Entegris (ENTG) risk factors, FY2024 10-K

Risks Related to Our Business and Industry

1. 01Our revenue is primarily dependent upon demand from the global semiconductor ecosystem and fluctuations in demand for semiconductors and the overall volume of semiconductor manufacturing may decrease demand for our products and may adversely affect our business
2. 02Global economic uncertainty may materially and adversely affect our business, financial condition and results of operations
3. 03Our revenues and operating results have fluctuated in the past and may do so in the future, which could impact our stock price
4. 04Interruptions in our supply chain, including those from our sole, single and limited source suppliers, could affect our ability to manufacture our products and meet demand, which, in turn, could have an adverse effect on our revenue and results of operations
5. 05Because a significant amount of our sales and manufacturing activity occurs outside the U.S., we are exposed to risks inherent in operating a global business
6. 06A significant portion of our sales is concentrated on a limited number of key customers, and our net sales and profitability may materially decline if we were to lose one or more of these customers
7. 07If we are unable to anticipate and respond to rapid technological change and customer requirements by continuing to innovate and introduce new and enhanced products and solutions, we may experience a loss of market share, decreased sales, revenue, profitability and damage to our reputation
8. 08Manufacturing interruptions or delays, or other disruptions to our operations, could adversely affect our business, financial condition, results of operations and reputation
9. 09We may be subject to IT system failures, network disruptions and cybersecurity and data breaches, which could damage our reputation and adversely affect our financial condition, results of operations and cash flows. New laws and regulations regarding data privacy may also increase our costs
10. 10Our operations use hazardous materials that expose us to various risks, including potential liability for personal injury and potential remediation obligations
11. 11We carry a significant amount of goodwill on our balance sheet
12. 12Loss of any of our key personnel could harm our business, and our inability to attract and retain new qualified personnel could inhibit our ability to operate and grow our business successfully
13. 13If we fail to obtain, protect and enforce intellectual property rights, our business and prospects could be harmed
14. 14Implementation of, and reporting on, our environmental, social and governance commitments could result in additional costs, and our inability to achieve these commitments could have an adverse impact on our reputation and performance

Risks Related to Government Regulation

1. 15We are subject to a variety of rapidly evolving environmental laws and regulations that could cause us to incur significant liabilities and expenses
2. 16Changes in taxation or adverse tax rulings could adversely affect our results of operations
3. 17We are exposed to risks related to government incentives and other agreements that may involve government entities, such as increases in the complexity and costs of our operations, which could adversely affect our business, financial condition and results of operations

Risks Related to Our Indebtedness

1. 18We have a substantial amount of indebtedness and may in the future incur substantially more debt, each of which could adversely affect our ability to obtain financing in the future and react to changes in our business
2. 19We may be unable to generate sufficient cash to service our indebtedness and may be forced to take other actions, which may not be successful, to satisfy our obligations under our indebtedness
3. 20The terms of the Amended Credit Agreement and the Indentures may restrict our operations, particularly our ability to respond to changes or raise additional funds
4. 21Also, the Indentures contain limited covenants, such as a covenant restricting our ability and certain of our subsidiaries’ ability to incur certain debt secured by liens, engage in sale-leaseback and incur additional indebtedness by any restricted subsidiary

Risks Related to Owning our Common Stock

1. 22The price of our common stock has been and may remain volatile
2. 23We may decrease or discontinue cash dividends and may never adopt a new program to repurchase our shares of common stock
3. 24Our certificate of incorporation, our by-laws and Delaware law contain provisions that could make it harder for a third party to acquire us without the consent of our board of directors. These provisions include limitations on actions by written consent of our stockholders

General Risks

1. 25Competition from new or existing companies could harm our financial condition, results of operations and cash flow
2. 26We may acquire other businesses, form joint ventures or divest businesses, any of which could negatively affect our financial performance
3. 27Climate change may have a long-term impact on our business, including by causing disruptions to our operations which may result in decreased revenue and cash flows