Fastenal

Capital deployment prioritizes organic growth levers with high customer stickiness: FMI hardware, DC automation, fleet and IT. Net capex was $230.6 million in 2025 and is guided to $310–$330 million in 2026, with projects including the Atlanta hub replacement and network-wide picking capacity enhancements.

Dividends are the primary return vehicle; the company paid $0.875 per share in 2025 and declared $0.24 for Q1 2026. There were no repurchases in 2024–2025, leaving authorization capacity if valuation becomes attractive.

We would prefer a slightly lower cash payout and opportunistic buybacks when multiples compress, but the reinvestment discipline in point-of-use infrastructure and digital capabilities remains sound.