Timken (TKR) risk factors, FY2025 10-K

Risk Relating to our Business

1. 01The bearing and industrial motion industries are highly competitive, and this competition results in significant pricing pressure for our products that could affect our revenues and profitability
2. 02Changes in customer preferences and inventory reductions by customers or distributors could adversely affect the Company's business58% rewritten
3. 03Any change in raw material prices, the availability or cost of raw materials or logistics expenses could adversely affect our results of operations and profit margins
4. 04We may not realize the improved operating results that we anticipate from past and future acquisitions, may experience challenges in integrating acquired businesses, may fail to timely or fully capture revenue or cost synergies and may incur unanticipated liabilities and costs associated with such acquired businesses32% rewritten
5. 05Our operating results depend in part on continued successful research, development and marketing of new and/or improved products and services, and there can be no assurance that we will continue to successfully introduce new products and services

Risks Related to our Capital Structure, the Global Financial Markets, and Currency Exchange Rates

1. 06An increase in our levels of debt and the corresponding impact to our financial covenants or a failure to maintain our credit ratings could limit our ability to invest in our business
2. 07Some of our debt has variable interest rates, which could increase the cost of servicing such debt, and fixed rate debt may have increased costs to refinance at maturity24% rewritten
3. 08The global nature of our business exposes us to foreign currency fluctuations that may affect our asset values, results of operations and competitiveness

Risks Related to the Global Nature of our Operations

1. 09Global political instability and other risks of international operations may adversely affect our operating costs, revenues and the price of our products
2. 10We have global operations, and changes to government trade policies including the imposition of tariffs and other trade barriers, as well as the resulting consequences, could adversely impact our revenue and profit margins24% rewritten

Risks Related to Human Capital Management and Employee Benefits

1. 11If we are unable to attract, retain and develop key personnel and develop and successfully execute succession plans, our business could be materially adversely affected
2. 12Work stoppages or similar difficulties could significantly disrupt our operations, reduce our revenues and materially affect our earnings
3. 13Expenses and contributions related to our defined benefit plans are affected by factors outside our control, including the performance of plan assets, interest rates, actuarial data and experience, and changes in laws and regulations, all of which could impact our funded status
4. 14Future actions involving our defined benefit and other postretirement plans, such as annuity purchases, lump-sum payouts, and/or plan terminations could cause us to incur significant pension and postretirement settlement and curtailment charges, and require cash contributions

Risks Related to Legal, Compliance and Regulatory Matters

1. 15Current and future environmental health and safety laws, regulations, and customer requirements impose substantial costs and limitations on our operations and compliance may be more costly than we expect
2. 16PTFE and other fluoropolymer materials, which are known to be included in certain of our products, are subject to increasing regulatory scrutiny
3. 17We are subject to a wide variety of domestic and foreign laws and regulations that could adversely affect our results of operations, cash flow or financial condition
4. 18Compliance with the laws and regulations described above or with other applicable foreign, federal, state, and local laws and regulations currently in effect or that may be adopted in the future could materially adversely affect our competitive position, operating results, financial condition and liquidity40% rewritten
5. 19Severe weather associated with a changing climate could negatively impact our operations and those of our customers and suppliersNew
6. 20Actions required to comply with regulations or stakeholder expectations associated with corporate social responsibility (“CSR”) topics, including those related to climate change, could adversely affect our business and performance

Risks Related to Data Privacy, Cybersecurity, and AI

1. 21The Company may be subject to risks relating to its information technology systems, including the risk of cybersecurity incidents
2. 22Data privacy and security concerns, as well as evolving regulation and enforcement, could adversely affect our results of operations and profitability67% rewritten
3. 23Uncertainties with respect to the use of AI in our business may negatively impact our results from operations, reputation, and competitivenessNew
4. 24Warranty, recall, quality or product liability claims could materially adversely affect our earnings
5. 25If our internal controls are found to be ineffective, our financial results or our stock price may be adversely affected
6. 26Changes in accounting standards could have an adverse effect on our results of operations, as reported in our financial statements