10:27 AM EDT, 07/14/2025 (MT Newswires) -- Fastenal ( FAST ) reported better-than-expected second-quarter results on Monday, buoyed by improved customer contract signings despite soft market conditions.

The distributor of industrial and construction supplies posted earnings of $0.29 a share for the June quarter, up from $0.25 a year ago, topping the FactSet-polled consensus of $0.28. Sales climbed to $2.08 billion from $1.92 billion, just above the Street's view for $2.07 billion. Net daily sales advanced 8.6% on a yearly basis.

The stock gained 5.4% in Monday trade.

"The results largely reflect the contribution from improved customer contract signings over the past six quarters," the company said in a statement. "Market conditions remained sluggish, providing minimal contribution."

The company attributed higher unit sales mainly to an increase in the number of customer sites spending $10,000 or more per month with Fastenal ( FAST ). Product pricing was a tailwind of 140 to 170 basis points on sales in the quarter, while foreign exchange rates had a positive impact of about 10 basis points, according to the firm.

The daily sales rate of fasteners rebounded to growth of 6.6% versus a decline of 3% in the prior-year quarter, amid gains in original equipment manufacturing and maintenance, repair and operations. Safety supplies' daily sales rate increased 11% while the rate for other products, which include janitorial supplies and cutting tools, inclined 9%.

By end markets, heavy manufacturing logged daily sales growth of 7.5%, accelerating from a 1.8% rise last year. The rate for the non-residential construction and other end markets rose 3% and 8.7%, respectively.

Daily sales through e-business gained 14% in the quarter and represented roughly 30% of total sales in the period. The company anticipates signing between 25,000 and 26,000 machine equivalent units for FASTBin and FASTVend devices in 2025, down from its previous target of 28,000 to 30,000. FASTBin allows clients to digitally view inventory and automate the replenishment process, while FASTVend refers to vending machines.

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