What the changes say
- Customer and supplier consolidation may pressure prices, margins, contract terms, and sales volatility.
- Reduced customer activity now explicitly creates inventory, forecasting, and pricing pressures.
- Access to financing and borrowing costs remain highlighted, while supplier incentives and ordinary-course litigation risks were removed.
- Pandemic risk remains, but insurance limitations are now emphasized instead of prior legal-proceeding language.
What changed since the prior 10-K
New
- New
impairments to our ability to meet customer demand could result in lost sales, increased costs, reduced profitability, and damage to our reputation
Customer and supplier consolidation could weaken AIT’s negotiating leverage, pressure prices and margins, and shift or destabilize sales.
- NewFINANCIAL AND REPORTING RISKS
result in an event of default. Any of the foregoing events or circumstances relating to our indebtedness may adversely affect our business, financial position, or results of operations and may cause our stock price to decline
Events affecting AIT’s indebtedness could trigger a default and harm its business, financial results, financial position, or stock price.
Dropped
- DroppedSTRATEGIC AND OPERATIONAL RISKS
geographic or product line breadth of distributor authorizations; the number of distributor authorizations; supplier purchasing incentive or other support programs; product purchase or stocking expectations; or the extent to which the suppliers seek to serve end users directly
- DroppedFINANCIAL AND REPORTING RISKS
the normal course of business operations. Changes in the legal and regulatory environment in which we operate, including any governing body's responses to any legal or regulatory changes enacted by the United States, could adversely and materially affect our operating results
Reworded
- 44% rewritten
ECONOMIC AND INDUSTRY RISKS
The risk now specifically names pricing pressure, inventory-management difficulty, and forecasting challenges if customers reduce operating levels.
- 35% rewrittenFINANCIAL AND REPORTING RISKS
In addition, changes to the credit markets could result in credit markets tightening or create an instance where obtaining additional or replacement financing could be more difficult and the cost of issuing new debt or replacing a credit facility could increase
The text now highlights tighter credit markets, harder replacement financing, and higher debt or credit-facility costs instead of the prior internal-control discussion.
- 24% rewrittenFINANCIAL AND REPORTING RISKS
We maintain insurance policies that provide limited coverage for some, but not all, of the potential risks and liabilities associated with our business. The policies are subject to limits, deductibles, and exclusions that result in our retention of a level of risk on a self-insured basis
The risk now emphasizes limited insurance coverage, deductibles, exclusions, and self-insured exposure, while retaining pandemic-related disruption risk.
All 6 risk factors
Headings as the filing states them, in filing order.
Other
- 01ECONOMIC AND INDUSTRY RISKS44% rewritten
- 02impairments to our ability to meet customer demand could result in lost sales, increased costs, reduced profitability, and damage to our reputationNew
- 03Similarly, continued consolidation among suppliers could reduce our ability to negotiate favorable pricing and other commercial terms for our inventory purchases, and we may be unable to take advantage of consolidation trends
FINANCIAL AND REPORTING RISKS
- 04result in an event of default. Any of the foregoing events or circumstances relating to our indebtedness may adversely affect our business, financial position, or results of operations and may cause our stock price to declineNew
- 05In addition, changes to the credit markets could result in credit markets tightening or create an instance where obtaining additional or replacement financing could be more difficult and the cost of issuing new debt or replacing a credit facility could increase35% rewritten
- 06We maintain insurance policies that provide limited coverage for some, but not all, of the potential risks and liabilities associated with our business. The policies are subject to limits, deductibles, and exclusions that result in our retention of a level of risk on a self-insured basis24% rewritten
Other Applied Industrial Technologies 10-Ks
- FY2025 10-K risk factors6 risks
Customer demand and economic conditions heavily drive business operating levels and product sales. Supplier consolidation and competition threaten pricing terms and market share. Purchasing incentives from suppliers impact profitability based on inventory volume.
Filed Aug 15, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.