Fastenal Co. reported modest top-line growth in its fiscal Q1 of 2025, led by continued expansion in digital sales.
While overall business activity remained mixed, the company’s investment in technology-driven fulfillment and ecommerce tools continued to pay off.
Net sales for the quarter reached $1.96 billion, a 3.4% increase from $1.90 billion in the first quarter of 2024. Net income rose just 0.3% to $298.7 million, essentially flat compared to the same period last year. Adjusted for one fewer selling day in the quarter, daily sales rose 5.0% year over year.
Digital sales remain a key driver. Fastenal’s “Digital Footprint” — which includes revenue generated through its eBusiness tools and Fulfillment Management Inventory (FMI) systems — totaled $1.21 billion, up 8.3% from the prior year. These sales accounted for 61% of the company’s total revenue in Q1, up from 59.2% a year ago.
Fastenal digital sales in Q1
Sales through Fastenal’s eBusiness platforms — including electronic data interchange (EDI) and website transactions — increased 12.9% to $607.6 million. FMI sales, which include vending machines, RFID-enabled bins, and other automated systems at customer sites, rose 9.5% to $859 million. The company ended the quarter with 130,000 installed vending and bin units, a 12.4% increase year over year.
“While overall demand across our industrial markets remains sluggish, we’re continuing to see strong engagement from customers who rely on our digital tools,” Fastenal said in its earnings statement.
Much of that demand came from large, contracted customers. Sales to this group — which often adopts Fastenal’s integrated digital offerings — rose 8.5% and now make up 73.1% of total revenue. In contrast, sales of non-contract customers fell 3.6%, reflecting continued softness among smaller buyers and project-based businesses.
Product mix also shifted toward maintenance, repair, and operations (MRO) categories like safety, electrical, and janitorial supplies, while fastener sales remained weak.
Despite the gains in digital sales, Fastenal’s gross margin dipped slightly to 45.1% from 45.5% a year earlier, due in part to customer mix, transportation costs, and continued inflation in fleet operations.
Looking ahead, Fastenal said it will continue investing in digital infrastructure, including additional FMI installations and upgrades to distribution hubs. The company signed 6,418 new vending and bin units in Q1 and reaffirmed its goal of 28,000 to 30,000 new device signings in 2025.
Here’s last quarter’s update about Fastenal digital sales.
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