Carrier GLOBAL (CARR) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01Risks associated with our international operations could adversely affect our competitive position, results of operations, cash flows or financial condition
2. 02We are party to joint ventures and other strategic relationships, which may not be successful and may expose us to unique risks and restrictions
3. 03In addition, our ability to apply our internal controls and governance and compliance policies to our minority-held joint ventures is limited and can expose us to additional financial and reputational risks. We seek to take proactive steps to mitigate these concerns, including through audits and similar reviews
4. 04Risks associated with climate events, government regulations and incentives associated with climate events and mitigation efforts could adversely affect our business
5. 05Demand for our HVAC products and services is influenced by weather conditions and seasonality
6. 06Our business and financial performance depend on continued and substantial investments in our information and operational technology infrastructure, which may not yield anticipated benefits and which may be vulnerable to cyber-attacks
7. 07Cybersecurity incidents could disrupt business operations, result in the loss of critical and confidential information, and adversely impact our reputation and results of operations
8. 08We engage in acquisitions and divestitures and may encounter difficulties integrating acquired businesses with, or disposing of businesses from, our current operations; therefore, we may not realize the anticipated benefits of these acquisitions and divestitures
9. 09We incurred debt obligations, and we may incur additional debt in the future, which could adversely affect our business and profitability and our ability to meet other obligations
10. 10We depend on our intellectual property and have access to certain intellectual property and information of our customers and suppliers. Infringement of or the failure to protect that intellectual property could adversely affect our future growth and success
11. 11We design, manufacture and service products that incorporate advanced technologies. The introduction of new products and technologies involves risks, and we may not realize the degree or timing of benefits initially anticipated
12. 12We operate in a competitive environment and our profitability and competitive position depend on our ability to accurately estimate the costs and timing of providing our products and services
13. 13Customers and others may take disruptive actions
14. 14Labor matters may impact our business
15. 15Our defined benefit pension plans are subject to financial market risks that could adversely affect our results
16. 16We may not realize expected benefits from our cost reduction and restructuring efforts, and our profitability or our business otherwise might be adversely affected
17. 17Failure to achieve and maintain a high level of product and service quality could damage our reputation with customers and negatively impact our results
18. 18We are subject to litigation, environmental and other legal and compliance risks
19. 19We are subject to risks arising from doing business with the U.S. government
20. 20We may recognize impairment charges for our goodwill and intangible assets35% rewritten
21. 21Failure to maintain a satisfactory credit rating could adversely affect our liquidity, capital position, borrowing costs and access to the capital markets

Risks Related to the Separation from UTC

1. 22After the Separation and the Distribution, certain members of management, directors and shareowners own stock in UTC, Carrier and Otis, and as a result may face actual or potential conflicts of interest
2. 23In certain circumstances, we could be required to indemnify UTC for material taxes and other related amounts pursuant to indemnification obligations under the TMA
3. 24Potential liabilities may arise due to fraudulent transfer considerations, which would adversely affect our financial condition and results of operations

Risks Related to Our Common Stock

1. 25The trading price of our common stock has been and may continue to be volatile and the trading volume in our common stock may fluctuate
2. 26Shareowner's percentage of ownership in our common stock may be diluted in the future
3. 27Quarterly cash dividends may be discontinued or modified, are subject to a number of uncertainties and may affect the price of our common stock
4. 28Our amended and restated bylaws designate the courts within the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our shareowners, which could discourage lawsuits against Carrier and our directors and officers
5. 29Anti-takeover provisions could enable our Board of Directors to resist a takeover attempt by a third party and limit the power of our shareowners

General Risks

1. 30Natural disasters, epidemics or other unexpected events may disrupt our operations, adversely affect our results of operations, cash flows or financial condition and may not be fully covered by insurance
2. 31Our business success depends on attracting and retaining key personnel and other talent throughout the Company
3. 32Additional tax expense or additional tax exposures could affect our future profitability
4. 33Failure to maintain effective internal controls over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act could materially and adversely affect us