Here are 1-3 brief analogies for Fastenal (FAST):

• Amazon for industrial and construction supplies.
• A business-to-business Home Depot.
• Staples or Office Depot for factories and construction sites.

• Fasteners: Industrial-grade bolts, nuts, screws, washers, and other components used for joining materials in manufacturing and construction.
• Safety Products: Personal protective equipment (PPE) such as gloves, eyewear, respirators, and safety apparel designed to protect workers in various environments.
• Tools & Equipment: A broad selection of hand tools, power tools, cutting tools, and material handling equipment essential for industrial, construction, and maintenance tasks.
• MRO (Maintenance, Repair, and Operations) Supplies: A wide array of essential consumables and indirect materials, including janitorial, electrical, and hydraulic supplies, used for facility upkeep and equipment maintenance.
• Industrial Vending Solutions (Service): On-site automated dispensing machines that provide customers with 24/7 access to industrial supplies, improving inventory control and product availability.
• Supply Chain Services (Service): Comprehensive solutions encompassing inventory management, procurement optimization, and custom product sourcing to streamline customer operations and reduce costs.

Fastenal (NASDAQ: FAST) primarily sells to other companies (B2B).

Fastenal's business model is characterized by a highly diversified customer base. Rather than having a few identifiable "major customers" that constitute a significant portion of their revenue, Fastenal serves hundreds of thousands of businesses across a wide array of industries. According to their financial disclosures, no single customer typically accounts for more than 10% of their net sales.

Therefore, instead of listing specific customer companies, it is more accurate to describe the broad categories of businesses Fastenal serves:

• Manufacturing Companies: This is a foundational customer segment, encompassing a broad range of industries from automotive, aerospace, and heavy machinery to consumer goods and general fabrication. Fastenal supplies these companies with essential fasteners, MRO (Maintenance, Repair, and Operations) products, safety equipment, and tools necessary for their production processes and facility upkeep.
• Non-Residential Construction Companies: Fastenal provides a wide array of products, including fasteners, tools, safety gear, and other construction-related supplies, to contractors involved in commercial building, infrastructure projects, and other non-residential construction activities.
• Governmental Entities and Other Industries: This diverse category includes local, state, and federal government agencies, as well as businesses in sectors such as agriculture, mining, utilities, transportation, and oil exploration. These entities rely on Fastenal for various industrial and safety supplies to maintain operations and ensure compliance.

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Daniel L. Florness, Chief Executive Officer

Mr. Florness has served as Fastenal's Chief Executive Officer since August 2024, and previously as President and Chief Executive Officer from January 2016 to July 2024. He joined Fastenal in 1996, serving as Chief Financial Officer from June 1996 to December 2002, and then as Executive Vice President and Chief Financial Officer from December 2002 to December 2015. During his tenure as CFO, his responsibilities expanded beyond finance to include leadership of a portion of the manufacturing division, product development and procurement, and the national accounts business. Prior to joining Fastenal, Mr. Florness spent 10 years in public accounting with KPMG. He serves on the board of directors of H.B. Fuller, a publicly-held company, and Bellin Gundersen Health System, Inc., an integrated healthcare system. He also serves on the board of directors of PlastiComp, Inc., a privately held company.

Sheryl A. Lisowski, Executive Vice President - Interim Chief Financial Officer, Chief Accounting Officer, and Treasurer

Ms. Lisowski has been Fastenal's Executive Vice President - Interim Chief Financial Officer, Chief Accounting Officer, and Treasurer since April 2025. She previously served as Executive Vice President - Chief Accounting Officer and Treasurer from November 2020 to April 2025. From January 2016 to August 2016, she also served as interim Chief Financial Officer. Ms. Lisowski joined Fastenal in 1994, holding various roles of increasing responsibility within the finance and accounting team, including Controller – Accounting Operations from March 2007 to October 2013, and Controller, Chief Accounting Officer, and Treasurer from October 2013 to August 2016.

Jeffery M. Watts, President and Chief Sales Officer

Mr. Watts was appointed President and Chief Sales Officer, effective August 1, 2024. He is a 28-year veteran of Fastenal, having joined the company as a part-time branch employee on February 5, 1996. His previous roles include Executive Vice President – International Sales, Vice President – International Sales, and Regional Vice President of the company's Canadian business, along with various sales roles at district and local market levels.

Anthony P. Broersma, Executive Vice President - Operations

Mr. Broersma has served as Executive Vice President – Operations since October 2023. In this role, he oversees Fastenal's supply chain, compliance, supplier development, content, property management, supply to fulfillment distribution, and logistics operations. He joined Fastenal in 2003 and has held numerous sales and operational roles, including Senior Vice President – Operations, Vice President of Procurement and Supply Chain, Vice President of International Operations, Regional Vice President for continental Europe, and Director of Asian Operations.

Charles S. Miller, Senior Executive Vice President - Sales

Mr. Miller has been Fastenal's Senior Executive Vice President – Sales since January 2020, with responsibilities for sales and operational oversight of the United States business. He joined Fastenal in 1999. His prior positions include Executive Vice President – Sales from November 2015 to December 2019, and Regional Vice President of the southeast central region from January 2009 to October 2015.

The key risks to Fastenal's business are as follows:

1. Intense Competition and Pricing Pressures: Fastenal operates in a highly competitive industrial distribution market, facing significant pressure from rivals like W.W. Grainger and MSC Industrial Direct Co., as well as the growing digital scale of Amazon Business. This intense competition can lead to aggressive pricing strategies, margin pressures, and challenges in maintaining market share and profitability. Fastenal's ability to pass on increased costs can be limited by competitive pricing, impacting gross profit margins.
2. Economic Downturns and Cyclicality of Industrial and Manufacturing Sectors: Fastenal's revenue is heavily reliant on the health of the industrial and manufacturing sectors. Economic slowdowns, as observed in 2024 and Q1 2025, can significantly reduce customer spending and demand for industrial supplies, thereby negatively affecting Fastenal's sales and profitability. The company's high reliance on these cyclical sectors makes its revenue highly sensitive to economic fluctuations.
3. Supply Chain Disruptions, Inflation, and Rising Costs: Fastenal faces ongoing risks related to supply chain disruptions, stubborn supply chain inflation, and rising operational costs, including labor expenses and tariffs on imported goods. For example, labor costs rose by 10.3% year-over-year in Q2 2025, and tariffs on steel and aluminum imports surged to 95%, contributing to a dip in gross profit margin. While Fastenal may implement price increases to offset these pressures, aggressive competitor pricing or customer pushback could limit its ability to fully recover these costs, leading to margin compression.

The continued expansion and increasing market share of **Amazon Business** in the industrial and maintenance, repair, and operations (MRO) supplies sector. Amazon Business directly competes with Fastenal's e-commerce and traditional branch sales by offering a vast catalog, competitive pricing, and convenient logistics. While Fastenal differentiates itself with its proprietary vending and onsite solutions, Amazon Business presents a clear threat by eroding market share for transactional purchases and customers who do not utilize Fastenal's integrated supply chain services.

Fastenal (symbol: FAST) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Expansion of Onsite Locations: A significant driver of Fastenal's growth is the continued expansion of its Onsite locations, which are dedicated sales and service points within or in close proximity to customer facilities. The company signed 93 new Onsite locations in the third quarter of 2024, contributing to 302 year-to-date signings, with a goal of 375 to 400 new Onsite locations for the full year 2024. As of September 30, 2024, Fastenal had 1,986 active Onsite locations, representing an 11.7% increase from the prior year. Daily sales through these Onsite locations showed low single-digit growth in Q3 2024, driven by sites activated in 2023 and 2024. Fastenal also saw a 6.9% increase in Onsite-like customer sites spending over $10,000 per month in Q1 2025.
2. Growth in Digital Footprint and FAST Solutions: Fastenal's "Digital Footprint," which encompasses its FAST Solutions (industrial vending and dispensing technology) and eBusiness platforms, is a crucial element for revenue expansion. This digital presence accounted for 61.1% of total sales in the third quarter of 2024, an increase from 57.1% in the same period of 2023. In Q3 2025, digital sales represented 61.3% of total sales. The company aims for its Digital Footprint sales to reach between 66% and 68% of total sales in 2025. Fastenal also targets signing 28,000 to 30,000 weighted FMI (Fastenal Managed Inventory) devices in 2025.
3. Enhanced Customer Acquisition and Penetration: Fastenal is focused on growing its customer base, particularly with national accounts, and increasing its "share of wallet" with existing clients. The company consistently experiences stronger growth from its national account customers, with daily sales rates for national accounts increasing by 5.6% in Q3 2024, compared to a decline for non-national accounts. This focus on larger customers, including Onsite customers, and key accounts, is a driver of growth. Additionally, Fastenal noted a rise in customers spending over $10,000 per month in Q1 2025.
4. Expansion of Product Categories: Beyond its core fasteners, Fastenal continues to expand its offerings in other product categories, such as safety supplies, janitorial products, and other maintenance, repair, and operations (MRO) items. The company has observed relatively stronger growth from non-fastener products, which tend to have a lower gross profit percentage but contribute to overall sales expansion. In Q2 2025, fasteners grew by 10.7%, followed by safety supplies at 9.0%, and remaining products at 6.6%.
5. Strategic Pricing Initiatives: Fastenal utilizes strategic pricing to manage costs and contribute to revenue growth. While not always the primary driver of volume, price adjustments help offset inflation and enhance sales. In Q2 2025, price contribution accounted for 140-170 basis points of the 8.6% increase in net sales. Although price/cost did not materially impact Q3 2024, managing pricing remains an ongoing factor in revenue generation.

Share Repurchases

• Fastenal repurchased $20.0 million in common stock during 2021.
• The company repurchased $50.0 million in common stock during 2022.
• Fastenal repurchased $300.0 million in common stock during 2023, and as of December 31, 2023, $500.0 million remained available for repurchase under the existing authorization.

Outbound Investments

• On January 29, 2021, Fastenal acquired certain assets of the industrial supply business of affiliates of Fortress Distribution Group, LLC and The Holo-Krome Company for approximately $120.0 million.

Capital Expenditures

• Capital expenditures were $188.0 million in 2021, $208.7 million in 2022, and $243.6 million in 2023.
• Fastenal estimates capital expenditures for 2024 to be between $210.0 million and $230.0 million.
• The primary focus of capital expenditures includes investments in sales and support infrastructure, information technology, property and equipment, and projects related to automation and digital initiatives.