Chicago Rivet & Machine Co. reported a decline in financial performance for the first quarter of 2026, with net sales of $6.85 million, down 5.4% from $7.25 million in the same period last year. The decrease in revenue was attributed to lower order volumes from fastener customers, reflecting a cautious purchasing environment amid economic uncertainties, including elevated interest rates and inflation. The company's gross profit also fell significantly, from $1.66 million in Q1 2025 to $958,459 in Q1 2026, marking a 42.2% decrease. This decline in gross margin was primarily due to reduced sales volumes and an unfavorable sales mix.
The company reported a net loss of $362,015, or $0.37 per share, compared to a net income of $401,022, or $0.42 per share, in the prior year. This represents a substantial decrease of $763,037, or 190.3%. The loss was driven by lower sales volumes, reduced absorption of fixed manufacturing costs, and the absence of a prior-year gain from the sale of the Albia facility. Selling and administrative expenses decreased by 15.6% to $1.34 million, reflecting cost-cutting measures implemented by the company.
In terms of operational developments, the fastener segment generated sales of $5.80 million, down 5.9% from $6.16 million in the previous year, with automotive sector sales declining by 5.5% due to a slowdown in North American vehicle production. The assembly equipment segment also saw a slight decrease in sales, from $1.09 million to $1.05 million. The company’s total assets increased to $23.87 million as of March 31, 2026, compared to $23.30 million at the end of 2025, driven by higher accounts receivable and inventory levels.
Looking ahead, Chicago Rivet & Machine Co. faces significant challenges, including ongoing economic uncertainty and declining revenues. The company has initiated several strategic actions to improve liquidity and operational efficiency, including the potential sale of certain assets and the renewal of its credit agreement. Management remains cautious but optimistic about the potential for increased production volumes and new customer awards in the second half of 2026. However, substantial doubt remains regarding the company's ability to continue as a going concern, as it navigates these challenges while seeking to enhance sales and reduce costs.
About CHICAGO RIVET & MACHINE CO
Chicago Rivet & Machine Co. manufactures and sells rivets, cold-formed fasteners, screw machine products, and automatic rivet setting machines primarily for the North American automotive industry. Operating through its fastener and assembly equipment segments, the company serves automotive manufacturers and component suppliers, competing on price, quality, and service. Its business model focuses on producing specialized fastening solutions and assembly equipment, leveraging operational efficiency and customer relationships within a competitive market.
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