ABM Industries (ABM) risk factors, FY2024 10-K

Risks Relating to Our Strategy and Operations

1. 01Our success depends on our ability to gain profitable business despite competitive market pressures
2. 02Our results of operations can be adversely affected by labor shortages, turnover, and labor cost increases
3. 03We may not be able to attract and retain qualified personnel and senior management we need to support our business
4. 04Investments in and changes to our businesses, operating structure, or personnel relating to our ELEVATE strategy, including the implementation of strategic transformations, enhanced business processes, and technology initiatives, may not have the desired effects on our financial condition and results of operations
5. 05Our ability to preserve long-term client relationships is essential to our continued success
6. 06Our use of subcontractors or joint venture partners to perform work under customer contracts exposes us to liability and financial risk
7. 07Our international business involves risks different from those we face in the United States that could negatively impact our results of operations and financial condition

Risks Relating to Market and Economic Conditions

1. 08Decreases in commercial office space utilization due to hybrid work models and increases in office vacancy rates could adversely affect our financial condition

Risks Relating to Information Technology and Cybersecurity

1. 09We may experience breaches of, or disruptions to, our information technology systems or those of our third-party providers or clients, or other compromises of our data that could adversely affect our business
2. 10Our ongoing implementation of new enterprise resource planning (“ERP”) and related boundary systems could adversely impact our ability to operate our business and report our financial results

Risks Relating to Acquisitions, Divestitures, or Strategic Transactions

1. 11Acquisitions, divestitures, and other strategic transactions could fail to achieve financial or strategic objectives, disrupt our ongoing business, and adversely impact our results of operations

Risks Relating to Insurance and Safety Matters

1. 12cost of claims within our retained limits. A material change in our insurance costs due to changes in the frequency of claims, the severity of the claims, the costs of excess/umbrella premiums, or regulatory changes could have a material adverse effect on our financial position, results of operations, or cash flows
2. 13Our risk management and safety programs may not have the intended effect of reducing our liability for personal injury or property loss

Risks Relating to Labor, Legal Proceedings, Tax, and Regulatory Matters

1. 14Unfavorable developments in our class and representative actions and other lawsuits alleging various claims could cause us to incur substantial liabilities
2. 15We are subject to extensive legal and regulatory requirements, which could limit our profitability by increasing the costs of legal and regulatory compliance
3. 16Our business may be materially affected by changes to fiscal and tax policies. Negative or unexpected tax consequences could adversely affect our results of operations

Risks Relating to Financial Matters

1. 17Future increases in the level of our borrowings and interest rates could affect our results of operations
2. 18an amount sufficient to enable us to service our debt, fund other liquidity needs, make planned capital expenditures, or continue our dividend
3. 19Impairment of goodwill and long-lived assets could have a material adverse effect on our financial condition and results of operations
4. 20Our business may be negatively impacted by adverse weather conditions
5. 21Catastrophic events, disasters, pandemics, and terrorist attacks could disrupt our services
6. 22Actions of activist investors could disrupt our business