Acuity Inc. (de) (AYI) risk factors, FY2026 10-K

Risks Related to Our Strategy

1. 01Our results may be adversely affected by market and competitive pricing27% rewritten
2. 02Innovations of new products and services may not yield desired returns, which may also expose our assets, particularly inventory, to potential write-downs
3. 03We may not be able to identify, finance, and complete suitable acquisitions, alliances, or investments, and acquisitions, alliances, or investments that we pursue may not yield anticipated benefits24% rewritten
4. 04We may experience difficulties in streamlining, productivity, and/or cost reduction initiatives related to our operations, which could impact shipments to customers, product quality, and the realization of expected savings from these actions
5. 05General business, political, and economic conditions, including the strength of the construction and renovation market, political events, or other factors may affect demand for our products and services65% rewritten

Risks Related to Our Operations

1. 06Our business and results have been and may be adversely affected by fluctuations in the cost or availability of raw materials, components, purchased finished goods, or services29% rewritten
2. 07Technological developments and increased competition could affect our operating profit margins and sales volume
3. 08We may be unable to sustain significant customer and/or channel partner relationships
4. 09We could be adversely affected by external disruptions, including geopolitical and/or other conditions, to our operations
5. 10Company operating systems, information systems, or devices have experienced, and may experience in the future, a failure or a compromise of security, which could adversely impact our operations as well as the effectiveness of internal controls over operations and financial reporting
6. 11Changes in data privacy laws and our ability to comply with them could adversely impact our operations
7. 12Changes in our relationships with employees, changes in U.S. or international employment regulations, an inability to attract and retain talented employees, or a loss of key employees could adversely impact the effectiveness of our operations
8. 13There are inherent risks in our solutions and services businesses
9. 14We may be subject to risk in connection with third-party relationships necessary to operate our business
10. 15We are subject to risks related to operations and suppliers outside the United States33% rewritten
11. 16We are subject to exchange rate fluctuations, which could adversely impact our business
12. 17Our business could be negatively impacted by social impact and sustainability matters48% rewritten

Risks Related to Legal and Regulatory Matters

1. 18Failure to comply with the broad range of standards, laws, and regulations in the jurisdictions in which we operate may result in exposure to substantial disruptions, costs, and liabilities
2. 19We may develop unexpected legal contingencies or matters that exceed insurance coverage
3. 20If our products are improperly designed, manufactured, packaged, or labeled, or are otherwise alleged to cause harm or injury, we may need to recall those items, may have increased warranty costs, and could be the target of product liability claims
4. 21We may not be able to adequately protect our intellectual property rights and could be the target of intellectual property claims
5. 22Tax liabilities due in the jurisdictions in which we operate may exceed anticipated amounts

Risks Related to Financial Matters

1. 23The market price and trading volume of our shares may be volatile
2. 24Risks related to our defined benefit retirement plans may adversely impact results of operations and cash flows
3. 25Our business and operations are subject to interest rate risks, and changes in interest rates can reduce demand for our products and increase borrowing costs