Eastern (EML) risk factors, FY2025 10-K

Risks Related to Competition and Global Operations

1. 01The Company’s business is subject to risks associated with conducting business overseas
2. 02Tariffs, trade sanctions and political instability may impact the availability or cost of raw materials, which could adversely affect our margins, ability to meet customer demand, business, results of operations and financial condition46% rewritten
3. 03Supply chain disruptions, delays in production, and forecast inaccuracies have affected and could continue to affect our ability to meet customer demand, lead to higher costs, result in excess inventory, and could have an adverse effect on our results of operations and financial condition
4. 04The Company faces active global competition and if it does not compete effectively, its business may suffer
5. 05Changes in competition in the markets that the Company services could impact revenues and earnings

Risks Related to Acquisitions, Dispositions, and Organic Growth

1. 06The inability to develop new or updated products could limit growth
2. 07The inability to identify or complete acquisitions could limit growth
3. 08We may be unable to successfully execute acquisitions or dispositions or effectively integrate businesses we may acquire in the future

Risks Related to Technology and Information Security

1. 09Our technology is important to the Company’s success and the failure to protect this technology could put the Company at a competitive disadvantage
2. 10The Company relies on information and technology for many of its business operations, which could fail and cause disruption to the Company’s business operations
3. 11A breach in the security of the Company’s software or information technology systems could harm its reputation, result in a loss of current and potential customers, and subject the Company to material claims, which could materially harm our operating results and financial condition
4. 12Litigation, Compliance and Regulatory Risks
5. 13Environmental compliance costs and liabilities could increase the Company’s expenses and adversely affect the Company’s financial condition
6. 14Natural disasters, changes in climate, geo-political events, and public health crises, including pandemics and epidemics, and any related Company or government policies or actions may negatively impact our business
7. 15The Company is from time to time subject to litigation, which could have a material impact on the Company’s business, financial condition, or results of operations21% rewritten
8. 16The Company is subject to income tax laws of the United States, its states, and municipalities and those of other foreign jurisdictions in which the Company has business operations. These laws are complex, evolving, and subject to interpretation by the taxpayer and the relevant governmental taxing authorities46% rewritten
9. 17New or existing U.S. or foreign laws and regulations could subject the Company to claims or otherwise impact the Company’s business, financial condition, or results of operations

Risks Related to Our Indebtedness

1. 18Indebtedness may affect our business and may restrict our operating flexibility
2. 19Increase the Company’s vulnerability to general adverse economic and industry conditions22% rewritten
3. 20Make certain changes to the Company’s business

Risks Related to Global Economic Conditions

1. 21Global economic conditions have in the past had and may in the future have a material adverse effect on the Company’s financial condition and operating results26% rewritten
2. 22Economic conditions or changes in asset returns interest rates could increase our pension plan funding obligations and reduce our profitability
3. 23The Company’s goodwill or indefinite-lived intangible assets may become impaired, which has in the past required and could in the future require a significant charge to earnings be recognized23% rewritten
4. 24The Company may not be able to reach acceptable terms for contracts negotiated with its labor unions and be subject to work stoppages or disruption of production42% rewritten
5. 25The Company may need additional capital in the future, which may not be available on acceptable terms, if at all
6. 26The Company’s stock price may become highly volatile, and investors may not be able to sell their shares at their desired prices, or at all
7. 27The Company depends on key management and technical personnel. The loss of one or more key employees could materially and adversely affect our business, financial position, cash flows and results of operations
8. 28Deterioration in the creditworthiness of several major customers could have a material impact on the Company’s business, financial condition, or results of operations49% rewritten
9. 29The Company’s operating results may fluctuate, which makes the results of operations difficult to predict and could cause the results to fall short of expectations