FAST FASTENAL CO

Overview and Growth

FASTENAL CO generated $8.20B of revenue in fiscal 2025, with net income of $1.26B and an operating cash inflow of $1.30B. The $8.20B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 8.7% above fiscal 2024 revenue of $7.55B, marking a year-over-year increase. Diluted earnings per share were $1.09, translating the period’s attributable earnings into the amount reported for each diluted share. The per-share result recorded a 9.0% increase from fiscal 2024 diluted EPS of $1.00. Asset turnover was 1.62x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

The first profit layer was $3.69B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 45.0% of revenue, showing how much of the top line remained after direct costs. Operating income was $1.66B, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 20.2%, showing the portion of revenue preserved after the full set of operating costs. After all reported below-operating-line items, the company recorded net income of $1.26B for the fiscal year. The final earnings result represented 15.3% of revenue, connecting the absolute net income figure with the company’s top-line scale. The earnings statement records $1.66B of pretax income, the profit base against which the reported tax provision can be assessed. Pretax income represented 20.2% of revenue, placing earnings before tax in the context of the company’s operating scale. The reported income-tax provision was $396.60M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 24.0%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

The company held $5.05B of assets against $1.11B of liabilities and $3.94B of equity, revealing how the asset base was financed. At period end, current assets of $3.47B compared with current liabilities of $715.60M, defining the company’s short-term resource position. At 4.85x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Reported cash and equivalents were $276.80M, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 38.7% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Total debt was $125.00M, establishing the amount of borrowing carried within the company’s capital structure. Debt equaled 0.03x of book equity, describing the relative scale of borrowing and shareholder capital. Relative to total assets, debt measured 2.5%, showing how much of the asset base was matched by borrowing. The liabilities-to-assets relationship was 22.0%, placing reported obligations against the full positive asset balance. Cash and equivalents equaled 5.5% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $1.30B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Against net income, operating cash flow measured 1.03x, showing the relationship between accrual earnings and operating cash. The cash-flow statement records $245.30M of capital expenditures, the investment amount considered after operating cash generation. Relative to operating cash flow, capital expenditures measured 18.9%, connecting investment intensity with the company’s cash-generation base. The combination of operating cash flow and capital spending produced $1.05B of positive free cash flow for the period. Free cash flow represented 12.8% of revenue, linking post-investment cash generation with the company’s operating scale. The free-cash-flow-to-assets relationship was 20.8%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.