Chicago Rivet Reports Decline in Q2 2025 Financial Performance Amid Automotive Challenges

Chicago Rivet & Machine Co. reported a decline in financial performance for the second quarter of 2025, with net sales of $7.3 million, down 9.4% from $8.1 million in the same period last year. For the first half of 2025, sales totaled $14.5 million, an 8.6% decrease compared to $15.9 million in the first half of 2024. The company attributed this decline primarily to reduced volumes from automotive customers, which represent a significant portion of its revenue, as automotive production levels faced challenges from softening consumer demand and ongoing economic uncertainty.

The company's gross profit for the second quarter was $975,062, a decrease of 31.1% from $1.4 million in the prior year. For the first half, gross profit increased to $2.6 million, up 21.9% from $2.2 million in the same period last year. The year-over-year decline in gross margin for the second quarter was largely due to lower production volumes, which hindered the company's ability to absorb fixed costs. Despite securing price increases in previous years, inflationary pressures on wages and other operational costs continued to impact profitability.

In terms of operational developments, Chicago Rivet has made strategic changes to enhance its market position. The company completed the sale of its Albia manufacturing facility in February 2025, generating approximately $678,000 in cash proceeds and recording a one-time gain of $339,520. Additionally, the company has consolidated operations from the Albia facility into its Tyrone manufacturing site, which is expected to improve operational efficiency and reduce costs. The company also appointed James T. Tanner as the new Senior Vice President of Sales and Marketing to bolster its sales efforts.

As of June 30, 2025, Chicago Rivet reported total assets of $23.6 million, a slight increase from $23.4 million at the end of 2024. The company’s current liabilities decreased to $1.9 million from $2.2 million, while total liabilities rose to $3.7 million from $3.3 million. The company’s cash and cash equivalents stood at $1.2 million, down from $1.9 million at the end of 2024. The company’s working capital increased to $11.1 million, reflecting a strategic focus on improving liquidity amid ongoing operational challenges.

Looking ahead, Chicago Rivet remains cautious about the economic environment, which continues to present challenges, particularly in the automotive sector. The company plans to focus on enhancing operational efficiencies, pursuing new sales opportunities, and maintaining strong customer relationships to navigate these uncertainties. Management has expressed optimism that the strategic actions taken will help mitigate risks and improve financial performance in the future, although substantial doubt remains regarding the company's ability to continue as a going concern without successful implementation of these strategies.