Fastenal flags tariff hit, warns of rising prices of petroleum-based products (updated)

Fastenal Co

13/04/2026 17:27

Adds details from the conference call and background throughout; updates shares

By Parth  Chandna and Aishwarya Jain

April 13 (Reuters) -
Industrial supplies distributor Fastenal FAST.O said on Monday that tariffs by the Trump administration drove up costs faster than it could adjust prices, pushing margins below its target.

The Minnesota-based company also highlighted rising prices of petroleum-based products, such as nitrile gloves, amid Middle East tensions and noted that discussions on costs with customers and suppliers took longer than usual as they awaited direction on tariffs and potential refunds.

Shares of the company, which sells construction supplies such as nuts, screws, bolts, and fasteners fell 7.4% by midday.

The U.S.-Israeli war against Iran has disrupted flows through the critical Strait of Hormuz, driving oil prices sharply higher and raising costs across commodities from fertilizers to plastics, adding to tariff pressures and prompting companies to hike prices.

"Nitrile gloves, that's not the biggest product line we sell, but it's a meaningful product line that we sell. That price is going crazy because it's all petroleum based," a Fastenal executive said during the earnings call.

Companies are also contending with uncertainty surrounding the $166 billion in potential tariff payments to around 330,000 importers after the U.S. Supreme court
struck down
 Trump's tariffs.

"While trade and tariff uncertainty continues to be part of the backdrop, most customers are viewing this uncertainty primarily as a cost and planning issue rather than a demand issue," management added during the call.

Fastenal reported a net income of $339.8 million for the quarter ended March 31, below analysts' average estimate of $343.7 million, according to data compiled by LSEG.

The company's revenue in the quarter rose to $2.2 billion, in line with analysts' expectation and up 12.4% from a year ago.

The company said higher product prices lifted first-quarter net sales by about 350 basis points, compared with little impact a year earlier.

Fastenal said it is also shifting focus to clients with monthly sales potential of above $50,000, which have lower gross margins but still contribute positively to operating margin.

 (Reporting by Parth Chandna and Aishwarya Jain; Editing by Diti Pujara)

 ((Parth.Chandna@thomsonreuters.com;))