Pentair (PNR) risk factors: FY2025 10-K

1. General global economic and business conditions affect demand for our products.
2. We compete in attractive markets with a high level of competition, which may result in pressure on our profit margins and limit our ability to maintain or increase the market share of our products.
3. Our future growth is dependent upon our ability to transform and adapt our products, services, solutions and organization to meet the demands of local markets in both developed and emerging economies and by developing or acquiring new technologies that achieve market acceptance with acceptable margins.
4. We may not be able to identify, finance and complete suitable acquisitions and investments, and any completed acquisitions and investments may be unsuccessful or consume significant resources.
5. We may not achieve some or all of the expected benefits of our business initiatives.
6. We may experience cost increases and other inflation.
7. Interruption of our supply chain could affect our ability to produce or deliver our products and could negatively impact our business and profitability.
8. We are exposed to political, regulatory, economic, trade, and other risks that arise from operating a multinational business.
9. Changes in U.S. or foreign government administrative policy, including the imposition of, or increases in, tariffs and changes to existing trade agreements, could have a material adverse effect on us.Tariffs
10. Failure to achieve and maintain a high level of product and service quality and on-time delivery could damage our reputation with customers and negatively impact our results.new
11. Intellectual property challenges may hinder our ability to develop, engineer and market our products.
12. We have significant goodwill and intangible assets and future impairment of our goodwill and intangible assets could have a material adverse effect on our results of operations.
13. A loss of, or material cancellation, reduction, or delay in purchases by, or delivery of products to, one or more of our largest customers could harm our business.
14. Catastrophic and other events beyond our control may disrupt operations at our manufacturing facilities and those of our suppliers, which could cause us to be unable to meet customer demands or increase our costs, or reduce customer spending.
15. Seasonality of sales and weather conditions could have a material adverse effect on our financial results.
16. Volatility in currency exchange rates and failure to effectively hedge our exposure to fluctuations could have a material adverse effect on our financial condition, results of operations and cash flows.
17. Our business may be adversely affected by matters associated with our labor force.
18. Complications with the design or implementation of our updated enterprise resource planning system could adversely impact our business and operations.

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1. Increased leverage may harm our business, financial condition and results of operations.
2. Covenants in our debt instruments may adversely affect us.
3. We may increase our debt or raise additional capital, our credit ratings may be downgraded in the future, or our interest rates may increase, each of which could affect our financial condition, and may decrease our profitability.Interest rates
4. Disruptions in the financial markets could adversely affect us, our customers and our suppliers by increasing funding costs or reducing availability of credit.

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1. Violations of the U.S. Foreign Corrupt Practices Act, U.K. Bribery Act, and other anti-corruption laws outside the U.S. could have a material adverse effect on us.
2. Our failure to satisfy international trade compliance regulations, and changes in U.S. government and other applicable sanctions, could have a material adverse effect on us.
3. We are exposed to environmental, health and safety laws, liabilities and litigation.reworded
4. Our subsidiaries are party to asbestos-related litigation that could adversely affect our financial condition, results of operations and cash flows.
5. Failure to comply with the broad range of standards, laws and regulations in the jurisdictions in which we operate may result in exposure to substantial disruptions, costs and liabilities.
6. We are exposed to certain regulatory, financial and other risks related to climate change and other sustainability matters.
7. Increased cybersecurity threats and computer crime pose a risk to our systems, networks, products and services, and we are exposed to potential regulatory, financial and reputational risks relating to the protection of our data.Cybersecurity
8. Changes in data privacy laws and our ability to comply with them could have a material adverse effect on us.
9. We may use artificial intelligence in our business and in our products, and challenges with properly managing its use could result in reputational harm, competitive harm, and legal liability, and adversely affect our results of operations.newAI
10. The use by our employees of artificial intelligence tools or technology can adversely impact our business by posing risks to our confidential or proprietary information and could give rise to legal actions or reputational damage, or otherwise adversely affect our business.newAI
11. We may be negatively impacted by litigation and other claims.
12. Risks Relating to Our Jurisdiction of Incorporation in Ireland and Tax Residency in the U.K.
13. We are subject to changes in law and other factors that may not allow us to maintain a worldwide effective corporate tax rate that is competitive in our industry.
14. A change in our tax residency could have a negative effect on our future profitability, and may trigger taxes on dividends or exit charges.
15. Irish law differs from the laws in effect in the United States and may afford less protection to holders of our securities.
16. Irish law differs from the laws in effect in the United States, which may negatively impact our ability to issue ordinary shares.
17. Transfers of our ordinary shares may be subject to Irish stamp duty.
18. Our ordinary shares received by means of a gift or inheritance could be subject to Irish capital acquisitions tax.

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1. Our share price may fluctuate significantly.

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