Ennis (EBF) risk factors, FY2025 10-K

Risks related to our business and operations

1. 01Our results and financial condition are affected by global and local market conditions, competitors’ pricing strategies, and risks due to new or increased tariffs, which can adversely affect our sales, margins, and net income
2. 02Digital technologies will continue to erode the demand for our printed business documents
3. 03We obtain our raw materials from a limited number of suppliers, and any disruption in our relationships with these suppliers, or any substantial increase in the price of raw materials or material shortages could have a material adverse effect on us
4. 04Challenging financial market conditions and changes in long-term interest rates could adversely impact the funded status of our pension plan
5. 05We may be unable to identify or to complete acquisitions or to successfully integrate the businesses we acquire
6. 06Our distributor customers may be acquired by other manufacturers who redirect business within their plants
7. 07Our distributors face increased competition from various sources, such as office supply superstores. Increased competition may require us to reduce prices or to offer other incentives in order to enable our distributors to attract new customers and retain existing customers
8. 08We could experience labor disputes, labor shortages and increases in cost of labor that could disrupt our business in the future and impact operating results
9. 09We face intense competition to gain market share, which may lead some competitors to sell substantial amounts of goods at prices against which we cannot profitably compete
10. 10Environmental regulations may impact our future operating results
11. 11Changes in U.S. tariff and trade policy could adversely affect our business
12. 12We are subject to taxation related risks
13. 13We are exposed to the risk of non-payment by our customers on a significant amount of our sales
14. 14Our business incurs significant freight and transportation costs
15. 15A natural disaster, catastrophe, pandemic or other unexpected events could adversely affect our operations
16. 16We depend on the reliability of our information technology ("IT") and network infrastructure as well as those of third parties. If these systems fail, our operations may be adversely affected
17. 17Increasing global cybersecurity attacks and regulatory focus on privacy and security issues could impact our business, expose us to increased liability, subject us to lawsuits, investigations and other liabilities and restrictions on our operations that could significantly and adversely affect our business
18. 18Increases in the cost of employee benefits could impact our financial results and cash flow

Risks related to our securities

1. 19Because of the volatility in the stock market in general, the market price of our Common Stock will also likely be volatile