Fastenal Company

Overview

Fastenal distributes industrial and construction supplies through a large branch-based network and customer sites. The company sells fasteners and a broad range of non-fastener products, including safety supplies, tools, and hardware. Non-fastener lines represented 69.5% of consolidated sales in 2025. Fastenal provides multiple customer-site service models, including Fastenal Managed Inventory (FMI) programs—FASTStock, FASTBin, and FASTVend—along with integrated supply programs, eBusiness capabilities, and advanced manufacturing services. The company invested in digital solutions such as FAST360°, FASTCrib, eProcurement, and vending apps; Digital Footprint sales were 61.4% of total sales in 2025. Global distribution and Local Inventory Fulfillment Terminals (LIFTs) support on-site stocking and delivery. Growth priorities include Digital Footprint, contract accounts, international expansion, and analytics.

Scale and footprint

• 1,595 branch locations in 25 countries (end of 2025).
• 15 distribution centers in North America (12 U.S., 2 Canada, 1 Mexico); additional centers in Asia and Europe (two each).
• Approximately 24,489 employees (end of 2025).
• Employee mix: ~70.1% selling personnel; 16.6% distribution/transportation; 4.3% manufacturing; 9.0% organizational support.
• About 5.3 million square feet of distribution capacity.
• 12 North American distribution centers equipped with automated storage and retrieval systems (ASRS), handling about 96% of picking activity.
• 79% of North American selling locations receive service four to five times per week.
• In 2025, ~11% of FMI sales were supported through LIFTs; the company expects this to grow toward ~40% over time.

Revenue and customers (2025)

• Total consolidated sales: $8.201 billion.
• No single customer accounted for 5% or more of consolidated net sales.
• National accounts represented 65% of consolidated sales.
• All Unique Sites: 621,217.
• Active site spend bands include 2,215 sites at $50k+ monthly spend, 8,688 at $10k+ monthly spend, and 13,114 at $5k+ monthly spend.

Product and pricing mix

• Fastener product line: 30.5% of consolidated sales.
• Non-fastener product lines: 69.5% of consolidated sales; safety supplies were the largest non-fastener category at 22.2% of consolidated sales.
• Private label brands: Body Guard (North American safety supplies) and ORMADUS (global). Private label represented ~11% of consolidated sales and ~16% of non-fastener sales.
• Digital Footprint (FMI and non-FMI digital sales combined): 61.4% of sales.

Growth drivers and market positioning

• FMI and onsite programs are core to growth, supported by a broad product offering and dense distribution network.
• Local selling locations reduce total procurement cost and help prevent stockouts.
• International expansion and analytics/digital capabilities support cross-selling and smarter replenishment.

Operations and supply chain

• Distribution centers are positioned to enable two-to-five deliveries per week to selling locations; 79% receive service 4–5 times weekly.
• The company sources from a diverse supplier base, with substantial Asia-based sourcing for fasteners and non-fasteners; one supplier accounted for more than 5% of inventory purchases in 2025.
• Transportation fleet: approximately 590 owned/leased Class 6–8 trucks for distribution and about 9,200 trucks for selling locations; third-party shippers are used as needed.
• 12 North American distribution centers use ASRS automation to improve speed and efficiency.

Financial flexibility and liquidity

• Debt: $125.0 million outstanding under senior unsecured notes (as of December 31, 2025).
• Credit facility: $835.0 million capacity; no borrowings outstanding at December 31, 2025.
• The company can increase borrowings for stock purchases, dividends, capital expenditures, working capital, acquisitions, or other investments; borrowing costs may rise with interest-rate changes.
• Compensation includes base pay, annual/quarterly bonuses, and stock options or stock appreciation rights.
• ISO 45001 Occupational Health and Safety certification; EMR of 0.45 in 2025 (55% better than industry average).

Intellectual property and brands

• Trademarks include Fastenal and the tagline Where Industry Meets Innovation.
• Private label brands: Body Guard and ORMADUS.
• Ongoing IP protection and management, with customary licensing and litigation risks for a large distributor.

Information technology and cybersecurity

• ISO 27001-aligned information security management practices, with formal risk assessment and board/audit oversight.
• Incident response, business continuity, and disaster recovery plans in place, along with third-party IT vendor risk management.
• Regular cybersecurity training, security testing, and tabletop exercises.

Business model and culture

• Decentralized structure with local decision-making to support customer needs on-site.
• Promote-from-within culture and incentive alignment to retain and develop leadership.
• Combines a physical distribution network with digital and data capabilities to reduce procurement costs and improve product availability.

Executive and governance context

• CEO transition announced with a planned leadership change in mid-2026.
• Board oversight of risk and cybersecurity remains a priority.
• Public filings and investor materials are available on Fastenal’s website and the SEC.