ITT (ITT) risk factors, FY2025 10-K

Business and Operating Risks

1. 01Our operating results have been, and may continue to be, adversely affected by unfavorable or uncertain global macroeconomic and capital market conditions
2. 02Our business has been, and may continue to be, adversely affected by raw material price volatility, a limited number of suppliers and the inability of suppliers to meet quality and delivery requirements
3. 03Recent mergers, acquisitions or venture investments could present operational challenges and past divestitures and spin-offs may expose us to potential liabilities, all of which could adversely affect our results of operations and financial position
4. 04The industries in which we operate are experiencing a skilled labor shortage and if we are unable to hire and retain key personnel, including engineering talent and senior management talent, our ability to operate or grow our business could be negatively impacted
5. 05We believe product performance, reliability and innovation, application expertise, enforcement of intellectual property rights, brand reputation, and price are principal points of competition in our markets
6. 06Our operations could be disrupted, and our business could be materially and adversely affected by our inability to prevent, detect or adequately respond to cybersecurity breaches54% rewritten
7. 07We may face risks related to the use of Artificial Intelligence and Generative AI technologiesNew
8. 08The Company’s ability to manage its business and monitor results is highly dependent upon information and communication systems, and a failure of these systems, including flaws in the implementation of any business system, could adversely impact our business or financial results
9. 09A significant portion of our revenue is derived from a single customer. Loss of this customer, a loss of business with this customer, or a reduction in this customer's market share, could adversely impact our financial results41% rewritten
10. 10Due to our operations and sales outside of the U.S., we are subject to inherent business risks, including the imposition of tariffs, which may adversely affect our financial results
11. 11Tariffs remain uncertain and may continue to have a negative impact to our business56% rewritten
12. 12Our business is impacted by our customers' levels of capital investment, maintenance expenditures, production, and market cyclicality
13. 13A material business interruption, particularly at one of our manufacturing facilities, could negatively impact our ability to generate sales and meet customer demand
14. 14Increased scrutiny from investors, lenders and other market participants regarding our environmental, social and governance or sustainability responsibilities could expose us to additional costs and adversely impact our reputation, business, financial performance and growth23% rewritten

Legal and Regulatory Risks

1. 15We are subject to risks related to government contracting, including changes in levels of government spending and regulatory and contractual requirements applicable to sales to the U.S. government
2. 16Changes in our effective tax rates as a result of changes in the realizability of our deferred tax assets, the geographic mix of earnings, tax examinations or disputes, tax authority rulings or changes in the tax laws may adversely affect our financial results
3. 17Changes in environmental laws or regulations, the discovery of previously unknown or more extensive contamination or the failure of a potentially responsible party to perform may adversely affect our financial results
4. 18Failure to comply with the U.S. Foreign Corrupt Practices Act or other applicable anti-corruption legislation, as well as export controls and trade sanctions, could result in fines or criminal penalties
5. 19We are subject to laws, regulations and potential claims relating to product liability
6. 20Anti-takeover provisions in our organizational documents and Indiana law could delay or prevent a change in control
7. 21The acquisition of SPX FLOW (the "Acquisition") may not be completed within the expected timeframe, or at all, and the failure to complete the Acquisition could adversely impact our stock price and our future business and financial resultsNew
8. 22We may be unable to integrate SPX FLOW successfully and realize the anticipated benefits of the AcquisitionNew
9. 23Any anticipated benefits from the Acquisition may vary from expectationsNew
10. 24SPX FLOW may have liabilities that are not known to usNew
11. 25Acquisition accounting adjustments could adversely affect our financial resultsNew
12. 26While the Acquisition is pending, we and SPX FLOW will be subject to business uncertainties that could adversely affect our respective businessesNew
13. 27Financing the Acquisition will result in an increase in our indebtedness, which could adversely affect us, including by decreasing our business flexibility and increasing our interest expenseNew