Illinois Tool Works (ITW) risk factors: FY2025 10-K

1. The Company's results are impacted by global economic conditions. Downturns in the markets served by the Company could adversely affect its businesses, results of operations or financial condition.
2. The global nature of the Company's operations subjects it to political, economic and social risks that could adversely affect its business, results of operations or financial condition.
3. A significant fluctuation between the U.S. Dollar and other currencies could adversely impact the Company's operating income.

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1. The benefits from the Company's enterprise strategy may not be as expected and the Company's financial results could be adversely impacted, or the Company may not meet its long-term financial performance targets.
2. The timing and amount of the Company's share repurchases are subject to a number of uncertainties.
3. If the Company is unable to successfully introduce new products, its future growth may be adversely affected.
4. If the Company is unable to adequately protect its intellectual property, its competitive position and results of operations may be adversely impacted.
5. The Company has significant goodwill and other intangible assets, and future impairment of these assets could have a material adverse impact on the Company's financial results.
6. Raw material price increases and supply shortages could adversely affect results.
7. The Company's defined benefit pension plans are subject to financial market risks that could adversely affect its results of operations and cash flows.
8. If the Company is unable to protect its information technology infrastructure against service interruptions, data corruption, cyber-based attacks or network security breaches, or if there is a violation of data privacy laws, there could be a negative impact on operating results or the Company may suffer financial or reputational damage.Cybersecurity

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1. The Company's acquisition of businesses could negatively impact its profitability and returns.
2. Divestitures pose the risk of retained liabilities that could adversely affect the Company's financial results.

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1. Unfavorable tax law changes and tax authority rulings may adversely affect results.
2. Adverse outcomes in legal proceedings or enforcement actions may adversely affect results.
3. Uncertainty related to environmental regulation and industry standards, as well as physical risks of climate change, could impact the Company's results of operations and financial position.
4. The Company may incur fines or penalties, damage to its reputation or other adverse consequences if its employees, agents or business partners violate anti-bribery, competition, export and import, trade sanctions, data privacy, environmental, artificial intelligence, human rights or other laws.AI

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