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Get filing alertsFastenal reports 14.7% Q2 sales growth, 21% operating margin, returns $305M to shareholders
Filed July 14, 2026 · Period ending July 14, 2026 · ~1 min read
Key Changes
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Q2 2026 daily sales grew 14.7% year-over-year to $37.3M, driven by share gains with larger customers and ~290 basis points from pricing; net income rose 15.9% to $382.8M ($0.33 EPS vs. $0.29 prior year).
Exhibit 99.1 view on EDGAR → -
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Operating margin held at 21.0% as 80 basis points of SG&A leverage offset 75 basis points of gross margin pressure (44.6% vs. 45.3% prior year) from unfavorable net price/cost and customer mix shifts.
Exhibit 99.1 view on EDGAR → -
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Returned $305.1M (79.7% of net income) to shareholders via $275.4M dividends and $29.7M buybacks, up from $252.5M (76.4%) in Q2 2025; total debt fell to 2.9% of capital from 5.7% a year earlier.
Exhibit 99.1 view on EDGAR → -
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Operating cash flow was $265.7M (69.4% of net income vs. 84.4% prior year) due to higher receivables from strong late-quarter sales, including 20.5% June growth; six-month cash conversion improved to 89.1%.
Exhibit 99.1 view on EDGAR → -
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Revised 2026 FMI device signings target to 27,000–29,000 MEUs from 28,000–30,000; Q2 signings were 6,993 units (+8.3% YoY), with FMI Technology sales up 16.4% to $1,081M (44.6% of total sales).
Exhibit 99.1 view on EDGAR →
Summary
Fastenal delivered strong Q2 2026 results with 14.7% daily sales growth and 21% operating margins, reflecting market share gains with larger customers and effective pricing execution. Net income rose 15.9% to $382.8 million despite gross margin pressure from unfavorable net price/cost dynamics and customer mix shifts, as the company leveraged SG&A expenses down 80 basis points to 23.5% of sales. The company returned nearly 80% of net income to shareholders through dividends and resumed buybacks after a year-long pause, while reducing debt to under 3% of total capital.
Operating cash flow conversion dipped to 69% of net income in the quarter due to higher receivables from accelerating late-quarter sales (June sales up 20.5%), though six-month conversion improved to 89%. The company modestly lowered its full-year FMI device signings target to 27,000–29,000 units from 28,000–30,000, though FMI Technology sales grew 16.4% and now represent 45% of total revenue. The combination of sustained double-digit growth, stable operating margins, and disciplined capital allocation demonstrates operational momentum, though investors should monitor whether gross margin pressure persists as customer mix continues shifting toward larger accounts.
Section-by-Section Diff
Event · Exhibit 99.1
Fastenal reported Q2 2026 earnings with 14.7% daily sales growth, 21.0% operating margin, and returned $305M to shareholders via dividends and buybacks.
Added in current filing · view on EDGAR →
Net cash provided by operating activities was $265.7 in the second quarter of 2026, a decrease of 4.6% from the second quarter of 2025. Cash flow from operations represented 69.4% of net income, compared to 84.4% in the second quarter of 2025 and our five-year second quarter average of 79.6%. The decline as a percentage of net income compared to last year was primarily driven by a larger use of cash for accounts receivable, reflecting strong mid- and late-quarter sales growth, including a 20.5% year-over-year increase in June sales.
Operating cash flow was $265.7 million in Q2 2026, representing 69.4% of net income versus 84.4% in Q2 2025. The decline as a percentage of net income was driven by higher accounts receivable due to strong late-quarter sales growth, including a 20.5% year-over-year increase in June sales. For the six-month period, operating cash flow improved to 89.1% of net income versus 86.0% in the prior year, reflecting better working capital leverage on inventory.
Event · Item 2.02 — Results of Operations and Financial Condition
Fastenal announced quarterly earnings results via press release.
Added in current filing · verify on EDGAR →
On July 14, 2026, the Registrant issued a press release announcing the results of its most recently ended fiscal quarter
Fastenal disclosed quarterly financial results through a press release. The specific financial metrics, revenue figures, earnings per share, and operational performance details are contained in the attached press release exhibit, which is not included in this 8-K body text.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 20, 2026 · How we verify