A. O. Smith (AOS) risk factors: FY2025 10-K

1. ■The effects of global and regional economic conditions could have a material adverse effect on our business
2. ■Import tariffs, taxes, customs duties and other trading regulations imposed by the U.S. government and retaliatory responses from other countries, could significantly increase the prices we pay for raw materials that are critical to our ability to manufacture our productsTariffs
3. ■The occurrence or threat of extraordinary events, including natural disasters, political disruptions, terrorist attacks, public health issues, and acts of war, could significantly disrupt production, or impact consumer spending
4. ■Because we participate in markets that are highly competitive, our revenues and earnings could decline as we respond to competition
5. ■Our operations could be adversely impacted by material and component price volatility, as well as supplier concentration
6. ■Our business could be adversely impacted by changes in consumer purchasing behavior, consumer preferences, technological changes, and market trends
7. Because approximately 18 percent of our sales in 2025 were attributable to China, adverse economic conditions or changes in consumer behavior in China could impact our businessrewordedChina

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1. ■We sell our products and operate outside the U.S., and to a lesser extent, rely on imports and exports, which may present additional risks to our business
2. ■A material loss, cancellation, reduction, or delay in purchases by one or more of our largest customers could harm our business
3. ■A portion of our business could be adversely affected by a further decline in North American new residential or commercial construction or a decline in replacement-related volume of water heaters and boilers, including a decline in demand for commercial spacesreworded
4. ■An inability to adequately maintain our information systems and their security, as well as to protect data and other confidential information, could adversely affect our business and reputation
5. ■Our international operations are subject to risks related to foreign currencies
6. ■Our business may be adversely impacted by product defects
7. ■Potential acquisitions could use a significant portion of our capital and we may not successfully integrate future acquisitions or operate them profitably or achieve strategic objectives

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1. Changes in regulations or standards, such as those associated with climate change, could adversely affect our business
2. ■We are subject to U.S. and global laws and regulations covering our domestic and international operations that could adversely affect our business and results of operations
3. Our sustainability commitments could result in additional costs, and our inability to achieve them could have an adverse impact on our reputation and performance
4. ■Our results of operations may be negatively impacted by product liability lawsuits and claims
5. ■We have significant goodwill and indefinite-lived intangible assets and an impairment of our goodwill or indefinite-lived intangible assets could cause a decline in our net worth
6. ■Certain members of the founding family of our company and trusts for their benefit have the ability to influence all matters requiring stockholder approval

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