Risk factors

Voting Group ownership fell to 38.3% from 62.7%, and the company ceased being a controlled company in June 2025.

New disclosures quantify customer concentration at 38% of 2025 sales and UK-to-Eurozone sales at approximately €39 million.

Cybersecurity disclosure now cites past and potential security incidents, while dropping the warning about AI tools failing to deliver efficiencies.

Climate change regulations were removed as a standalone risk and folded into the broader environmental liabilities disclosure. Gaming regulation disclosures added a cross-reference and clarified the severe consequences of license suspension or fines.

A new risk highlights uncertain data-center growth in MGE’s service area, which could require rapid generation and infrastructure expansion or fall short of expectations.

New risks cover Russian operations, AI adoption, and consumer-preference shifts; economic exposure now specifies high rates and inflation’s effect on flooring demand.

Debt risk now reflects about $1.6 billion in term loans after repayments, plus $1.4 billion of convertible notes and €1.0 billion of 2034 notes.

New risks highlight 2025 cost increases across labor, raw materials, energy and packaging, plus growing use of AI in products and operations.

Newly disclosed risk: safeguarding customer funds through subsidiaries could create compliance, operational, reputational, and indirect funding exposure.

China Gardasil sales fell sharply; Merck paused shipments amid excess partner inventory and expects no material increase in 2026.

A new revenue covenant under the Credit Facility rises from $615 million in December 2025 to $974 million in December 2029.

New risks address capital access, federal lending-program dependence, Vista integration, crossing $10 billion in assets, and limits on shareholder payouts.