Watts Water Technologies (WTS) risk factors, FY2025 10-K

Other

1. 01Economic cycles, particularly those involving reduced levels of commercial and residential starts and remodeling, may have adverse effects on our revenues and operating results
2. 02Changes in the costs of raw materials and purchased components, including imposition of tariffs or changes in tariff rates, as well as supply chain and logistics disruptions, could reduce our profit margins and adversely affect our ability to meet our customer delivery commitments37% rewritten
3. 03Changes in U.S. or foreign trade policies and other factors beyond our control may adversely impact our business and operating resultsNew
4. 04We face intense competition and, if we are not able to respond to competition in our markets, our revenues and profits may decrease
5. 05We are subject to risks associated with changing technology, product innovation, manufacturing techniques, operational flexibility and business continuity, which could place us at a competitive disadvantage31% rewritten
6. 06Economic and other risks associated with international sales and operations could adversely affect our business and future operating results
7. 07Our business, reputation and financial performance may be adversely affected if we or our third-party providers fail to protect confidential information and/or experience cybersecurity attacks, information technology failures and other business disruptions27% rewritten
8. 08Any actual or perceived failure to comply with new or existing laws, regulations and other requirements relating to the privacy, security and processing of personal information could adversely affect our business, results of operations, or financial condition
9. 09Implementation of our strategic initiatives, including acquisitions and dispositions, and integration of acquired businesses may not be successful, which could affect our ability to increase our revenues or our profitability
10. 10We are subject to risks related to product defects, which could result in product recalls and could subject us to warranty claims in excess of our warranty provisions or which are greater than anticipated due to the unenforceability of liability limitations
11. 11We use important intellectual property in our business. If we are unable to protect our intellectual property or if a third party makes assertions against us or our customers relating to intellectual property rights, our business could be adversely affected
12. 12We face risks from product liability and other lawsuits, which may adversely affect our business
13. 13We are subject to and impacted by environmental, health and safety laws and regulations, which could result in costs, liabilities and impacts to our business operations
14. 14Climate change, and legislation or regulations addressing climate change, may have an adverse impact on our business and results of operations25% rewritten
15. 15Evolving and conflicting expectations regarding sustainability and ESG matters could increase our costs, harm our reputation and adversely impact our financial results51% rewritten
16. 16Our ability to achieve savings through our restructuring and business transformation activities may be adversely affected by management’s inability to fully execute such plans as a result of local regulations, geo-political risk or other factors within or beyond the control of management
17. 17The requirements to evaluate goodwill, indefinite-lived intangible assets and long-lived assets for impairment may result in a write-off of all or a portion of our recorded amounts, which would negatively affect our operating results and financial condition48% rewritten
18. 18The loss or financial instability of major customers could have an adverse effect on our results of operations
19. 19Our credit facility may limit our ability to pay dividends, incur additional debt and make acquisitions and other investments
20. 20Our inability to attract and retain key personnel may adversely affect our business
21. 21One of our stockholders can exercise substantial influence over our Company24% rewritten
22. 22Conversion and subsequent sale of a significant number of shares of our Class B common stock could adversely affect the market price of our Class A common stock
23. 23Changes in regulations or standards could adversely affect our business
24. 24Our operating results could be negatively affected by changes in tax rates, the adoption of new tax legislation, or exposure to additional tax liabilities33% rewritten