximately 24.6%, absent discrete items or tax law changes.