Fastenal Co. continued to widen its digital footprint in its fiscal Q3, posting strong sales and profit growth as more customers shifted purchasing to its online platforms and automated inventory systems.

Industrial and construction supply distributor Fastenal reported Q3 sales of $2.13 billion. That’s up 11.7% from $1.91 billion a year earlier. Net income rose 12.6% to $335.5 million, compared with $298.1 million in the third quarter of 2024.

For the first nine months of 2025, sales increased 7.9% to $6.17 billion, while net income climbed 8.5% to $964.4 million.

Daily sales grew 11.7% year over year, driven by higher volumes from large manufacturing and construction customers and stronger pricing momentum.

“We put up a great quarter,” said president and CEO Dan Florness. “Our teams executed well, and we’re seeing the results of pricing decisions and customer relationships we built over the past 18 months.”

Fastenal digital sales surpass 60% of total revenue in Q3

The company’s strategy to digitize its business continued to pay off. Fastenal said 61.3% of total sales in Q3 came from what it calls its digital footprint. That’s a combination of e-business transactions and Fastenal Managed Inventory (FMI) technology such as vending machines and sensor-equipped bins that automatically reorder supplies.

Sales through FMI technology grew 18% year over year, accounting for 45.3% of total sales. The company signed about 110 new FMI devices per day, bringing its installed base to almost 134,000 globally. E-business sales — which include transactions through procurement systems and Fastenal.com — rose 8% and represented 29.1% of total revenue.

“Our digital engines continue to gain momentum,” said Jeff Watts, chief sales officer. “We’re winning with large customers, deepening relationships through technology and aligning around the right priorities.”

Watts added that Fastenal will relaunch Fastenal.com in 2026 to improve the buying experience and accelerate online growth.

Executives described the quarter’s results as largely “self-help” growth, achieved through share gains rather than an improving economy. The broader manufacturing sector remained soft, with the average Purchasing Managers’ Index hovering below 50 — a sign of contraction.

“The industrial economy remains sluggish, essentially flat,” Watts said. “But our growth is mostly self-help and market share gains rather than any particular macro lift.”

National account sales rose by double digits, powered by new contract signings and deeper penetration within existing customers. Watts pointed to a long-time customer in Texas that expanded Fastenal’s footprint from two sites to five.

“That didn’t just happen by accident,” he said. “It was our team proving themselves and offering new solutions and product lines.”

How Fastenal managed tariffs in Q3 2025

Fastenal also reported growth in nontraditional sectors, including health care, education, and government, which now provide steadier demand alongside its manufacturing base.

Interim chief financial officer Sheryl Lisowski said the company’s pricing strategy helped offset the impact of new tariffs on steel and fasteners enacted earlier this year. Pricing contributed 2.5 percentage points to sales growth during the quarter, with additional adjustments expected in the fourth quarter.

“We’ve been proactively engaging with our customers for several months,” Lisowski said. “We’re not just passing on increases — we’re working side by side to find efficiencies and alternatives.”

Despite inflation and supply chain costs, Fastenal expanded its operating margin to 20.7% and gross margin to 45.3%. The company generated $387 million in operating cash flow and continued to invest in its digital infrastructure — from new FMI devices to automation upgrades at distribution hubs in Utah and Atlanta.

Reflecting on the company’s progress, Florness noted that Fastenal’s evolution into a technology-driven distributor was a long time coming.

“A decade ago, we couldn’t have made that statement — we didn’t have a technology team to present,” he said. “Today we do, and it’s helping us navigate challenges like tariffs and supply chain disruption.”

Florness credited the company’s “Blue Team” employees for keeping the business focused on customer service and adaptability.

“It’s never about us,” he said. “It’s about the customers and the market we serve.”

While the company’s earnings came in just shy of expectations, Fastenal’s results make clear that its future is being built on digital commerce and automation. With more than 60% of its business now transacted through technology, the company is reshaping how industrial products are bought, stocked, and replenished — one vending machine and data feed at a time.

Check back for more earnings reports. Here’s last quarter’s update about Fastenal digital sales.

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