Fastenal (FAST) Financials

Fastenal’s recent financial statements show accelerating sales growth, strong profitability and a highly conservative balance sheet. Revenue reached $2.39 billion in Q2 2026, up 14.7% from $2.08 billion in Q2 2025 and roughly 32% above Q2 2024. The company has posted year-over-year revenue growth across the comparable periods provided, with quarterly revenue rising from approximately $1.70 billion in Q4 2022 to $2.39 billion in Q2 2026.

Profitability has also improved in dollar terms. Q2 2026 operating income increased to $501.8 million from $436.1 million in Q2 2025, while net income rose 15.9% to $382.8 million. Diluted EPS increased to $0.33 from $0.29 in the year-ago quarter. The company’s operating margin was approximately 21.0% in Q2 2026, broadly stable from Q2 2025, although gross margin narrowed slightly to about 44.6% from 45.3%.

Fastenal continues to generate substantial operating cash flow, but working-capital investment is consuming more cash as the business expands. Operating cash flow was $265.7 million in Q2 2026, compared with $278.6 million in Q2 2025, while the change in operating assets and liabilities reduced cash flow by $166.2 million. Capital expenditures of $64.1 million produced estimated quarterly free cash flow of approximately $202 million.

The balance sheet remains a significant strength. At June 30, 2026, Fastenal had $204.7 million in cash and total debt of $120 million, implying approximately $84.7 million of net cash. Total equity was $4.07 billion against $1.22 billion of liabilities, and the current ratio was roughly 4.2. However, dividends and share repurchases exceeded free cash flow during Q2, causing cash to decline by $103.9 million.

• Broad revenue expansion: Quarterly revenue increased from $1.70 billion in Q4 2022 to $2.39 billion in Q2 2026, indicating sustained growth rather than a single-quarter improvement.
• Strong Q2 2026 earnings growth: Net income rose nearly 16% year over year to $382.8 million, while diluted EPS increased to $0.33.
• Healthy operating margins: The Q2 2026 operating margin was approximately 21%, despite higher selling, general and administrative expenses.
• Conservative leverage: Total debt declined from $230 million in Q2 2025 to $120 million in Q2 2026, leaving Fastenal with a net-cash position.
• Large equity base and liquidity cushion: Equity of approximately $4.07 billion and current assets of $3.69 billion provide substantial financial flexibility.
• Shareholder returns remain substantial: Fastenal paid $275.3 million in dividends and repurchased $30 million of common stock during Q2 2026.
• Capital investment is rising: Quarterly capital expenditures increased to $64.1 million in Q2 2026 from $56.1 million in Q2 2024, suggesting continued investment in facilities and infrastructure but reducing near-term free cash flow.
• Accounts receivable growth requires monitoring: Receivables increased to $1.56 billion in Q2 2026 from $1.32 billion a year earlier, broadly tracking the company’s expansion but absorbing additional working capital.
• Operating cash conversion weakened in Q2: Operating cash flow declined year over year because operating assets and liabilities consumed $166.2 million of cash, compared with a $97.6 million use in Q2 2025.
• Cash balances are trending lower: Cash fell from $308.6 million at the end of Q1 2026 to $204.7 million at the end of Q2 after dividends, buybacks, capital spending and debt activity.

Overall, the statements portray a financially strong company with improving sales and earnings momentum, durable operating margins and minimal balance-sheet risk. The primary issues for investors are the increasing cash tied up in receivables and other working capital, as well as the large shareholder distributions that can push quarterly cash flow negative even when operations remain profitable. The supplied data also includes restated periods and a sharp change in reported share counts beginning in 2025, so EPS comparisons should be interpreted using the company’s reported split-adjusted figures.