Chicago Rivet & Machine Co. (CVR): Business Model Canvas [Dec-2025 Updated]

You're looking for the real story behind the recent turnaround at Chicago Rivet & Machine Co. (CVR), especially after that Q3 2025 profitability pivot. Honestly, understanding how they thread the needle between selling high-volume cold-formed fasteners-which made up the bulk of their $26 million trailing twelve-month revenue-and their assembly equipment business is key. We've mapped out their entire operating model using the Business Model Canvas, showing exactly how their integrated solution, supported by 161 total employees and strategic facility consolidation, is now translating into results like that $7.36 million in Net Sales last quarter. Dive in below to see the nine blocks driving their strategy, from their key partnerships with raw material suppliers to their dedicated account management for automotive Tier 1 suppliers.

Chicago Rivet & Machine Co. (CVR) - Canvas Business Model: Key Partnerships

You're mapping out the critical external relationships for Chicago Rivet & Machine Co. (CVR) as of late 2025. These partnerships are essential, especially given the recent focus on liquidity improvement and navigating elevated input costs.

Independent sales representatives for automotive distribution

Chicago Rivet & Machine Co. relies on a select group of manufacturers' sales representatives across North America to move its fastener products into the automotive industry. This channel is vital, though sales performance has been mixed year-to-date 2025.

• The fastener segment saw sales to automotive customers increase by 18.2% for the three months ended September 30, 2025, compared to Q3 2024.
• However, for the nine months ended September 30, 2025, sales to automotive customers decreased by 9.0%.
• Major automotive customers include TI Group Automotive Systems, LLC, Martinrea International Inc., and Cooper-Standard Holdings Inc.

Raw material suppliers (steel, wire) for cold-formed parts

The company uses materials like Aluminum, brass, carbon steel, and stainless steel for its cold-formed parts. The relationship with these suppliers is under pressure due to cost inflation.

• Raw material costs have risen significantly, impacting profit margins.
• The company manufactures parts using cold forming technology, which requires consistent supply of these base metals.
• The fastener division maintains both ISO 9001 and IATF 16949 certifications, suggesting supplier quality requirements are stringent.

Financial institutions for the new credit agreement to improve liquidity

To address liquidity concerns, which saw working capital drop to $10,371,215 at the end of 2024, Chicago Rivet & Machine Co. secured new financing in early 2025. This partnership with a financial institution is key to short-term stability.

The agreement includes financial covenants requiring minimum profitability for the twelve months ending December 31, 2025, and minimum tangible net worth; the company was in compliance as of June 30, 2025, and September 30, 2025.

Specialized tooling and machine component vendors

While direct vendor names aren't public, Chicago Rivet & Machine Co. partners with entities for specialized manufacturing capabilities and equipment support. A critical internal partnership is with its subsidiary.

• Chicago Rivet & Machine Co. is the parent company of H & L Tool Company, Inc., located in Madison Heights, Michigan.
• H & L Tool Company, Inc. manufactures products using precision turning and cold forming technology and is ISO/IATF 16949:2016 certified.
• The company also provides machine tools such as anvils, drivers, punches, and jaws, suggesting partnerships or internal capacity for these components.

The consolidation of the Albia, Iowa facility into Tyrone, Pennsylvania, streamlines internal operational partnerships.

Chicago Rivet & Machine Co. (CVR) - Canvas Business Model: Key Activities

Manufacturing of custom cold-formed fasteners and rivets

The fastener segment includes the manufacture and sale of rivets, cold-formed fasteners, and screw machine products. For the nine months ended September 30, 2025, net sales for the fastener segment contributed to the total of $21,903,997. Sales in the United States for the fastener segment were $4,749,613 for the three months ended September 30, 2025. Foreign sales reached $1,684,336 for the same three-month period. The trailing twelve-month revenue as of September 30, 2025, stood at $26M.

Production of automatic rivet setting machines and tooling

This activity falls under the assembly equipment segment. Sales for the assembly equipment segment were $926,335 for the three months ended September 30, 2025. For the first nine months of 2025, assembly equipment segment sales totaled $2,913,861. The gross margin for the three months ended September 30, 2025, was $1,329,496, an increase of 91.3% year-over-year.

Operational efficiency improvements via facility consolidation (Tyrone, PA)

The consolidation of the Albia operations into the Tyrone manufacturing facility is a key activity driving cost structure improvements. This action contributed to improved gross margins in the assembly equipment segment. The company continues to implement plans to reduce costs and improve efficiency for the remainder of the year.

• Assembly equipment gross margin increased by $715,056 year-to-date September 30, 2025.
• Selling and administrative expenses were 17.2% of sales for the three months ended September 30, 2025.
• Selling and administrative expenses were 19.4% of sales for the nine months ended September 30, 2025.

Precision engineering and custom part design for client specifications

This capability is embedded within the fastener segment, which manufactures products to client specifications. The company reported operating income of $64,570 for the three months ended September 30, 2025. The company's liquid assets at September 30, 2025, totaled $1,682,919. The average common shares outstanding remained at 966,132 across the periods presented.

• Net income per common share for Q3 2025 was $0.07.
• Net income per common share for the first nine months of 2025 was $0.08.
• The company has 201 - 500 employees as of July 01, 2024.

Chicago Rivet & Machine Co. (CVR) - Canvas Business Model: Key Resources

You're looking at the core assets Chicago Rivet & Machine Co. (CVR) relies on to deliver its value proposition. These aren't just things they own; they are the foundation of their manufacturing capability in the fastener and assembly equipment space.

The physical footprint includes the corporate headquarters located in Naperville, Illinois, which is where the company was founded in 1920. The primary manufacturing hub for fasteners and assembly equipment is the facility in Tyrone, Pennsylvania. This Tyrone location became the main maker of all fasteners and equipment after the Chicago area facility closed in 1980. To keep this operation competitive, Chicago Rivet & Machine Co. has allocated about $18 million over the past decade for facility upgrades and capital equipment.

The specialized equipment is central to their operation. Chicago Rivet & Machine Co. manufactures mechanical, pneumatic, and hydraulic riveting equipment. Their expertise in cold heading and screw machine processes allows them to produce specialty cold-formed parts. For instance, the Q3 2025 results showed the fastener segment, which includes these parts, generated net sales of $7.36 million for the three months ended September 30, 2025.

Quality assurance is a hard asset, especially when serving demanding sectors like automotive. Chicago Rivet & Machine Co.'s fastener division operates within a registered IATF 16949:2016 Quality Management System. This certification is key for consistent process fulfillment in the automotive sector. The company also maintains ISO 9001:2015 certification.

The intellectual property is deep, built over a century of operation. They built their first rivet setting machine back in 1925. Their most popular riveter in the automatic equipment line, the Model 912, was first developed in 1946. This history supports their current TTM (Trailing Twelve Month) revenue as of September 30, 2025, which stood at $26M.

The human capital is quantified as follows. The workforce of Chicago Rivet & Machine Co. is reported at 161 total employees. This team supports operations that, in Q3 2025, resulted in a net income of $67,572.

Here's a quick look at some of the tangible and intangible assets:

• Manufacturing Locations: Naperville, IL (HQ) and Tyrone, PA (Primary Manufacturing)
• Key Equipment Investment: Approximately $18 million over the last decade in capital equipment
• Core IP Milestone: First rivet setting machine built in 1925
• Quality Standard: Registered IATF 16949:2016 Quality Management System
• Latest Reported Headcount: 161 total employees

You can see the scale of their physical assets reflected in their recent financial performance, where Q3 2025 gross profit reached $1.33 million.

We can map the physical and certified resources against their operational output:

The company's ability to maintain these resources is tied to its market position, evidenced by its stock price of $9.00 as of November 7, 2025.

Finance: draft 13-week cash view by Friday.

Chicago Rivet & Machine Co. (CVR) - Canvas Business Model: Value Propositions

You're looking at the core value Chicago Rivet & Machine Co. delivers, which centers on a dual-offering structure that few competitors match. This isn't just about selling a part; it's about selling the entire fastening solution.

Century-long history of manufacturing reliability and precision

The foundation of this value proposition is deep. Chicago Rivet & Machine Co. started way back in 1920, giving it over a century of operational history. That longevity suggests deep institutional knowledge in cold-forming processes, which is critical when you're dealing with precision components. This history underpins the perceived reliability you offer to industrial buyers.

Integrated solution: providing both the fastener and the assembly machine

You offer two distinct but linked segments. The Fastener segment manufactures and sells rivets, cold-formed fasteners, and screw machine products. The Assembly Equipment segment manufactures automatic rivet setting machines, plus the necessary parts and tools. This integration means you control the entire assembly process for the client, from the component to the machine that installs it. For the nine months ending September 30, 2025, the Fastener segment saw sales to automotive customers decrease by 9.0%, yet the Assembly Equipment segment experienced a decline in sales of 11.2% for the three months ended September 30, 2025, showing the interconnected nature of demand cycles.

High-quality, high-volume production for industrial clients

Your value is proven by the volume you handle, even with recent market softness. For the three months ending September 30, 2025, your Fastener segment US sales hit $4,749,613, with foreign sales reaching $1,684,336. This shows consistent, albeit fluctuating, throughput for industrial consumption. The recent return to profitability in Q3 2025, with Net Income of $67,572 compared to a net loss of $1.45 million in Q3 2024, suggests operational efficiencies are helping maintain quality output despite volume pressures. That recent net income translates to $0.07 per common share for the quarter.

Custom-engineered cold-formed parts for complex applications

You aren't just pushing standard stock items; you engineer parts for specific, tough jobs. This capability is what locks in key industrial relationships. While specific revenue for custom parts isn't isolated, the overall Trailing Twelve Month (TTM) revenue as of September 30, 2025, was $26 million. The company's total Assets stood at $23.6 million as of Q2 2025, indicating a capital base supporting specialized tooling and engineering capacity. Here's the quick math: with 966,132 shares outstanding, that TTM revenue is about $26.90 per share.

Here's a snapshot of the recent financial context supporting these value drivers:

The specific value delivered through the fastener segment performance in Q3 2025 highlights where the current demand is strongest:

• Automotive customer sales increased by 18.2% for the quarter.
• Fastener segment US sales were $4,749,613 for the quarter.
• Gross profit for the quarter increased by 91.3% year-over-year.
• The company returned to profitability with Net Income per share of $0.07.

What this estimate hides is the ongoing challenge in the Assembly Equipment segment, which saw an 11.2% sales drop in the same period.

Finance: draft 13-week cash view by Friday.

Chicago Rivet & Machine Co. (CVR) - Canvas Business Model: Customer Relationships

You're looking at how Chicago Rivet & Machine Co. manages its connections with the diverse industrial and automotive clients it serves. The relationship strategy clearly splits based on the product complexity and the customer's scale of operation.

Dedicated account management for major automotive Tier 1 suppliers

For the largest accounts, the relationship is deep, focusing on integrated solutions. This is where dedicated account management is essential, given the high-stakes nature of supplying components like custom-engineered, high-precision metal components. Key customers in this relationship tier include TI Group Automotive Systems, LLC, Martinrea International Inc., and Cooper-Standard Holdings Inc.. The fastener segment, which includes these critical parts, saw sales to automotive customers increase by 18.2% for the three months ended September 30, 2025, compared to the same period in 2024. Still, for the nine months ended September 30, 2025, sales to automotive customers were down 9.0%, reflecting broader North American vehicle production volatility. This segment is the core, though the company is actively diversifying.

The relationship structure supports the integrated solution provider model, where Chicago Rivet & Machine Co. offers both the fastener and the machine to set it, reducing complexity for these major clients. This is defintely a sticky, high-barrier-to-entry business model.

Transactional sales for replacement parts and standard tooling

For standard tooling and replacement parts, the relationship leans more transactional. This covers the aftermarket for assembly equipment and standard fastener stock. Recognizing the market volatility, Chicago Rivet & Machine Co. has been pushing non-automotive fastener sales. YTD 2025 fastener sales to non-automotive customers increased by 9.3%, which generated an incremental $603,000 in revenue as of the latest reports. This shows a clear effort to build out transactional revenue streams outside the core automotive dependency.

The company serves a broad base across several sectors:

• Aerospace
• Appliance
• Medical devices
• General manufacturing

Engineering-to-engineer collaboration for custom machine design

When it comes to the Assembly Equipment Segment, the relationship moves back toward deep collaboration. This involves expert engineering services to help clients select the right fastening system, including material compatibility analysis and design optimization. This collaboration is key for custom machine design, which is part of the company's higher-margin capital equipment component. The company maintains 161 employees, many of whom are specialized technical staff supporting these design efforts.

Direct sales and service for assembly equipment maintenance

Direct sales and service are crucial for maintaining the proprietary, high-speed machinery sold to customers. While the assembly equipment segment saw a sales decline of 11.2% for the three months ended September 30, 2025, compared to the prior year, service contracts and maintenance parts sales provide a necessary recurring revenue component. The company's focus on operational efficiency, including consolidating operations into the Tyrone, Pennsylvania facility, helps maintain service quality despite sales timing fluctuations.

Here's a quick look at the financial context surrounding these customer interactions as of the third quarter of 2025:

The return to profitability in Q3 2025, with a net income of $67,572, is directly tied to the performance across these customer segments and the operational efficiencies gained. Finance: draft 13-week cash view by Friday.

Chicago Rivet & Machine Co. (CVR) - Canvas Business Model: Channels

You're looking at how Chicago Rivet & Machine Co. (CVR) gets its products-fasteners and assembly equipment-to its customers, primarily in the North American automotive industry. The channel strategy is a mix of direct interaction and specialized representation, reflecting the two distinct business segments.

The direct sales force is heavily involved with the assembly equipment segment. For the three months ended September 30, 2025, this segment saw a sales decline of 11.2% compared to the same period in 2024, which management attributed to timing in customer purchasing cycles and project delays. This suggests the direct sales team is managing complex, often project-based sales cycles.

Independent sales representatives focus heavily on the automotive industry for the fastener segment. While Q3 2025 saw a strong rebound with an 18.2% increase in sales to automotive customers for that quarter, the year-to-date picture for the first nine months of 2025 showed a 9.0% decrease due to a broader slowdown in North American vehicle production.

The company website serves as the primary digital touchpoint for product information and initial contact. While specific revenue attribution is not public, it supports the sales efforts across both segments by providing technical specifications and contact pathways for potential new business or support inquiries.

The subsidiary, H & L Tool Company, is fully consolidated into the fastener segment results. This subsidiary, based in Madison Heights, MI, contributes to the overall fastener sales, which in the United States for Q3 2025 reached $4,749,613.

Here's a quick look at the sales performance by segment for the most recent reported quarter, which gives context to the channel effectiveness:

The overall channel structure supports a business with 161 employees, relying on these specific routes to market:

• Direct sales force for assembly equipment deals.
• Independent reps targeting automotive fastener buyers.
• H & L Tool Company supporting the fastener segment.
• Website for general product discovery and contact initiation.

For the first nine months of 2025, total net sales were $21,903,997, which is down from $22,882,579 in the same period of 2024. That top-line pressure definitely means every channel needs to be operating efficiently, so you'll want Finance to track the cost-to-serve for the direct sales team versus the commission structure for the independent reps by year-end.

Chicago Rivet & Machine Co. (CVR) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Chicago Rivet & Machine Co. (CVR) as of late 2025, which is heavily concentrated in the manufacturing supply chain. Honestly, the health of this company is tied very closely to the automotive sector's capital expenditure cycles.

North American automotive Tier 1 and Tier 2 suppliers (principal market)

This group represents the principal market for Chicago Rivet & Machine Co.'s fastener segment products. While the overall trend has been challenging, there were signs of a near-term rebound in the third quarter of 2025. For the three months ended September 30, 2025, sales to automotive customers actually saw an increase of 18.2% compared to the same period in 2024. However, looking at the longer nine-month period ending September 30, 2025, sales to these automotive customers were down by 9.0%, reflecting the earlier slowdown in North American vehicle production. The US market remains critical, with fastener segment sales in the United States hitting $4,749,613 for the third quarter of 2025. The company is also seeing growth internationally, with foreign sales reaching $1,684,336 in that same quarter.

The dependency on this segment is clear, as the majority of revenue comes from the fastener segment, which serves this industry. The assembly equipment segment, which sells machines to both automotive and non-automotive customers, saw a decline of 11.2% in sales for the three months ended September 30, 2025, compared to the prior year's third quarter.

Here's a quick look at the segment performance for the first nine months of 2025:

What this estimate hides is the exact split between automotive and non-automotive within the fastener segment for the full nine months, but the automotive impact is the primary driver of the overall revenue trend.

Industrial equipment manufacturers requiring precision fasteners

Chicago Rivet & Machine Co. serves general manufacturing alongside the automotive sector. These customers require robust and dependable assembly processes, often utilizing the company's semi-tubular rivets, which are noted for weight reduction and vibration resistance. The company also produces solid rivets known for exceptional strength and durability for these industrial applications. The general manufacturing base contributes to the non-automotive portion of the fastener segment revenue.

Aerospace and construction sectors needing specialized components

The company's offerings extend to critical sectors like aerospace and construction, where specialized components are necessary. This customer group relies on Chicago Rivet & Machine Co.'s ability to supply standard AN/MS/NAS compliant rivets, as well as custom-designed solutions tailored to specific engineering requirements. These sectors demand high reliability, which aligns with the company's focus on technical expertise and material compatibility analysis.

Customers purchasing replacement parts for existing assembly machines

A distinct customer group involves those needing service and maintenance for their existing assembly infrastructure. This includes customers buying parts and tools for their automatic rivet setting machines, which fall under the assembly equipment segment. While assembly equipment sales declined in Q3 2025, the need for replacement parts for installed base machinery provides a recurring, albeit smaller, revenue stream. These customers are looking for reliable maintenance support to keep their production lines running.

• The company has 161 employees as of late 2025.
• The trailing 12-month revenue as of September 30, 2025, was approximately $26M.
• The company's market capitalization as of early December 2025 was approximately $8.7M.
• The stock trades with an average volume of approximately 3.78K shares.

Finance: draft 13-week cash view by Friday.

Chicago Rivet & Machine Co. (CVR) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Chicago Rivet & Machine Co. (CVR)'s operations as of late 2025. The cost structure is heavily influenced by raw material procurement and the efficiency gains from recent facility consolidation.

Cost of Goods Sold (COGS) for raw materials (steel, wire) is the largest component. Based on the Third Quarter 2025 results, Net Sales reached $7.36 million, with a Gross Profit of $1.33 million for the three months ended September 30, 2025. This implies a COGS of approximately $6.03 million for that quarter, which is the total cost tied directly to the production of fasteners and assembly equipment, including the cost of steel and wire inputs.

The manufacturing overhead, which bundles Manufacturing labor and facility operating expenses along with Selling, General, and Administrative (SG&A) costs, is reflected in the difference between Gross Profit and Operating Income. For Q3 2025, Operating Income was $64,570. This means the combined costs for labor, facility operations (like the consolidated Tyrone facility), and overhead totaled about $1.265 million for the quarter ($1.33 million Gross Profit minus $64,570 Operating Income).

Selling, General, and Administrative (SG&A) costs are not explicitly broken out, but they are part of the costs that reduced the Gross Profit to the Operating Income of $64,570 in the third quarter of 2025. This figure shows a significant turnaround from the operating loss of $823,571 reported in the same period of 2024.

Costs associated with managing supply chain complexities and inflation remain a key concern. The 2024 annual report specifically attributed operating losses to elevated input costs. The operational efficiency resulting from the consolidation of the Albia, Iowa operations into the Tyrone, Pennsylvania facility is a direct action taken to mitigate these structural cost pressures.

Finally, the shareholder return component of the cost structure includes the Dividend payments of $0.12 per share (forward annual rate). This is paid quarterly, with a recent payment of $0.03 per share announced in November 2025 for a December 2025 payment date. It's important to note that the prior year, 2024, saw total dividends paid of $0.33 per share.

Here's a quick look at the key cost-related financial outcomes for the third quarter of 2025:

• Net Sales: $7.36 million
• Gross Profit: $1.33 million
• Implied COGS (Raw Materials): $6.03 million
• Operating Income: $64,570
• Forward Annual Dividend Rate: $0.12 per share

To map these cost drivers more clearly, consider the relationship between sales and profit generation in the most recent reported quarter:

The structure shows that while input costs are high, operational efficiencies are starting to flow through to the bottom line, though the margin on operating income remains thin at less than 1% of net sales for the quarter. Finance: draft 13-week cash view by Friday.

Chicago Rivet & Machine Co. (CVR) - Canvas Business Model: Revenue Streams

You're looking at the core ways Chicago Rivet & Machine Co. brings in cash as of late 2025. The revenue streams are tightly linked to their two operating segments: fasteners and assembly equipment.

The largest portion of Chicago Rivet & Machine Co.'s income comes from the Sales of Fasteners, which includes rivets, cold-formed fasteners, and parts, as well as screw machine products. This segment is the engine, with revenues primarily derived from customers in the North American automotive industry, directly or indirectly. For the three months ended September 30, 2025, the fastener segment reported United States sales of $4,749,613. Also, foreign sales for the fastener segment reached $1,684,336 for that same third quarter period.

The second key area is the Sales of Assembly Equipment, which mainly involves the manufacture of automatic rivet setting machines. This stream also includes the Sales of replacement parts and tooling for machines. Still, this segment saw a decline in sales for the three months ended September 30, 2025, dropping by 11.2% compared to the same period in 2024.

Here's a snapshot of the top-line performance leading up to this point:

• Trailing twelve-month revenue as of 9/30/2025 is reported at $26 million. More precisely, the trailing twelve-month revenue was $26.01 million as of September 30, 2025.
• Q3 2025 Net Sales were $7.36 million, specifically $7,360,284.
• This Q3 2025 figure represents a year-over-year increase of 5.6% from Q3 2024 sales of $6,969,921.
• Net sales for the first nine months of 2025 totaled $21,903,997.

To give you a clearer picture of the recent sales activity, look at this quarterly comparison:

The data shows a return to quarterly profitability in Q3 2025 after a loss in Q2 2025.

The revenue generation is heavily weighted toward the fastener side, which is why you see specific data points for that segment:

• Fastener segment sales to automotive customers increased by 18.2% for the three months ended September 30, 2025, year-over-year.
• However, for the nine months ended September 30, 2025, sales to automotive customers decreased by 9.0%.

Finance: draft 13-week cash view by Friday.