Fastenal Company has released its 2024 annual financial results and Q4 performance figures.
The company’s net income in 2024 was US$1,150.6 million, down from US$1,155 million, representing a 0.4% decrease. Net income during Q4 2024 was US$262.1 million, a decrease of 1.6% compared to Q4 2023.
Net sales in 2024 were US$7,546 million, up from US$7,346.7 million, representing a 2.7% increase. In Q4, net sales were US$1,824.5 million, up from US$1,758.6 million, representing a 3.7% increase. Fastenal Company’s daily sales increased by 1.9% to US$29.6 million, with daily sales in Q4 2024 up 2.1%.
However, as there was one more selling day in Q4 2024 relative to the prior year period, taking this into consideration, the company’s net daily sales increased by 2.1% in Q4 2024 compared to Q4 2023.
The sluggish growth rate reflected the ongoing softness in the manufacturing sector that persisted throughout 2024. This was further aggravated by several of the company’s largest customers making unusually steep production cuts in the final two weeks of December due to holiday-related plant shutdowns.
Regarding growth drivers, Fastenal Company signed 56 new onsite locations in Q4 2024, resulting in 358 new onsite location signings for the full year. The figure was slightly below the goal of 375 to 400 signings for 2024. Onsite locations are dedicated sales and service provided from within or in proximity to the customer’s facility.
As of 31 December 2024, Fastenal Company operated 2,031 active sites, marking an 11.5% increase compared to 31 December 2023. Daily sales at onsite locations, excluding those transferred from branches to new onsites, grew at a mid-single-digit rate in Q4 2024 compared to the same period in 2023. This growth was driven by contributions from onsites activated and implemented in 2024 and 2023, which more than offset the impact of closures and the resulting decline in revenues from onsites established before 2023.
Looking ahead, Fastenal Company expects its digital footprint will continue to grow in 2025. The digital footprint includes sales through FMI services including FASTStock, FASTBin, and FASTVend, as well as eBusiness sales unrelated to FMI billings. The company’s digital footprint in Q4 2024 represented 62.2% of its sales, an increase from 58.1% of sales in Q4 2023. It is expected that the proportion will increase to 68% in 2025.
