NN (NNBR) risk factors, FY2024 10-K

Risks Related to Our Operations

1. 01We depend heavily on a relatively limited number of customers, and the loss of any major customer would have a material adverse effect on our business
2. 02Work stoppages or similar difficulties and unanticipated business disruptions could significantly disrupt our operations, reduce our revenues and materially affect our earnings
3. 03We operate in and sell products to customers outside the U.S. and are subject to several risks related to doing business internationally
4. 04Quality problems with our products could harm our reputation, erode our competitive advantage and could result in a product recall
5. 05Our inability to effectively manage the timing, quality and costs of new program launches could adversely affect our financial performance
6. 06We face the challenge of accurately aligning our capacity with our demand
7. 07Our markets are highly competitive, and many of our competitors have significant advantages that could adversely affect our business
8. 08The loss of key personnel and the inability to attract and retain qualified employees could have a material adverse impact on our operations
9. 09A security breach or disruption to our information technology systems could materially adversely affect our business, financial condition, results of operations, and reputation
10. 10Pandemics, epidemics, disease outbreaks and other public health crises could materially adversely impact our business, financial condition, results of operations and cash flows
11. 11Physical effects of climate change or legal, regulatory or market measures intended to address climate change could materially adversely affect our business and operations
12. 12If we are unable to secure and maintain patent or other intellectual property protection for our intellectual property, our ability to compete will be harmed

Risks Related to Legal and Regulatory Compliance

1. 13Environmental, health and safety laws and regulations impose substantial costs and limitations on our operations, environmental compliance may be more costly than we expect, and any adverse regulatory action may materially adversely affect our business
2. 14Increasing scrutiny and evolving expectations with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks

Risks Related to Our Capitalization

1. 15Our indebtedness could adversely affect our business, prospects, financial condition, results of operations, or cash flows
2. 16Despite our indebtedness level, we may still be able to incur substantial additional amounts of debt, which could further exacerbate the risks associated with our substantial indebtedness
3. 17Our debt agreements contain restrictions that will limit our flexibility in operating our business
4. 18We may not be able to generate sufficient cash to service all of our indebtedness, and we may not be able to refinance our debt obligations as they mature
5. 19We have international operations that are subject to foreign economic uncertainties and foreign currency fluctuation
6. 20The price of our common stock may be volatile
7. 21Provisions in our charter documents and Delaware law may inhibit a takeover, which could adversely affect the value of our common stock

Risks Related to Acquisitions and Divestitures

1. 22Acquisitions may constitute an important part of our future growth strategy
2. 23We may not realize all of the anticipated benefits from any future strategic portfolio acquisition, or those benefits may take longer to realize than expected
3. 24The indemnification provisions of acquisition agreements by which we have acquired companies may not fully protect us and may result in unexpected liabilities
4. 25Our participation in joint ventures could expose us to additional risks from time to time
5. 26Any divestitures and discontinued operations could negatively impact our business and retained liabilities from businesses that we may sell could adversely affect our financial results
6. 27Damage to our reputation could harm our business, including our competitive position and business prospects
7. 28Changes in U.S. or foreign tax laws could have a material adverse effect on our business, cash flow, results of operations, and financial condition
8. 29Unstable market and economic conditions and adverse developments with respect to financial institutions and associated liquidity risk may have serious adverse consequences on our business, financial condition and stock price