ABM Industries (ABM) risk factors, FY2025 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 business60% rewritten
4. 04Our ability to preserve long-term client relationships is essential to our continued success
5. 05Our use of subcontractors or joint venture partners to perform work under customer contracts exposes us to liability and financial risk
6. 06Our 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. 07Decreases 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. 08We 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. 09Our 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, including the WGNSTAR Acquisition, Divestitures, or Strategic Transactions

1. 10Acquisitions, divestitures, and other strategic transactions could fail to achieve financial or strategic objectives, disrupt our ongoing business, and adversely impact our results of operations
2. 11We may not realize the growth opportunities and synergies that are anticipated from the WGNSTAR AcquisitionNew

Risks Relating to Insurance and Safety Matters

1. 12coverage that is appropriate to our assessment of risk, we are unable to predict with certainty the frequency, nature, or magnitude of claims for direct or consequential damages. If our insurance coverage proves to be inadequate or unavailable, our business may be negatively impactedNew
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 operations55% rewritten
2. 18Impairment of goodwill and long-lived assets could have a material adverse effect on our financial condition and results of operations
3. 19Our business may be negatively impacted by adverse weather conditions
4. 20Catastrophic events, disasters, pandemics, and terrorist attacks could disrupt our services
5. 21Actions of activist investors could disrupt our business