Hormel Foods (HRL) risk factors, FY2025 10-K

Hormel Foods's FY2025 10-K, filed Dec 05, 2025, lists 21 risk factors in 3 groups. Against the prior year's 20: 5 new, 4 dropped, 14 substantially reworded.

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Risk factors listed
213 groups
New this year
5vs 20 last year
Dropped
4since the prior 10-K
Substantially reworded
14of those kept
Section length
6k wordsItem 1A

What the changes say

  • Cyber risks are separated into attacks and broader IT outages, including legacy systems and third-party dependencies.
  • Climate and litigation risks now cover wider operational, regulatory, reputational, and financial consequences.
  • International goodwill of $258.9 million is at heightened impairment risk after fiscal 2025 testing.
  • Operational disruption disclosure cites the Austin facility and a fiscal 2025 Little Rock peanut-butter plant fire.

What changed since the prior 10-K

New

  • NewBusiness and Operational Risks

    The Company may be adversely impacted if the Company is affected by cybersecurity attacks or other security breaches

    Cyberattacks, ransomware, artificial intelligence-enabled threats, and defects in third-party hardware or software could compromise Hormel’s systems.

  • NewBusiness and Operational Risks

    A significant disruption to the Company's IT systems and the Company's failure to adequately maintain and update those systems could adversely affect the Company's operations

    IT outages, internet interruptions, legacy technologies, implementation errors, or third-party failures could disrupt product development, processing, and distribution.

  • NewBusiness and Operational Risks

    If the Company fails to achieve its projected results or otherwise fails to meet market expectations regarding its financial performance, the price and volatility of its stock could be adversely affected

    Missing forecasts, changing dividend plans, competitor results, or other news could disproportionately reduce Hormel’s stock price.

  • NewIndustry Risks

    The potential impacts of a changing climate could have an adverse impact on the Company’s results of operations and financial condition

    Extreme weather, drought, rising seas, climate regulation, and transition risks could raise input and energy costs, disrupt supply chains, and damage facilities.

  • NewLegal and Regulatory Risks

    Litigation and other legal proceedings may adversely affect the Company's reputation, results of operations, and financial condition

    Class actions, product liability, antitrust, tax, advertising, employment, environmental, and other legal proceedings could produce unpredictable costs and reputational harm.

Dropped

  • DroppedBusiness and Operational Risks

    The Company may be adversely impacted if the Company is affected by cybersecurity attacks, security breaches, or other IT interruptions, involving its own systems or those with whom it does business

  • DroppedBusiness and Operational Risks

    The Company may be adversely affected if it fails to timely replace legacy technologies

  • DroppedIndustry Risks

    Climate change, or legal, regulatory or market measures to address climate change, could have an adverse impact on the Company’s business and results of operations

  • DroppedLegal and Regulatory Risks

    The Company’s operations are subject to the general risks of litigation

Reworded

  • 98% rewrittenIndustry Risks

    Damage to the Company’s reputation or brand image could adversely affect its business

    Reputation risk now includes inaccurate or AI-generated content, bad actors, boycotts, workforce unrest, investigations, and litigation.

    Was: Damage to the Company’s reputation or brand image can adversely affect its business

  • 84% rewrittenBusiness and Operational Risks

    Risks and uncertainties associated with intangible assets, including any future goodwill or intangible asset impairment charges, may negatively impact the Company

    The prior Justin’s and corporate-venturing impairment examples were replaced by heightened impairment risk for the International reporting unit’s $258.9 million goodwill balance.

  • 78% rewrittenIndustry Risks

    The Company’s operations are subject to food safety and other risks inherent to the food industry

    Food-safety risk now expressly includes contamination from suppliers, co-manufacturers, and Hormel-owned facilities, in addition to customer handling.

    Was: The Company’s operations are subject to the general risks of the food industry

  • 77% rewrittenBusiness and Operational Risks

    Deterioration of labor relations, labor availability or increases in labor costs could harm the Company’s business

    Labor risk now emphasizes specialized hiring, retention, succession planning, restructuring, immigration policies, and the company’s labor-market reputation.

  • 73% rewrittenBusiness and Operational Risks

    The Company is subject to the risk of unfavorable changes in the Company’s relationships with significant customers, suppliers, distributors, and other third parties

    Walmart remained 16% of fiscal sales, while top-five customer concentration rose from 37% to 38%; supplier and distributor dependence was added.

    Was: The Company is subject to risk of the loss of a significant contract or unfavorable changes in the Company’s relationships with significant customers

  • 70% rewrittenLegal and Regulatory Risks

    Government regulation, present and future, exposes the Company to potential sanctions and compliance costs that could adversely affect the Company’s business

    The regulation discussion retains broad compliance and cost risks but changes the specific example from pork line speeds to multiple U.S. states.

  • 61% rewrittenBusiness and Operational Risks

    Deterioration of economic conditions could harm the Company’s business

    Economic risk now adds terrorist attacks, armed conflicts, public-health crises, immigration trends, and tariffs, quotas, and trade barriers.

  • 60% rewrittenBusiness and Operational Risks

    The Company is subject to the risk of disruption of operations, including at owned facilities, co-manufacturers, suppliers, logistics providers, customers, or other third-party service providers

    Disruption risk now identifies the Austin facility as significant and cites a fiscal 2025 fire at the Little Rock peanut-butter facility.

  • 45% rewrittenIndustry Risks

    Outbreaks of disease among livestock and poultry flocks could harm the Company’s revenues and operating margins

  • 42% rewrittenBusiness and Operational Risks

    The Company may not realize the anticipated cost savings or operating profit improvements associated with strategic initiatives, including its Transform and Modernize initiative

  • 41% rewrittenIndustry Risks

    Market demand for the Company’s products may fluctuate, including due to private-label products and lower-priced alternatives

  • 39% rewrittenBusiness and Operational Risks

    The Company’s operations are subject to the risks associated with acquisitions, joint ventures, equity investments, and divestitures

    Was: The Company’s operations are subject to the general risks associated with acquisitions, joint ventures, equity investments, and divestitures

  • 38% rewrittenLegal and Regulatory Risks

    The Company’s foreign operations pose additional risks to the Company’s business

  • 22% rewrittenLegal and Regulatory Risks

    The Company is subject to stringent environmental regulations and may be subject to environmental litigation, proceedings, and investigations

    Was: The Company is subject to stringent environmental regulations and potentially subject to environmental litigation, proceedings, and investigations

All 21 risk factors

Headings as the filing states them, in filing order.

Business and Operational Risks

  1. 01Deterioration of economic conditions could harm the Company’s business61% rewritten
  2. 02The Company’s operations are subject to the risks associated with acquisitions, joint ventures, equity investments, and divestitures39% rewritten
  3. 03Risks and uncertainties associated with intangible assets, including any future goodwill or intangible asset impairment charges, may negatively impact the Company84% rewritten
  4. 04The Company is subject to the risk of disruption of operations, including at owned facilities, co-manufacturers, suppliers, logistics providers, customers, or other third-party service providers60% rewritten
  5. 05The Company may not realize the anticipated cost savings or operating profit improvements associated with strategic initiatives, including its Transform and Modernize initiative42% rewritten
  6. 06The Company is subject to the risk of unfavorable changes in the Company’s relationships with significant customers, suppliers, distributors, and other third parties73% rewritten
  7. 07The Company may be adversely impacted if the Company is affected by cybersecurity attacks or other security breachesNew
  8. 08A significant disruption to the Company's IT systems and the Company's failure to adequately maintain and update those systems could adversely affect the Company's operationsNew
  9. 09Deterioration of labor relations, labor availability or increases in labor costs could harm the Company’s business77% rewritten
  10. 10If the Company fails to achieve its projected results or otherwise fails to meet market expectations regarding its financial performance, the price and volatility of its stock could be adversely affectedNew

Industry Risks

  1. 11The Company’s operations are subject to food safety and other risks inherent to the food industry78% rewritten
  2. 12Outbreaks of disease among livestock and poultry flocks could harm the Company’s revenues and operating margins45% rewritten
  3. 13Fluctuations in commodity prices and availability of raw materials and other inputs could harm the Company’s results of operations
  4. 14Market demand for the Company’s products may fluctuate, including due to private-label products and lower-priced alternatives41% rewritten
  5. 15The Company faces risks related to its ability to respond to changing consumer preferences, diets and eating patterns, including through its innovation and marketing investments
  6. 16Damage to the Company’s reputation or brand image could adversely affect its business98% rewritten
  7. 17The potential impacts of a changing climate could have an adverse impact on the Company’s results of operations and financial conditionNew

Legal and Regulatory Risks

  1. 18Litigation and other legal proceedings may adversely affect the Company's reputation, results of operations, and financial conditionNew
  2. 19Government regulation, present and future, exposes the Company to potential sanctions and compliance costs that could adversely affect the Company’s business70% rewritten
  3. 20The Company is subject to stringent environmental regulations and may be subject to environmental litigation, proceedings, and investigations22% rewritten
  4. 21The Company’s foreign operations pose additional risks to the Company’s business38% rewritten

Other Hormel Foods 10-Ks

  • FY2024 10-K risk factors
    9 risks

    Hormel Foods faces significant operational risks from supply chain animal diseases like African Swine Fever and HPAI. Product contamination, notably the Listeria recall for Planters, threatens brand reputation and sales. IT updates and legacy technology reliance are central operational concerns.

    Filed Dec 05, 2024

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.