What changed in this filing

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Item 1A. Risk Factors

2026-02-24 compared with 2025-02-18 · 38 added, 11 removed, 141 unchanged (26% of the section changed)

9 unchanged sentences

A long-term economic downturn that puts downward pressure on sales could also negatively affect investor perception relative to our publicly stated profit targets.

Our operations could be adversely affected by global economic volatility, geopolitical tensions, and regulatory changes.

International operations could be adversely affected by changes in economic, political, regulatory, and social conditions, especially in Russia, China, the Middle East, and other developing or emerging markets where we do business.

An economic downturn in the businesses or geographic areas in which we distribute our products could reduce demand for these products and result in a decrease in sales volume that could have a negative impact on our results of operations.

Tariffs and other trade protection measures, anti-bribery and anti-corruption regulations, restrictions on repatriation of earnings and cash, currency controls implemented by foreign governments, differing intellectual property rights and changes in legal and regulatory requirements that restrict the sales of products or increase costs could adversely affect our results of operations.

Tariffs may decrease the competitiveness of our products in foreign markets or foreclose our sales entirely into those markets.

We could experience a negative impact on our operating results, profitability, customer relationships and future cash flows.

Changes in trade policy in the U.S.

and other countries may adversely affect our business and results of operations.

Our business is exposed to a dynamic and uncertain global trade environment.

Changes in U.S.

or foreign trade policies, including the imposition of new, increased, or retaliatory tariffs, as well as potential amendments to trade agreements, may increase the cost of imported raw materials and components, disrupt established supply chains, and force us to seek alternative sourcing or manufacturing arrangements, which could be costly or time-consuming.

Such measures could also reduce the attractiveness of certain markets, make our products less competitive, compress profit margins, and reduce demand, which in turn could adversely affect our financial condition, results of operations, and cash flows.

The future relationship between the United States and other countries remains uncertain, and recent trade actions, including tariffs on multiple countries and retaliatory measures, highlight the unpredictable nature and potential volatility of the trade landscape.

These developments may also contribute to broader financial market volatility, affect the availability and cost of capital, and create uncertainty in planning long-term investments or strategies.

The ultimate impact of trade policy changes is difficult to predict and could materially and adversely affect our business, results of operations, financial condition, and prospects.

On February 20, 2026, the United States Supreme Court issued a decision concluding that the International Emergency Economic Powers Act does not provide authority for the President to impose tariffs.

During 2025, certain tariffs that affected us were imposed under this statute pursuant to presidential executive order.

The ultimate financial impact of this decision cannot be reasonably estimated at this time.

The extent and timing of any potential recoveries of tariffs previously paid remain subject to further legal interpretation and administrative processes.

We will continue to monitor developments and will evaluate the effect of the ruling on future reporting periods as additional information becomes available.

Adverse global economic conditions and geopolitical issues could have a negative effect on our business, and results of operations and financial condition.

Our business depends on a global supply chain for components, manufacturing, and distribution.

Adverse global economic conditions and geopolitical developments, including armed conflicts, rising trade protectionism, economic sanctions, and political instability, may affect our operations.

Such events include, but are not limited to, the war in Ukraine, the conflict in the Middle East, and tensions among major trading nations.

These developments could disrupt or delay the sourcing, manufacture, or shipment of components and finished products.

Such disruptions could impair our ability to deliver equipment to customers in a timely manner or at all, reduce product availability, and increase supply‑chain complexity.

These factors could reduce our revenues, compress margins and cash flows, and impair our ability to meet customer demand.

Because the timing, scope, and duration of geopolitical or macroeconomic events are inherently unpredictable, they could materially and adversely affect our business, financial condition, results of operations, and prospects.

Our global operations are subject to laws and regulations that impose significant compliance costs and create reputational and legal risk.

14 unchanged sentences

Many of our routine transactions are conducted in foreign currencies, and changes in exchange rates have previously impacted, and may continue to impact, our sales, material costs, earnings, and the valuation of foreign-denominated assets.

While the majority of our manufacturing and cost structure is

based in the U.S., a decline in the value of local currencies could make it more difficult for distributors and end users to afford our products.

While the majority of our manufacturing and cost structure is based in the U.S., a decline in the value of local currencies could make it more difficult for distributors and end users to afford our products.

Significant exchange rate volatility could adversely affect our operational results and overall financial stability.

13 unchanged sentences

If our products, markets and services are not competitive, we may experience a decline in sales volume, an increase in price discounting and a loss of market share, which would adversely impact our revenues, margin and the success of our operations.

Third parties may also initiate litigation to challenge the validity of our patents or claims, allege that we infringe upon their patents, violate our patents or they may use their resources to design comparable products that avoid infringing our patents.

that avoid infringing our patents.

Regardless of whether such litigation is successful, such litigation could significantly increase our costs and divert management’s attention from the operation of our business, which could adversely affect our results of operations and financial condition.

53 unchanged sentences

Furthermore, ineffective system implementation or performance could comprise our internal controls over financial reporting, delay required filings, or disrupt our ability to meet operational and customer demands.

In the first week of November 2025, we implemented a new enterprise resource planning (“ERP”) system in our largest region, North America, to replace legacy systems and support our long‑term operational objectives.

The implementation caused disruption to our order‑management, fulfillment, and production‑scheduling processes from the the implementation date through November, with certain impacts extending into December and early 2026 as we stabilized system performance.

These disruptions reduced our operating capacity, limited our ability to fulfill customer orders on a timely basis, created inefficiencies and increased costs in our operations, and negatively affected certain customer experiences.

Although core workflows have improved since the initial deployment and December revenue recovered from November levels, we incurred additional labor and support costs to stabilize the system.

Certain impacts have continued into 2026 as we refine processes and enhance system performance.

If we are unable to fully stabilize, optimize, and integrate the new ERP system as planned, or if additional issues emerge, our ability to meet customer expectations, operate efficiently, maintain effective controls, or achieve anticipated business benefits may be adversely affected.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — ERP System Implementation” in Part II, Item 7, of this Form 10‑K.

We may encounter risks to our information technology ("IT") infrastructure, such as access and security, that may not be adequately designed to protect critical data and systems from theft, corruption, unauthorized usage, viruses, sabotage or unintentional misuse.

7 unchanged sentences

We rely on our IT systems, manufacturing plants and distribution facilities to efficiently operate our business.

If we experience an interruption in the functionality in any of these items for a significant period of time for any reason, we may not have adequate business continuity planning contingencies in place to allow us to

continue our normal business operations on a long-term basis.

In addition, the increase in customer-facing technology raises the risk of a lapse in business operations.

Therefore, significant long-term interruption in our business could cause a decline in sales, an increase in expenses and could adversely impact our financial results.

As noted above, in the first week of November 2025 we implemented a new ERP system in North America as part of a multi‑year project.

The implementation caused operational and customer‑facing disruptions, and although we believe the primary issues have been addressed, the system continues to require refinement and optimization.

Any significant disruption to the ERP system, or the need for additional improvements or upgrades,

could require capital investments, divert key personnel, or cause short‑term operational impacts.

Such outcomes could impair our ability to execute key initiatives and could adversely affect our sales, profitability, cash flows, or financial condition.

Our ability to manage the health and safety of our global workforce may lead to increased business disruption and financial penalties.

33 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1A. Risk Factors