TransDigm Group (TDG) risk factors: FY2025 10-K

1. Our business focuses almost exclusively on the aerospace and defense industry.
2. We may rely heavily on certain customers for much of our sales.reworded
3. We generally do not have guaranteed future sales of our products. Further, when we enter into fixed price contracts with some of our customers, we take the risk for cost overruns.
4. We intend to pursue acquisitions. Our business may be adversely affected if we cannot consummate acquisitions on satisfactory terms, or if we cannot effectively integrate acquired operations.
5. Our indebtedness could adversely affect our financial health and could harm our ability to react to changes to our business and prevent us from fulfilling our obligations under our indebtedness.
6. To service our indebtedness, we will require a significant amount of cash. Our ability to generate cash depends on many factors beyond our control and any failure to meet our debt service obligations could harm our business, financial condition and results of operations.
7. The terms of the senior secured credit facility and indentures governing the Notes may restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.
8. We are dependent on our executive officers, senior management team and highly trained employees and any work stoppage, difficulty hiring similar employees, or ineffective succession planning could adversely affect our business.

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1. Our sales to manufacturers of aircraft are cyclical, and a downturn in sales to these manufacturers may adversely affect us.
2. Our business is dependent on the availability of certain components and raw materials from suppliers.
3. We face significant competition.
4. Climate-related regulations designed to address climate change may result in additional compliance costs.
5. Our operations depend on our manufacturing facilities, which are subject to physical and other risks that could disrupt production.
6. Operations and sales outside of the United States may be subject to additional risks.
7. We are subject to certain unique business risks as a result of supplying equipment and services to the U.S. Government.
8. Our business may be adversely affected if we would lose our government or industry approvals or if more stringent government regulations are enacted or if industry oversight is increased.
9. We could incur substantial costs as a result of data protection concerns.
10. Increased cybersecurity threats and more sophisticated and targeted computer crime have posed and could continue to pose a risk to our and certain third parties’ information technology systems and a disruption to or breach in the security of such systems, if material, could have adverse effects on our result of operations and financial condition.rewordedCybersecurity

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1. We could incur substantial costs as a result of violations of or liabilities under environmental laws and regulations.
2. We may be subject to periodic litigation and regulatory proceedings, which may adversely affect our business and financial performance.
3. We could be adversely affected by the impact of failure, misuse or quality issues of our products.new

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1. We have recorded a significant amount of intangible assets, which may never generate the returns we expect.
2. We may be subject to risks relating to changes in our tax rates or exposure to additional income tax liabilities.
3. We do not regularly declare and pay quarterly or annual cash dividends on our stock.

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1. Our commercial business is sensitive to the number of flight hours that our customers’ planes spend aloft, the size and age of the worldwide aircraft fleet and our customers’ profitability. These items are, in turn, affected by general economic and geopolitical and other worldwide conditions.
2. U.S. military spending is dependent upon the U.S. defense budget.
3. Our stock price may be volatile, and an investment in our common stock could suffer a decline in value.

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

1. We could be adversely affected if one of our products causes an aircraft to crash.
2. Our ability to achieve our environmental, social and governance goals are subject to risks, many of which are outside of our control, and our reputation and brands could be harmed if we fail to meet such goals.