Enpro (NPO) risk factors, FY2025 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 business20% rewritten
2. 02We face intense competition that could have a material adverse effect on our business26% rewritten
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 business52% rewritten
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. 09We are exposed to risks related to the use of AI by us and our competitorsNew
10. 10A failure to develop new or improved products and solutions may result in a significant competitive disadvantage
11. 11Debt 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
12. 12Our business with the U.S. government is subject to government contracting risks
13. 13Climate change and legal or regulatory responses thereto may have an adverse impact on our business and results of operations66% rewritten
14. 14Evolving 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
15. 15Our 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. 16We 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. 17We have exposure to 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 period39% rewritten

Risks Related to Our International Operations

1. 18We 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. 19Our 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 opportunities36% rewritten
2. 20We may not have sufficient cash to fund a required repurchase of our senior notes upon a change of control
3. 21We may incur increased interest expense as a result of our variable rate debt77% rewritten

Risks Related to Ownership of Our Common Stock

1. 22The market price of our common stock may be volatile
2. 23Because our quarterly revenues and operating results may vary significantly in future periods, our stock price may fluctuate
3. 24Various provisions and laws could delay or prevent a change of control
4. 25Future sales of our common stock in the public market could lower the market price for our common stock