Terex (TEX) risk factors, FY2024 10-K

Financial and General Economy Risks

1. 01The imposition of new or increased international tariffs may have a material adverse effect on our business, financial condition and results of operations
2. 02Our business is sensitive to general economic conditions, government spending priorities and the cyclical nature of markets we serve
3. 03We have a significant amount of debt outstanding and must comply with covenants in our debt agreements
4. 04We may be unable to generate sufficient cash flow to service our debt obligations and operate our business
5. 05Our access to capital markets and borrowing capacity could be limited in certain circumstances
6. 06Our Company operates in many areas of the world, involving transactions denominated in a variety of currencies. We are subject to currency exchange risk to the extent that our costs are denominated in currencies other than those in which the Company earns revenue
7. 07Some of our customers rely on financing with third parties to purchase our products
8. 08We are exposed to losses from providing credit support to some of our customers
9. 09We may experience losses in excess of our recorded reserves for receivables
10. 10We may be unable to successfully integrate acquired businesses, including ESG. We may not realize the anticipated benefits of such acquisitions, including the acquisition of ESG
11. 11anticipated benefits of the acquisition, including the expected tax benefits and synergies, will depend, to a large extent, on our ability to integrate the businesses of both companies
12. 12The timing and amount of benefits from our strategic initiatives may not be as expected and our financial results could be adversely impacted
13. 13The industry in which we operate is highly competitive and subject to pricing pressure; if we fail to compete effectively, both in product offerings and price, demand for our products may decrease and our business could suffer
14. 14We are exposed to political, economic and other risks that arise from operating a multinational business
15. 15Changes in the availability and price of certain materials and components have resulted and could result in significant disruptions to the supply chain causing manufacturing inefficiencies, increased costs and lower profits
16. 16Consolidation within our customer base and suppliers may negatively impact our pricing and product margins
17. 17Our business may suffer if our equipment fails to perform as expected
18. 18A material disruption to one of our significant manufacturing plants could adversely affect our ability to generate revenue
19. 19Increased cybersecurity threats and more sophisticated computer crime may pose a risk to our systems, networks, products and services
20. 20Increasing regulatory focus on privacy and data security issues and expanding laws could expose us to increased liability

Legal, Regulatory & Compliance Risks

1. 21We face litigation and product liability claims and other liabilities
2. 22Compliance with environmental regulations could be costly, and failure to meet sustainability requirements or expectations could adversely affect our reputation, business, results of operations, financial condition, or stock price
3. 23We operate in many different jurisdictions and we could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-corruption laws
4. 24We must comply with an injunction and related obligations imposed by the SEC

Human Capital Risks

1. 25We rely on key management and skilled labor, and we may be unable to attract, develop, engage and retain qualified team members
2. 26We may be adversely impacted by work stoppages and other labor matters