Stoneridge (SRI) risk factors, FY2025 10-K

Other

1. 01Our business is cyclical and a downturn in the commercial, automotive, off-highway and agricultural vehicle markets as well as overall economic conditions could reduce our sales and profitability
2. 02The loss or insolvency of any of our principal customers would adversely affect our future results52% rewritten
3. 03The Company’s estimated sourced future sales from awarded programs may not be realized
4. 04We must implement and sustain a competitive technological advantage in producing our products to compete effectively
5. 05The discontinuation of, loss of business or lack of commercial success, with respect to a particular vehicle model for which the Company is a significant supplier could reduce the Company’s sales and harm its profitability

Financial Risks

1. 06We have foreign currency translation and transaction risks that may materially adversely affect our operating results, financial condition and liquidity
2. 07Our debt obligations could limit our flexibility in managing our business and expose us to risks
3. 08Covenants in our Credit Facility may limit our ability to pursue our business strategies84% rewritten
4. 09Our ability to comply with these covenants as well as the negative covenants under the terms of our indebtedness may be affected by events beyond our control
5. 10Our effective tax rate and future cash tax liability could be impacted by various factors, such as changes in the mix of earnings between jurisdictions, changes in the recognition and/or release of valuation allowances, and the enactment of tax laws or changes in tax laws, regulations, or accounting principles

Risks Related to Products, Pricing and Supply

1. 11We are dependent on the availability and price of raw materials, components and other supplies
2. 12The prices that we can charge our customers are typically predetermined and we bear the risk of costs in excess of our estimates, in addition to the risk of adverse effects resulting from general customer demands for cost reductions and quality improvements
3. 13We have limited or no redundancy for certain of our manufacturing facilities, and therefore damage or disruption to those facilities could interrupt our operations, increase our costs of doing business and impair our ability to deliver our products on a timely basis
4. 14We rely on independent dealers and distributors to sell certain products in the aftermarket sales channel and a disruption to this channel would harm our business
5. 15We are subject to risks related to our international operations34% rewritten
6. 16Military conflicts and geopolitical instability in the Middle East, including U.S. and Israeli military actions against Iran, could disrupt global markets and adversely affect our businessNew
7. 17Changes in U.S. administrative policy, including the imposition of or increases in tariffs, changes to existing trade agreements and any resulting changes in international trade relations, may have an adverse effect on our business
8. 18We operate our business on a global basis and policy changes affecting international trade could adversely impact the demand for our products and our competitive position

Strategic Performance Risks

1. 19Our inability to effectively manage the timing, quality and costs of new program launches could adversely affect our financial performance
2. 20We may not be able to successfully integrate acquisitions into our business or may otherwise be unable to benefit from pursuing acquisitions
3. 21Increased or unexpected product warranty claims could adversely affect us
4. 22We may incur material product liability costs
5. 23If we fail to protect our intellectual property rights or maintain our rights to use licensed intellectual property or are found liable for infringing the rights of others, our business could be adversely affected
6. 24We may be subject to risks relating to our information technology systems and cybersecurity
7. 25A failure of our information technology (IT) networks and systems, or the inability to successfully implement upgrades to our enterprise resource planning (ERP) systems, could adversely impact our business and operations
8. 26Privacy and security concerns relating to the Company’s current or future products and services could damage its reputation and deter current and potential users from using them
9. 27Compliance with environmental and other governmental regulations could be costly and require us to make significant expenditures
10. 28An emphasis on global climate change and other environmental, social, and corporate governance ("ESG") matters by various stakeholders could negatively affect our business