GATX (GATX) risk factors, FY2024 10-K

Business, Operational and Industry Risks

1. 01We depend on continued demand from our customers to lease or use our transportation assets and services at satisfactory rates. A significant decline in customer demand could negatively impact our business and financial performance
2. 02A significant change in pricing and/or service offerings by North American railroads or poor operating conditions could reduce demand for our rail assets and negatively impact our financial performance
3. 03Competition could result in decreased profitability
4. 04A significant decrease in lease renewals of our transportation assets by our customers or a significant increase in the number of compliance-based maintenance events could negatively impact operations and substantially increase our costs
5. 05Events that negatively affect certain assets, customers, or geographic regions could have a negative impact on our results of operations
6. 06Our long-term railcar purchase commitments could subject us to material operational and financial risks
7. 07Soft market conditions and declines in asset values may reduce opportunities for us to generate remarketing income
8. 08We may not be able to successfully consummate and manage ongoing acquisition and divestiture activities, which could have an adverse impact on our financial statements
9. 09We rely on Rolls-Royce in connection with our aircraft spare engine leasing businesses, and certain factors that adversely affect Rolls-Royce could have an adverse effect on those businesses
10. 10Our transportation assets may become obsolete
11. 11We generate a significant amount of our net income outside the United States. In recent years, we have increased our focus on international growth and expansion into select emerging markets as a means to grow and diversify earnings
12. 12Many of our employees are represented by unions, and failure to successfully negotiate collective bargaining agreements may result in strikes, work stoppages, or substantially higher labor costs
13. 13We operate in a challenging market for talent, and our failure to attract, retain and motivate qualified personnel, including key management personnel, could adversely impact our ability to execute our strategy
14. 14We rely on technology in all aspects of our business operations. If we are unable to adequately maintain and secure our information technology (“IT”) infrastructure from cybersecurity threats and related disruptions, our business could be negatively impacted

Legal and Regulatory Risks

1. 15We have been, and may continue to be, involved in various types of litigation, including claims for personal injury, property damage, environmental damage, and other claims arising from an accident involving our railcars or other transportation assets
2. 16Our transportation assets and operations are subject to various laws, rules, and regulations. If these laws, rules, and regulations change or we fail to comply with them, it could have a significant negative effect on our business and profitability
3. 17We are subject to extensive environmental regulations and the costs of remediation may be material
4. 18We may be affected by climate matters or market or regulatory responses to climate matters
5. 19United States and global political conditions and increased geopolitical tension, civil unrest and armed conflict could adversely affect our business, financial condition and results of operations
6. 20Depending upon the severity, scope, and duration of these circumstances, the impact on our business, financial position, results of operations, and cash flows could be material
7. 21Prolonged inflation, as well as interest rate increases, or deflation could have an adverse impact on our business and financial results
8. 22Fluctuations in foreign exchange rates could negatively impact our results of operations
9. 23Deterioration of conditions in the global capital markets, or negative changes in our credit ratings or increased interest rates may limit our ability to obtain financing and may increase our borrowing costs

Risks Related to our Common Stock

1. 24There can be no assurance that we will continue to pay dividends or repurchase shares of our common stock at current levels
2. 25A small number of shareholders could significantly influence our business
3. 26We may not be able to obtain cost-effective insurance
4. 27Changes to assumptions used to calculate post-retirement costs, increases in funding requirements, and investment losses in pension funds could adversely affect our results of operations
5. 28Changes in the mix of earnings in the U.S. and foreign countries and in tax rates and laws could adversely affect our financial results
6. 29Our allowance for losses may be inadequate
7. 30We may incur future asset impairment charges
8. 31The fair market value of our long-lived assets may differ from the value of those assets reflected in our financial statements
9. 32Our internal control over financial accounting and reporting may not detect all errors or omissions in the financial statements
10. 33The occurrence of a widespread health crisis and measures taken in response could have an adverse impact on our operations, commercial activity, asset values, financial position or liquidity