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2025 FIRST QUARTER INVESTOR TELECONFERENCE APRIL 11, 2025 1
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2 SAFE HARBOR STATEMENT All statements made herein that are not historical facts (e.g., future operating results, long-term share gains, and business activity, as well as expectations regarding operations, including gross and operating income margin, future inventory levels, pricing, weighted FMI device signings, operating costs (including SG&A), capital expenditures, sales through our digital footprint, cash flow generation, the potential impact of our growth drivers and sales trends with customers, the imposition of tariffs and the related impact on our pricing strategy, and supply chain matters) are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially. More information regarding such risks can be found in Fastenal Company's (collectively referred to as 'Fastenal' or by terms such as 'we', 'our', or 'us') most recent annual and quarterly reports filed with the Securities and Exchange Commission. Any numerical or other representations in this presentation do not represent guidance by management and should not be construed as such. The appendix to the following presentation includes non-GAAP financial measures. Information required by Regulation G with respect to such non-GAAP financial measures can be found in the appendix including a comparison and reconciliation to the comparable GAAP measures.
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3 1. CHALLENGE rather than CONTROL. 2. Treat everyone as your equal. 3. Stay out of the spotlight. 4. Share the rewards. 5. LISTEN rather than SPEAK. 6. See the unique humanness in all persons. 7. Develop empathy. 8. Suppress your ego. 9. Let people learn. 10. Remember how little you know. Bob Kierlin's 10 Rules About Leadership
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4 $0.52 $0.52 $0.52 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 $0.45 $0.50 $0.55 • 1Q25 net sales were +3.4%. Taking into consideration one less selling day, our daily sales increased 5.0%. While optimism is higher, business activity remains sluggish. EPS of $0.52 was unchanged from 1Q24. • The full quarter DSR is a good picture of the state of our business, mostly from the contribution of internal initiatives. Intra-quarter , growth acceleration is likely less dramatic than the January (+1.9%) to March (+8.3%) pace implies with the former understated by the effect of severe weather and the latter aided by the absence of Good Friday in the current year. • We hosted our annual Customer Expo on April 8-9 in Nashville, TN. Customer attendance approximated 2024's record level, reflecting sustained strong selling energy and interest in our supply chain solutions. • We have provided customer site information, including a three year history in our 1Q25 earnings release. This data offers insights into the number, type, and size of customers, as well as the effectiveness of our selling initiatives. • Yesterday, we declared a $0.44 dividend payable in 2Q25, a penny above the 1Q25 level and putting us on pace to return more than $1B to shareholders in 2025 through dividends. Despite marketplace uncertainty, we remain confident in our ability to generate strong cash flow. 9.1% 5.9% 4.0% 3.7% 1.9% 1.8% 1.9% 2.1% 5.0% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 0% 2% 4% 6% 8% 10% 12% Net Income Per Share (Fully Diluted) Daily Sales Rate (DSR) Growth CEO MESSAGES ON 1Q25
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• FMI Technology: We signed 6,418 weighted devices (102/day) in 1Q25, versus 6,726 (105/day) in 1Q24. Our installed base was 129,996 weighted devices, +12.4% from 1Q24. Activity through our FMI technology platform represented 43.3% of sales in 1Q25, versus 41.5% and 39.4% in 1Q24 and 1Q23, respectively. Our signings goal in 2025 remains between 28,000 to 30,000 MEUs. • eBusiness: Daily sales rose 12.9% in 1Q25. Daily sales through eProcurement and eCommerce were up 17.2% and 0.2%, respectively. • Sales through our Digital Footprint (FMI technology plus non-FMI-related eBusiness) was 61.0% of total sales in 1Q25, versus 59.2% and 54.1% in 1Q24 and 1Q23, respectively. Our Digital Footprint goal in 2025 remains between 66%-68%. • Looking at our Customer Site data, we had growth of 2.4% in the number of our $10K+ sites, led by Onsite-like sites (+6.9%). These sites acc ounted for 80.7% of sales in 1Q25, up from 78.9% in 1Q24. We continued to shed sites in our smaller categories, though the pace slowed. Average sales per customer site rose in every category, including very slightly in our $50K+ manufacturing sites which hadn't grown since 1Q24. Signings Installations 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 0K 2K 4K 6K 8K 10K 12K 0K 20K 40K 60K 80K 100K 120K 140K 160K Weighted FMI Device Signings and Installations (MEUs) (1) 1Q25 SUPPLEMENTAL DATA UPDATE 0 0 5 (1) Machine equivalent units (MEUs) 5,902 6,726 104,673 115,653 48.7% 33.6% 12.9% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 0% 10% 20% 30% 40% 50% 60% eBusiness Daily Sales Rate (DSR) Growth 129,996 6,418
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• U.S. PMI averaged 50.1 in 1Q25, though the 49.0 reading in March was disappointing. U.S. Industrial Production was +1.5% in Jan./Feb. 2025 over 1Q24. Heavier production series, like Fabricated Metal (-1.9%), Primary Metal (-0.3%), and Manufacturing (+0.3%), were relatively weaker. • Our DSR in 1Q25 was +5.0%, and improved each month. The quarter accurately reflects our improved sales performance, but the rate of acceleration is not as dramatic as implied by our monthly DSRs. January was depressed by severe weather, while March benefited from the absence of Good Friday in March 2025. • Regional leadership continues to believe our growth is due more to customer wins and share gains than the market, which remains subdued. Customer sentiment remains favorable, but more commentary crept into the responses about customers becoming more cautious in light of uncertainty around tariffs. • Price contribution to growth was essentially flat in 1Q25. In April, we adjusted prices to address tariffs imposed in February and March 2025. Price contribution to growth could be 3% to 4% in 2Q25 with potential to be higher in 2H25 as a result. We expect to take further appropriate price actions should the reciprocal tariffs announced in April ultimately come into effect. Heavy Mfg (43.4% of Sales) All Other Mfg (33.0% of Sales) All Other End Markets (23.6% of Sales) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 -10% 0% 10% 20% Fasteners (30.3% of Sales) Safety Supplies (22.0% of Sales) Remaining Products (47.7% of Sales) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 -10% 0% 10% 20% End Market Daily Sales Rate (DSR) Growth Product Category Daily Sales Rate (DSR) Growth 1Q25 BUSINESS CADENCE 6 6.7% 7.1% 1.1% 9.7% 4.8% (0.6)%
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• 1Q25 operating margin was 20.1%, down from 20.6% in 1Q24. Our inability to leverage was adversely impacted by the presence of one fewer selling day in 1Q25 versus 1Q24, as well as net sales growth of 3.4%. • Gross margin declined to 45.1% from 45.5% in 1Q24 on customer/product mix and higher fleet/freight costs, with offsets related to increased supplier spend and incentives. We continue to expect a narrower gap to the full year based on easier comparisons and benefits from our inventory investments in the back half of 2025. The degree to which the gap narrows will also depend on the pace of improvement in demand and its impact on product mix. • Price/cost was largely neutral, not materially affecting gross margin in 1Q25. We believe our processes and systems are sufficiently robust to sustain price/cost neutrality and defend our gross margin percentage in an environment of higher tariffs. • SG&A costs wer e 25.0% of sales compared to 24.9% in 1Q24. This was affected by the loss of a selling day versus 1Q24, without which we believe we could have achieved modest leverage. Every major cost category leveraged or de-leveraged only modestly. As a result, we believe we are effectively managing costs even as we continue to invest strategically in growth . 21.2% 20.6% 20.1% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 16% 18% 20% 22% 24% 45.7% 45.5% 45.1% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 35% 40% 45% 50% Gross Profit Margin Operating Income Margin 1Q25 MARGIN SUMMARY 7 7
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8 1Q25 CASH FLOW PROFILE Operating Cash Flow (OCF) (in millions) Percentages above the bar represent OCF as a % of Net Income 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 0 50 100 150 200 250 300 350 400 Net Capital Expenditures (in millions) Net Capital Expenditures = Property & Equipment, net of Proceeds from Sales $30.9 $48.3 $53.8 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 0 20 40 60 80 2025(E) Net CapEx: $265.0 to $285.0; 2024(A) Net CapEx: $214.1 • 1Q25 OCF was $262.2, or 87.8% of net income, below 1Q24 (112.7%). Cash generation was below traditional first quarter levels (five-year average of 115.8%) du e to increased investment in working capital. • Accounts receivable rose 5.4% from 1Q24 to support customer growth and from a continued shift in our sales mix toward larger customers, who tend to carry longer terms. Inventory rose 11.9% from 1Q24, reflecting additions to support projected overall growth, tariffs, growth with certain customers, and the fastener and optimal package quantity initiatives. Accounts payable rose 23.6% from 1Q24 reflecting our inventory growth. • Net capital spending was $53.8 in 1Q25 vs. $48.3 in 1Q24. Spend increases related to FMI hardware, facility and construction upgrades, and information technology (IT). Our 2025 net capital spending range remains between $265.0 to $285.0, an increase from 2024 in higher IT spending, investments in hub capacity and facility picking capabilities, and FMI device purchases. • We returned $246.7 of capital to shareholders through dividends in 1Q25 versus $223.2 in 1Q24. With the increase of our quarterly dividend in 2Q25 to $0.44, we are on pace to exceed $1B in dividend payout in 2025. 131.7% 112.7% 87.8%
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9 APPENDIX Non-GAAP Financial Measures The appendix includes information on our Return on Invested Capital ('ROIC'), which is a non-GAAP financial measure. We define ROIC as net operating profit less income tax expense divided by average invested capital over the trailing 12 months. We believe ROIC is a useful financial measure for evaluating the efficiency and effectiveness of our use of capital and believe ROIC is an important driver of shareholder return over the long-term. Our method of determining ROIC may differ from the methods of other companies, and therefore may not be comparable to those used by other companies. Management does not use ROIC for any purpose other than the reasons stated above. ROIC is a measure of performance not defined by accounting principles generally accepted in the United States, and should be considered in addition to, not in lieu of, GAAP reported measures. The tables that follow on page 10 include a reconciliation of the calculation of our return on total assets ('ROA') (which is the most closely comparable GAAP financial measure) to the calculation of our ROIC for the periods presented.
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(Amounts in millions) TTM 1Q25 TTM 1Q24 Operating Income $ 1,513.7 1,525.7 Income Tax Expense (359.8) (364.5) Net Operating Profit After Tax (NOPAT) $ 1,153.9 1,161.2 Total Current Assets $ 3,220.8 3,122.5 Cash and Cash Equivalents (234.5) (238.5) Accounts Payable (308.6) (271.4) Accrued Expenses (211.6) (218.4) Property & Equipment, Net 1,044.4 1,008.3 Other Assets 436.7 424.1 Invested Capital $ 3,947.2 3,826.6 ROIC 29.2% 30.3% (Amounts in millions) TTM 1Q25 TTM 1Q24 Net Income $ 1,151.6 1,157.6 Total Assets $ 4,701.8 4,554.9 ROA 24.5% 25.4% NOPAT $ 1,153.9 1,161.2 Add: Income Tax Expense 359.8 364.5 Operating Income 1,513.7 1,525.7 Add: Interest Income 4.7 5.3 Subtract: Interest Expense (7.0) (8.9) Subtract: Income Tax Expense (359.8) (364.5) Net Income $ 1,151.6 1,157.6 Invested Capital $ 3,947.2 3,826.6 Add: Cash and Cash Equivalents 234.5 238.5 Add: Accounts Payable 308.6 271.4 Add: Accrued Expenses 211.6 218.4 Total Assets $ 4,701.8 4,554.9 Calculation of Return on Invested Capital (ROIC) Reconciliation of ROIC to Return on Assets (ROA) * Amounts may not foot due to rounding differences. RETURN ON INVESTED CAPITAL* 10
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(1) Customer sites represent the number of customer locations served by our in-market network. Individual customers with multiple locations across multiple in-market locations will have multiple customer sites. (2) Customer sites are an average of the number of customer sites calculated each month. (3) Monthly sales per customer site totals do not include the sales from other sales lines, as there is no customer site count associated with it. This column is not rounded to the millions and represents the exact dollar amount. 11 1Q25 1Q24 Customer Sites (#) (1) (2) Sales Mo. Sales per Customer Site (3) Customer Sites (#) (1) (2) Sales Mo. Sales per Customer Site (3) Manufacturing $50K+/Mo. (4) 2,114 $ 874.0 $ 137,811 1,987 $ 819.2 $ 137,427 $10K+/Mo. 8,500 1,293.1 50,710 8,263 1,230.0 49,619 $5K-$10K/Mo. 4,451 95.5 7,152 4,448 95.3 7,142 <$5K/Mo. 30,308 101.7 1,119 31,999 104.7 1,091 Other sales (5) — 2.7 — — 11.1 — Total manufacturing sales 43,259 $ 1,493.0 $ 11,484 44,710 $ 1,441.1 $ 10,661 Non-manufacturing $50K+/Mo. (4) 388 $ 136.6 $ 117,354 353 $ 116.0 $ 109,537 $10K+/Mo. 2,918 288.5 32,956 2,890 265.7 30,646 $5K-$10K/Mo. 2,749 58.2 7,057 2,888 60.8 7,018 <$5K/Mo. 52,118 109.7 702 59,156 116.3 655 Other sales (5) — 10.0 — — 11.2 — Total non-manufacturing sales 57,785 $ 466.4 $ 2,633 64,934 $ 454.0 $ 2,273 Total $50K+/Mo. (4) 2,502 $ 1,010.6 $ 134,639 2,340 $ 935.1 $ 133,205 $10K+/Mo. 11,418 1,581.6 46,173 11,153 1,495.7 44,702 $5K-$10K/Mo. 7,200 153.8 7,120 7,336 156.2 7,097 <$5K/Mo. 82,426 211.4 855 91,155 221.0 808 Other sales (5) — 12.6 — — 22.2 — Total net sales 101,044 $ 1,959.4 $ 6,422 109,644 $ 1,895.1 $ 5,694 (4) $50K+ customer sites are disclosed as a representation of Onsite-like customers and are also a subset of $10K+ customer sites. (5) Other sales represent impacts to sales that are not tied to a specific site or in-market location. This includes certain service fees, cash sales, direct product sales, etc. CUSTOMER SITE PERFORMANCE
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Daily Sales Rate (DSR) BENCHMARKS Cum. Chg., Jan. to Mar. Cum. Chg., Jan. to Jun. Cum. Chg., Jan. to Sep. Cum. Chg., Jan. to Oct.Jan.* Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. BENCHMARK** 0.2% 1.3% 2.9% 4.2% (1.5%) 2.7% 0.9% 6.4% (3.5%) 2.5% 4.0% 9.5% (2.2%) 7.1% (2.6%) (6.9%) 2025 DSR (1.6%) 5.8% 3.3% 9.2% Delta v. Benchmark (1.8%) 4.5% 0.4% 5.0% 2024 DSR (0.7%) 2.7% 0.2% 2.8% (1.3%) 1.5% 1.6% 4.6% (5.3%) 3.0% 5.1% 7.2% (3.4%) 3.6% (1.9%) (8.4%) Delta v. Benchmark (0.9%) 1.4% (2.7%) (1.4%) 0.1% (1.2%) 0.7% (1.8%) (1.8%) 0.4% 1.2% (2.3%) (1.2%) (3.5%) 0.7% (1.5%) 2023 DSR (0.4%) 1.7% 1.0% 2.6% (0.2%) 0.7% (0.2%) 2.9% (2.6%) 1.3% 4.0% 5.5% (3.0%) 2.3% (2.5%) (5.3%) Delta v. Benchmark (0.6%) 0.3% (1.9%) (1.6%) 1.2% (2.0%) (1.1%) (3.5%) 0.8% (1.2%) 0.0% (3.9%) (0.8%) (4.8%) 0.1% 1.6% 2022 DSR 1.7% 3.1% 3.6% 6.9% (1.2%) 3.2% 0.2% 9.2% (1.6%) 1.3% 2.7% 11.8% (0.1%) 11.7% (4.3%) (6.6%) Delta v. Benchmark 1.5% 1.8% 0.7% 2.6% 0.3% 0.5% (0.7%) 2.8% 1.9% (1.2%) (1.3%) 2.4% 2.1% 4.6% (1.6%) 0.3% Days Count Total 2026 21 20 22 22 20 22 22 21 21 22 20 21 254 2025 22 20 21 22 21 21 22 21 21 23 19 21 254 2024 22 21 21 22 22 20 22 22 20 23 20 20 255 * The January average is based on the historical change in January vs. the prior year's October. All other months are sequential. ** The benchmark for each month is the average of the previous five years for that month. As COVID-19-related surge sales made sequential averages in 2020 unrepresentative, the benchmark uses a preceding five-year average that excludes 2020. Notes: ◦ Good Friday was in April of 2022 and 2023, March of 2024, and April of 2025. In 2026, Good Friday will be in April. ◦ Amounts may not foot due to rounding differences. SEQUENTIAL TRENDS* 12
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Absolute Count FTE Count (1) HEADCOUNT STATISTICS 1Q25 4Q24 (2) Change Since 4Q24 1Q24 (2) Change Since 1Q24 1Q25 4Q24 (2) Change Since 4Q24 1Q24 (2) Change Since 1Q24 Selling personnel (3) 16,995 16,669 2.0% 16,726 1.6% 15,236 15,014 1.5% 15,064 1.1% Distribution/Transportation personnel 4,058 3,953 2.7% 3,960 2.5% 3,111 2,997 3.8% 3,013 3.3% Manufacturing personnel 1,036 1,010 2.6% 977 6.0% 957 936 2.2% 888 7.8% Organizational support personnel (4) 2,092 2,070 1.1% 2,032 3.0% 2,035 2,011 1.2% 1,970 3.3% Total personnel 24,181 23,702 2.0% 23,695 2.1% 21,339 20,958 1.8% 20,935 1.9% NOTES: (1) FTE – "Full-Time Equivalent". FTE is based on 40 hours per week. (2) In the fourth quarter of 2024, we realigned certain employees as a result of a routine review of our organizational structure. While there is no change to total absolute or total FTE headcount, it produces minor shifts between headcount categories. Historical numbers have been adjusted to reflect this realignment. (3) Of our Selling Personnel, 80%-85% are attached to a specific in-market location. (4) Organizational support personnel consists of: (1) Sales Support personnel (37% to 42% of category), which includes sourcing, purchasing, supply chain, product development, etc.; (2) IT personnel (35% to 40% of category); and (3) Administrative Support personnel (22% to 27% of category), which includes human resources, Fastenal School of Business, accounting and finance, senior management, etc. EMPLOYEE STATISTICS 13
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14 MAJOR SEGMENT GROWTH Year- to-date Full Year(Daily Sales Rates) Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Heavy 2025 1.8% 4.8% 7.9% 0.0% 4.8% Manufacturing 2024 3.3% 3.1% 2.0% 2.7% 1.9% 1.5% 2.2% (1.0%) 2.3% 1.0% 3.1% 4.1% (2.6%) 1.7% All Other 2025 6.7% 10.4% 12.0% 9.7% Manufacturing 2024 0.7% 3.6% 3.4% 2.5% 2.2% 2.9% 7.1% 4.5% 6.6% 7.5% 4.9% 7.1% 4.4% 4.5% All Other 2025 (3.7%) (1.0%) 3.0% (0.6%) End Markets 2024 (0.5%) 0.9% (0.2%) 0.0% (2.9%) (0.3%) 0.3% (2.9%) (3.2%) 2.1% 0.2% (1.0%) (0.2%) (0.7%) END MARKET PROFILE Heavy Manufacturing, 43.0% All Other Manufacturing, 32.0% Non-Residential Construction, 8.5% Reseller, 5.2% Gov't/Education, 3.8% Transportation/ Warehousing, 5.2% Other, 2.3% End Market Mix - Full Year 2024
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15 THANK YOU