Garrett Motion (GTX) risk factors, FY2024 10-K

Risks Relating to our Business and Strategy

1. 01The automotive industry is evolving and if we do not deliver new products and technologies in response to changing customer needs and preferences, our business could suffer
2. 02We operate in a highly competitive market
3. 03We rely on sales to major customers, and we could be adversely impacted by the loss of any such major customers, changes in their requirements for our products or changes in their financial condition
4. 04Industry and economic conditions, including any economic downturns, could adversely affect our business and results of operations
5. 05Our aftermarket business is subject to unique risks
6. 06We may not be able to successfully negotiate favorable pricing and other terms with our customers, which may adversely affect our results of operations
7. 07We have invested substantial resources in specific foreign markets where we expect growth, and we may be unable to timely alter our strategies should such expectations not be realized
8. 08We are subject to risks associated with climate change and increased scrutiny from customers, investors, regulators and others regarding our sustainability practices
9. 09The success of our business depends on the recruitment, development and retention of qualified personnel

Risks Related to our Operations

1. 10Our profitability and results of operations may be adversely affected by program launch difficulties
2. 11Volatility in the cost and availability of raw materials, components, energy, transportation and other inputs has increased, and may continue to increase, our costs
3. 12Shortages of components from our suppliers, or economic distress experienced by any of our suppliers, could result in the disruption of our operations and could impact our ability to meet commitments to our customers
4. 13We may not realize sales represented by awarded business or effectively utilize our manufacturing capacity
5. 14We are subject to the economic, political, regulatory, foreign exchange and other risks of our international operations
6. 15Geopolitical conditions, catastrophic events and pandemics may disrupt our business and adversely affect our results of operations and financial condition
7. 16We face risks in connection with joint venture partnerships, joint development projects and other strategic opportunities
8. 17Failure to protect our intellectual property, or allegations that we have infringed on the intellectual property of others, could adversely affect us
9. 18Work stoppages, other disruptions, or the need to relocate any of our facilities could significantly disrupt our business
10. 19Failure to achieve productivity and efficiency improvements or successfully execute repositioning projects may reduce our profitability or adversely impact our business
11. 20We may incur material losses as a result of warranty claims, product recalls or field actions, as well as product liability actions that may be brought against us or our customers
12. 21We cannot predict with certainty the outcome of litigation matters, government proceedings and other contingencies and uncertainties
13. 22Our operations and the prior operations of predecessor companies may expose us to the risk of environmental liabilities
14. 23Our emerging opportunities in technology, products and services depend in part on intellectual property and technology licensed from third parties
15. 24System or service failures, including as a result of cyber or other security incidents, could disrupt business operations, result in the loss of critical and confidential information, and adversely impact our reputation and results of operations

Risks Related to Our Capital Structure

1. 25Our substantial indebtedness and other obligations could adversely affect our financial health and our ability to execute our business strategy
2. 26result in a default on our indebtedness and could have a material adverse effect on our results of operations, financial condition and business
3. 27Our debt agreements contain restrictions that limit our flexibility in operating our business
4. 28Our ability to raise capital in the future may be limited, and any deterioration in industry, economic or financial conditions may restrict our ability to access the capital markets on favorable terms, which could make us unable to fund our capital requirements
5. 29Changes in interest rates and asset returns could adversely affect our earnings and/or cash flows and increase our pension funding obligations
6. 30Ownership positions of certain of our major stockholders may lead to conflicts of interest and could negatively impact the price of our securities
7. 31There can be no assurance that we will pay dividends or repurchase shares of our Common Stock under our share repurchase program
8. 32Common Stock will depend on our earnings, financial condition, liquidity and capital requirements, the general economic climate, the terms of our equity securities, contractual restrictions, our ability to service our debt obligations and other factors deemed relevant by the Board of Directors from time to time