Abstract: A recess is formed in a screw head by a cold forming technique employing a two piece punch which includes an outer member having an axial bore formed therethrough which receives and carries an inner, concentric punch pin for movement within the bore. The pin is mounted within the bore to have freedom of movement within certain limits. The forward end of the outer member has a surface or cavity shaped therein which corresponds to the general shape of the screw head to be formed and is large enough to accommodate the screw head when fully formed. The forward end of the punch pin has a nib formed thereon which is shaped to form the desired screw recess when impacted into the screw head. The pin is impacted into the screw head metal by driving it forwardly from its rear exposed end.