Chicago Rivet & Machine (CVR) investor relations material

Executive summary

• Net sales for Q1 2026 were $6.85M, down 5.4% year-over-year due to lower order volumes and softer demand in key markets, especially automotive.

• Gross margin declined 42.2% to $958K, reflecting lower sales volumes and unfavorable mix.

• Net loss was $362K ($0.37/share) versus net income of $401K ($0.42/share) in Q1 2025, driven by reduced sales and margin pressure.

• Operating loss was $382K, compared to operating income of $410K in the prior year period.

Financial highlights

• Fastener segment sales fell 5.9% to $5.8M; assembly equipment segment sales decreased 3.1% to $1.05M.

• Selling and administrative expenses decreased 15.6% to $1.34M, reflecting cost reduction efforts.

• Cash and cash equivalents at March 31, 2026 were $1.45M.

• Working capital decreased 4.2% to $9.48M.

• Operating cash flow was negative $649K for the quarter.

Outlook and guidance

• Management expects slight production volume increases in H2 2026, with new customer awards ramping up.

• Order volume improved sequentially from Q4 2025 but remains below historic levels.

• Significant uncertainty persists due to macroeconomic and industry factors; focus remains on cost control, efficiency, and new sales opportunities.