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• Revenue Growth: Sales grew by 3.4% with daily sales up 5%.

• Operating Margin: 20.1%, down 50 basis points year-over-year.

• Gross Margin: 45.1%, down 40 basis points from the previous year.

• SG&A Expenses: 25% of sales, up from 24.9% in the prior year.

• EPS: $0.52, flat compared to the first quarter of 2024.

• Operating Cash Flow: $262 million, representing 88% of net income.

• Inventory Growth: Up 11.9% year-over-year.

• Accounts Receivable: Increased by 5.4%.

• Accounts Payable: Increased by 23.9%.

• Capital Expenditure: $53.8 million, up from $48.3 million in the previous year.

• FMI Device Deployment: 129,996 devices, a growth of 12.5%.

• Digital Footprint Sales: 61% of total sales, up from 59% the previous year.

• Dividend Increase: Increased from $0.43 to $0.44 per share.

• Warning! GuruFocus has detected 4 Warning Sign with MS.

Release Date: April 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fastenal Co (NASDAQ:FAST) reported a 3.5% increase in sales for Q1 2025, with daily sales growth of 5%, indicating strong execution despite a sluggish market.

• The company has successfully expanded its Fastenal Managed Inventory (FMI) program, with 43% of revenue now going through technology platforms, enhancing operational efficiency.

• Fastenal Co (NASDAQ:FAST) experienced record customer attendance at its annual expo, reflecting strong customer engagement and interest in the company's offerings.

• The company increased its dividend from $0.43 to $0.44, demonstrating confidence in its financial stability and commitment to returning value to shareholders.

• Fastenal Co (NASDAQ:FAST) has made significant progress in diversifying its supply chain, which has helped mitigate risks associated with tariffs and geopolitical uncertainties.

Negative Points

• The company's operating margin decreased by 50 basis points to 20.1% in Q1 2025, partly due to one less selling day compared to the previous year.

• Fastenal Co (NASDAQ:FAST) faced higher costs from third-party freight providers and vehicle leases, impacting its gross margin, which fell by 40 basis points.

• The company reported flat earnings per share (EPS) of $0.52 compared to Q1 2024, indicating challenges in achieving profit growth.

• Inventory levels increased by 11.9%, reflecting efforts to improve product availability but also indicating potential inefficiencies in inventory management.

• Fastenal Co (NASDAQ:FAST) acknowledged the need to improve its e-commerce capabilities, particularly for smaller customers, to capture more market share in the online space.