Snap-on (SNA) risk factors: FY2025 10-K

1. The sales of many of our products are dependent on the health of the vehicle repair market and the changing requirements of vehicle repair.
2. The performance of Snap-on’s mobile tool distribution business depends on the success of its franchisees.
3. The inability to continue to introduce new products that respond to customer needs and achieve market acceptance could result in lower revenues and reduced profitability.
4. Failure to adequately protect intellectual property, or claims of infringement, could adversely affect our business, reputation, financial condition, results of operations and cash flows.
5. The global tool, equipment, diagnostics, and repair information industries are competitive.
6. Foreign operations are subject to political, economic, trade and other risks that could adversely affect our business, financial condition, results of operations and cash flows.

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1. Risks associated with the disruption of manufacturing operations could adversely affect our profitability or competitive position.
2. Price inflation and shortages of raw materials, components, certain purchased finished goods and energy sources have impacted, and in the future could adversely affect, the ability to obtain, as well as the cost of, needed materials or products and, in turn, our results of operations.
3. Failure to maintain effective distribution of products and services could adversely impact revenue and profitability.
4. Data security and information technology infrastructure and security are critical to supporting business objectives; failure of our systems, as well as those of third parties with which we do business, to operate effectively could adversely affect our business and reputation.
5. Failure to attract, develop, retain and effectively manage qualified personnel could lead to a loss of revenue and/or profitability.
6. We may not successfully integrate businesses we acquire, which could have an adverse impact on our business, financial condition, results of operations and cash flows.
7. The steps taken to restructure operations, rationalize operating footprint, lower operating expenses and achieve greater efficiencies in the supply chain could disrupt business.

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1. Our inability to provide acceptable financing alternatives to franchisees and other end-user customers could adversely impact our operating results.
2. Exposure to credit risks of customers and resellers may make it difficult to collect receivables, and our allowances for credit losses for receivables may prove inadequate, which could adversely affect our operating results and financial condition.
3. Foreign operations are subject to currency exchange, inflation, interest and other risks that could adversely affect our business, financial condition, results of operations and cash flows.
4. Failure to achieve expected investment returns on pension plan assets, as well as changes in interest rates or plan demographics, could adversely impact our results of operations, financial condition and cash flows.Interest rates
5. The recognition of impairment charges on goodwill or other intangible assets could adversely impact our future financial condition and results of operations.
6. Adverse developments in the credit and financial markets could negatively impact the availability of credit that we and our customers need to operate our businesses.
7. Increasing our financial leverage could affect our operations and profitability.

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1. Legislation and regulations relating to our business and the countries where we operate, including those related to sustainability matters, as well as any changes to such legislation or regulations, in addition to new compliance obligations or a failure to maintain existing compliance requirements, may, if significant, affect our business, reputation, results of operations and financial condition.
2. Product liability claims and litigation could affect our business, reputation, financial condition, results of operations and cash flows.
3. Legal disputes could adversely affect our business, reputation, financial condition, results of operations and cash flows.
4. Our operations expose us to the risk of environmental liabilities, costs, litigation and violations that could adversely affect our financial condition, results of operations and reputation.
5. The inability to successfully defend claims from taxing authorities and changes in tax laws and rules could adversely affect our financial condition, results of operations and cash flows.

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1. Economic conditions and world events could affect our operating results.

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