Fastenal dips on heavier spending expectations, in-line Q3 results

Investing.com -- Fastenal shares slipped about 3% in premarket trading Wednesday after the industrial distributor reported in-line third-quarter results and outlined elevated spending plans for the year.

The company expects 2026 spending on property and equipment, net of proceeds from sales, of $310 million to $330 million, up from $230.6 million in 2025. It cited three factors driving the increase: spending to replace its Atlanta hub and improve picking capacity and efficiency across its hub network, elevated IT spending as delayed projects from 2025 continue through 2026, and higher trucking costs.

Earnings per share for the quarter were $0.35, a penny above the $0.34 analysts expected. Revenue rose 15% from a year earlier to $2.46 billion, ahead of the $2.44 billion consensus. Daily sales were $38.5 million, up 16% and above the $38.1 million estimate.

Operating income climbed 20% to $530.8 million, topping the $512.1 million estimate. Operating margin widened 90 basis points to 21.5%, as leverage on selling, general and administrative costs more than offset gross margin pressure from customer mix. Gross margin was 44.8%, down from 45.3% a year earlier but above the 44.5% analysts expected.