Westinghouse Air Brake Technologies (WAB) risk factors, 2025 10-K

RISKS RELATED TO OUR BUSINESS AND OPERATIONS

1. 01We are dependent upon key customers
2. 02Our business operates in a highly competitive industry
3. 03A failure to predict and react to customer demand could adversely affect our business
4. 04We may fail to respond adequately or in a timely manner to innovative changes in new technology
5. 05Our revenues are subject to cyclical variations in the railway and passenger transit markets and changes in government spending
6. 06Our backlog is not necessarily indicative of the level of our future revenues
7. 07Equipment failures, interruptions, delays in deliveries or extensive damage to our facilities, supply chains, distribution systems or information technology systems, could adversely affect our business
8. 08Disruption of our supply chain could have an adverse impact on our business, financial condition, and results of operations
9. 09There can be no assurance that supply chain disruptions will not occur from time to time, or that the steps we take to mitigate such disruptions will be effective or achieve their desired results in a timely fashion
10. 10We intend to pursue acquisitions, joint ventures and alliances that involve a number of inherent risks, any of which may cause us not to realize anticipated benefits
11. 11The integration of our recently completed acquisitions may not result in anticipated improvements in market position or the realization of anticipated operating synergies or may take longer to realize than expected
12. 12We face a wide variety of risks related to health epidemics, pandemics and similar outbreaks. As was evidenced by the COVID-19 pandemic, public health crises have the potential to dramatically impact the global health and economic environment and to trigger significant economic volatility and operational uncertainty

RISKS RELATED TO INTERNATIONAL OPERATIONS

1. 13A significant portion of our sales may be derived from our international operations, which exposes us to certain risks inherent in doing business on an international level
2. 14We may incur increased costs or margin degradation due to fluctuations in interest rates and foreign currency exchange rates
3. 15We have substantial operations located in emerging markets, and are subject to regulatory, economic, social and political uncertainties in such markets
4. 16Regional and international conflicts may adversely affect our business and results of operations

RISKS RELATED TO MACRO-ECONOMIC CONDITIONS AND POLICIES

1. 17Prolonged unfavorable economic and market conditions could adversely affect our business
2. 18We may be exposed to raw material shortages, supply shortages, fluctuations in raw material, energy and commodity prices, and inflationary pressure
3. 19Changes to international trade policies, including tariffs and foreign trade restrictions, could adversely affect our business

LEGAL AND REGULATORY RISKS

1. 20We are subject to a variety of laws and regulations, including anti-corruption laws, in various jurisdictions
2. 21We are subject to a variety of environmental laws and regulations
3. 22Future climate change regulation could result in increased operating costs, affect the demand for our products or affect the ability of our critical suppliers to meet our needs
4. 23The occurrence of litigation in which we are, or could be, named as a defendant is unpredictable
5. 24Our manufacturer’s warranties or product liability may expose us to potentially significant claims
6. 25Expectations relating to environmental, social and governance considerations expose us to potential liabilities, increased costs, reputational harm, and other adverse effects on our business

RISKS RELATED TO DATA SECURITY AND INTELLECTUAL PROPERTY

1. 26If we are not able to protect our intellectual property and other proprietary rights, we may be adversely affected
2. 27We face cyber-security and data protection risks relating to cyber-attacks and information technology failures that could cause loss of confidential information and other business disruptions

RISKS RELATED TO HUMAN CAPITAL

1. 28Labor shortages and labor disputes may have a material adverse effect on our operations and profitability
2. 29We rely on our management team and other key personnel

RISKS RELATED TO OUR INDEBTEDNESS

1. 30Our indebtedness could adversely affect our financial health
2. 31The indentures for our outstanding Senior Notes and our 2022 and 2024 Credit Agreements contain various covenants that limit our management’s discretion in the operation of our businesses