Chicago Rivet & Machine (CVR) investor relations material

Executive summary

• Sales for Q2 2026 were $7.24M, down 0.8% year-over-year; six-month sales were $14.09M, down 3.1% year-over-year, mainly due to lower fastener segment demand and macroeconomic headwinds.

• Net loss for Q2 2026 was $989.5K ($1.02/share), up from a $395K loss in Q2 2025; six-month net loss was $1.35M versus net income of $6K in the prior year period.

• Gross margin declined 42.2% year-over-year for both the quarter and six months, driven by lower volumes, unfavorable mix, and higher costs.

• Substantial doubt exists about the company's ability to continue as a going concern due to recurring losses, negative cash flows, and reduced liquidity.

Financial highlights

• Q2 2026 net sales: $7.24M (Q2 2025: $7.30M); six months: $14.09M (2025: $14.54M).

• Q2 2026 gross profit: $563K (Q2 2025: $975K); six months: $1.52M (2025: $2.63M).

• Q2 2026 net loss: $990K (Q2 2025: $395K); six months: $1.35M loss (2025: $6K income).

• Cash and equivalents at June 30, 2026: $771K; working capital: $8.70M, down 12.1% from year-end.

• Operating cash flow for six months: $(1.76)M; capital expenditures: $189K.

Outlook and guidance

• Fiscal 2026 guidance remains cautious amid macroeconomic uncertainty; slight production volume increases expected, with new customer awards ramping up in H2 2026.

• Automotive demand expected to improve modestly, while non-automotive markets lag.

• Cost reduction and efficiency initiatives continue; meaningful sales progress anticipated in Q4 2026 and full year 2027.