Reliance (RS) risk factors, FY2025 10-K

Risks Related to Our Business and Industry

1. 01Global economic conditions, including inflation, elevated interest rates, infectious disease and supply chain disruptions, have adversely affected, and could continue to adversely affect, our operations32% rewritten
2. 02Excess capacity and over-production by foreign metal producers or decreases in tariffs could increase the level of metal imports into the U.S., resulting in lower domestic prices, which would adversely affect our sales, margins and profitability73% rewritten
3. 03We operate in an industry that is subject to cyclical fluctuations and any downturn in general economic conditions or in our customers’ specific industries could negatively impact our profitability and cash flows
4. 04We compete with a large number of companies in the metals service center industry, and, if we are unable to compete effectively, our profitability and cash flows may decline29% rewritten
5. 05If we were to lose any of our primary suppliers or otherwise be unable to obtain sufficient amounts of necessary metals on a timely basis, we may not be able to meet our customers’ needs and may suffer reduced sales
6. 06We rely upon our suppliers as to the specifications of the metals we purchase from them
7. 07Climate change might adversely impact our supply chain or our operations
8. 08There is also increased focus by governmental and non-governmental entities on sustainability matters. Any perception that we have failed to act responsibly regarding climate change could result in negative publicity and adversely affect our business and reputation60% rewritten
9. 09We face increased competition and pricing pressures from alternative materials and risks concerning innovation, new technologies, products and increasing customer requirements
10. 10Our insurance coverage, vendor indemnifications or other liability protections may be unavailable or inadequate to cover all of our significant risks, or our insurers may deny coverage of or be unable to pay for material losses we incur, which could adversely affect our profitability and overall financial position34% rewritten
11. 11We may not be successful in achieving expected operating efficiencies and sustaining or improving operating expense reductions, and might experience business disruptions associated with restructuring, realignment and cost reduction activities
12. 12Acquisitions present many risks, and we may not realize the financial and strategic goals that were contemplated at the time of each transaction
13. 13These factors could have a material adverse effect on our business, results of operations, financial condition or cash flows, particularly in the case of a larger acquisition or the completion of a number of acquisitions in any short period of time
14. 14If we do not successfully implement our growth strategy, our ability to grow our business could be impaired
15. 15We are a decentralized company which presents certain risks22% rewritten
16. 16We are subject to various environmental, employee safety and health, and customs and export laws and regulations, which could subject us to significant liabilities and compliance expenditures
17. 17We operate internationally and are subject to changes in tax rates, exchange rate fluctuations, exchange controls, political risks and other risks relating to international operations
18. 18We rely on information management systems and any damage, interruption or compromise of our information technology management systems, networks or data could disrupt and harm our business
19. 19significant attention and financial resources to protect against physical or security incidents that could result in the misappropriation of our information or the information of our employees and customersNew
20. 20Our enterprise data practices, including the collection, use, sharing, and security of the personal identifiable information of our customers, employees, or suppliers are subject to increasingly complex, restrictive, and punitive regulations in all key market regions
21. 21Our financial results may be affected by various legal and regulatory proceedings, including those involving antitrust, tax, environmental, or other matters
22. 22The volatility of the stock market could result in a material impairment of goodwill or indefinite-lived intangible assets21% rewritten
23. 23Our business operations and financial performance could be adversely affected by changes in our relationship with our employees or changes to U.S. or foreign employment regulations
24. 24We face certain risks associated with potential labor disruptions21% rewritten
25. 25If we are unable to attract, retain and develop key personnel, our business could be materially adversely affected

Risks Related to our Indebtedness

1. 26Our indebtedness could impair our financial condition or cause a downgrade of our credit rating and reduce the funds available to us for other purposes and our failure to comply with the covenants contained in our debt instruments could result in an event of default that could adversely affect our operating results
2. 27Because a substantial portion of our indebtedness bears interest at rates that fluctuate with changes in certain prevailing short-term interest rates, we are vulnerable to increases in interest ratesNew