Carrier Global (CARR) risk factors: FY2025 10-K

1. Risks associated with our international operations could adversely affect our competitive position, results of operations, cash flows or financial condition.
2. We are party to joint ventures and other strategic relationships, which may not be successful and may expose us to unique risks and restrictions.
3. Risks associated with climate events, government regulations and incentives associated with climate events and mitigation efforts could adversely affect our business.
4. Demand for our HVAC products and services is influenced by weather conditions and seasonality.
5. Our business and financial performance depend on continued and substantial investments in our information and operational technology infrastructure, which may not yield anticipated benefits and which may be vulnerable to cyber-attacks.Cybersecurity
6. Cybersecurity incidents could disrupt business operations, result in the loss of critical and confidential information, and adversely impact our reputation and results of operations.Cybersecurity
7. We engage in acquisitions and divestitures and may encounter difficulties integrating acquired businesses with, or disposing of businesses from, our current operations; therefore, we may not realize the anticipated benefits of these acquisitions and divestitures.
8. We incurred debt obligations, and we may incur additional debt in the future, which could adversely affect our business and profitability and our ability to meet other obligations.
9. We depend on our intellectual property and have access to certain intellectual property and information of our customers and suppliers. Infringement of or the failure to protect that intellectual property could adversely affect our future growth and success.
10. We use a variety of raw materials, supplier-provided parts, finished goods, and third-party service providers in our business. The ability of suppliers to deliver materials, parts, components, finished goods, and manufacturing equipment to our manufacturing facilities, and our ability to manufacture and distribute without disruption, could affect our business performance. Significant shortages, supplier capacity constraints, supplier disputes, supplier quality issues, or production disruptions, price increases, duties, tariffs or other government actions could increase our operating costs, disrupt our operations and adversely impact the competitive positions of our products.rewordedTariffs
11. We design, manufacture and service products that incorporate advanced technologies. The introduction of new products and technologies involves risks, and we may not realize the degree or timing of benefits initially anticipated.
12. Customers and others may take disruptive actions.
13. Labor matters may impact our business.
14. Our defined benefit pension plans are subject to financial market risks that could adversely affect our results.
15. We may not realize expected benefits from our cost reduction and restructuring efforts, and our profitability or our business otherwise might be adversely affected.
16. Failure to achieve and maintain a high level of product and service quality could damage our reputation with customers and negatively impact our results.
17. We are subject to litigation, environmental and other legal and compliance risks.
18. We are subject to risks arising from doing business with the U.S. government.
19. We may recognize impairment charges for our goodwill and intangible assets.
20. Failure to maintain a satisfactory credit rating could adversely affect our liquidity, capital position, borrowing costs and access to the capital markets.

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1. After the Separation and the Distribution, certain members of management, directors and shareowners own stock in UTC, Carrier and Otis, and as a result may face actual or potential conflicts of interest.
2. In connection with the Separation into three independent public companies, each of UTC, Carrier and Otis has agreed to indemnify the other parties for certain liabilities. If we are required to pay UTC and/or Otis under these indemnities, our financial results could be negatively impacted. Also, the UTC or Otis indemnities may not be sufficient to hold us harmless from the full amount of liabilities for which UTC and Otis have been allocated responsibility, and UTC and/or Otis may not be able to satisfy their respective indemnification obligations in the future.
3. In certain circumstances, we could be required to indemnify UTC for material taxes and other related amounts pursuant to indemnification obligations under the TMA.
4. Potential liabilities may arise due to fraudulent transfer considerations, which would adversely affect our financial condition and results of operations.

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1. The market price and trading volume of our common stock may fluctuate significantly.
2. Shareowner's percentage of ownership in our common stock may be diluted in the future.
3. Quarterly cash dividends may be discontinued or modified, are subject to a number of uncertainties and may affect the price of our common stock.
4. Our amended and restated bylaws designate the courts within the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our shareowners, which could discourage lawsuits against Carrier and our directors and officers.
5. Anti-takeover provisions could enable our Board of Directors to resist a takeover attempt by a third party and limit the power of our shareowners.

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1. Natural disasters, epidemics or other unexpected events may disrupt our operations, adversely affect our results of operations, cash flows or financial condition and may not be fully covered by insurance.
2. We may be affected by global economic, capital market and political conditions, and conditions in the energy, construction, transportation and infrastructure industries in particular. Uncertainty in U.S. trade policy, including uncertainty surrounding changes in tariffs, trade agreements or other trade restrictions imposed by the U.S. or other governments, as well as political conditions in and between the U.S. and foreign countries in which we operate, could significantly and adversely affect our business and financial results.Tariffs
3. Our business success depends on attracting and retaining key personnel and other talent throughout the Company.
4. Additional tax expense or additional tax exposures could affect our future profitability.
5. Failure to maintain effective internal controls over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act could materially and adversely affect us.

Read these in Item 1A · See the changes