Curtiss Wright (CW) risk factors, FY2025 10-K

RISKS RELATED TO OUR OPERATIONS

1. 01Intrusion on our systems could damage our business
2. 02Potential product liability risks exist from the products that we sell
3. 03We are subject to liability under warranty obligations
4. 04Our earnings and margins depend in part on subcontractor performance, as well as raw material and component availability and pricing
5. 05Our business involves risks associated with complex manufacturing processes

RISKS RELATED TO OUR STRATEGY

1. 06Implementing our acquisition strategy involves risks, and our failure to successfully implement this strategy could have a material adverse effect on our business
2. 07Our future success will depend, in part, on our ability to develop new technologies32% rewritten
3. 08We operate in highly competitive markets
4. 09We may be unable to protect the value of our intellectual property

RISKS RELATED TO MARKET CONDITIONS

1. 10A substantial portion of our revenues and earnings depends upon the continued willingness of the U.S. Government and other customers in the defense industry to buy our products and services67% rewritten
2. 11in the allocation of defense spending, or the expiration or termination of certain aerospace and defense programs on which we have content could result in a reduction in our revenues and earnings and could have a material adverse effect on our business, financial condition, and results of operationsNew
3. 12A downturn in the commercial aircraft market could adversely affect our business
4. 13Our backlog is subject to reduction and cancellation, which could negatively impact our revenues and results of operations35% rewritten
5. 14As a U.S. Government contractor, we are subject to numerous procurement rules and regulations
6. 15Any significant disruption in the commercial nuclear power industry, including delays in the development of small modular reactors, could adversely affect our results of operations or future outlookNew
7. 16Our nuclear business subjects us to various regulatory and financial risks82% rewritten
8. 17on their assessment of the severity of the noncompliance. In addition, new or revised security and safety requirements promulgated by these agencies could necessitate substantial capital and other expendituresNew
9. 18The airline industry is heavily regulated, and if we fail to comply with applicable requirements, our results of operations could suffer
10. 19We are subject to liability under environmental and health and safety laws and regulations
11. 20We may be subject to periodic litigation and regulatory proceedings, which may adversely affect our business and financial performance48% rewritten
12. 21Our business, financial condition, and results of operations could be materially adversely affected by climate change regulations
13. 22Increasing focus on environmental, social, and governance responsibility may impose additional costs on us and expose us to new risks

RISKS RELATED TO FINANCIAL MATTERS

1. 23Political and economic changes in foreign countries and markets, including foreign currency fluctuations, may have a material effect on our operating results
2. 24Unanticipated changes in our tax provisions or exposure to additional income tax liabilities could affect our cash flows and financial condition49% rewritten
3. 25We use estimates when accounting for contracts that apply over-time revenue recognition. Changes in estimates could affect our profitability and overall financial position
4. 26Our future financial results could be adversely impacted by asset impairment charges
5. 27Our current debt, and debt we may incur in the future, could adversely affect our business and financial position
6. 28We self-insure health benefits and may be adversely impacted by unfavorable claims experience
7. 29Increasing costs of certain employee and retiree benefits could adversely affect our financial position, results of operations, or cash flows

GENERAL RISKS

1. 30Our future growth and continued success are dependent upon our key personnel
2. 31Our business, financial condition, and results of operations could be materially adversely affected if the United States were to withdraw from or materially modify certain international trade agreements, or if tariffs or other restrictions on the foreign-sourced goods that we sell were to increase22% rewritten
3. 32Global economic conditions may adversely affect our business, operating results and financial condition72% rewritten
4. 33A percentage of our workforce is employed under collective bargaining agreements
5. 34Future terror attacks, war (including the Russia-Ukraine war), natural disasters, climate change-related events, or other events beyond our control could adversely impact our businesses
6. 35Pandemics, epidemics or other public health emergencies, such as the outbreak of COVID-19 may adversely impact our business, operations, and financial results