Owens Corning (OC) risk factors, FY2024 10-K

MACROECONOMIC, MARKET AND OPERATIONAL RISKS

1. 01Low levels of residential, commercial or industrial construction activity can have a material adverse impact on our business and results of operations
2. 02Residential and commercial construction is also affected by the cost and availability of skilled labor, which could impact both the cost and pace of construction activity, as well as the construction methods used, all of which could adversely affect demand for our products
3. 03We may be exposed to cost increases or reduced availability of raw materials or transportation, which could reduce our margins and have a material adverse impact on our business, financial condition and results of operations
4. 04ITEM 1A. RISK FACTORS (continued)
5. 05Supply constraints and increases in the cost of energy could have a material adverse impact on our business or results of operations
6. 06We are subject to risks and uncertainties associated with our international operations
7. 07Our sales may fall rapidly in response to declines in demand because of customer concentration in certain segments and because we do not operate under long-term volume agreements to supply our customers
8. 08We face significant competition in the markets we serve and we may not be able to compete successfully
9. 09Our efforts in acquiring and integrating other businesses, establishing joint ventures, expanding our production capacity or divesting assets are subject to a number of risks
10. 10We may not realize the growth opportunities and cost synergies that are anticipated from the acquisition of Masonite
11. 11Worldwide economic conditions and credit tightening could have a material adverse impact on the Company
12. 12With the volatility in the current global economic climate, inflation and geopolitical events around the world, it is difficult for us to predict the future impact of the foregoing matters on our business and results of operations
13. 13We are subject to risks relating to our information technology systems (including cybersecurity) risks, and any failure to adequately protect our critical information technology systems could materially affect our operations and financial results
14. 14Emerging issues related to our development, integration and use of artificial intelligence (“AI”) could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business
15. 15Climate change, weather conditions and storm activity could have a material adverse impact on our business, financial condition and results of operations
16. 16We may not be insured against potential material manufacturing losses or disruptions and could be seriously harmed by natural disasters, catastrophes, pandemics, theft or sabotage

LEGAL, REGULATORY AND COMPLIANCE RISKS

1. 17We could face potential product liability and warranty claims, we may not accurately estimate costs related to such claims, and we may not have sufficient insurance coverage available to cover such claims
2. 18We may be subject to liability under and may make substantial future expenditures to comply with environmental and emerging product-based laws and regulations
3. 19Our intellectual property rights may not provide meaningful commercial protection for our products or brands and third parties may assert that we violate their intellectual property rights, which could have a material adverse impact on our business, financial condition and results of operations
4. 20We are subject to various legal and regulatory proceedings, including litigation in the ordinary course of business, and uninsured judgments or a rise in insurance premiums may have a material adverse impact on our business, financial condition and results of operations

FINANCIAL RISKS

1. 21Our level of indebtedness could adversely impact our business, financial condition or results of operations
2. 22Downgrades of our credit ratings could adversely impact us
3. 23Our operations require substantial capital, leading to high levels of fixed costs that will be incurred regardless of our level of business activity
4. 24Our ongoing efforts to increase productivity and reduce costs may not result in anticipated savings in operating costs
5. 25Our results of operations in a given period may be impacted by price volatility in certain renewable-generated energy markets
6. 26Our hedging activities to address energy price fluctuations may not be successful in offsetting increases in those costs or may reduce or eliminate the benefits of any decreases in those costs
7. 27If we were required to write down all or part of our goodwill or other indefinite-lived intangible assets, our results of operations or financial condition could be materially adversely affected in a particular period

HUMAN CAPITAL RISKS

1. 28We depend on our senior management team and other skilled and experienced personnel to operate our business effectively, and the loss of any of these individuals or the failure to attract additional qualified personnel could adversely impact our business, financial condition and results of operations
2. 29Labor shortages and increased turnover rates, increased employee-related costs, and labor disputes could have a material adverse impact on our operations, results of operations, liquidity and cash flows
3. 30We may incur rationalization costs and there can be no assurance that our efforts to reduce costs will be successful
4. 31Significant changes in the factors and assumptions used to measure our defined benefit plan obligations, actual investment returns on pension assets and other factors could have a negative impact on our financial condition or liquidity
5. 32Additional risks exist due to the nature and magnitude of our investments, including the implementation of or changes to the investment policy, insufficient market capacity to absorb a particular investment strategy or high-volume transactions, and the inability to quickly rebalance illiquid and long-term investments

RISKS RELATED TO OWNERSHIP OF OUR COMMON STOCK

1. 33The market price of our common stock is subject to volatility
2. 34We are a holding company with no operations of our own and depend on our subsidiaries for cash
3. 35Our amended and restated certificate of incorporation and bylaws contain provisions that could depress the trading price of our common stock through provisions that may discourage, delay or prevent a change in control of the Company or changes in our management that our stockholders may deem advantageous
4. 36Dividend payments on our common stock are not guaranteed and are declared at the discretion of our Board of Directors