Federal Signal (FSS) risk factors, FY2025 10-K

Macroeconomic and Industry Risks

1. 01Our financial results are subject to U.S. economic uncertainty and compliance with laws and regulations36% rewritten
2. 02We have international operations that are subject to compliance with domestic and foreign laws and regulations and can be impacted by economic and political uncertainties and conflicts and foreign currency rate fluctuations23% rewritten
3. 03Inflation in the U.S. and elsewhere could adversely affect our business
4. 04The execution of our growth strategy is dependent upon the continued availability of credit and third-party financing arrangements for our customers
5. 05We operate in highly competitive markets

Strategic and Operational Risks

1. 06The inability to obtain raw materials, component parts, and/or finished goods in a timely and cost-effective manner could adversely affect our ability to manufacture and market our products
2. 07Failure to keep pace with technological developments may adversely affect our operations
3. 08Our efforts to develop new products and services or enhance existing products and services involve substantial research, development, and marketing expenses, and the resulting new or enhanced products or services may not generate sufficient revenues to justify the expense
4. 09Disruptions within our dealer network or the inability of our dealers to secure adequate access to capital could adversely affect our business
5. 10We may be unsuccessful in our future acquisitions, if any, which may have an adverse effect on our business
6. 11Businesses acquired by us may have liabilities that are not known to us
7. 12We could incur restructuring and impairment charges as we continue to evaluate opportunities to restructure our business and rationalize our manufacturing operations in an effort to optimize our cost structure
8. 13We are subject to a number of restrictive debt covenants

Human Capital and Labor Risks

1. 14Our ability to operate effectively could be impaired if we fail to attract and retain key personnel
2. 15Our business may be adversely impacted by work stoppages and other labor relations matters
3. 16Our pension funding requirements and expenses are affected by certain factors outside of our control, including the performance of plan assets, the discount rate used to value liabilities, actuarial assumptions and experience, and legal and regulatory changes
4. 17Increased IT security threats, including more sophisticated cybersecurity attacks, pose a risk to our systems, networks, products, and operations, and related changes in laws, regulations, policies, and contractual obligations could adversely affect our business
5. 18Infringement of, or an inability to protect, our intellectual property rights could adversely affect our business

Legal and Financial Risks

1. 19We may incur material losses and costs as a result of lawsuits or claims that may be brought against us that are related to product liability, warranty, product recalls, intellectual property, client service interruptions, or other matters
2. 20The costs associated with complying with environmental, safety, and other regulations could lower our margins
3. 21An impairment in the carrying value of goodwill, intangible assets, or long-lived assets could negatively affect our financial position and results of operations