Lincoln Electric Holdings (LECO) risk factors, FY2025 10-K

Risks Related to Economic Conditions

1. 01General economic, financial and market conditions may adversely affect our financial condition, results of operations and access to capital markets for our business56% rewritten
2. 02We conduct our sales and distribution operations on a worldwide basis and maintain manufacturing facilities in a number of foreign countries, which subjects us to risks associated with doing business outside the United States
3. 03The cyclical nature and maturity of the arc welding and cutting industry in developed markets may adversely affect our performance

Risks Related to Manufacturing and Operations

1. 04Economic, geopolitical and supply disruptions associated with events beyond our control, such as war, acts of terror, political unrest, pandemics, labor disputes, trade policies, and natural disasters, could adversely affect our supply chain and distribution channels or result in loss of sales and customers
2. 05Availability of and volatility in energy costs or raw material prices may adversely affect our business
3. 06We are subject to risks relating to our information systems and data that could have an adverse effect on our business strategy, results of operations and financial condition
4. 07We may be incorporating AI technologies into our products, services and processes. These technologies may present business, compliance and reputational risks

Risks Related to Human Capital Management

1. 08Our operations depend on maintaining a skilled workforce, and any interruption in our workforce could negatively impact our results of operations and financial condition

Risks Related to Business Strategy

1. 09We may not be able to complete our acquisition or divestiture strategies, successfully integrate acquired businesses and, in certain cases, we may be required to retain liabilities for certain matters relating to divestitures
2. 10The competitive pressures we face could harm our revenue, results of operations and prospects34% rewritten
3. 11We may incur additional restructuring charges as we continue to contemplate rationalization actions in an effort to optimize our cost structure, and, as a result, we may not achieve the anticipated savings and benefits of these actions41% rewritten

Risks Related to Legal, Compliance and Regulatory Matters

1. 12We are a co-defendant in litigation alleging asbestos induced illness. Liabilities relating to such litigation could reduce our profitability and impair our financial condition
2. 13We may incur material losses and costs as a result of product liability claims that may be brought against us or failure to meet contractual performance commitments69% rewritten
3. 14Changes in tax rates or exposure to additional income tax liabilities could have a material adverse effect on our results of operations31% rewritten
4. 15Evolving international laws and enforcement relating to data privacy could adversely affect our operations
5. 16Our global operations are subject to increasingly complex environmental regulatory requirements
6. 17As a provider of products to the U.S. government, we are subject to additional risks related to unusual performance conditions and enhanced compliance risks, which could have an adverse effect our results of operations and financial conditionNew
7. 18We may be exposed to certain regulatory and financial risks related to climate change