Chicago Rivet & Machine Co.

What they do

The company operates two reportable segments: Fastener, which includes wholly owned subsidiary H&L Tool Company Inc. and makes rivets, cold formed fasteners and components, and screw machine products; and Assembly Equipment, which makes automatic rivet setting machines and related parts, components and tools. Products are sold by employees and independent sales representatives, primarily into North American automotive manufacturing, with the principal market being customers involved directly or indirectly in automobile and automotive component production. The company has no foreign operations; at December 31, 2025 it employed 158 people.

Revenue drivers

• Fastener segment — Full-year 2025 Fastener revenues were $24,085,699, up 4% from $23,164,238 in 2024; within that, full-year automotive sales were $15,140,529 versus $15,375,697, with non-automotive sales making up the balance.
• Automotive customers — Revenues are primarily from customers involved directly or indirectly in automobile and automotive component manufacturing; TI Group Automotive Systems, LLC was about 19% of 2025 consolidated revenues, Martinrea International Inc. about 10%, and Cooper-Standard Holdings, Inc. about 5%.
• Assembly Equipment segment — Manufactures automatic rivet setting machines and related parts, components and tools used in such machines; the 10-K describes it as a separate reportable segment alongside Fastener.
• Export sales — Sales to foreign customers were approximately 25% of total sales in 2025 and 19% in 2024, with no foreign operations.

Recent performance

For full-year 2025, net sales were $27,890,260 compared to $26,986,627 in 2024, an increase of $903,633, or 3%, while the net loss was $1,083,214, or ($1.12) per share, versus a net loss of $5,615,614, or ($5.81) per share, in 2024. Fourth quarter 2025 sales were $5,986,263 versus $4,104,048 in the fourth quarter of 2024, an increase of $1,882,215, or 46%, though the quarter still produced a net loss of $1,156,829, or ($1.20) per share. In the first half of 2026, net sales were $14,088,141 versus $14,543,712 in the first half of 2025, with a second-quarter net sales figure of $7,236,625 and an operating loss of $1,033,711; the six-month operating loss was $1,415,303. The company reported an operating loss of $7,737 for the first six months of 2025, a figure that included a $339,520 gain on sale of property. As of June 30, 2026, cash and cash equivalents were $770,752, down from $1,718,237 at December 31, 2025, and total shareholders' equity was $17,452,775.

Strategy

Management attributes the 2025 results to volume declines in its U.S. automotive fastener business from OEM and customer inventory reductions that accelerated in the second half of 2025, offset in large part by price increases and efficiency gains. The company consolidated work previously done at the Albia, Iowa facility closed in the third quarter of 2024 into the Tyrone, Pennsylvania facility, which reduced headcount by 19 full-time and part-time employees. It states it intends to continue focusing on improving pricing and efficiency and on driving increased sales in both the Fastener and Assembly Equipment segments in 2026. Risk factor disclosures state the company has developed and begun implementing strategic actions aimed at improving liquidity, increasing operating efficiency and revenues, and ensuring business continuity.

Risks

• Going concern — The 10-K states the company has determined there is substantial doubt about its ability to continue as a going concern due to significant recurring operating losses, recurring negative cash flows from operations, and continued reduction in liquidity.
• Customer concentration — Sales to TI Group Automotive Systems, LLC, Martinrea International Inc. and Cooper-Standard Holdings, Inc. were each at least 5% of consolidated revenues in 2025, with TI Group at approximately 19%.
• Automotive demand and fixed costs — The company sells largely into North American automotive, where it says U.S. demand for pickup trucks and large SUVs softened in 2025 and its significant fixed costs cannot be scaled in proportion to short-term volume fluctuations.
• Warranty and legal claims — The company recorded an incremental $857,000 charge in the fourth quarter of 2024 related to a settlement with a customer regarding certain warranty claims, on top of a $1,100,000 warranty charge recorded in 2024.

Outlook

Management states it intends to continue focusing on improving pricing and efficiency and driving increased sales in both the Fastener and Assembly Equipment segments in 2026. It says the pricing and operating efficiency improvements made during 2025 should provide additional benefits at scale when volumes return to more historic levels. The 10-K cautions that there can be no assurances the strategic actions being implemented will succeed in addressing the going concern doubt.