Enpro (NPO) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01Our business and some of the markets we serve are cyclical and distressed market conditions could have a material adverse effect on our business
2. 02We face intense competition that could have a material adverse effect on our business
3. 03The loss of key personnel and an inability to attract and retain qualified employees could have a material adverse effect on our operations
4. 04If we fail to retain the agents and distributors upon whom we rely to market our products, we may be unable to effectively market our products and our revenue and profitability may decline
5. 05Increased costs for raw materials, the termination of existing supply arrangements or other disruptions of our supply chain has had, and could continue in the future to have, a material adverse effect on our business
6. 06If we are unable to protect our intellectual property rights and knowledge relating to our products and services, our business and prospects may be negatively impacted
7. 07Failure to maintain or renew licenses to certain intellectual property rights could adversely affect our business, financial condition, results of operations and cash flows
8. 08Our business may be adversely affected by information technology disruptions
9. 09A failure to develop new or improved products and solutions may result in a significant competitive disadvantage
10. 10Debt incurred in the future to refinance existing indebtedness, to fund strategic acquisitions or for other needs may be at interest rates greater than the rates applicable to the Company’s current indebtedness
11. 11Our business with the U.S. government is subject to government contracting risks
12. 12Climate change and legal or regulatory responses thereto may have an adverse impact on our business and results of operations
13. 13Evolving regulatory restrictions on per- and polyfluoroalkyl substances (PFAS) may restrict the manufacture or use of fluoropolymers, including PTFE, which are currently included as critical components in certain of our products
14. 14Our business could be materially adversely affected by numerous other risks, including rising healthcare costs, changes in environmental laws and other unforeseen business interruptions

Risks Related to Our Acquisition Activities

1. 15We have made and expect to continue to make acquisitions, which could involve certain risks and uncertainties

Risks Related to Our Prior Ownership of Disposed Businesses

1. 16We have exposure to some contingent liabilities relating to previously owned businesses, which could have a material adverse effect on our financial condition, results of operations, and cash flows in any fiscal period

Risks Related to Our International Operations

1. 17We conduct a significant amount of our sales and service activities outside of the U.S., which subjects us to additional business risks, including foreign exchange risks, that may cause our profitability to decline

Risks Related to Our Capital Structure

1. 18Our debt agreement and the indenture governing our senior notes impose limitations on our operations, which could impede our ability to respond to market conditions, address unanticipated capital investments and/or pursue business opportunities
2. 19We may not have sufficient cash to fund a required repurchase of our senior notes upon a change of control
3. 20We may incur increased interest expense as a result of our variable rate debt

Risks Related to Ownership of Our Common Stock

1. 21The market price of our common stock may be volatile
2. 22Because our quarterly revenues and operating results may vary significantly in future periods, our stock price may fluctuate
3. 23Various provisions and laws could delay or prevent a change of control
4. 24Future sales of our common stock in the public market could lower the market price for our common stock