The company faces risks from fluctuating commodity prices, supply chain disruptions, macroeconomic downturns, foreign exchange volatility, and political instability. Litigation risks, including environmental contamination (e.g., AFFF), asbestos, and other legal proceedings, pose significant potential costs. Tax law changes, including global minimum tax, could increase tax liabilities. Restructuring costs and potential acquisition integration issues are also noted. The company's reliance on a direct sales channel and its global operations also present risks.
Financial Upside
The company anticipates growth in data centers, sustainable buildings, and smart buildings. The sale of non-core businesses (Air Distribution Technologies and Residential/Light Commercial HVAC) is expected to generate $6.7 billion in proceeds. Productivity improvements and cost optimization initiatives are projected to yield $500 million in annual savings. The company's strong backlog and remaining performance obligations suggest future revenue potential.
