Greenbrier Companies (GBX) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01An economic downturn and economic uncertainty may adversely affect demand for our products and services
2. 02Shortages of skilled labor, increased labor costs, or failure to maintain good relations with our workforce could adversely affect our operations
3. 03Increases in the price of materials and components used in the production of our products could negatively impact our profit margin on the sale of our products
4. 04Disruptions in the supply of materials and components used in the production of our products could negatively impact our business and results of operations
5. 05business and adversely impact our results of operations. The loss of suppliers or their inability to meet our price, quality, quantity and delivery requirements could have an adverse effect on our ability to manufacture and sell our products on a cost-effective basis
6. 06Our business and financial results of operations could be materially and adversely impacted if we fail to adequately manage and respond to events that cause an interruption or interference in our business operations
7. 07We face risks related to cybersecurity threats and incidents that increase our costs and could disrupt our business and operations, damage our reputation, and result in material liabilities
8. 08A material disruption in the movement of rail traffic could impair our ability to deliver railcars and other products to our customers in a timely manner which could prevent us from meeting customer demand, reduce our sales, and negatively impact our results of operations
9. 09Equipment failures, technological failures, costs and inefficiencies associated with changing of production lines, or transfer of production between facilities, could lead to production, delivery, or service curtailments or shutdowns, loss of revenue or higher expenses
10. 10An inability to successfully manage, maintain, update, and secure our information systems, and utilize these systems to produce, disseminate, and store relevant and reliable data and information pertaining to our business, could adversely affect our business and competitive position in the market
11. 11business. We have taken steps to maintain adequate data security by implementing security technologies, internal controls, and network and data center resiliency and recovery processes
12. 12Our backlog is not necessarily indicative of the level of our future revenues
13. 13We operate in highly competitive industries. We may not be able to sustain our market leadership positions, which may impact our financial results
14. 14We rely on limited suppliers for certain components and services needed in our production. If we are not able to procure specialty components or services on commercially reasonable terms or on a timely basis, our business, financial condition and results of operations would be adversely affected
15. 15The timing of our asset sales and related revenue recognition could cause significant differences in our quarterly results and liquidity
16. 16We depend on our senior management team and other key employees, and significant attrition within our management team or unsuccessful succession planning for members of our senior management team and other key employees, could adversely affect our business
17. 17We derive a significant amount of our revenue from a limited number of customers, the loss of or reduction of business from one or more of which could have an adverse effect on our business
18. 18Our business may be negatively impacted as a result of war in Ukraine, as well as civil unrest and armed conflict in other geographies
19. 19Our debt could have negative consequences to our business or results of operations
20. 20A failure to design or manufacture products or technologies or to achieve timely certification or market acceptance of new products or technologies could have an adverse effect on our profitability
21. 21Our product and service warranties could expose us to significant claims
22. 22Insurance coverage could be costly, unavailable or inadequate
23. 23If we are unable to protect our intellectual property or if third parties assert that our products or services infringe their intellectual property rights, our ability to compete in the market may be harmed, and our business and financial condition may be adversely affected
24. 24Our financial performance and market value could cause write-downs of goodwill or intangibles or other long-lived assets in future periods
25. 25Our business will suffer if we are unsuccessful in making, integrating, and maintaining acquisitions, joint ventures and other strategic investments

Risks Related to Market and Economic Factors

1. 26Inflation as well as monetary and other policy interventions by governments and central banks in response to inflation, including the increase of interest rates, as well as uncertainly about governmental macroeconomic policies, could negatively impact our business and results of operations
2. 27The types of rail equipment we sell and the services we provide significantly impact our revenue and our margin and are dependent on broad economic trends over which we have little or no control
3. 28Cyclical economic downturns in our industry usually result in decreased demand for our products and services and reduced revenue
4. 29Demand for our railcar equipment and services is dependent on the future of rail transportation and the manner in which railroads operate

Risks related to our operations outside of the U.S. could adversely affect our operating results

1. 30Fluctuations in foreign currency exchange rates could lead to increased costs and lower profitability
2. 31The deterioration of conditions in the global capital markets, weakening of macroeconomic conditions and changes in the credit markets and the financial services industry could negatively impact our business, results of operations, financial condition or liquidity
3. 32Some of our competitors are owned or financially supported by foreign governments and may sell products below cost or otherwise compete unfairly
4. 33Fires, natural disasters, pandemics, terrorism, or severe or unusual weather conditions could disrupt our business and result in loss of revenue or higher expenses or decreased demand
5. 34we insure against certain business interruption risks, such insurance may not adequately compensate us for any losses incurred as a result of natural or other disasters

Risks Related to Legal, Compliance and Regulatory Matters

1. 35Train derailments or other accidents could subject us to legal claims that adversely impact our business, financial condition and our results of operations

Risks related to potential misconduct by employees may adversely impact us

1. 36Changes in, or failure to comply with, applicable regulations may adversely impact our business, financial condition and results of operations
2. 37customers. Changes to the process for obtaining regulatory approval in Europe for the operation of new or modified railcars may make it more difficult for us to deliver products timely and to comply with our sales contracts
3. 38We have potential exposure to environmental liabilities, which could increase our operating costs or have an adverse effect on our results of operations
4. 39Business, regulatory, and legal developments regarding climate change may increase our operating costs, and may negatively affect the demand for our products or the ability of our critical suppliers to meet our needs
5. 40Changes in accounting standards, the implementation of new accounting standards, or inaccurate estimates or assumptions in the application of accounting policies, could adversely affect our financial results
6. 41Some of our customers place orders for our products in reliance on their ability to utilize tax benefits or tax credits, any of which benefits or credits could be discontinued thereby reducing incentives for our customers to purchase our rail products

Risks Related to our Common Stock

1. 42Our stock price has been volatile and may continue to experience large fluctuations
2. 43Our business and operations could be negatively affected if we become subject to shareholder activism, which could cause us to incur significant expense, hinder execution of our business strategy and impact our stock price
3. 44Our current shareholders could experience dilution
4. 45Certain provisions in our charter documents, Oregon law, and our debt instruments could make an acquisition of our company more difficult, limit attempts by our shareholders to replace or remove members of our Board of Directors and may adversely affect the market price of our common stock
5. 46Payments of cash dividends on our common stock may be made only at the discretion of our Board of Directors and may be restricted by Oregon law
6. 47Although our share repurchase program is intended to enhance long-term shareholder value, we cannot provide assurance that this will occur, and this program may be suspended or terminated at any time
7. 48Unanticipated changes in our tax provisions or exposure to additional income tax liabilities could affect our financial condition and profitability, and we may take tax positions that the Internal Revenue Service or other tax authorities may contest
8. 49The use of social and other digital media to disseminate false, misleading and/or unreliable or inaccurate data and information could create unwarranted volatility in our stock price and losses to our shareholders and could adversely affect our reputation, products, business, and operating results