What changed in this filing

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Item 1. Business

2026-02-05 compared with 2025-02-06 · 206 added, 213 removed, 428 unchanged (49% of the section changed)

1 unchanged sentence

The year end is December 31, 2025 unless additional years are included or noted.

Fastenal Company (together with our subsidiaries, hereinafter referred to as Fastenal or by terms such as we, our, or us) began as a partnership in 1967, and was incorporated under the laws of Minnesota in 1968.

Fastenal began as a partnership in 1967, and was incorporated under the laws of Minnesota in 1968.

We opened our first branch in 1967 in Winona, Minnesota, a city with a population today of approximately 26,000.

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Over time, how and where we engage our customers has expanded and evolved.

Today we sell a broader range of industrial and construction supplies spanning more than nine major product lines through a global network of in-market locations utilizing diverse technologies such as vending devices, bin stock devices, and eBusiness.

Today we sell a broader range of industrial and construction supplies spanning more than nine major product lines through a global network of locations utilizing diverse technologies such as vending devices, bin stock devices, and eBusiness.

The large majority of our transactions are business-to-business.

We provide additional descriptions of our product lines and market channels later in this document.

At the end of 2024, we had 3,628 in-market locations (defined in the table below) in 25 countries supported by 15 distribution centers in North America, with 12 in the United States (U.S.), two in Canada, and one in Mexico;

At the end of 2025, we had 1,595 branch locations in 25 countries supported by 15 distribution centers in North America, with 12 in the United States (U.S.), two in Canada, and one in Mexico;

and two in Europe, and we employed 24,489 people.

We believe our success can be attributed to the high quality of our employees and their convenient proximity to our customers, and our ability to offer customers a full range of products and services to reduce their total cost of procurement.

Our Channels to Market

We engage our customers primarily through branch and Onsite locations.

Branches and Onsites exist very close to our customers, usually within miles of, and often within or immediately proximate to, our customers' physical operations.

Together, these constitute our 'in-market' network.

Many of our customers engage with us through eBusiness, but in most cases these customers are utilizing eBusiness to supplement our service through our other channels.

The following table shows, as of the end of each of the last 10 fiscal years, our consolidated net sales;

the number of branch, Onsite, and total in-market locations;

their respective sales, as well as the average monthly sales per location that were generated from our branch and Onsite locations;

and our sales generated from non-traditional sources:

Channels to Market

Historically, our growth was primarily measured by our physical locations count.

Today, we emphasize optimizing our footprint and tailoring service models to customer sites based on their size and potential for growth.

Physical location openings and adjustments reflect local market conditions and strategic priorities rather than a uniform expansion approach.

We engage customers primarily through physical selling locations that deliver Fastenal service and solutions at or near customer operations called sites (Sites).

Starting in 2025, we have disclosed Sites information instead of public branches and customer-dedicated Onsites.

These Sites are distinct locations of our customers' operations where we maintain inventory tailored to local demand, supported by our regional distribution networks.

Each Site may incorporate one or more service models, including Fastenal Managed Inventory (FMI) programs (FASTStock, FASTBin, FASTVend), integrated supply programs, eBusiness capabilities, and advanced manufacturing services.

These models are designed to improve product availability, automate replenishment, and reduce procurement costs for customers.

Customer Sites and Sales Segmentation

Our strategy prioritizes customer sites with monthly sales potential of $50,000 or more.

Segmentation by spend level provides insight into the scale and potential of customer relationships served through our network.

The following table summarizes customer Sites averaged by monthly spend band and related monthly sales metrics with the final metric representing the count of individual unique sites that did business throughout the year.

2025 2024 2023 2022 2021 2020 2019 2018 2017 2016

Net sales $ 7,546.0 7,346.7 6,980.6 6,010.9 5,647.3 5,333.7 4,965.1 4,390.5 3,962.0 3,869.2

Branch locations 1,597 1,597 1,683 1,793 2,003 2,114 2,227 2,383 2,503 2,622

Branch sales (1)

Manufacturing

$50k+ Sites (1)(2)(3)

2,215 1,994 1,877 1,712 1,331 1,069 1,065 930 734 622

Average monthly sales

per branch location (2)

Sales $ 3,696 3,262 3,071 2,671 1,959 1,550 1,554 1,328 1,035 863

Monthly sales (4)

$ 139,041 136,338 136,357 130,023 122,658 120,853 121,581 118,996 117,518 115,568

Onsite locations 2,031 1,822 1,623 1,416 1,265 1,114 894 605 401 264

Onsite sales (1)

$10k+ Sites (1)(2)

8,688 8,218 8,048 7,764 6,689 5,740 5,908 5,491 4,798 4,315

Average monthly sales per Onsite location (2)

Sales $ 5,409 4,890 4,680 4,236 3,314 2,723 2,766 2,458 2,031 1,764

Monthly sales (4)

$ 51,886 49,588 48,461 45,462 41,280 39,531 39,019 37,303 35,277 34,071

Other sales (3)

$5k+ Sites (1)(2)

13,114 12,623 12,516 12,289 10,995 9,900 10,208 9,612 8,718 7,977

Total in-market locations (4)

Sales $ 5,790 5,267 5,062 4,622 3,681 3,076 3,131 2,808 2,363 2,073

Monthly sales (4)

$ 36,790 34,773 33,706 31,345 27,895 25,893 25,562 24,342 22,587 21,660

Sales attributable to our traditional and international branch locations (both of which are defined below), and our Onsite locations, respectively.

Average sales per month considers the average active base of branches and Onsites, respectively, in the given year, factoring in the beginning and ending location count, divided by total sales attributable to our branch and Onsite locations, respectively, further divided by 12 months.

This information is presented in thousands.

This portion of sales is generated outside our traditional in-market locations, examples of which include sales arising from our custom in-house manufacturing, industrial services, and other non-traditional sources of sales.

In 2020, this included the effects of COVID-19, one response to which was substantial sales of pandemic-related products that were direct-shipped (versus sold through in-market locations) as a means of delivering critical supplies more quickly.

'In-market locat ions' is defined as the sum of the total number of branch locations and the total number of Onsite locations.

This structure has evolved over time as a result of one of Fastenal's guiding principles since inception:

that we can improve our service by getting closer to the customer.

This has been achieved by opening branch locations and, more recently, Onsite locations.

Today, we believe there are few companies that offer our North American in-market location coverage.

In 2024, roughly 53% of our sales and 50% of our in-market locations were in major Metropolitan Statistical Areas (MSAs) (populations in the U.S.

and Canada greater than 500,000 people), while 21% of our sales and 20% of our in-market locations were in small MSAs (populations under 500,000 people), and 26% of our sales and 30% of our in-market locations were not in an MSA (populations under 50,000 people).

In our view, this has proven to be an efficient means of providing customers with a broad range of products and services on a timely basis.

Maintaining operations that are physically proximate to our customers' operations have represented, and continue to represent, the foundation of our service approach.

The distinctions between our branch and Onsite locations are as follows:

Branch locations typically service a wide variety and number of customers, ranging from the local operations of large, national account customers to smaller local businesses.

Locations are selected primarily based on their proximity to our distribution network and employment and production data for manufacturing and non-residential construction companies.

We stock all branches with inventory drawn from all of our product lines and tailored by our district and branch personnel to the needs of the local customer base.

Based on the unique characteristics of certain markets and the judgement of local leadership, different branch types have emerged over time.

In the United States and Canada, the most common type is the Customer Fulfillment Center (CFC), which tends to feature a limited showroom and stock customer-specific inventory.

These have the appearance of and function more like an industrial supply house and stocking location.

The United States and Canada also utilize a Customer Service Branch (CSB) , which tend to feature a showroom and a more standardized stocking model of products designed for contractors.

CSBs often conduct some business with non-account or retail-like customers.

At the end of 2024, 87% of our United States and Canada branches operated as a CFC and 13% operated as a CSB.

Outside the United States and Canada we typically deploy an International Branch .

These locations lack a showroom and tend to service fewer customers who tend to be large, national account customers disproportionately concentrated in manufacturing and heavily oriented toward planned product spend.

Regardless of what branch type ultimately evolves to service the unique features of a specific geographic location, all our branches share a common purpose and similar operating priorities.

We believe our ability to provide a consistent local service model on a global basis is attractive to our customer base, which consists heavily of North American-based multinational companies with significant foreign operations.

Since Fastenal's founding and through 2013, branch openings were a primary growth driver for us, peaking in 2013 at 2,687 locations.

Branches were entirely U.S.-based until 1994, when we opened our first location in Canada followed by opening our first branch location in Mexico in 2001.

Since then, we have continued to expand our global footprint, including into Europe, Asia, and Central and South America.

In the period from 2013 to 2023, we experienced a net decline of 1,090 in our total branch count, which was primarily due to consolidations in our U.S.

New growth drivers, business models, and business tools emerged and diminished the direct role of branch openings in our growth, resulting in a strategic rationalization to align our physical footprint with changes in our business strategies.

In 2024, we disclosed that this strategic rationalization had concluded and future openings and closings were likely to be more balanced and in accordance with the strategies and specific circumstances of local operations.

At the end of 2024, we had 1,499 branches in North America, which includes the United States, Canada, and Mexico, representing 52.2% of net sales and 98 branches outside of North America representing 2.2% of net sales.

Onsite locations are not new, having entered into the first such arrangement in 1992.

However, it was largely a local option that grew slowly before we identified it as a growth driver in 2014, at which point we made substantial investments to accelerate its traction in the marketplace.

In this model, we provide dedicated sales and service to a single customer from a location that is physically within, or strategically proximate to, the customer's facility, with inventory that is specific to the customer's needs.

In many cases, we are shifting sales with the customer from an existing branch location, though we also see new customer opportunities arise as a result of our Onsite capabilities.

The model is best suited for larger companies, though we believe we can provide a higher degree of service at a lower level of sales than most of our competitors.

It has been our experience that the sales mix at our Onsite locations typically produces a lower gross profit percentage than at our branch locations, but we gain sales with the customer and our cost to serve is lower.

We have identified over 11,000 manufacturing and construction customer locations in North America with potential to implement the Onsite service model.

These include customers with which we have an existing national account relationship today, and potential customers we are aware of due to our local market presence with which we do not have a meaningful relationship today.

However, as awareness of our capabilities has grown, we have identified additional Onsite potential with certain agencies of state, provincial, and local government customers, and academia.

We also believe as we continue to follow our existing national account customers outside the U.S., our market potential for Onsite solutions will continue to expand.

The international opportunity is substantial, but our speed is limited by our relatively underdeveloped infrastructure in comparison to the U.S.

We expect sales from Onsite arrangements to continue to increase meaningfully over time.

At the end of 2024, we had 1,961 Onsite locations in North America, which included the United States, Canada, and Mexico, representing 41.6% of net sales and 70 Onsite locations outside of North America representing 0.8% of net sales.

As of December 31, 2024, we signed 358, 326, and 356 new Onsite locations (referred to herein as signings) in 2024, 2023, and 2022, respectively.

At the end of 2024, we operated branches and Onsites in 25 total countries.

The following table provides a summary of the branches and Onsite locations we operated at the end of each year, as well as the openings, closings, and conversions during each year:

North America Outside North America

Canada Mexico Subtotal Central & South America (2)

Subtotal Total

In-Market Locations - 12/31/22 2,707 276 177 3,160 21 45 80 146 3,306

Starting Branches 1,369 169 66 1,604 5 22 52 79 1,683

Opened Branches — — 3 3 — 3 4 7 10

Closed/Converted Branches (5)

29,199 31,385 33,475 37,677 44,660 50,070 57,546 60,888 63,491 64,386

Ending Branches 1,277 164 69 1,510 5 25 57 87 1,597

Starting Onsites 1,338 107 111 1,556 16 23 28 67 1,623

Opened Onsites 283 18 20 321 — 1 7 8 329

Closed/Converted Onsites (5)

Sales $ 413 453 473 505 530 542 592 602 580 543

Monthly sales (4)

$ 1,179 1,201 1,176 1,117 989 901 857 825 761 702

Ending Onsites 1,506 119 128 1,753 15 22 32 69 1,822

In-Market Locations - 12/31/23 2,783 283 197 3,263 20 47 89 156 3,419

Starting Branches 1,277 164 69 1,510 5 25 57 87 1,597

Opened Branches 1 — 1 2 — 3 6 9 11

Closed/Converted Branches (5)

Total Manufacturing 42,313 44,008 45,991 49,966 55,655 59,970 67,754 70,500 72,209 72,363

Sales $ 6,203 5,720 5,535 5,127 4,211 3,618 3,723 3,410 2,943 2,616

Monthly sales (4)

$ 12,216 10,831 10,029 8,551 6,305 5,027 4,579 4,031 3,396 3,012

Ending Branches 1,264 164 71 1,499 5 27 66 98 1,597

Starting Onsites 1,506 119 128 1,753 15 22 32 69 1,822

Opened Onsites 271 36 27 334 — 4 5 9 343

Closed/Converted Onsites (5)

Non-Manufacturing

$50k+ Sites (1)(2)(3)

438 370 324 308 279 260 158 138 114 103

Ending Onsites 1,660 153 148 1,961 14 26 30 70 2,031

In-Market Locations - 12/31/24 2,924 317 219 3,460 19 53 96 168 3,628

Includes the U.S., the Dominican Republic, Guam, and Puerto Rico.

Includes Panama, Brazil, and Chile.

Includes Singapore, China, Malaysia, and Thailand.

Includes the Netherlands, Hungary, the United Kingdom, Germany, the Czech Republic, Italy, Romania, Sweden, Poland, Austria, Switzerland, Ireland, Spain, France, and Belgium.

The net impact of non-in-market locations or Onsite locations converted to branches, branches converted to Onsite locations or non-in-market locations, and closures of branches or Onsite locations.

We believe the profitability of our in-market locations is affected by the average sales produced by each site.

In any in-market location, certain costs related to growth are at least partly variable, such as employee-related expenses, while others, like rent and utility costs, tend to be fixed.

As a result, it has been shown that as an in-market location increases its sales base over time, it typically will achieve a higher operating profit margin.

This ability to increase our operating profit margin is influenced by:

(1) general growth based on end market expansion and/or market share gains that increases the monthly sales of the location and (2) the age of the in-market location (new locations tend to be less profitable due to start-up costs and, in the case of a branch, the time necessary to generate a customer base).

The paths to higher operating profit margins are slightly different in a traditional branch versus an Onsite location, as the former will tend to have more fixed costs to leverage, while the latter will tend to have a smaller fixed cost burden but have greater leverage of its employee-related expenses.

In the short term, the Onsite program can hurt the profitability of our existing branch network as it can pull established sales away from an existing branch even as its fixed expenses are largely unchanged.

There are many reasons why local or regional management might decide to close an in-market location.

Key customers may have migrated to a different part of the market, factories may have closed, our own supply chain capabilities in a market may have evolved to allow us to service some areas with fewer branches, and/or our customers may have transitioned to our Onsite model.

An Onsite location may also close because local or regional management determines that the business at the location is unlikely to scale sufficiently to justify our being on premise, in which case the relationship often reverts to being managed in a local branch.

We utilize additional types of selling locations within our network, but these tend to be more specialized in nature and relatively few in number, comprising less than five percent of our total selling locations.

We remain committed to a large, robust service network, including traditional branches, international branch es, and Onsites;

it r emains the indispensable foundation of our business.

We anticipate that relatively stable branch count in the United States and Canada, combined with growth in branch count outside of the United States and Canada and growth in global Onsite locations, will result in an increase to overall in-market locations over time.

Sales $ 631 492 438 418 412 653 191 162 148 125

Monthly sales (4)

$ 119,977 110,721 112,731 113,095 123,029 209,391 100,738 98,007 108,333 101,294

$10k+ Sites (1)(2)

3,135 2,905 2,817 2,698 2,345 2,127 1,870 1,706 1,421 1,311

Sales $ 1,283 1,095 1,028 980 898 1,089 579 512 434 393

Monthly sales (4)

$ 34,102 31,414 30,405 30,269 31,908 42,654 25,789 24,995 25,440 24,975

$5k+ Sites (1)(2)

5,952 5,724 5,681 5,593 4,964 4,638 4,382 4,050 3,504 3,259

Sales $ 1,521 1,333 1,269 1,223 1,117 1,299 788 706 606 554

Monthly sales (4)

$ 21,300 19,402 18,618 18,219 18,750 23,334 14,984 14,535 14,407 14,176

50,096 56,697 64,078 77,149 97,191 115,215 140,114 149,091 158,044 159,351

Sales $ 477 493 543 630 683 731 822 849 842 792

Monthly sales (4)

$ 793 726 706 681 586 529 489 474 444 414

Total Non-Manufacturing 56,048 62,421 69,759 82,742 102,155 119,853 144,496 153,141 161,548 162,610

Sales $ 1,998 1,826 1,812 1,853 1,800 2,030 1,610 1,555 1,448 1,346

Monthly sales (4)

$ 2,971 2,438 2,164 1,867 1,469 1,411 929 846 747 690

$50k+ Sites (1)(2)(3)

2,653 2,364 2,201 2,020 1,610 1,329 1,223 1,068 848 725

Sales $ 4,326 3,754 3,510 3,089 2,371 2,204 1,745 1,490 1,183 988

Monthly sales (4)

$ 135,893 132,329 132,879 127,442 122,723 138,174 118,888 116,284 116,283 113,540

$10k+ Sites (1)(2)

11,823 11,123 10,865 10,462 9,034 7,867 7,778 7,197 6,219 5,626

Sales $ 6,692 5,985 5,708 5,216 4,211 3,812 3,345 2,970 2,465 2,157

Monthly sales (4)

$ 47,170 44,842 43,780 41,544 38,848 40,375 35,838 34,386 33,029 31,951

$5k+ Sites (1)(2)

19,066 18,347 18,197 17,882 15,959 14,538 14,590 13,662 12,222 11,236

Sales $ 7,311 6,600 6,331 5,845 4,798 4,375 3,919 3,514 2,969 2,627

Monthly sales (4)

$ 31,954 29,978 28,996 27,240 25,051 25,077 22,385 21,435 20,242 19,489

79,295 88,082 97,553 114,826 141,851 165,285 197,660 209,979 221,535 223,737

Sales $ 890 946 1,015 1,135 1,214 1,273 1,414 1,451 1,422 1,334

Monthly sales (4)

$ 935 895 867 824 713 642 596 576 535 497

All Sites per Month (1)(2)

98,361 106,429 115,750 132,708 157,810 179,823 212,250 223,641 233,757 234,973

Sales $ 8,201 7,546 7,347 6,981 6,011 5,647 5,334 4,965 4,391 3,962

Monthly sales (4)

$ 6,948 5,908 5,289 4,383 3,174 2,617 2,094 1,850 1,565 1,405

All Unique Sites (6)

250,845 268,592 303,010 356,788 436,826 499,589 563,285 587,354 609,769 621,217

Sites represent the number of customer locations served by our network.

Individual customers with multiple locations will have multiple customer sites.

Sites numbers reflect the monthly average of active Site counts.

$50k+ Sites are disclosed as a representation of Onsite-like customers and are also a subset of $10k+ and $5k+ Sites.

Monthly sales per Site totals are not rounded to the millions and represents the exact dollar amount.

Other sales represents sales to Sites under $5k/monthly and sales that are not tied to a specific Site.

This includes certain service fees, cash sales, direct material sales, etc.

Unique Sites represent the total number of distinct locations that recorded sales during the year.

Our Business Tools

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Over time, we have invested in and developed various technologies that allow us to put physical product closer to the point of use in a customer location, increase the visibility of a customer's supply chain (to the customer as well as our personnel), and/or improve the ability to monitor or control usage.

While there are isolated exceptions, these technologies are not themselves channels to the market but rather are utilized by our branch and Onsite channels to enhance service to our customers.

Collectively, these tools comprise our Fastenal Managed Inventory (FMI) Technology suite.

While there are isolated exceptions, these technologies are not themselves channels to the market but rather are utilized by our selling locations to enhance service to our customers.

Collectively, these tools comprise our FMI Technology suite.

We believe our fully integrated distribution network allows us to manage the supply chain for all sizes of customers.

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Benefits include reduced consumption, reduced purchase orders, reduced product handling, and 24-hour product availability.

We believe that we have a market advantage by virtue of our extensive in-market network of inventory and local personnel.

We believe that we have a market advantage by virtue of our extensive network of inventory and local personnel.

For these reasons, the initiative began to gain significant traction in 2011, and we finished 2025 with approximately 124,000 FASTVend devices in the field.

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Bin stock (FASTStock ℠ and FASTBin ® ) programs, where product is held in bins in a customer facility, are similar to our vending business in that it involves moving product closer to the point of customer use within their facilities.

Such programs have existed in the industrial supply industry for a considerable time, with open bins being clustered in a racking system, each of which holds original equipment manufacturing (OEM) fasteners, maintenance, repair, and operations (MRO) fasteners, and/or non-fastener products that are consumed in the customers' operations.

Such programs have existed in the industrial supply industry for a considerable time, with open bins being clustered in a racking system, each of which holds direct fasteners, indirect fasteners, and/or non-fastener products that are consumed in the customers' operations.

Historically, these bins were simply plastic and metal containers that held product and were visually inspected by our customers or Fastenal personnel to determine replenishment need.

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Twelve-month Period

2024 2023 Change

2025 2024 DSR Change (1)

Weighted FASTBin/FASTVend signings (MEUs) 25,892 27,984 -7.5 %

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% of sales 44.7 % 42.5 %

(1) Weighted FASTBin/FASTVend signings and installations reflects the percent change compared to the same period in the prior year.

Digital Solutions

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1) Transactional .

Our eBusiness includes eProcurement activities, which are integrated transactions, including electronic data interchange (EDI), and eCommerce (transactional website sales), which provide a means for our customers to effectively and efficiently procure MRO and unplanned spend.

While there is a retail component to our transactional digital services, most of the sales attributable to this is with our traditional customer base, nearly all of which purchase digitally as a supplement to other channels and tools it utilizes with Fastenal.

We attribute the sales generated from a customer location through our transactional platforms to the in-market location traditionally servicing this customer location.

We attribute the sales generated from a customer location through our transactional platforms to the location traditionally servicing this customer location.

2) Analytics .

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3) Digital Visibility .

Certain of our digital capabilities are intended to produce operational efficiencies for our customers and ourselves and/or to deliver strategic value by illuminating customer supply chain operations.

For instance, we have developed, and continue to develop, 'Mobility' applications, one example of which is our Vending App, which provides a number of benefits.

Our digital capabilities are intended to produce operational efficiencies for our customers and ourselves and/or to deliver strategic value by illuminating customer supply chain operations where the employee works.

For instance, we have developed, and continue to develop, 'Mobility' applications (Apps), one example of which is our FASTScan and BinStock App, which provides several benefits.

It provides easy, real-time information pertaining to a customer's local inventory position within their point-of-use devices.

It incorporates customer usage data to recommend optimized parts and quantity for specific devices, which improves customer inventories while reducing the risk of stock-outs.

Moving our fulfillment process from a vending device-based keypad function to a tablet or scanning interaction improves the restock process (reduced risk of product outages), reducing time consumed (greater efficiency) while improving accuracy (improved quality assurance).

We will continue to build out our suite of Mobility applications.

EDI is the connectivity between our system and our customers' procurement systems – whether a direct integration into their Enterprise Resource Planning system or through a third-party procurement network or marketplace.

Other applications are assisted by artificial intelligence (AI) to analyze customer usage data to recommend optimized parts and quantity for specific devices, which improves customer inventories while reducing the risk of stock-outs.

Our Vending App moves our fulfillment process from a vending device-based keypad function to a tablet or scanning interaction, which improves the restock process (reduced risk of product outages), reducing time consumed (greater efficiency) while improving accuracy (improved quality assurance).

We will continue to build out our suite of Apps.

Visibility is also achieved through EDI connectivity between our system and our customers' procurement systems – whether a direct integration into their Enterprise Resource Planning system or through a third-party procurement network or marketplace.

These solutions provide a system-to-system exchange of electronic procurement documents (such as purchase orders, advanced shipping notices, and invoices for direct and indirect spend).

Our eProcurement Solutions provide a bridge between our

managed replenishment activity and our customers' procurement systems – creating an efficient, accurate and streamlined procure-to-pay process.

Our eProcurement Solutions provide a bridge between our managed replenishment activity and our customers' procurement systems – creating an efficient, accurate and streamlined procure-to-pay process.

4.) Crib Management .

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It is an integrated platform that maintains customer-specific product catalogs, provides control and tracking of inventory levels, streamlines and consolidates procurement processes, and enables rich visualization and reporting in an environment with robust user controls.

It also has modules for asset tracking and integrates into our FMI suite.

It also has asset tracking features and integrates with portions of our FMI suite.

FASTCrib creates a one-stop, just-in-time supply chain management capability for all of the products and services consumed by our customers, whether provided directly by Fastenal or other vendors.

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We believe the data that is created through our digital capabilities enhances product visibility, traceability, and control that reduces risk in operations and creates ordering and fulfillment efficiencies for both us and our customers.

FAST360 is the tool Fastenal uses to effectively and efficiently present these data analytics to both customers and our employees to improve the ability for data driven decision making.

As a result, we believe our opportunity to grow our business will be enhanced through the continued development and expansion of our digital capabilities.

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12 in the U.S., two in Canada, and one in Mexico.

We also operate one distribution center in Asia and two distribution centers in Europe.

We also operate two distribution centers in Asia and two distribution centers in Europe.

These distribution centers give us approximately 5.3 million square feet of distribution capacity.

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Properties' section of this Form 10-K.

These distribution centers are located so as to permit deliveries of two to five times per week to our in-market locations using our trucks and overnight delivery by surface common carrier, with approximately 79% of our North American in-market locations receiving service four to five times per week.

The distribution centers in Indiana and Kansas also serve as 'master' hubs, with those in California and North Carolina serving as 'secondary' hubs to support the needs of the in-market locations in their geographic regions, as well as to provide a broader selection of products for the in-market locations serviced by the other distribution centers.

These distribution centers are located so as to permit deliveries of two to five times per week to our selling locations using our trucks and overnight delivery by surface common carrier, with approximately 79% of our North American selling locations receiving service four to five times per week.

The distribution centers in Indiana and Kansas also serve as 'master' hubs, with those in California and North Carolina serving as 'secondary' hubs to support the needs of the selling locations in their geographic regions, as well as to provide a broader selection of products for the selling locations serviced by the other distribution centers.

We currently operate 12 of our North American distribution centers with automated storage and retrieval systems (ASRS).

These distribution centers operate with greater speed and efficiency, and currently handle approximately 96% of our picking activity.

We expect to invest in additional automation technologies, expand existing distribution facilities, and/or add new distribution centers over time as our scale and the number of our in-market locations increases.

We also utilize a network of Local Inventory Fulfillment Terminals (LIFTs) which reside within our existing distribution centers and are intended to support areas that have a dense population of FMI devices.

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In a minority of cases we deploy a 'drop-and-scatter' model, wherein delivery and replenishment is also performed by LIFT personnel.

In 2024, approximately 10% of our FMI sales was supported through a LIFT, but over time we believe this figure can approximate 40% of our FMI sales.

In 2025, approximately 11% of our FMI sales were supported through a LIFT, but over time we believe this figure can approximate 40% of our FMI sales.

Transportation

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We consider these expenses to be a part of our landed product cost, and significant fluctuations are typically addressed through product pricing.

We transport product between our distribution centers and from our distribution centers to our in-market locations.

We transport product between our distribution centers and from our distribution centers to our selling locations.

We typically transport approximately 90% of our products on our own fleet of Class 6, 7, and 8 trucks, with the remainder being on third party shippers.

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We primarily lease our trucks, and at December 31, 2025, we operated approximately 590 units.

We transport product from our in-market locations to our customers on a fleet of pick-up, box, and other trucks.

Expenses to maintain this fleet are considered selling-related transportation costs, which include lease charges, depreciation, and fuel, and are typically reflected in all other SG&A expenses.

We transport product from our selling locations to our customers on a fleet of pick-up, box, and other trucks.

Expenses to maintain this fleet are considered selling-related transportation costs, which include lease charges, depreciation, and fuel, and are typically reflected in all other selling, general, and administrative (SG&A) expenses.

We have a mix of leased and owned vehicles, and at December 31, 2025, we operated approximately 9,200 units.

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In most cases, the product has low per unit value but high per unit weight.

This presents challenges in moving product from suppliers, most of whom are outside of North America, to our distribution centers, as well as from our distribution centers to our in-market and customer locations.

This presents challenges in moving product from suppliers, most of whom are outside of North America, to our distribution centers, as well as from our distribution centers to our customer locations.

At the same time, fasteners are ubiquitous in manufactured products, construction projects, and maintenance and repair while also exhibiting great geometric variability based on use and application.

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These private label brands represented approximately 11% of our consolidated sales in 2025.

We believe it is also appropriate

to think about our private label sales as a percentage of our non-fastener sales for two reasons:

We believe it is also appropriate to think about our private label sales as a percentage of our non-fastener sales for two reasons:

(1) there is not a well-defined branded versus private label dynamic in fasteners as there is in non-fasteners;

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Inventory Control

Our inventory stocking levels are determined using our computer systems, by our sales personnel at in-market locations, and by our district and regional leadership.

Our inventory stocking levels are determined using our computer systems, by our sales personnel at selling locations, and by our district and regional leadership.

The data used for this determination is derived from sales activity from all of our selling locations, from individual selling locations, and from different geographic areas.

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Our computer system monitors the inventory level for all stock items and triggers replenishment, or prompts a buyer to purchase, as necessary, based on an established minimum-maximum stocking level.

In the past we have utilized a base inventory model for all of our branches, and such a model still exists in a smaller subset of our locations.

In the past we have utilized a base inventory model for all of our branches, and such a model still exists in a smaller subset of our selling locations.

Increasingly, however, branches primarily stock inventory that is deemed to be appropriate by the district and branch personnel to service the customers within their selling territory.

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Inventory held at our distribution centers and manufacturing locations accounted for approximately 46% of our total inventory at the end of 2025.

In 2025, we focused on stocking more products in our distribution centers resulting in better product availability, improved profitability, and overall efficiency gains.

The distribution center and manufacturing location inventory, when combined with our trucking network, allows for fast, next-day service at a very competitive cost.

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These manufactured products c onsist primarily of non-standard sizes of threaded fasteners and hardware made to customers' specifications at one of our nine manufacturing locations, or standard sizes manufactured under our Holo-Krome ® , Cardinal Fasteners ® , and Spensall ® product lines.

These manufacturing products represent approximately 7% of our fastener sales.

These manufactured products represent approximately 8% of our fastener sales.

The services provided by the industrial services group include, but are not limited to, tool and hoist repair, chain sling and hose fabrication, band saw blade welding, packaging, and other light manufacturing and fabrication.

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Our model is built around a broad product offering, timely fulfillment processes, convenient physical locations, extensive digital and services capabilities, and the superior service orientation and expertise of our employees.

We believe we are successful because of our ability to integrate these features into supply chain solutions that are tailored to the specific challenges

of our customer's operations.

When deployed effectively, we have demonstrated the ability to assume responsibility for portions of our customer's sourcing operations while reducing the cost, lowering the risk, and increasing the scalability of our customer's supply chains.

Our value proposition is focused on improving the operating effectiveness and reducing the total cost of ownership of our customer's supply chains.

Approximately 70% to 75% of our customers are in manufacturing end markets, which encompasses heavy machinery, fabricated products, process industries (oil & gas, petrochemical, mining, pulp and paper, etc.), and transportation components (automotive, aerospace, etc.).

We provide both the OEM and MRO needs of these customers.

We believe we are successful because of our ability to integrate these features into supply chain solutions that are tailored to the specific challenges of our customers' operations.

When deployed effectively, we have demonstrated the ability to assume responsibility for portions of our customers' sourcing operations while reducing the cost, lowering the risk, and increasing the scalability of our customers' supply chains.

Our value proposition is focused on improving the operating effectiveness and reducing the total cost of ownership of our customers' supply chains.

Approximately 71% to 76% of our customers are in manufacturing end markets, which encompass heavy machinery, fabricated products, process industries (oil & gas, petrochemical, mining, pulp and paper, etc.), and transportation components (automotive, aerospace, etc.).

We provide both the direct and indirect material needs of these customers.

The remaining 24% to 29% of our customers fall primarily into non-residential construction (general and commercial contractors), reseller (retail and wholesale trades, dealers, and rental businesses), transportation services (air, train, maritime or truck transport, as well as warehousing and fulfillment centers), and state and local government entities, including schools, school districts, and universities.

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• National accounts represent the largest proportion of our contract business, accounting for 65% of our consolidated sales in 2025.

This program is aimed at multi-location customers where the scale and scope of the OEM and MRO products that need to be managed are very complex and costly.

This program is aimed at multi-location customers where the scale and scope of the direct and indirect materials that need to be managed are very complex and costly.

We believe our broad product offering coupled with our local presence as part of a national and increasingly international footprint, our ability to provide a consistent level of high-touch service, and our ancillary capabilities around manufacturing, quality control, and product knowledge, are attractive to these multi-site customers.

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The scale and scope of the products and services that are addressed tend to be narrower and less complex than is the case for national account agreements.

Some agreements cover the entirety of a customer's operations where the locations are focused in a specific geographic territory.

Other agreements may represent a subset of a customer's North American or global operations, with additional locations either covered by separate local and regional contracts, being serviced on a transactional basis, or not being serviced at all.

Some agreements cover the entirety of a customer's operations where the selling locations are focused in a specific geographic territory.

Other agreements may represent a subset of a customer's North American or global operations, with additional selling locations either covered by separate local and regional contracts, being serviced on a transactional basis, or not being serviced at all.

In the former case, we often try to migrate the customer to a national agreement.

• Government contracts establish Fastenal as an approved supplier of MRO products to facilities managed by local, state, or municipal authorities.

• Government contracts establish Fastenal as an approved supplier of indirect materials to facilities managed by local, state, or municipal authorities.

We do not generate meaningful direct sales from federal government agencies.

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We anticipate sales to contract customers will increase as a percentage of our total sales over time.

2024 2023 2022 2021 2020 2019 2018

Active Accounts 100,052 105,448 119,583 130,020 137,380 152,491 156,069

Key Accounts 39,467 39,266 39,151 36,190 33,794 34,621 32,895

Our basic unit of measurement of customer b usiness activity in an in-market location is an active account, which is defined as any customer account with purchase activity of at least $100 per month.

Customers often have more than one active account at a single in-market location, reflecting their utilization of different Fastenal services, and frequently have active accounts at many in-market locations across our global network.

In 2024, approximately 99.5% of the sales in our in-market locations were derived from our active accounts, with the remainder being from walk-in or infrequent, non-account, and small account customers.

We have reported on the quantity of our active accounts annually, as set forth in the table above.

The table also includes a subset of our active accounts, called 'key accounts'.

This is defined as any customer account with purchase activity of at least $2,000 per month.

Key accounts have been a greater focus of our selling activities since 2020 because they typically utilize a wider range of our products and services, and in 2024, approximately 93.2% of the sales in our in-market locations were derived from our key accounts.

During 2025, no single customer represented 5% or more of our consolidated net sales.

Direct marketing continues to be the backbone o f our business through our local in-market selling personnel, as well as our non-branch selling personnel.

Direct marketing continues to be the backbone o f our business through our local selling personnel, as well as our non-branch selling personnel.

We support our sales team with multi-channel marketing including direct mail and digital marketing, print and rad io advertising, targeted campaigns, promotional flyers, and events.

Our national advertising has been focused on a NASCAR ® sponsorship serving as a primary partner of Roush Fenway Keselowski Racing ® , which stands as one of the longest tenured-brands in NASCAR.

In 2020, our sports marketing efforts were extended when the National Hockey League (NHL ® ) awarded us as the preferred MRO supplier of the sport.

We have two national sports partnerships that provide significant marketing opportunities:

Fastenal is the preferred indirect material supplier for the National Hockey League (NHL ® ), and a primary partner of Roush Fenway Keselowski Racing ® , which stands as one of the longest tenured-brands in NASCAR ® .

Seasonality has some impact on our sales.

The first and fourth quarters of each year are typically our lower volume periods, given their overlap with winter months in North America during which our direct and indirect sales to customers in the non-residential construction market typically slow due to inclement weather.

The first and fourth quarters of each year are typically our lower volume periods, given their overlap with winter months in North America during which our direct and indirect material sales to customers in the non-residential construction market typically slow due to inclement weather.

The fourth quarter also tends to be more greatly affected by the Thanksgiving (October in Canada and November in the U.S.), Christmas, and New Year holiday periods, due to plant shut downs.

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We believe that better service, and a competitive selling advantage, can be provided by maintaining a physical selling and stocking presence closer to the customers' location(s).

As a result, we maintain in-market locations in small, medium, and large markets, each offering a wide variety of products.

The convenience of a large number of in-market locations in a given area, combined with our ability to provide them with frequent deliveries to such branches from centrally located distribution centers, facilitates the prompt and efficient distribution of products.

We also believe our FMI solutions, supported by an in-market location, provide a unique way to serve our customers with convenient access to products and cost saving solutions using a business model not easily replicated by our competitors.

Having trained personnel at each in-market location also enhances our ability to compete (see 'Employees' below).

As a result, we maintain selling locations in small, medium, and large markets, each offering a wide variety of products.

The convenience of a large number of selling locations in a given area, combined with our ability to provide them with frequent deliveries to such branches from centrally located distribution centers, facilitates the prompt and efficient distribution of products.

We also believe our FMI solutions, supported by our selling locations, provide a unique way to serve our customers with convenient access to products and cost saving solutions using a business model not easily replicated by our competitors.

Having trained personnel at each location also enhances our ability to compete (see 'Employees' below).

Our Onsite service model provides us with a strategic advantage with our larger customers.

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We characterize these personnel as follows:

2024 % of Total 2023 % of Total

2025 % of Total 2024 (1)

Selling personnel (2)

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Total personnel 24,489 100.0 % 23,702 100.0 %

Of our Selling Personnel, 80%-85% are attached to a specific in-market location.

In the fourth quarter of 2024, we realigned certain employees as a result of a routine review of our organizational structure.

While there was no change to total absolute or total FTE headcount, it produced minor shifts between headcount categories.

Historical numbers have been adjusted to reflect this realignment.

Of our Selling personnel, 80%-85% are attached to a specific selling location.

Organizational support personnel consists of:

(1) Sales & Growth Driver Support personnel (35%-40% of category), which includes sourcing, purchasing, supply chain, product development, etc.;

(2) Information Technology personnel (35% to 40% of category);

and (3) Administrative Support personnel (22% to 27% of category), which includes human resources, Fastenal School of Business (FSB), accounting and finance, senior management, etc.

(1) Sales Support personnel (37% to 42% of category), which includes sourcing, purchasing, supply chain, product development, etc.;

(2) Information Technology (IT) personnel (34% to 39% of category);

and (3) Administrative Support personnel (22% to 27% of category), which includes human resources (HR), Fastenal School of Business (FSB), accounting and finance, senior management, etc.

Employee Profile

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Employee health and safety continues to be a priority in every aspect of our business.

We have taken a multi-faceted approach to safety that helps us understand and reduce hazards in our business.

Today, our health and safety programs span all operations including manufacturing, distribution centers, fleet and auto, and our branch and Onsite network.

Our culture and values continue to instill safe operations for our team.

We have taken a multi-faceted approach to safety that helps us proactively manage hazards and potential safety improvement opportunities.

Today, our health and safety programs span all operations including manufacturing, distribution centers, fleet and auto, and our selling network.

These key business units play a dynamic role in defining how we engage with our employees on health and safety.

Trainings, audits, inspections, risk assessments, safety coaching, and employee engagement are all programs that help us consistently manage our facility safety and employee safety.

Training, audits, inspections, risk assessments, safety coaching, and employee engagement are all programs that help us consistently manage our facility safety and employee safety.

In 2025, there were over 288,000 completed health and safety engagements, which is an increase of 17% compared to 2024.

Our internal scorecard system and safety management system ensures we maintain focus on a variety of risks while we sustain an inclusive safety environment that contributes to innovation and improved performance.

We continue to expand and evolve our safety programs to better meet our employee needs and workplace conditions as our business grows.

Our internal scorecard system and safety management system ensure we maintain focus on a variety of risks while we sustain an inclusive safety environment that contributes to innovation and improved performance.

We continue to expand and evolve our safety programs to better meet both our employee needs, and our customer needs as we strengthen our partnerships.

This commitment to, and continuous improvement toward, a safer work environment for our employees has generated excellent results.

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An organization's EMR is established through the comparison of a company's past and expected losses incurred through workplace injury against industry averages, which are compiled by the National Council on Compensation Insurance and consider unique variables such as the size and characteristics of an organization.

Industry averages are benchmarked at a 1.00 EMR, with a reduction in the rate being reflective of an organization's ability to implement superior safety procedures and protocols, resulting in a safer environment and reducing both personnel and financial risk.

Industry averages are benchmarked at a 1.00 EMR, with a reduction in the rate being reflective of an organization's ability to implement superior safety procedures and protocols,

resulting in a safer environment and reducing both personnel and financial risk.

In 2025, Fastenal had an EMR of 0.45, which is 55% better than the average performance rate for our industry.

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This certification illustrates the strength of our health and safety programs, as well as our commitment to continual improvement to better support our growing workforce.

As our business model continues to grow through our branch and Onsite network, our customer critical programs have evolved to mitigate risk and incidents, while meeting customer specific needs.

We also sustained our status as a Review and Verification Service (RAVS) Plus Participant.

This distinction is held by less than 3% of ISNetworld’s 85,000+ active contractors.

The goal of this program is to create a collaborative environment between hiring clients and contractor customers that encourages continual improvement in health, safety, and environmental best practices.

As our business model continues to grow through our selling locations, our customer critical programs have evolved to mitigate risk and incidents, while meeting customer specific needs.

This partnership with our customers allows us to collaborate and expand our health and safety programs to enhance our customers' workplace safety performance.

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Fastenal's success is defined by our people.

Our cultural values – Ambition , Integrity , Innovation, and Teamwork – are woven into the fabric of our human resources processes and protocols, and inform our employment and compensation philosophies.

Our cultural values – Ambition , Integrity , Innovation, and Teamwork – are woven into the fabric of our HR processes and protocols, and inform our employment and compensation philosophies.

Several principles underpin our employment philosophy.

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In light of our promote-from-within philosophy, we know we are hiring a potential future leader with every new hire.

Our Human Resources department develops efficient processes to expand our reach and pool of diverse talent while balancing the needs and requirements of data collection and storage.

We have created a standardized framework for posting jobs and interviewing for positions, supplemented with training through the FSB.

We have a Diversity and Compliance team that is heavily involved in developing this standardized framework, which ensures its integrity.

Our HR department develops efficient processes to expand our reach and pool of diverse talent while balancing the needs and requirements of data collection and storage.

We have created a standardized framework for posting jobs and interviewing for positions, supplemented with training through the FSB (our internal corporate university program — Fastenal School of Business).

We have an HR Compliance team that is heavily involved in developing this standardized framework, which ensures its integrity.

Not only is this process followed for all new hires, we replicate the same procedures for any internal transfers and promotions.

The FSB (our internal corporate university program) develops and delivers a comprehensive array of industry and company-specific training and development programs that are offered to our employees.

The FSB develops and delivers a comprehensive array of industry and company-specific training and development programs that are offered to our employees.

The programs are offered through a combination of classroom instructor-led training, virtual instructor-led training, and online learning.

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This ensures they meet our standards in these areas and are complying with Fastenal's Global Supplier Purchase Order Terms & Conditions and Supplier Code of Conduct.

Utilizing third-party tools and global databases, Fastenal actively monitors government sanctions, denied party listings, withhold release orders, export restriction updates, financial status, adverse media, and multiple other official exclusion lists that provide information on any known risk of any entities and locations with which Fastenal engages, and screens all business partners against those lists.

Utilizing third-party tools and global databases, Fastenal actively monitors government sanctions, denied party listings, withhold release orders, export restriction updates, financial status, adverse media, and multiple other official exclusion lists that provide information on any known risk of any entities and selling locations with which Fastenal engages, and screens all business partners against those lists.

Additionally, we monitor key areas of trade-related risk, including dual-use goods, trade cases, anti-dumping and counter-vailing cases, and other protectionist trade measures for all countries that products are traded in.

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Supply chain compliance representatives are placed in international corporate offices to ensure global coverage and governance, ensuring that no matter where a customers' operations may take them, Fastenal has the infrastructure, resources, and internal processes established to perform its supply chain governance obligations.

In 2024, approximately 26% of our total company-wide inventory spend was with small and/or diverse businesses.

This flows from our Supplier Diversity program, as part of which we are committed to building supply chain relationships with small businesses and businesses with diverse ownership.

In 2025, approximately 24% of our total company-wide inventory spend was with small and/or certified/impactful businesses.

Our Supplier Certification program supports customers who require reporting to document their supply chain relationships with various business types.

Available Information

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Unless otherwise noted, the positions described are positions with Fastenal or its subsidiaries.

Name Employee of

Name Employee of Fastenal

Since Age Position

Florness 1996 61 Chief Executive Officer and Director

1996 62 Chief Executive Officer and Director

Watts 1996 54 President and Chief Sales Officer

Broersma 2003 46 Executive Vice President – Operations

Drazkowski 1995 53 Executive Vice President – Sales

Drazkowski 1995 54 Senior Executive Vice President – Sales

Jansen 1992 55 Executive Vice President – Manufacturing

Holden Lewis 2016 55 Senior Executive Vice President and Chief Financial Officer

Lisowski 1994 58 Executive Vice President – Chief Accounting Officer and Treasurer

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Soderberg 1993 54 Senior Executive Vice President – Information Technology

Tunnicliff 2025 48 Senior Executive Vice President and Chief Financial Officer

(1) On December 19, 2025, Mr.

Florness announced his decision to step out of the roles of chief executive officer and director, effective July 16, 2026 (the 'CEO Transition Date').

Our board also appointed Jeffery M.

Watts, our current president and chief sales officer, as our next chief executive officer, effective as of the CEO Transition Date.

Assuming that the shareholders of the Company re-elect Mr.

Florness as our director at the annual meeting, the board intends to appoint Mr.

Watts as a director of the board to replace Mr.

Florness, effective as of the CEO Transition Date.

Florness has been our chief executive officer since August 2024.

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During his time as chief financial officer, Mr.

Florness' responsibilities expanded beyond finance, including leadership of a portion of our manufacturing division, our product development and procurement, and our national accounts business.

Florness' responsibilities expanded beyond finance, including leadership of a portion of our manufacturing division, our product development and procurement, and our contract accounts business.

Florness has served as one of our directors since January 2016.

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Broersma joined Fastenal in 2003 and, prior to 2007, served in various roles of increasing responsibility within our branch locations.

Drazkowski has been our executive vice president - sales since July 2023.

Drazkowski's responsibilities include oversight of growing and maintaining Fastenal's overall contract portfolio including national accounts, government and industry specific sales, support, and development teams.

Drazkowski has been our senior executive vice president – sales since January 2026.

Drazkowski's responsibilities include oversight of growing and maintaining Fastenal's overall contract portfolio including contract accounts, regional agreements, government and industry specific sales, support, and development teams.

From July 2023 to December 2025, Mr.

Drazkowski was our executive vice president – sales.

From October 2019 to June 2023, Mr.

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From December 2016 to September 2019, Mr.

Drazkowski was executive vice president – national accounts sales.

Drazkowski was executive vice president – contract accounts sales.

From October 2014 to December 2016, Mr.

Drazkowski was our vice president – national accounts sales, from September 2013 to September 2014, he served as regional vice president of our Minnesota based region, and from November 2007 to August 2013, he served as one of our district managers.

Drazkowski was our vice president – contract accounts sales, from September 2013 to September 2014, he served as regional vice president of our Minnesota based region, and from November 2007 to August 2013, he served as one of our district managers.

Prior to November 2007, Mr.

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Jansen served in various roles of increasing responsibility within our operations teams.

Lewis has been a senior executive vice president and the chief financial officer of Fastenal since December 2022.

As chief financial officer, Mr.

Lewis manages our finance, accounting, audit, and general counsel functions, and plays a central role in effectively executing and communicating company strategy, with a concentration on profitability, efficiency, and assets.

He also oversees our M&A and Investor Relations efforts.

From August 2016 to December 2022, Mr.

Lewis served as our executive vice president and chief financial officer.

He joined Fastenal following a long career as a senior equity analyst covering industrials, including Fastenal, for full-service investment banks.

Lewis held various senior roles with a variety of organizations in the investment banking industry from 1994 to July 2016.

As reported in December 2024, Mr.

Lewis provided written notice to Fastenal of his resignation as senior executive vice president and chief financial officer, effective on April 16, 2025.

Lisowski has been our executive vice president - chief accounting officer and treasurer since December 2020.

Lisowski has been our executive vice president – chief accounting officer and treasurer since November 2025.

Lisowski previously served as our executive vice president – interim chief financial officer, chief accounting officer, and treasurer from April 2025 to November 2025.

From December 2020 to April 2025, Ms.

Lisowski was our executive vice president – chief accounting officer and treasurer.

From August 2016 to November 2020, Ms.

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Miller's responsibilities include sales and operational oversight of our United States business.

Miller is also responsible for our selling locations both in the U.S.

as well as internationally.

From November 2015 to December 2019, Mr.

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As executive vice president – human resources, Ms.

Oas leads our human resources department, which includes payroll, benefits, diversity and compliance, general insurance, and the Fastenal School of Business.

Oas leads our human resources department, which includes payroll, benefits, human resources compliance, general insurance, and the Fastenal School of Business.

From March 2015 to January 2023, she was our director of compliance – human resources.

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Soderberg served in various sales leadership roles in the mid-Atlantic area of Fastenal.

Tunnicliff has served as our senior executive vice president and chief financial officer since November 2025.

In this role, he leads the Company's finance, accounting, internal audit, and legal functions, and is responsible for establishing strategic priorities, overseeing capital allocation, driving financial performance, and providing guidance and governance.

From January 2024 to November 2025, Mr.

Tunnicliff served as the chief financial officer of Beko Europe, a leading home appliance business in Europe that was formed in 2024 under agreement between Arcelik and Whirlpool Corporation ('Whirlpool').

Prior to this role, he served as head of internal audit and VP of strategy of Whirlpool from November 2021 to December 2023.

He also served as the chief financial officer of the Asia Pacific Region of Whirlpool from August 2019 to October 2021.

Earlier in his career, Mr.

Tunnicliff held a variety of senior finance leadership roles at Whirlpool across North America and global operations, where he led teams responsible for financial reporting, category profitability, supply chain finance, and commercial planning.

The executive officers are elected by our board of directors for a term of one year and serve until their successors are elected and qualified.

None of our executive officers is related to any other such executive officer or to any of our directors.

As previously disclosed, on December 19, 2025, Mr.

Florness informed our board of directors of his decision to voluntarily step out of his roles of chief executive officer and director, effective as of the CEO Transition Date.

Our board also appointed Mr.

Watts, our current president and chief sales officer, as our next chief executive officer, effective as of the CEO Transition Date.

Assuming that the shareholders of the Company re-elect Mr.

Florness as our director at the annual meeting, the board intends to appoint Mr.

Watts as a director of the board to replace Mr.

Florness, effective as of the CEO Transition Date.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business