Flowserve (FLS) risk factors, FY2025 10-K

Business and Operating Risks

1. 01Our inability to deliver our backlog on time could affect our revenues, future sales and profitability and our relationships with customers
2. 02Failure to successfully execute and realize the expected financial benefits from any restructuring and strategic realignment and other cost-saving initiatives could adversely affect our business
3. 03We sell our products in highly competitive markets, which results in pressure on our profit margins and limits our ability to maintain or increase the market share of our products
4. 04Failure to successfully develop and introduce new products and integrate new technologies, including artificial intelligence and machine learning, could limit our ability to grow and maintain our competitive position and adversely affect our financial condition, results of operations and cash flow
5. 05Our inability to obtain raw materials at favorable prices may adversely affect our operating margins and results of operations28% rewritten
6. 06we are unable to pass increases in the costs of our raw materials on to our customers or if other methods to offset our increased costs through supply chain management, contractual provisions, and gains in operational efficiencies are not achieved
7. 07Terrorist acts, conflicts, wars, natural or manmade disasters, epidemics or pandemics, acts of God and other such events around the world at times materially adversely affect our business, financial condition and results of operations and the market for our common stock
8. 08Global sustainability issues and our commitments to reduce our carbon emissions presents challenges to our business which could materially adversely affect us30% rewritten
9. 09Our business may be adversely impacted by work stoppages and other labor matters
10. 10Our growth strategy depends on our ability to continue to expand our market presence through acquisitions, and any future acquisitions may present unforeseen integration difficulties or costs which could materially affect our business
11. 11A significant data breach or disruption to our information technology infrastructure could materially adversely affect our business operations

Risks Related to International Operations

1. 12Economic, political and other risks associated with our international operations could adversely affect our business
2. 13Implementation of new tariffs and changes to or uncertainties related to tariffs and trade agreements could adversely affect our business62% rewritten
3. 14Our international operations expose us to fluctuations in foreign currency exchange rates which could adversely affect our business
4. 15We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery laws and regulations

Regulatory and Legal Risks

1. 16Our operations are subject to a variety of complex and continually changing laws, regulations and policies, both internationally and domestically, which could adversely affect our business
2. 17Our operations and properties are subject to regulation under environmental laws, which can impose substantial sanctions for violations. We must conform our operations to applicable regulatory requirements and adapt to changes in such requirements in all countries in which we operate
3. 18We are exposed to certain regulatory and financial risks related to sustainability issues, which could adversely affect our financial condition, results of operations and cash flows68% rewritten
4. 19initiatives, such as the agreement resulting from the 2023 United Nations Climate Change Conference, or those under consideration may affect our operationsNew
5. 20Inability to protect our intellectual property could negatively affect our competitive position
6. 21Increased costs as a result of product liability and warranty claims could adversely affect our financial condition, results of operations and cash flows

Financial and Accounting Risks

1. 22Significant changes in pension fund investment performance or assumptions changes may have a material effect on the valuation of our obligations under our defined benefit pension plans, the funded status of these plans and our pension expense
2. 23The recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could adversely affect our operating results
3. 24Our outstanding indebtedness and the restrictive covenants in the agreements governing our indebtedness limit our operating and financial flexibility
4. 25Goodwill impairment could negatively impact our net income and shareholders' equity
5. 26The failure to maintain effective internal controls could impact the accuracy and timely reporting of our business and financial results

General Risks

1. 27We depend on key personnel, the loss of whom would harm our business25% rewritten
2. 28Changes in accounting principles and guidance could result in unfavorable accounting charges or effects
3. 29Forward-Looking Information is Subject to Risk and Uncertainty