Fastenal reported strong second-quarter 2026 results with net sales of $2.3869 billion, up 14.7% year-over-year, and net income of $382.8 million (diluted EPS $0.33). Operating income for the quarter was $501.8 million, representing a 21.0% operating margin, essentially unchanged year-over-year as SG&A leverage offset gross margin pressures. The company generated $265.7 million of operating cash flow in the quarter and returned $305.1 million to shareholders via dividends and repurchases.

Financial Highlights

  • Net sales (Q2 2026): $2,386.9 million, up 14.7% versus Q2 2025.
  • Gross profit (Q2 2026): $1,063.6 million; gross margin 44.6% of net sales (down 75 basis points year-over-year).
  • Operating income (Q2 2026): $501.8 million; operating margin 21.0% of net sales.
  • Net income (Q2 2026): $382.8 million; diluted net income per share: $0.33.
  • Operating cash flow (Q2 2026): $265.7 million (69.4% of net income for the quarter). Returned $305.1 million to shareholders (dividends $275.4M; repurchases $29.7M).

Business Highlights

  • Daily sales rate increased 14.7% year-over-year in Q2 2026, driven primarily by share gains with larger contract customers, pricing actions, and broad-based end market demand.
  • Digital and onsite solutions continued to scale: FMI (FASTStock, FASTBin, FASTVend) sales were $1,081.0 million in the quarter and represented 44.6% of sales through FMI channels; weighted FASTBin/FASTVend signings were 6,993 MEUs in the quarter.
  • Customer mix shifted toward larger contract accounts: contract sales grew faster (DSR change +17.6%) and comprised 75.8% of sales in the quarter, reflecting key account signings initiated since Q1 2024.
  • End-market performance showed manufacturing strength (heavy manufacturing DSR +18.1%; total manufacturing 75.9% of sales) and continued growth in non-residential construction for the fifth time in fifteen quarters.
  • Operational investments and capacity: inventory management remained disciplined, installations of weighted FASTBin/FASTVend devices increased installations to 140,789 MEUs (end of period), and capital expenditures in the quarter were $60.5 million directed to facilities, IT, and vending equipment.

Original SEC Filing:

This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.