Crown Holdings (CCK) risk factors, FY2025 10-K

Risks Relating to the Company’s Business and Industry

1. 01The Company’s profits will decline if the price of raw materials or energy rises and it cannot increase the price of its products, and the Company’s financial results could be adversely affected if the Company was not able to obtain sufficient quantities of raw materials38% rewritten
2. 02The prices of certain raw materials used by the Company, such as aluminum, steel, and energy, have historically been subject to31% rewritten
3. 03The Company’s principal markets may be subject to overcapacity and intense competition, which could reduce the Company’s net sales and net income
4. 04The Company is subject to competition from substitute products and decreases in demand for its products, which could result in lower profits and reduced cash flows
5. 05The Company’s business results depend on its ability to understand its customers’ specific preferences and requirements, and to develop, manufacture and market products that meet customer demand
6. 06Loss of third-party transportation providers upon whom the Company depends or increases in fuel prices could increase the Company’s costs or cause a disruption in the Company’s operations
7. 07The Company’s business is seasonal and weather conditions could reduce the Company’s net sales
8. 08The Company has a significant amount of goodwill that, if impaired in the future, would result in lower reported net income and a reduction of its net worth20% rewritten
9. 09A significant portion of the Company’s workforce is unionized and labor disruptions could increase the Company’s costs and prevent the Company from supplying its customers
10. 10Failure by the Company’s joint venture partners to observe their obligations could adversely affect the business and operations of the joint ventures and, in turn, the business and operations of the Company
11. 11The loss of the Company’s intellectual property rights may negatively impact its ability to compete
12. 12Business interruptions at the Company’s facilities could adversely impact the Company’s operations and financial results

Risks Relating to the Company’s International Operations

1. 13The Company’s international operations, which generated approximately 61% of its consolidated net sales in 2025, are subject to various risks that may lead to decreases in its financial results, particularly in the case of the Company’s operations in emerging markets
2. 14The Company is subject to the effects of fluctuations in foreign exchange rates, which may reduce its net sales and cash flow41% rewritten

Risks Relating to the Company’s Indebtedness and Liquidity

1. 15The indebtedness of the Company could prevent it from fulfilling its obligations under its debt agreements33% rewritten
2. 16Some of the Company’s indebtedness is subject to floating interest rates, which would result in the Company’s interest expense increasing if interest rates rise38% rewritten
3. 17Restrictive covenants in the debt agreements governing the Company’s current or future indebtedness could restrict the Company’s operating flexibility
4. 18Notwithstanding the Company’s current indebtedness levels and restrictive covenants, the Company may still be able to incur substantial additional debt or make certain restricted payments, which could exacerbate the risks described above
5. 19The Company’s senior secured credit facilities provide that certain change of control events constitute an event of default. In the event of a change of control, the Company may not be able to satisfy all of its obligations under the senior secured credit facilities or other indebtedness
6. 20The Company is subject to certain restrictions that may limit its ability to make payments on its debt out of the cash reserves shown on the Company’s consolidated financial statements85% rewritten

Risks Relating to Litigation and Regulatory Matters

1. 21The Company is subject to litigation risks which could negatively impact its operations and net income
2. 22Pending and future asbestos litigation and payments to settle asbestos-related claims could reduce the Company’s cash flow and negatively impact its financial condition47% rewritten
3. 23The Company is subject to costs and liabilities related to stringent environmental and health and safety standards
4. 24Climate change and evolving laws, regulations and market trends in response to climate change could adversely affect the business and operations of the Company
5. 25The Company may experience significant negative effects to its business as a result of new federal, state or local taxes, increases to current taxes or other governmental regulations specifically targeted to decrease the consumption of certain types of beverages40% rewritten
6. 26Demand for the Company’s products could be affected by changes in laws and regulations applicable to food and beverages and changes in consumer preferences
7. 27Changes in accounting standards, taxation requirements and other law could negatively affect the Company’s financial results
8. 28The loss of a major customer and/or customer consolidation could reduce the Company’s net sales and profitability
9. 29The Company may not be able to manage its anticipated growth, and it may experience constraints or inefficiencies caused by unanticipated acceleration and deceleration of customer demand
10. 30Acquisitions, dispositions or investments that the Company is considering, has pursued or may pursue could be unsuccessful, consume significant resources and require the incurrence of additional indebtedness
11. 31If the Company fails to retain key management and personnel, the Company may be unable to implement its business plan
12. 32The Company relies on its information technology, and potential cyber-attack, data breach or other failure or disruption of its information technology could disrupt its operations and adversely affect its results of operations
13. 33The Company’s reliance on third-party cloud infrastructure and its use of artificial intelligence technologies create operational, security, and compliance risksNew
14. 34Sentiment towards climate change, sustainability and other ESG matters could adversely affect the Company’s business, financial condition or results of operations
15. 35If the Company fails to maintain an effective system of internal control, the Company may not be able to accurately report financial results or prevent fraud