Chicago Rivet & Machine Co. (CVR) filed its audited 2025 Form 10‑K on April 3 2026, and the company announced the filing on April 21 2026. The report contains a going‑concern qualification from independent auditor Cherry Bekaert LLP, indicating that management has substantial doubt about CVR’s ability to continue as a going concern for the next 12 months.
The 2025 results show a net loss of $1.08 million ($1.12 per share), a dramatic improvement from the $5.62 million loss ($5.81 per share) reported in 2024. Net sales rose to $27.89 million, up 3 % from $26.99 million in 2024, driven by a 15 % increase in fastener sales to non‑automotive customers. Gross profit climbed to $4.13 million, up from $3.57 million in 2024, reflecting pricing actions, operational improvements, and the consolidation of the Albia, IA facility to Tyrone, PA. However, operating cash flow remained negative, and cash and equivalents stood at $1.7 million with working capital of $9.9 million at year‑end.
Segment performance highlights that fastener sales accounted for $24.1 million of total revenue, while assembly equipment generated $3.8 million. The fastener segment’s growth was largely due to increased demand from non‑automotive customers, whereas assembly equipment sales remained flat, underscoring the company’s strategic shift away from automotive customers.
Management has outlined a multi‑pronged strategy to stabilize the business: pricing adjustments to protect margins, cost‑control initiatives that reduced selling and administrative expenses by $0.56 million, and a focus on asset sales and new financing to shore up liquidity. The company also plans to continue diversifying its customer base and to leverage its improved gross margin to support future growth.
The auditor change is notable; CVR replaced Crowe LLP in May 2025 after Crowe issued a going‑concern paragraph in its 2024 audit and identified material weaknesses in internal controls over financial reporting, specifically inventory valuation. The material weakness remains unresolved as of December 31 2025.
CVR’s $3.0 million credit facility was breached for the 2025 period due to a minimum profitability covenant violation. The company secured a waiver and an extension of the facility to August 1 2026 on February 27 2026, but the covenant breach underscores ongoing liquidity pressure.
The company declared a dividend of $0.03 per share on February 23 2026. Given the limited cash balance and the going‑concern qualification, the sustainability of the dividend is uncertain and may be suspended if additional financing is not obtained.
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