Otis Worldwide (OTIS) risk factors: FY2025 10-K

1. We may be affected by global economic conditions in general and conditions in the construction and infrastructure industries in particular.
2. Our operations are subject to natural and man-made unexpected events that may increase our costs, limit access to building sites, interrupt production or our supply chain or otherwise adversely affect our business, results of operations or financial condition.
3. Our international operations subject us to risk as our results of operations may be adversely affected by changes in local and regional economic conditions, such as fluctuations in exchange rates and changes in credit conditions.
4. Our international operations subject us to risks associated with government policies on international trade and investments and risks in general and particularly in China.rewordedChina
5. Our international operations subject us to risks associated with emerging markets.
6. Our international operations subject us to risks associated with geopolitical conflicts.
7. We use a variety of raw materials, supplier-provided parts, components, sub-systems and third-party manufacturing services in our business, and significant shortages, supplier capacity constraints, supplier production disruptions or price increases could increase our operating costs and adversely impact the competitive positions of our products.
8. Adverse changes in our relationships with, or the financial condition, performance or purchasing patterns, or compliance practices of, key distributors and agents could adversely affect us.
9. We design, manufacture, install and service products that incorporate advanced technologies; the introduction of new products and technologies, including artificial intelligence, involves risks, and we may not realize the degree or timing of benefits initially anticipated.rewordedAI
10. We operate in a competitive environment and our profitability depends on our ability to accurately estimate the costs and timing of providing our products and services.
11. We may not realize expected benefits from our cost reduction, restructuring and transformation efforts, including UpLift, and our profitability may be negatively impacted or our business otherwise might be adversely affected.
12. We operate in challenging markets for talent and may fail to attract, develop and retain key personnel.
13. Our debt levels and related debt service obligations could have negative consequences; we may need additional debt or equity financing in the future to meet our capital needs, and such financing may not be available on favorable terms, if at all, due to changes in global capital markets, our financial performance or outlook or our credit ratings and may be dilutive to existing shareholders.
14. Quarterly cash dividends and share repurchases may be discontinued, accelerated or modified, are subject to a number of uncertainties and may affect the price of Common Stock.
15. 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.
16. We are party to joint ventures which may not be successful and may expose us to special risks and restrictions.
17. Additional tax expense or additional tax exposures could affect our future profitability.
18. Our defined benefit pension plans are subject to financial market risk that could adversely affect our results.
19. We are subject to litigation, product safety and other legal and compliance risks.
20. We are impacted by evolving stakeholder interest in sustainability and responsibility matters.new
21. Information security, data privacy and identity protection may require significant resources and present certain risks to our business, reputation and financial condition.
22. Our business and financial performance depend on continued substantial investment in information technology infrastructure, which may not yield anticipated benefits, and may be adversely affected by cyberattacks on information technology infrastructure and products and other business disruptions.Cybersecurity
23. We depend on our intellectual property, and have access to certain intellectual property and information of our customers, suppliers and distributors; infringement or failure to protect our intellectual property could adversely affect our future growth and success.

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1. Anti-takeover provisions could enable our Board of Directors to resist a takeover attempt by a third party and limit the power of our shareholders.
2. Our amended and restated bylaws designate the state 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 shareholders, which could discourage lawsuits against Otis and our directors and officers.

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1. In connection with the Separation, each of RTX, Otis and Carrier agreed to indemnify the other parties for certain liabilities. If we are required to pay under these indemnities to RTX and/or Carrier, our financial results could be negatively impacted. Also, the RTX or Carrier indemnities may not be sufficient to hold us harmless from the full amount of liabilities for which RTX and Carrier are allocated responsibility, and RTX and/or Carrier may not be able to satisfy their respective indemnification obligations in the future.

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Headings in the FY2024 10-K with no match this year.

1. We are impacted by evolving stakeholder interest in public company performance, disclosure, and goal-setting with respect to ESG matters.
2. Potential liabilities may arise due to fraudulent transfer considerations, which would adversely affect our financial condition and results of operations.