UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q _________________________________ (Mark One) Chicago Rivet & Machine Co. (Exact Name of Registrant as Specified in Its Charter) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ___________ Commission file numb ...

Core Viewpoint - CVR Energy reported mixed financial results for Q2 2025, with revenue exceeding analyst expectations but adjusted EPS falling short, indicating operational challenges and regulatory impacts [1][2]. Financial Performance - GAAP revenue for Q2 2025 was $1,761 million, surpassing the analyst consensus of $1,688.8 million, but down 10.5% from $1,967 million in Q2 2024 [2]. - Adjusted EPS was $(0.23), missing the expected $(0.13) and reflecting a 355.6% decline from $0.09 in Q2 2024 [2]. - The company reported a net loss attributable to shareholders of $(114) million, a significant drop from a net income of $21 million in the same quarter last year, marking a 642.9% decline [2]. - Adjusted EBITDA increased to $99 million, a 13.8% rise from $87 million in Q2 2024 [2]. Business Segments Overview - CVR Energy operates in three segments: petroleum refining, renewable fuels, and nitrogen fertilizers, with a focus on high-value transportation fuels and renewable diesel production [3][4]. - The petroleum segment faced challenges due to a planned refinery turnaround, reducing throughput and significantly impacting refining margins [5]. - The renewables segment continued to operate below breakeven, with throughput increasing but facing losses due to regulatory uncertainties [6]. - The nitrogen fertilizer segment showed stronger results, with net income rising to $39 million driven by higher prices for ammonia and UAN products [7][8]. Operational Challenges and Developments - The petroleum segment's refining margin dropped to $2.21 per barrel from $10.94 last year, impacted by a pre-tax $89 million loss related to Renewable Fuel Standard obligations [5][9]. - The renewables segment's adjusted EBITDA loss was $4 million, with throughput improving but still heavily reliant on government policies [6]. - Regulatory and compliance costs significantly affected profitability, with ongoing capital investments for environmental upgrades [9]. Leadership Changes - Dave Lamp announced his retirement as CEO, with Mark Pytosh set to take over in January 2026, and Brett Icahn appointed to the board, increasing Icahn Enterprises' influence [10]. Future Guidance - Management expects petroleum segment throughput of 200,000 to 215,000 barrels per day and ammonia utilization rates of 93% to 97% in the fertilizer segment [11]. - Cash flow concerns persist, with free cash flow turning negative by $12 million and a decline in cash position from $987 million at the end of 2024 to $596 million by June 30, 2025 [12].

Group 1 - CVR Energy has faced a challenging year due to weak refining margins and high turnaround costs, leading to the elimination of its dividend [1] - Recently, there are signs of improvement in the refining environment, which may positively impact the company's performance [1] - The stock has been under pressure but could present a favorable risk/reward profile for contrarian investors [1]

Core Points - CVR Energy reported a net loss of $114 million for Q2 2025, a significant decline from a net income of $21 million in Q2 2024, resulting in a loss per diluted share of $1.14 compared to earnings of $0.21 per share in the previous year [1][8] - The company's adjusted loss for Q2 2025 was 23 cents per diluted share, contrasting with adjusted earnings of 9 cents per diluted share in Q2 2024 [1][8] - EBITDA loss for Q2 2025 was $24 million, down from an EBITDA of $103 million in Q2 2024, while adjusted EBITDA increased to $99 million from $87 million year-over-year [1][8] Financial Performance - The Petroleum Segment experienced a net loss of $137 million and an EBITDA loss of $84 million in Q2 2025, compared to a net income of $18 million and EBITDA of $56 million in Q2 2024 [6][8] - Total throughput for Q2 2025 was approximately 172,000 barrels per day, down from 186,000 barrels per day in Q2 2024, primarily due to processing intermediate inventories [7][8] - Refining margin for Q2 2025 was $35 million, or $2.21 per total throughput barrel, a sharp decline from $185 million, or $10.94 per barrel, in the same period of 2024 [9][50] Segment Performance - The Renewables Segment reported a net loss of $11 million and an EBITDA loss of $5 million for Q2 2025, consistent with the previous year's performance [11][13] - The Nitrogen Fertilizer Segment achieved net income of $39 million and EBITDA of $67 million on net sales of $169 million for Q2 2025, compared to net income of $26 million and EBITDA of $54 million on net sales of $133 million in Q2 2024 [14][15] Leadership Changes - Mark A. Pytosh is set to assume the role of President and CEO of CVR Energy on January 1, 2026, following Dave Lamp's retirement [3][5] - Brett Icahn was appointed as a director effective August 1, 2025, increasing the Board size to nine members [5][8] Cash and Debt Management - Consolidated cash and cash equivalents decreased to $596 million as of June 30, 2025, down from $987 million at the end of 2024 [18][43] - Total debt and finance lease obligations were reported at $1.9 billion as of June 30, 2025, including $570 million held by the Nitrogen Fertilizer Segment [18][43] - The company prepaid $70 million and $20 million in principal of the Term Loan in June and July 2025, respectively, recognizing a $1 million loss on extinguishment of debt [19][20]

Market Overview - The fertilizers market is experiencing a resurgence after being subdued for over two years, with the Fertilizers Price Index rising approximately 13% over the past year [1] - Despite the increase, the index remains significantly below its 2022 highs, indicating that a key inflection point has likely been passed [1] Analyst Background - The analysis is provided by a financial analyst with over a decade of experience in the fertilizers market, who has been writing on Seeking Alpha since 2018 [1] - The analyst has a professional background in private equity, real estate, and economic research, along with academic expertise in financial econometrics, economic forecasting, and global monetary economics [1]

Group 1: Company Overview - CVR Partners (NYSE: UAN) is a limited partnership involved in the supply chain of nitrogen fertilizer products, operating within the agricultural chemicals industry with key products like ammonium nitrate and general ammonia [1] Group 2: Investment Focus - The company is characterized as a growth entity, focusing on sectors that are often undervalued or disliked but possess strong fundamentals and good cash flows, particularly in agricultural chemicals [1] - There is a specific interest in sectors such as Oil & Gas and consumer goods, highlighting a strategy that seeks substantial returns from companies that are overlooked for unjustified reasons [1] Group 3: Investment Philosophy - The investment approach emphasizes long-term value investing while also exploring potential deal arbitrage opportunities, indicating a flexible strategy that adapts to market conditions [1] - The company tends to avoid investments in high-tech or certain consumer goods sectors, indicating a preference for more traditional and understandable business models [1]

Group 1 - CVR Energy's shares have underperformed over the past year due to a weaker refining environment and high turnaround costs, leading to the suspension of its dividend [1] - Recently, CVR Energy's shares have recovered nearly all of their losses [1] Group 2 - The article emphasizes the importance of macro views and stock-specific turnaround stories for achieving outsized returns with a favorable risk/reward profile [1]

Core Viewpoint - Chicago Rivet & Machine Company announced the appointment of James T. Tanner as the Senior Vice President on May 1, 2025 [1] Group 1 - The appointment of James T. Tanner is expected to bring leadership and strategic direction to the company [1]

PART I. FINANCIAL INFORMATION This section presents detailed financial statements, management's analysis, and disclosures on internal controls [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Q1 2025 financial statements reflect a net income turnaround, driven by improved margins and an asset sale, despite lower sales [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly increased to $24.1 million, driven by receivables and inventories, despite a cash decrease Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $766 | $1,923 | | Accounts receivable, net | $4,863 | $3,095 | | Inventories, net | $7,048 | $6,496 | | **Total current assets** | **$13,137** | **$12,591** | | Property, plant and equipment, net | $10,461 | $10,735 | | **Total assets** | **$24,071** | **$23,370** | | Total current liabilities | $2,406 | $2,220 | | **Total liabilities** | **$3,667** | **$3,338** | | **Total shareholders' equity** | **$20,404** | **$20,032** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 reported net income, reversing a prior-year loss, despite a 7.7% sales decrease Q1 2025 vs Q1 2024 Performance ($) | Metric | Q1 2025 ($) | Q1 2024 ($) | Change | | :--- | :--- | :--- | :--- | | Net sales | $7,245,635 | $7,853,181 | -7.7% | | Gross profit | $1,657,741 | $744,562 | +122.7% | | Operating income (loss) | $70,174 | ($903,303) | N/A | | Net income (loss) | $401,022 | ($698,004) | N/A | | Diluted EPS | $0.42 | ($0.72) | N/A | | Cash dividends declared per share | $0.03 | $0.10 | -70.0% | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity increased to $20.40 million, driven by net income, partially offset by dividends - Total shareholders' equity increased to **$20,404,490** as of March 31, 2025, driven by net income of **$401,022**, less dividends of **$28,984**[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw increased cash used in operations, leading to a $1.16 million overall cash decrease Cash Flow Summary (Three Months Ended March 31) ($) | Activity | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | ($2,010,548) | ($398,759) | | Net cash provided by investing activities | $882,498 | $399,429 | | Net cash used in financing activities | ($28,984) | ($96,613) | | **Net decrease in cash** | **($1,157,034)** | **($95,943)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail a customer settlement, asset sale gain, new credit agreement, and going concern doubt - The company reached a settlement with a customer for **$1,100,000**, payable in installments over five years, to resolve a product conformity issue[32](index=32&type=chunk)[33](index=33&type=chunk) - On February 25, 2025, the company sold its Albia manufacturing facility's assets and real estate for net cash proceeds of approximately **$678,000**, recording a gain of **$339,520**[57](index=57&type=chunk) - The company entered into a new one-year, **$3 million** operating credit agreement in March 2025, with no borrowings outstanding as of March 31, 2025[58](index=58&type=chunk) - Due to recurring operating losses, negative cash flows, and reduced liquidity, management concluded there is substantial doubt about the Company's ability to continue as a going concern[60](index=60&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2025 net income to improved margins and asset sale, addressing going concern and mitigation - Sales decreased **7.7%** year-over-year, with the Fastener segment down **8.4%** and Assembly Equipment sales down **3.8%**[66](index=66&type=chunk) - Gross margins significantly improved in both the fastener segment (by **$612,530**) and the assembly equipment segment (by **$300,649**) due to revised pricing, cost reductions, and operational efficiencies[66](index=66&type=chunk)[67](index=67&type=chunk) - The company acknowledges substantial doubt about its ability to continue as a going concern due to recurring losses and declining liquidity, with mitigation plans including boosting sales and utilizing a new **$3 million** credit line[73](index=73&type=chunk)[63](index=63&type=chunk) - The 2025 outlook remains challenging, with the company focusing on efficiency improvements, price adjustments, and aggressive sales efforts to navigate market uncertainty[78](index=78&type=chunk) [Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were ineffective due to a persistent material weakness in inventory valuation; remediation is ongoing - The CEO and CFO concluded that disclosure controls and procedures were not effective as of the end of the reporting period[80](index=80&type=chunk) - A material weakness in internal control over financial reporting related to inventory valuation persists, identified as of December 31, 2023 and 2024[82](index=82&type=chunk) - Remediation plans are underway, focusing on timely review of accounting standards for inventory valuation and subsequent review and reconciliation of variance accounts[83](index=83&type=chunk) PART II. OTHER INFORMATION This section lists 10-Q exhibits, including required certifications and XBRL data files [Exhibits](index=21&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including required certifications and XBRL data files - The report includes certifications from the CEO and CFO pursuant to Sarbanes-Oxley Act Sections 302 and 906[87](index=87&type=chunk) - Interactive Data Files (Inline XBRL) are included as exhibits[87](index=87&type=chunk)

Group 1 - Chicago Rivet & Machine Co. announced the appointment of James T. Tanner as Senior Vice President of Sales and Marketing, effective immediately [1] - Mr. Tanner has over 30 years of sales and leadership experience in the manufacturing industry, with a strong background in revenue generation and corporate branding [2] - CEO Gregory Rizzo expressed confidence in Mr. Tanner's ability to enhance sales efforts and develop new customer relationships [3] Group 2 - Mr. Tanner has held executive positions at notable companies such as Bosch and MacLean-Fogg, and has more than a decade of experience in the fastener industry [2] - There are no family relationships or related party transactions between Mr. Tanner and the Company that require disclosure [3]