Ralliant (RAL) risk factors, FY2025 10-K

Risks Related to the Company’s Business Operations

1. 01Conditions in the global economy, the markets the Company serves, and the financial markets may adversely affect the Company’s business and financial results
2. 02Trade relations between the United States and other countries, including the imposition of new or increased tariffs, have had, and are expected to continue to have, an adverse effect on the Company’s business and financial results
3. 03The Company’s growth could suffer if the markets into which the Company sells its products and services decline, do not grow as anticipated, or experience cyclicality
4. 04The Company’s financial performance varies quarterly due to seasonal purchasing patterns, which can significantly impact quarterly results
5. 05The Company faces intense competition, and if it is unable to compete effectively, the Company may experience decreased demand and decreased market share. Even if the Company competes effectively, the Company may be required to reduce prices for the Company’s products and services
6. 06The Company’s growth depends in part on the timely development and commercialization, and customer acceptance, of new and enhanced products and services based on technological innovation
7. 07Changes in industry standards and governmental regulations may reduce demand for the Company’s products or services or increase the Company’s expenses
8. 08The Company’s reputation, ability to do business, and financial results may be impaired by improper conduct by any of the Company’s employees, agents, or business partners
9. 09Any inability to consummate acquisitions at appropriate prices, and to make appropriate investments that support the Company’s long-term strategy, could negatively impact the Company’s growth rate and stock price
10. 10The Company’s acquisition of businesses, investments, joint ventures, and other strategic relationships could negatively impact the Company’s financial results
11. 11The indemnification provisions of acquisition agreements by which the Company has acquired companies may not fully protect it, and as a result, the Company may face unexpected liabilities
12. 12Divestitures or other dispositions could negatively impact the Company’s business, and contingent liabilities from businesses that the Company has sold could adversely affect the Company’s financial results
13. 13The Company’s operations, products, and services expose it to the risk of environmental, health, and safety liabilities, costs, and violations that could adversely affect the Company’s reputation and financial results
14. 14The Company’s businesses are subject to extensive regulation; failure to comply with those regulations could adversely affect the Company’s financial results and business, including its reputation
15. 15Climate change, or legal or regulatory measures to address climate change, may negatively affect the Company
16. 16International economic, political, legal, compliance, and business factors could negatively affect the Company’s financial results
17. 17Changes in U.S. GAAP could adversely affect the Company’s reported financial results and may require significant changes to the Company’s internal accounting systems and processes
18. 18The Company has been, and may in the future be, required to recognize impairment charges for the Company’s goodwill and other intangible assets
19. 19Foreign currency exchange rates, including the volatility thereof, may adversely affect the Company’s financial results
20. 20Changes in the Company’s tax rate or exposure to additional tax liabilities or assessments could affect the Company’s profitability. In addition, audits by tax authorities could result in additional tax payments for prior periods
21. 21The Company is subject to a variety of litigation and other legal and regulatory proceedings in the course of the Company’s business that could adversely affect the Company’s financial results
22. 22If the Company does not or cannot adequately protect its intellectual property, or if third parties infringe its intellectual property rights, the Company may suffer competitive injury or expend significant resources enforcing its rights
23. 23Third parties may claim that the Company is infringing or misappropriating their intellectual property rights and the Company could suffer significant litigation expenses, losses, or licensing expenses or be prevented from selling products or services
24. 24Disruptions in, or breaches in security of, the Company’s information technology systems have adversely affected, and in the future could adversely affect, the Company’s business
25. 25Defects and unanticipated use or inadequate disclosure with respect to the Company’s products or services could adversely affect the Company’s business, reputation, and financial results
26. 26Adverse changes in the Company’s relationships with, or the financial condition, performance, purchasing patterns, or inventory levels of, key distributors and other channel partners could adversely affect the Company’s financial results
27. 27The Company’s financial results are subject to fluctuations in the cost and availability of commodities or components that the Company uses in its operations
28. 28The Company’s restructuring activities could have long-term adverse effects on its business
29. 29Work stoppages, works council campaigns, and other labor disputes could adversely impact the Company’s productivity and results of operations
30. 30If the Company suffers loss to its facilities, supply chains, distribution systems, or information technology systems due to catastrophe or other events, its operations could be seriously harmed
31. 31The Company’s ability to attract, develop, motivate, and retain senior leaders and other key employees is critical to its success, and failure to do so could negatively affect its business

Risks Related to the Separation and the Company’s Relationship with Fortive

1. 32The Company has a limited history of operating as a separate, publicly-traded company. Its historical financial information prior to the Separation is not necessarily representative of its future results as a separate, publicly-traded company
2. 33The Company may not achieve some or all of the expected benefits of the Separation, and the Separation may adversely affect its businesses
3. 34If the Company fails to achieve some or all of the benefits expected to result from the Separation, or if such benefits are delayed, its businesses, operating results, and financial condition could be adversely affected
4. 35The Company may be affected by significant restrictions, including on its ability to engage in certain desirable capital-raising, strategic, or other corporate transactions, for a two-year period following the Separation in order to avoid triggering significant tax-related liabilities
5. 36Changes by Fortive to certain tax elections on prior tax returns could adversely affect the Company’s effective tax rate and tax liabilities
6. 37Certain of the Company’s employees and directors may have potential or perceived conflicts of interest because of their equity interest in Fortive
7. 38Fortive may fail to perform under various agreements entered into as part of the Separation or the Company may fail to have necessary systems and services in place when certain of the agreements expire
8. 39The Company’s inability to resolve favorably any disputes that arise between the Company and Fortive with respect to its past and ongoing relationships may adversely affect its operating results
9. 40The Company may be held liable to Fortive if the Company fails to perform certain services under the Transition Services Agreement, and the performance of such services may negatively impact its business and operations

Risks Related to the Company’s Indebtedness

1. 41The Company’s currently outstanding and future indebtedness could adversely affect the Company’s businesses and its ability to meet its obligations, pay dividends, and repurchase shares of its common stock
2. 42The Company may not be able to generate sufficient cash to service all of the Company’s indebtedness and may be forced to take other actions to satisfy the Company’s obligations under its indebtedness, which may not be successful
3. 43Challenges in the capital markets or deterioration in the Company’s financial condition may adversely affect the Company’s ability to access capital on favorable terms or at all

Risks Related to Shares of the Company’s Common Stock

1. 44If the Company is unable to implement and maintain effective internal control over financial reporting, investors may lose confidence in the accuracy and completeness of the Company’s financial reports and the market price of its common stock may be negatively affected
2. 45The obligations associated with being a public company require significant resources and management attention, which could negatively affect the Company’s business and financial condition
3. 46The market price of shares of the Company’s common stock has been, and may in the future be, volatile, which could cause the value of your investment to decline
4. 47The Company cannot guarantee the continued payment of dividends on its common stock, or the timing or amount of any such dividends
5. 48If securities or industry analysts do not publish research or publish misleading or unfavorable research about the Company’s business, its stock price and trading volume could decline
6. 49Your percentage ownership in the Company may be diluted in the future
7. 50Certain provisions in the Company’s amended and restated certificate of incorporation and bylaws, and of Delaware law, may prevent or delay an acquisition of the Company, which could decrease the trading price of its common stock