Fastenal Company

“At the end of 2025, we had 1,595 branch locations in 25 countries supported by 15 distribution centers in North America, with 12 in the United States (U.S.), two in Canada, and one in Mexico; two in Asia; and two in Europe, and we employed 24,489 people.”

“Fastenal is a global leader in the wholesale distribution of industrial and construction supplies. We distribute these supplies through a network of approximately 1,600 branch locations.”

“Starting in 2025, we have disclosed Sites information instead of public branches and customer-dedicated Onsites.”

“We also service general and commercial contractors in non-residential end markets as well as farmers, truckers, railroads, oil exploration companies, oil production and refinement companies, mining companies, federal, state, and local government entities, schools, warehouse and storage, data centers, and certain retail trades.”

“Total Manufacturing42,313 44,008 45,991 49,966 55,655 59,970 67,754 70,500 72,209 72,363 Sales$6,203 5,720 5,535 5,127 4,211 3,618 3,723 3,410 2,943 2,616”

“Government contracts establish Fastenal as an approved supplier of indirect materials to facilities managed by local, state, or municipal authorities. We do not generate meaningful direct sales from federal government agencies.”

“In addition, as a supplier to federal, state, and local government agencies, we must comply with certain laws and regulations relating specifically to the formation, administration, and performance of our governmental contracts.”

“Fastenal is the preferred indirect material supplier for the National Hockey League (NHL®), and a primary partner of Roush Fenway Keselowski Racing®, which stands as one of the longest tenured-brands in NASCAR®.”

“we finished 2025 with approximately 124,000 FASTVend devices in the field... We estimate the market could support as many as 1.7 million vending units”

“Our most utilized models include the helix-based FAST 5000 and our 12- and 18-door lockers; combined, these comprise approximately 63% of our installed base of devices.”

“From a product portfolio standpoint, we classify our offerings into three primary categories: fasteners, safety supplies, and other product lines.”

“supported by 15 distribution centers in North America, with 12 in the United States (U.S.), two in Canada, and one in Mexico; two in Asia; and two in Europe”

“At the end of 2025, we employed 24,489 full- and part-time employees. Of these, approximately 70% held a selling role.”

“Total personnel - FTE employee headcount21,602 20,9583.1 %”

“Our Onsite service model provides us with a strategic advantage with our larger customers... all with a relatively low incremental investment given the existing branch and distribution structure.”

“Our business is highly competitive and includes large national distributors whose strongest presence tends to be in more densely populated areas, and smaller regional or local distributors, which compete in many of the smaller markets in which we have branches.”

“In 2025, the market provided minimal contribution, tariff related pricing contributed 170 to 200 basis points, and the primary factor contributing to our daily sales growth of 9.1% was share gains.”

“FMI programs tend to generate a higher frequency of business transactions and, coupled with our fully integrated distribution network, foster a strong relationship with customers.”

“We estimate the North American marketplace for industrial supplies is in excess of $140 billion per year (and we have expanded beyond North America) and no company has a significant portion of this market.”

“Our strategy prioritizes customer sites with monthly sales potential of $50,000 or more.”

“The ultimate aim of this 'high-touch, high-tech' approach to gaining market share is to allow us to get closer to our customers, going so far as to be right to the point of consumption within customers' facilities.”

“As of December 31, 2025, we had $125.0 of outstanding debt obligations, all in the form of senior unsecured promissory notes issued under our master note agreement”

“We also have borrowing capacity under our revolving credit facility (the Credit Facility) of $835.0, but no loans were outstanding as of December 31, 2025.”

“We also believe there remains considerable room to grow our current installed base of devices before it begins to approach the number of units we believe the market can support.”

“On April 23, 2025, Fastenal Company (together with our subsidiaries, hereinafter referred to as 'Fastenal,' 'the Company,' 'we,' 'our,' or 'us') announced a two-for-one stock split of its outstanding common stock.”

“We are subject to a variety of laws and regulations including without limitation import and export requirements, anti-bribery and corruption laws, product compliance laws, environmental laws, foreign exchange controls and cash repatriation restrictions, advertising regulations, data privacy”

“Inclement weather and other disruptions to the transportation network could adversely impact our distribution system and demand for our products.”

“In 2025, tariff rates increased on many of the parts we sell. Additionally, new tariffs were enacted.”

“The occurrence of a widespread public health crisis could have a material adverse effect on our business, results of operations, and financial condition.”

“Recent imposition of new and expanded tariffs have further contributed to disruptions in global capital markets and global supply chains.”

“Our ability to process orders, maintain proper levels of inventories, collect accounts receivable, pay expenses, and maintain the security of Fastenal and customer data, as well as the success of our growth drivers, is dependent in varying degrees on the effective and timely operation and support of our IT systems.”

“Qualified individuals of the requisite caliber and number needed to fill these positions may be in short supply in some areas, and the turnover rate in the industry is high, particularly for less tenured employees.”

“Privacy security laws and regulations, including the European Union General Data Protection Regulation 2016, the California Consumer Protection Act, and other similar privacy laws, pose increasingly complex compliance challenges, which may increase compliance costs, and any failure to comply with data privacy laws and regulations could result in significant penalties.”

“Products that we sell may expose us to potential material liability for property damage, environmental damage, personal injury, or death linked to the use of those products by our customers.”

“Our ability to maintain and enhance our competitive position depends in part on our capacity to adopt and integrate emerging technologies, including AI and advanced analytics, into our operations, customer solutions, and supply chain management.”

“The cost of servicing any existing balances on the Credit Facility could increase if interest rates increase due to the SOFR-based interest rate provided for under the Credit Facility.”

“Failure to maintain an effective system of internal controls over business processes and/or financial reporting could materially impact our business and results.”

“weakness in the manufacturing or commercial construction industries or any of our end markets, competitive pressure on selling prices, changes in trade policies or tariffs”

“ft their operations overseas in an effort to reduce expenses, we may face increased difficulty in growing and maintaining our market share.”