Johnson Controls International (JCI) risk factors, FY2025 10-K

Risks Related to Our Business Operations

1. 01Our future growth is dependent upon our ability to develop or acquire new products, services and technologies that achieve market acceptance with acceptable margins
2. 02Failure to increase organizational effectiveness through the execution of our operating model and organizational improvements may reduce our profitability or adversely impact our business46% rewritten
3. 03Failure to achieve and maintain a high level of product and service quality and on-time delivery could damage our reputation with customers and negatively impact our results38% rewritten
4. 04The ability of suppliers to deliver raw materials, parts and components to our manufacturing facilities, and our ability to manufacture and deliver services without disruption, could affect our results of operations22% rewritten
5. 05Our business success depends on attracting and retaining qualified personnel38% rewritten
6. 06Cybersecurity incidents impacting our IT systems and digital products could disrupt business operations, result in the loss of critical and confidential information, and materially and adversely affect our reputation and results of operations36% rewritten
7. 07Data privacy, identity protection and information security compliance may require significant resources and presents certain risks47% rewritten
8. 08We are incorporating artificial intelligence technologies into our products, services and processes. These technologies may present business, compliance and reputational risks
9. 09Infringement or expiration of our intellectual property rights, or allegations that we have infringed upon the intellectual property rights of third parties, could negatively affect us
10. 10We rely on our global direct installation channel for a significant portion of our revenue. Failure to maintain and grow the installed base resulting from direct channel sales could adversely affect our business
11. 11Global climate change and related regulations could negatively affect our business
12. 12Failure to achieve our public sustainability commitments could negatively affect our reputation and business
13. 13A material disruption of our operations due to catastrophic or geopolitical events, particularly at our monitoring and/or manufacturing facilities, could materially and adversely affect our business39% rewritten
14. 14Our business may be adversely affected by work stoppages, union negotiations, labor disputes and other matters associated with our labor force

Risks Related to Macroeconomic and Political Conditions

1. 15Some of the industries in which we operate are cyclical and, accordingly, demand for our products and services could be adversely affected by downturns in these industries
2. 16Changes in U.S. or foreign trade policies and other factors beyond our control may adversely impact our business and operating results41% rewritten
3. 17Risks associated with our non-U.S. operations could adversely affect our business, financial condition and results of operations23% rewritten
4. 18Economic, political, credit and capital market conditions could adversely affect our financial performance, our ability to grow or sustain our business and our ability to access the capital markets
5. 19Volatility in commodity prices may adversely affect our results of operations

Risks Relating to Strategic Transactions

1. 20We may not realize the benefits of our ongoing efforts to simplify our portfolio20% rewritten
2. 21We may be unable to successfully execute or effectively integrate acquisitions or joint ventures

Risks Related to Government Regulations

1. 22Our businesses operate in regulated industries and are subject to a variety of complex and continually changing laws and regulations
2. 23We are subject to requirements relating to environmental and safety regulations and environmental remediation matters which could adversely affect our business, results of operation and reputation
3. 24We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act and similar anti-bribery laws around the world
4. 25We are subject to risks arising from regulations applicable to companies doing business with the U.S. government

Risks Related to Litigation

1. 26Potential liability for environmental contamination could result in substantial costs
2. 27We are party to asbestos-related product litigation that could adversely affect our financial condition, results of operations and cash flows
3. 28Legal proceedings in which we are, or may be, a party may adversely affect us

Risks Related to Tax Matters

1. 29Future potential changes to the tax laws could adversely affect us and our affiliates
2. 30Future potential changes to the U.S. tax laws could result in us being treated as a U.S. corporation for U.S. federal tax purposes, and the Internal Revenue Service ("IRS") may not agree that we should be treated as a non-U.S. corporation for U.S. federal tax purposes
3. 31Changes to the U.S. model income tax treaty could adversely affect us
4. 32Negative or unexpected tax consequences could adversely affect our results of operations

Risks Relating to Our Jurisdiction of Incorporation

1. 33Irish law differs from the laws in effect in the U.S. and may afford less protection to holders of our securities
2. 34Transfers of Johnson Controls ordinary shares may be subject to Irish stamp duty24% rewritten
3. 35Dividends paid by us may be subject to Irish dividend withholding or Irish income tax86% rewritten

General Risk Factors

1. 36The potential insolvency or financial distress of third parties could adversely impact our business and results of operations
2. 37A variety of other factors could adversely affect the results of operations of our business