Quaker Chemical (KWR) risk factors, FY2025 10-K

Risks Related to the Demand for our Products and Services and our Customer Base

1. 01Changes to the industries and markets that we serve could have a material adverse effect on our liquidity, financial position and results of operations
2. 02Changes in competition in the industries and markets we serve could have a material adverse effect on our liquidity, financial position and results of operations
3. 03Loss of a significant customer, bankruptcy of a major customer, or the closure of or significant reduction in production at a customer site could have a material adverse effect on our liquidity, financial position and results of operations22% rewritten
4. 04We may not be able to timely develop, manufacture and gain market acceptance of new and enhanced products required to maintain or expand our business, which could adversely affect our competitive position and our liquidity, financial position and results of operations
5. 05Risks Related to Business Operations, Including Internal and External Factors that May Impact Our Operational Continuity
6. 06Gulf and its wholly-owned subsidiary, QH Hungary Holdings Limited, have a significant minority stake in the Company and the contractual ability to nominate certain directors of the Company, which may enable them to influence the direction of our business and significant corporate decisions
7. 07The timing and amount of the Company’s share repurchases are subject to a number of uncertainties, and there can be no assurance that we will continue to repurchase shares of our common stock
8. 08Failure to comply with any material provision of our principal credit facility or other debt agreements could have a material adverse effect on our liquidity, financial position and results of operations

Risks Related to our International Operations

1. 09Our global presence subjects us to political and economic risks that could adversely affect our business, liquidity, financial position and results of operations
2. 10The scope of our international operations subjects us to risks from currency fluctuations that could adversely affect our liquidity, financial position and results of operations
3. 11Changes in domestic and foreign trade policies, including the imposition of tariffs and retaliatory tariffs, and other factors beyond our control may adversely impact our business, financial condition, and results of operationsNew

Risks Relating to Our Supply Chain

1. 12We rely on a wide variety of raw materials, and our business depends on our ability to source them cost-effectivelyNew
2. 13Lack of availability of raw materials and issues associated with sourcing from single suppliers and suppliers in volatile economic environments could have a material adverse effect on our liquidity, financial position and results of operations
3. 14Loss of a significant manufacturing facility or disruptions within our supply chain or in transportation could have a material adverse effect on our liquidity, financial position and results of operations

Risks Relating to Domestic and Foreign Taxation and Government Regulation and Oversight

1. 15Changes in tax laws could result in fluctuations in our effective tax rate and have a material effect on our liquidity, financial position and results of operations
2. 16Pending and future legal proceedings, including tax and environmental matters, could have a material adverse effect on our liquidity, financial position and results of operations, as well as our reputation in the markets we serve
3. 17Failure to comply with the complex global regulatory environment in which we operate could have an adverse impact on our reputation and/or a material adverse effect on our liquidity, financial position and results of operations
4. 18Uncertainty related to environmental regulation and industry standards relating to, as well as physical risks of, climate change and biodiversity loss, could impact our liquidity, financial position, and results of operations20% rewritten
5. 19We are subject to stringent labor and employment laws in the jurisdictions in which we operate, and our relationship with our employees could deteriorate which could adversely impact our operations
6. 20We may be unable to adequately protect our proprietary rights and trade brands, which may limit our ability to compete in our markets and could adversely affect our liquidity, financial position and results of operations
7. 21Our business could be adversely affected by environmental, health and safety laws and regulations or by potential product, service or other related liability claims
8. 22Our insurance may not fully cover all potential exposures
9. 23Impairment evaluations of goodwill, intangible assets, investments or other long-lived assets could result in a reduction in our recorded asset values, which could have a material adverse effect on our financial position and results of operations
10. 24If we identify a material weakness in internal control over financial reporting, or if we fail to maintain an effective system of internal controls, we may not be able to accurately determine our financial results or prevent fraud, either of which could have a material effect on us22% rewritten
11. 25Disruption of critical information systems or material breaches in the security of our systems could adversely affect our business and our customer relationships and subject us to fines or other regulatory actions
12. 26We are subject to risks associated with the development and use of artificial intelligence (“AI”) technologies by us and third partiesNew
13. 27Our business depends on attracting and retaining qualified management and other key personnel
14. 28Increasing scrutiny and changing expectations from stakeholders with respect to our Environmental, Social and Governance (“ESG”) practices may impose additional costs on us or expose us to new or additional risks
15. 29Terrorist attacks, wars and armed conflicts, natural disasters, widespread public health crises or other uncommon events may affect the markets in which we operate and our profitability which could adversely affect our business, liquidity, financial position, and results of operations37% rewritten