Enerpac Tool Group (EPAC) risk factors, FY2025 10-K

Risks Related to Economic Conditions

1. 01Supply chain issues, including shortages of adequate component supply or that increase our costs or cause delays in our ability to fulfill orders, or a failure by us to estimate customer demand properly, could have an adverse impact on our business and operating results and our relationships with customers
2. 02Deterioration of, or instability in, the domestic and international economy and challenging end-market conditions could impact our ability to grow the business and adversely impact our financial condition, results of operations and cash flows and our ability to execute our strategy
3. 03Disruptions in global oil markets have adversely affected our business and results of operations and similar events in the future may adversely affect our business and results
4. 04Uncertainty over global tariffs, or the financial impact of tariffs, may negatively affect our results77% rewritten

Risks Related to Our Business and Operations

1. 05Logistics challenges, including global freight capacity shortages, could increase our freight costs or cause delays in our ability to fulfill orders and could have an adverse impact on our business and operating results
2. 06We face collection risk for receivables in foreign jurisdictions30% rewritten
3. 07If we fail to retain the agents and distributors upon whom we rely to market our products and services, we may be unable to effectively market our products and services and our revenue and profitability may decline
4. 08Cybersecurity vulnerabilities, threats and more sophisticated and targeted computer crime could pose a risk to our systems, networks, operations, products, solutions, services and data69% rewritten
5. 09and operational disruptions. The development and adoption of generative artificial intelligence ("AI") technologies exacerbates these risks and may give rise to new tools for threat actors to attack and disrupt our systemsNew
6. 10We may not be able to maintain operational improvements from our ASCEND transformation program and from restructuring actions47% rewritten
7. 11A material disruption at a significant manufacturing facility could adversely affect our ability to generate sales and result in increased costs that we cannot recover
8. 12Our business operates in highly competitive markets, so we may be forced to cut prices or incur additional costs
9. 13Our international operations pose political, currency and other risks
10. 14Our customers and other business partners often require terms and conditions that expose us to significant risks and liabilities
11. 15Imposition of laws and regulations that disadvantage the oil & gas industry or other energy industries may have an adverse impact on our results of operationsNew

Risks Related to the Execution of Our Strategy

1. 16If we fail to develop new products, or customers do not accept our new products, our business could be adversely affected
2. 17Our growth strategy includes strategic acquisitions, which we may not be able to consummate
3. 18We may not be able to realize planned benefits from acquired companies
4. 19The indemnification provisions of acquisition agreements may result in unexpected liabilities
5. 20Divestitures and discontinued operations could negatively impact our business, and retained liabilities from businesses that we have sold could adversely affect our financial results
6. 21Our goodwill and other intangible assets represent a substantial amount of our total assets

Risks Related to Legal, Compliance and Regulatory Matters

1. 22We are subject to many laws and regulations that may change in ways that are detrimental to our competitiveness or results24% rewritten
2. 23Legal compliance risks could result in significant costs to our business or cause us to restrict current activities or curtail growth plans
3. 24Health, safety and environmental laws and regulations may result in additional costs
4. 25Unfavorable tax law changes may adversely affect results
5. 26Costs and liabilities arising from legal proceedings could be material and adversely impact our financial results

Risks Related to Our Capital Structure

1. 27Our indebtedness could harm our operating flexibility and competitive position
2. 28The financial and other covenants in our debt agreements may adversely affect us
3. 29We may incur increased interest expense as a result of our variable rate debt

Risks Related to Ownership of Our Common Stock

1. 30The market price of our common stock may be volatile
2. 31Because our quarterly revenues and operating results may vary significantly in future periods, our stock price may fluctuate
3. 32Various provisions and laws could delay or prevent a change of control
4. 33Geopolitical unrest and terrorist activities may cause the economic conditions in the U.S. or abroad to deteriorate, which could harm our business
5. 34Our inability to attract, develop and retain qualified employees could have a material adverse impact on our operations
6. 35Our intellectual property portfolio may not prevent competitors from developing products and services similar to or duplicative to ours, and the value of our intellectual property may be negatively impacted by external dependencies
7. 36Our competitors or other persons could assert that we have infringed their intellectual property rights