Modine Manufacturing (MOD) risk factors, FY2025 10-K

MARKET RISKS

1. 01Economic, political, and general market conditions could adversely affect our business, financial position, results of operations and cash flows
2. 02Changes in U.S. or international trade policies, including the imposition or increases in tariffs, could adversely affect our business, financial position, results of operations and cash flows
3. 03A future widespread outbreak of an illness or other public health threat could adversely affect our business, financial position, results of operations and cash flows
4. 04Increases in costs of materials, including aluminum, copper, steel and stainless steel (nickel), other raw materials and purchased components, could place significant pressure on our results of operations
5. 05We could be adversely affected if we experience shortages of components or materials from our suppliers
6. 06Our net sales and profitability could be adversely affected from business losses or declines with major customers
7. 07Our results of operations could be adversely affected by pricing pressures from our customers
8. 08Our pricing strategies could negatively impact our overall win rate for new business
9. 09Global climate change and related emphasis on ESG matters by various stakeholders could negatively affect our business
10. 10Continued and increased competition could adversely affect our business and our results of operations

OPERATIONAL RISKS

1. 11We are subject to risks related to our international operations and global customer and supplier base
2. 12We may be unable to maintain competitive cost structures
3. 13If we cannot differentiate ourselves from our competitors with our technology, our existing and potential customers may seek lower prices and our sales and earnings may be adversely affected
4. 14Changes in the adoption rate for newer technologies could adversely affect our business
5. 15Developments or assertions by or against us relating to intellectual property rights could adversely affect our business
6. 16We regularly launch new products and system designs at our facilities across the world. The success of these launches is critical to our business
7. 17We may be adversely affected by a substantial disruption in, or material breach of, our IT systems or IT systems of our service providers
8. 18We could be adversely impacted by the costs of environmental, health and safety regulations
9. 19We may incur material losses and costs as a result of warranty and product liability claims and litigation or other legal proceedings

STRATEGIC RISKS

1. 20Our business strategy includes acquisitions and dispositions. We may be unable to identify, execute, and successfully integrate acquisitions or successfully execute strategic business dispositions

FINANCIAL RISKS

1. 21Liquidity and access to cash
2. 22Our indebtedness may limit our use of cash flow to support operating, development and investment activities, and failure to comply with our debt covenants could adversely affect our liquidity and financial results
3. 23Our balance sheet includes significant amounts of goodwill and intangible assets. An impairment of a significant portion of these assets would adversely affect our financial results
4. 24We may be subject to additional income tax expense or become subject to additional tax exposures

GENERAL RISKS

1. 25We are dependent upon the health of the customers and markets we serve
2. 26As a global company, we are subject to foreign currency rate fluctuations, which affect our financial results
3. 27Our future success is dependent on our ability to attract, develop and retain qualified personnel