• The Home Depot for industrial businesses and contractors.
• Like Sysco, but for nuts, bolts, and industrial supplies.

• Fasteners: These include threaded fasteners, bolts, nuts, screws, studs, and washers used in manufactured products, construction, and machine maintenance.
• Miscellaneous Industrial and Construction Supplies: This category encompasses various hardware such as pins, machinery keys, concrete anchors, metal framing systems, wire ropes, strut products, and rivets.

Fastenal Company (FAST) primarily sells to other companies and organizations rather than individuals. Based on the provided background information, specific names of customer companies are not disclosed; instead, the company describes its customer base by market segment and type of entity. Its major customers fall into the following categories:

• Manufacturing Market: This includes Original Equipment Manufacturers (OEMs) and businesses engaged in Maintenance, Repair, and Operations (MRO).
• Non-Residential Construction Market: This segment comprises various types of contractors, such as general, electrical, plumbing, sheet metal, and road contractors.
• Diverse Industrial, Commercial, and Governmental Entities: This broad category encompasses a wide array of customers including farmers, truckers, railroads, mining companies, schools, retail trades, oil exploration, production, and refinement companies, as well as federal, state, and local governmental entities.

Daniel L. Florness, Chief Executive Officer

Daniel L. Florness has served as Fastenal's chief executive officer since August 2024, and prior to that was president and chief executive officer from January 2016 to July 2024. He joined Fastenal in 1996, initially 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 to include leadership in product development and procurement, a segment of the manufacturing division, and national accounts. Before joining Fastenal, Mr. Florness spent 10 years in public accounting with KPMG. He also holds board positions as a director of H.B. Fuller, a publicly-held company in the global adhesives market, and as a trustee of Bellin Gundersen Health System, Inc.

Max Tunnicliff, Chief Financial Officer and Senior Executive Vice President

Max Tunnicliff was appointed Chief Financial Officer and Senior Executive Vice President of Fastenal, effective November 10, 2025. In this role, he is responsible for leading the company's finance, accounting, internal audit, and legal functions, as well as establishing strategic priorities, overseeing capital allocation, and driving financial performance. Prior to joining Fastenal, Mr. Tunnicliff served as the chief financial officer of Beko Europe. He also held several senior finance leadership roles at Whirlpool Corporation, including head of internal audit and vice president of strategy, and chief financial officer of the Asia Pacific region.

Jeffery M. Watts, President and Chief Sales Officer

Jeffery M. Watts has served as Fastenal's President and Chief Sales Officer since August 2024. He is slated to succeed Daniel L. Florness as the company's chief executive officer in July 2026. Mr. Watts began his career at Fastenal in 1996 and has progressed through various sales leadership roles within the company. His past positions include Chief Sales Officer (May 2023 to July 2024), Executive Vice President of International Sales (December 2016 to April 2023), and Vice President of International Sales (March 2015 to December 2016).

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

Sheryl A. Lisowski has been Fastenal's Executive Vice President, Chief Accounting Officer, and Treasurer since November 2025. Before this role, she served as Executive Vice President, interim Chief Financial Officer, Chief Accounting Officer, and Treasurer from April 2025 to November 2025. From December 2020 to April 2025, Ms. Lisowski held the position of Vice President and Chief Accounting Officer.

William J. Drazkowski, Senior Executive Vice President – Sales

William J. Drazkowski has served as Fastenal's Senior Executive Vice President – Sales since January 2026. Prior to this, he was the Executive Vice President – Sales from July 2023 to December 2025. In his current role, he oversees the professional sales teams responsible for growing and maintaining Fastenal's extensive contract portfolio, which accounts for approximately 75% of the company's total business. Mr. Drazkowski has been identified as a "Blue Team member since 1995," indicating a long tenure with Fastenal.

1. Cyclical Industrial Demand

2. Intensified Competition and Price Transparency

3. Margin Pressure and Cost Inflation

• Globally, the industrial fasteners market was estimated at USD 124.2 billion in 2024 and is projected to reach USD 173.8 billion by 2034.
• In North America, the industrial fasteners market was valued at approximately USD 27.78 billion in 2024 and is anticipated to grow to about USD 41.81 billion by 2032.
• Specifically, the U.S. industrial fasteners market is projected to be valued at USD 26.5 billion in 2025, expanding to USD 40.7 billion by 2034.

• The North America MRO distribution market size was estimated at USD 161.70 billion in 2024. Another source notes the U.S. MRO distribution market is estimated between USD 150 billion and USD 175 billion. Fastenal's management also estimates their core North American market for MRO at over USD 140 billion.
• Within the broader North America MRO market, the size was valued at USD 25.77 billion in 2024 and is expected to reach USD 35.23 billion by 2033.

• The North America construction materials market size was approximately USD 568.62 billion in 2024 and is projected to reach around USD 722.07 billion by 2031.
• Globally, the building and construction materials market was valued at USD 1.41 trillion in 2025 and is expected to reach USD 2 trillion by 2034.

Fastenal (FAST) is expected to drive future revenue growth over the next two to three years through several strategic initiatives:

1. Expansion of Onsite Locations: Fastenal's Onsite program, which involves embedding service locations within or adjacent to customer facilities, is consistently highlighted as a primary growth engine. The company aims for net annual additions of 350-400 Onsites in the medium term, with a goal to exceed 2,500 Onsites globally by 2027-2028. This strategy helps increase customer "wallet share" and reduces churn.
2. Growth of Fastenal Managed Inventory (FMI) Technology and Digital Footprint: The company is actively expanding its FMI program, which includes innovative solutions like FASTBin and FASTVend devices, automating inventory tracking and reordering for customers. Fastenal anticipates continued growth in FMI Technology signings, targeting 28,000 to 30,000 Managed Inventory Units (MEUs) in 2026. Its digital footprint, encompassing e-business and FMI technology, is projected to account for 66% to 68% of total sales volume in 2025.
3. Strategic International Expansion: Fastenal is prioritizing international markets for growth, particularly Mexico and Canada. These regions are targeted due to factors like nearshoring and foreign direct investment in manufacturing, with a goal of achieving high-teens growth in Mexico between 2025 and 2027.
4. Broadening Product and Service Offerings: Beyond its core fastener business, Fastenal is expanding its product and service categories. This includes scaling offerings in safety, metalworking, OEM supplies, private-label products, and custom kitting, as well as enhancing services such as managed inventory and light assembly.
5. Penetration of Large Customer Accounts and Market Share Gains: Fastenal's revenue growth is also expected to be driven by an increase in unit sales from customer sites spending $10,000 or more per month, along with improved customer contract signings. The company focuses on investing in customers where it can gain share through its Onsite service, vending solutions, and specialized sales approaches.

Share Repurchases

• Fastenal authorized the repurchase of an additional 8,000,000 shares on July 12, 2022, an authorization that does not have an expiration date.
• The company repurchased 1,000,000 shares in the second quarter of 2022 and 2,000,000 shares in the fourth quarter of 2022 at an average price of $46.62 per share.
• As of October 10, 2025, Fastenal had authority to purchase up to 12,400,000 shares of its common stock under the July 2022 authorization, adjusted to reflect a two-for-one stock split in 2025. No common stock was repurchased in 2023, 2024, or the first three quarters of 2025.

Share Issuance

• Fastenal's shares outstanding showed slight increases in recent years, with 1.149 billion shares in 2024 and 1.15 billion in 2025.
• Stock options exercised resulted in the issuance of 1,338,085 shares in 2024.
• The company reported stock-based compensation expenses of $8.0 million in 2024, $7.3 million in 2023, and $7.2 million in 2022.

Outbound Investments

• Fastenal's most recent acquisition was Spensall in 2018.
• No significant outbound investments, such as acquisitions of other companies, have been reported for Fastenal within the last 3-5 years.

Capital Expenditures

• Fastenal's capital expenditures were $230.6 million in 2025 and $214.1 million in 2024.
• Expected capital expenditures for 2026 are projected to be between $310 million and $330 million, marking a notable increase from 2025.
• The primary focus of these capital expenditures includes replacing the Atlanta hub facility, enhancing picking capacity, improving efficiency across the hub network, and investing in IT projects and FMI (Fastenal Managed Inventory) technology.