EMCOR Group (EME) risk factors: FY2025 10-K

1. Economic and Strategic Risk Factors
2. Economic downturns, recessions, or periods of slow growth have historically led to reductions in demand for our services. Negative conditions in the credit markets, including elevated interest rates, may adversely impact our results of operations and our ability to operate our business.Interest rates
3. Certain of our businesses, including those within our United States industrial services segment, are exposed to risks associated with the oil and gas industry.
4. Our business is vulnerable to the cyclical nature of the sectors in which our clients operate and is dependent upon the timing and funding of new awards.reworded
5. Volatility in the prices or availability of certain materials, equipment, and commodities used in our businesses and those of our customers, including as a result of inflation, supply chain disruptions, geopolitical instability, and protectionist trade measures, could adversely affect our businesses.reworded
6. Business and Operational Risk Factors
7. The loss of customers could have an adverse effect on us.
8. Our industry is highly competitive.
9. We are a decentralized company which presents certain risks.
10. Our business may be affected by weather conditions.
11. Our business may be affected by the work environment.
12. Our dependence upon fixed price and similar contracts could adversely affect our business.reworded
13. We could incur additional costs to cover certain guarantees or other contractual requirements.
14. Many of our contracts, especially our building and industrial services contracts, may be canceled or delayed on short notice, and we may be unsuccessful in replacing such contracts if they are canceled or as they are completed or expire.
15. We may be unsuccessful in generating internal growth.
16. Fluctuating foreign currency exchange rates could impact our financial results.reworded
17. As part of our risk management strategy, we are effectively self-insured against certain potential liabilities.
18. Failure to provide our services in accordance with professional standards or contractual requirements could expose us to significant monetary damages.
19. Our business strategy relies, in part, on acquisitions to sustain our growth, and these transactions present certain risks and uncertainties.reworded
20. Amounts included in our remaining performance obligations may not result in actual revenues or translate into profits.
21. We recognize revenue for the majority of our construction projects based on estimates; therefore, variations of actual results from our assumptions may reduce our profitability.
22. We are increasingly dependent on sophisticated information technology systems; our business and results of operations are subject to adverse impacts due to the disruption, failure, or breaches of these systems.

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1. A material portion of our business depends on our ability to provide surety bonds. We may be unable to compete for or work on certain projects if we are not able to obtain the necessary surety bonds.
2. Our results of operations could be adversely affected as a result of goodwill and identifiable intangible asset impairments.
3. Failure to maintain effective internal controls over financial reporting could adversely impact our ability to timely and accurately report financial results and comply with our reporting obligations, which could materially affect our business.
4. Legal and Regulatory Risk Factors
5. We are subject to many laws and regulations in the jurisdictions in which we operate; changes to such laws and regulations may result in additional costs and impact our operations.
6. Our failure to comply with environmental laws could result in significant liabilities.
7. Adverse resolution of litigation and other legal and regulatory proceedings may harm our operating results or financial position.
8. We may incur liabilities or suffer negative financial impacts relating to occupational, health, and safety matters.
9. Our failure to comply with anti-bribery statutes, such as the Foreign Corrupt Practices Act, or sanction regulations, could result in fines, criminal penalties, and other sanctions that could have an adverse effect on our business.reworded
10. Opportunities within the government sector could lead to increased governmental rules and regulations applicable to us.
11. Human Capital and Labor Risk Factors
12. The departure, loss or incapacitation of key personnel could disrupt our business.
13. We may be unable to attract and retain skilled employees.

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1. Certain provisions of our corporate governance documents could make an acquisition of us, or a substantial interest in us, more difficult.
2. Climate Change Related Risk Factors
3. Climate change and related environmental issues could have a material adverse impact on our business, financial condition, and results of operations.
4. We may be affected by market or regulatory responses to climate change.
5. We may be unable to achieve our current or future climate commitments and targets, or we may incur substantial costs in meeting such targets.

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1. Public health emergencies, epidemics, or pandemics impact our business.

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