Fastenal CEO Daniel Florness to step down in July 2026 (updated)
22/12/2025 13:32
Adds analyst comments in paragraphs 5,7, shares in paragraph 6 By Parth Chandna Dec 22 (Reuters) - Industrial supplies distributor Fastenal FAST.O said on Monday that long-time company insider Jeffery Watts will replace Daniel Florness as CEO, effective from July 16, 2026. Florness will also resign from Fastenal's board, but will serve as strategic adviser to the new CEO until early 2028. The board intends to appoint Watts as a director to fill the vacancy, the company said. Watts currently serves as Fastenal's president and chief sales officer. Both men have been associated with the company for nearly three decades. Ryan Merkel, an analyst at William Blair, said Watts is the ideal choice. "Watts played a critical role in the recent successful strategy refresh. His deep understanding of Fastenal’s sales culture and leadership experience gives us confidence in a seamless transition," Merkel said. Shares of the company were down about 2% in morning trading. "We think investors could be modestly disappointed that Florness is leaving the company," KeyBanc analyst Kenneth Newman said. Florness joined the company in 1996 and took the helm in 2016. "Fastenal has discovered continued success over the last ten years gaining market share with a focus on customer centered supply chain solutions and inventory management technology," the company said. Winona, Minnesota-based Fastenal provides a broad range of fasteners, safety products, metal cutting products and other industrial supplies to customers in sectors such as manufacturing, construction, warehouse and storage, and data centers. The company employs about 24,000 people across roughly 1,600 branches in 25 countries. Last month, Fastenal had warned of a slight fourth-quarter margin squeeze amid soft U.S. industrial demand. (Reporting by Parth Chandna and Anshuman Tripathy; Editing by Sahal Muhammed) ((Parth.Chandna@thomsonreuters.com;))