Universal (UVV) risk factors, FY2026 10-K

Universal's FY2026 10-K, filed Jun 01, 2026, lists 24 risk factors. Against the prior year's 26: 2 dropped, 4 substantially reworded.

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Risk factors listed
240 groups
New this year
0vs 26 last year
Dropped
2since the prior 10-K
Substantially reworded
4of those kept
Section length
6k wordsItem 1A

What the changes say

  • The filing drops risks tied to an unresolved internal-control material weakness and temporary loss of Form S-3 eligibility.
  • New 2025 U.S. tariffs and retaliatory tariffs are now specifically highlighted as cost pressures.
  • Pillar Two disclosures now anticipate some global minimum-tax exposure, partly limited by transitional safe harbors.
  • Cybersecurity and sustainability risks are substantively unchanged.

What changed since the prior 10-K

Dropped

  • Dropped

    operate for a sufficient period of time and management has concluded, through testing, that the related controls are effective. Furthermore, we cannot give any assurance that the measures we take will remediate the material weakness

  • Dropped

    We are not currently eligible to use a Form S-3 registration statement, which could impair our capital-raising activities

Reworded

  • 80% rewritten

    Changes in tax laws in the countries where we do business could have a material adverse effect on our results of operations

    The company now anticipates some Pillar Two global minimum-tax exposure, with transitional safe harbors limiting impact in certain jurisdictions.

  • 56% rewritten

    We may not be able to increase prices to fully offset inflationary, tariff, and other pressures on costs, such as raw products, packing materials, labor, energy, and distribution costs

    The risk now specifically cites significant 2025 U.S. tariffs and resulting retaliatory tariffs as cost pressures.

  • 43% rewritten

    We may be adversely impacted if our information technology systems fail to perform adequately, including with respect to cybersecurity issues

    No substantive change; the risk still covers failures, interruptions, and cybersecurity incidents affecting company and third-party systems.

  • 30% rewritten

    Increasing scrutiny and changing expectations from governments, as well as other stakeholders such as investors and customers, with respect to our sustainability considerations may impose additional costs on us or expose us to additional risks

    No substantive change; the risk still covers stricter sustainability oversight, disclosures, due diligence, and related costs.

All 24 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01In areas where we purchase leaf tobacco directly from farmers, we bear the risk that the tobacco we receive will not meet quality and quantity requirements
  2. 02The leaf tobacco industry is competitive, and we are heavily reliant on a few large customers
  3. 03Our financial results can be significantly affected by changes in the balance of supply and demand for leaf tobacco
  4. 04Our financial results will vary according to tobacco growing conditions, customer requirements, and other factors. These factors could also limit the ability to accurately forecast our future performance and increase the risk of an investment in our common stock or other securities
  5. 05Major shifts in customer requirements for leaf tobacco supply could significantly affect our operating results
  6. 06We may not be able to increase prices to fully offset inflationary, tariff, and other pressures on costs, such as raw products, packing materials, labor, energy, and distribution costs56% rewritten
  7. 07Weather and other conditions can affect the marketability of our products
  8. 08Legal, regulatory, or other market measures to address climate change could negatively affect our business operations
  9. 09Our plant-based ingredients business is subject to industry-specific risks which could have a material adverse effect on our results of operations
  10. 10Disruption of our supply chain for our plant-based ingredients operations could have a material adverse effect on our business
  11. 11We may not be successful in pursuing strategic investments or acquisitions or realize the expected benefits of those transactions because of integration difficulties and other challenges
  12. 12We may be adversely impacted if our information technology systems fail to perform adequately, including with respect to cybersecurity issues43% rewritten
  13. 13The inability for us to attract, develop, retain, motivate, and maintain good relationships with our workforce, including key personnel, could have a material adverse effect on our business and our profitability
  14. 14We are dependent on a seasonal workforce to meet our operational needs
  15. 15Epidemics, pandemics, or similar widespread public health concerns could have a material adverse effect on our business, financial condition, results of operations and demand for our products and services
  16. 16Government efforts to regulate the production and consumption of tobacco products could have a significant impact on the businesses of our leaf tobacco customers, which would, in turn, have a material adverse effect on our results of operations
  17. 17Government actions on the sourcing of leaf tobacco could result in increased barriers in meeting our customers’ requirements, which could have a material adverse effect on our performance and results of operations
  18. 18We conduct a significant portion of our operations internationally, so political and economic uncertainties in particular countries could have a material adverse effect on our business and results of operations
  19. 19Increasing scrutiny and changing expectations from governments, as well as other stakeholders such as investors and customers, with respect to our sustainability considerations may impose additional costs on us or expose us to additional risks30% rewritten
  20. 20Changes in tax laws in the countries where we do business could have a material adverse effect on our results of operations80% rewritten
  21. 21Failure of our customers or suppliers to repay extensions of credit could have a material adverse effect on our results of operations
  22. 22Fluctuations in foreign currency exchange rates could have a material adverse effect on our results of operations
  23. 23Changes in interest rates could have a material adverse effect on our results of operations
  24. 24Low investment performance by our defined benefit pension plan assets and changes in pension plan valuation assumptions could increase our pension expense and could require us to fund a larger portion of our pension obligations, thus diverting funds from other potential uses

Other Universal 10-Ks

  • FY2025 10-K risk factors
    26 risks

    Universal Corp operates primarily in the volatile leaf tobacco supply chain and expanding plant-based ingredients markets. Financial results face heavy reliance on a few large customers, volatile crop conditions, and regulatory pressures.

    Filed May 30, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.