Chicago Rivet Reports Q1 2025 Financial Results with Net Income Turnaround

Chicago Rivet & Machine Co. reported its financial results for the first quarter of 2025, revealing a net income of $401,022, or $0.42 per share, a significant turnaround from a net loss of $698,004, or $(0.72) per share, in the same period last year. The company's net sales for the quarter were $7,245,635, down 7.7% from $7,853,181 in the first quarter of 2024. Despite the decline in sales, the company achieved a gross profit of $1,657,741, compared to $744,562 in the prior year, reflecting improved gross margins driven by operational efficiencies and a revised pricing structure.

The decrease in sales was attributed to a decline in both the fastener and assembly equipment segments, with fastener sales falling by 8.4% to $6,158,971 and assembly equipment sales decreasing by 3.8% to $1,086,664. The automotive sector, which is a primary market for the fastener segment, saw a notable drop in sales due to reduced order volumes from original equipment manufacturers amid a slowdown in North American vehicle production. Conversely, sales to non-automotive customers increased by 12.7%, indicating a strategic pivot by the sales team to diversify revenue sources.

Operationally, the company has made significant changes, including the consolidation of its Albia manufacturing facility into its Tyrone facility, which has led to enhanced economies of scale and cost reductions. The sale of the Albia facility's assets in February 2025 generated approximately $678,000 in cash proceeds, contributing to a one-time gain of $339,520 recorded in other income. Additionally, the company has taken steps to strengthen its sales team, recently appointing James T. Tanner as Senior Vice President of Sales and Marketing, to drive new sales opportunities.

As of March 31, 2025, Chicago Rivet reported working capital of $10,730,266, an increase from the beginning of the year. However, the company continues to face challenges, including recurring operating losses and negative cash flows, raising substantial doubt about its ability to continue as a going concern. In response, management has implemented strategic actions to improve liquidity, including entering into a $3,000,000 operating credit agreement and exploring additional financing options. The outlook for 2025 remains cautious, with management focusing on enhancing operational efficiency and pursuing new sales opportunities while navigating a challenging economic environment.