Garrett Motion (GTX) risk factors, FY2025 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 suffer72% rewritten
2. 02overestimate turbocharger penetration in ICE, hybrid, REEV, or fuel-cell-based vehicles, our results of operations and financial condition could be materially adversely affectedNew
3. 03We operate in highly competitive industries34% rewritten
4. 04We 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
5. 05Industry and economic conditions, including any economic downturns, could adversely affect our business and results of operations69% rewritten
6. 06Our aftermarket business is subject to unique risks39% rewritten
7. 07We may not be able to successfully negotiate favorable pricing and other terms with our customers, which may adversely affect our results of operations26% rewritten
8. 08We 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
9. 09We are subject to risks associated with climate change and increased scrutiny from customers, investors, regulators and others regarding our sustainability practices
10. 10The success of our business depends on the recruitment, development and retention of qualified personnel

Risks Related to our Operations

1. 11Our profitability and results of operations may be adversely affected by program launch difficulties
2. 12Volatility in the cost and availability of raw materials, components, energy, transportation and other inputs has increased, and may continue to increase, our costs33% rewritten
3. 13Shortages 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 customers25% rewritten
4. 14We may not realize sales represented by awarded business or effectively utilize our manufacturing capacity
5. 15We are subject to the economic, political, regulatory, foreign exchange and other risks of our international operations28% rewritten
6. 16Geopolitical conditions, catastrophic events and pandemics may disrupt our business and adversely affect our results of operations and financial condition
7. 17We face risks in connection with joint venture partnerships, joint development projects and other strategic opportunities
8. 18Failure to protect our intellectual property, or allegations that we have infringed on the intellectual property of others, could adversely affect us54% rewritten
9. 19through open source-code, joint ownership of intellectual property, free license, or other measures. These constraints could cause us difficulty in securing business awards from our customers, protecting our competitive technology differentiation, and/or our ability to achieve targeted product profitabilityNew
10. 20Work stoppages, other disruptions, or the need to relocate any of our facilities could significantly disrupt our business
11. 21Failure to achieve productivity and efficiency improvements or successfully execute repositioning projects may reduce our profitability or adversely impact our business
12. 22We 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
13. 23We cannot predict with certainty the outcome of litigation matters, government proceedings and other contingencies and uncertainties
14. 24Our operations and the prior operations of predecessor companies may expose us to the risk of environmental liabilities
15. 25System 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. 26Our substantial indebtedness and other obligations could adversely affect our financial health and our ability to execute our business strategy70% rewritten
2. 27Our debt agreements contain restrictions that limit our financial and operational flexibility
3. 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 requirements45% rewritten
4. 29Changes in interest rates and asset returns could adversely affect our earnings and/or cash flows and increase our pension funding obligations
5. 30There can be no assurance that we will pay dividends or repurchase shares of our Common Stock under our share repurchase program77% rewritten