Risk factors

Transaction integration has exposed material weaknesses in financial reporting controls, including legacy Berry U.S. IT systems and deferred tax asset evaluation.

ESG discussion now notes the SEC has stopped some rulemaking and that proxy advisers and institutional investors may weigh ESG factors.

State DOT projects rose to 43.4% of revenue, while no individual DOT exceeded 10%.

Federal policy uncertainty is newly identified as a risk to results, cash flows and financial condition.

Certificates of deposit rose to 81.1% of deposits from 78.7%, increasing funding costs and potential replacement-funding needs.

New product development and customer acceptance are now identified as risks, alongside competitors making better-performing or lower-cost products.

The Strategic Transformation shifts the risk focus toward land development, leasing and diversified land use, while citrus still represented 92.0% of 2025 operating revenues.

Government incentives now explicitly underpin alternative-bus production and sales assumptions, making policy changes a risk to orders and gross profit.

Overcapacity exported from China and India and tire production shifting away from the Americas and Western Europe may weaken demand and pricing.

Management reported ineffective internal controls as of September 30, 2025, creating restatement and reporting risks.

Management says internal controls were ineffective at September 30, 2025, with risks of misstatements and restatements if weaknesses persist.

New risks highlight difficulty forecasting as Symbotic grows, competition from large retailers and in-house solutions, and reliance on single-source suppliers.