Fastenal Co. concluded 2024 with solid results, although it fell slightly short of its ambitious digital sales penetration goal.

Despite this, the company remains optimistic about gaining momentum in 2025, as shared by CEO Dan Florness during a year-end earnings call.

For the fiscal year ending December 31, Fastenal posted a 2.7% increase in total sales, rising to $7.546 billion in 2024 from $7.346 billion in 2023. Net income for the year totaled $1.150 billion, down from $1.545 billion the previous year.

Fastenal digital sales in Q4

As a leading distributor of construction and industrial products, Fastenal continues to prioritize its digital sales transformation. Its offerings include ecommerce platforms and the Fastenal Managed Inventory (FMI) programs, which feature FASTVend, internet-connected vending machines installed at customer locations to enhance on-site sales and services.

In 2024, digital sales accounted for approximately 62% of Fastenal’s total revenue ($4.678 billion), demonstrating consistent progress. The company is targeting further growth, with plans to achieve 66% to 68% digital sales penetration by the end of 2025.

“We believe the ongoing development and expansion of our digital capabilities will enhance our ability to grow,” the company stated.

In the fourth quarter of 2024, digital sales represented 62.2% of total revenue, an increase from 58.1% in the same quarter of 2023.

Ecommerce remained Fastenal’s fastest-growing channel last year. “E-commerce grew about 25.5%—it’s good news and bad news,” Florness explained to analysts. “Our e-procurement channel, where supply chain customers use technology to communicate their needs, continues to grow at over 30%. However, our web-centric e-commerce growth was in single digits.

“These trends have driven us to realign under a unified digital strategy,” Florness continued. “When we analyze how customers use our website, we find it heavily focused on fasteners. Our goal is to better align our digital offerings with broader customer needs, improving their overall experience.”

With a focus on refining its digital strategy and enhancing customer applications, Fastenal aims to build on its digital momentum and drive stronger growth in 2025.

Here’s last quarter’s update about Fastenal digital sales.

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