Eaton (ETN) Risk Factor Changes

We are subject to litigation and environmental regulations that could adversely impact our businesses.

We may be unable to adequately protect our intellectual property rights, which could affect our ability to compete.

Eaton is subject to income taxes in many jurisdictions around the world.

We are subject to risks relating to changes in our tax rates, changes in global tax laws and regulations, or exposure to additional income tax liabilities.

The success of new and improved products and services depends on their initial and continued acceptance by our customers.

Our operating results depend in part on continued successful research, development, and marketing of new and/or improved products and services, and there can be no assurance that we will continue to successfully intro…

Eaton's segment revenues, operating results, and profitability have varied in the past and may vary from quarter to quarter in the future.

Weather disruptions and regulatory, market and social reactions to them create uncertainties that could negatively impact our business.

If we are unable to protect our information technology infrastructure against service interruptions, data corruption, cyberbased attacks or network security breaches, product or service offerings could be compromised…

We have been affected by supply chain disruptions and related inflationary pressures.

Our operations depend on production facilities throughout the world, which subjects them to varying degrees of risk of disrupted production.

Operating globally subjects Eaton to changes in government regulations and policies in a large number of jurisdictions around the world, including, but not limited to, those related to tariffs and trade barriers, inve…

Eaton's global operations subject it to economic risk as Eaton's results of operations may be adversely affected by changes in government legislation, regulations and policies, or currency fluctuations.

Volatility of end markets that Eaton serves.

Further, some of our suppliers of component parts have increased their prices in response to increased costs of raw materials that they use to manufacture component parts.

Eaton's major requirements for raw materials are described above in Item 1 Raw Materials.

Eaton uses a variety of raw materials, components and services in its businesses, and significant inflation could increase operating costs that may not be fully recouped in product pricing.

Regulatory reactions to climate change may pose more stringent obligations on Eaton’s operations and change customer demands.

Global increases in greenhouse gas emissions are linked to climate change, and there is a growing consensus that dramatic emissions reductions are needed to avoid severe climate impacts.

Doing business with the U.S.

As a provider of products to the U.S.

Operating globally subjects Eaton to various risks, including, but not limited to, economic and political instability, including war or armed conflict, changes in government policies, expropriation, nationalization, a…

Operating globally subjects us to risks and events beyond our control in countries where we operate.

We cannot predict changes in worldwide or regional macroeconomic conditions, as such conditions are highly volatile and beyond our control.

Our global business is sensitive to macroeconomic conditions.

We are exposed to geopolitical, economic and other risks that arise from uncertainty in worldwide and regional economic conditions.

Eaton’s success depends in part on our ability to anticipate and offer products and services that appeal to the changing needs and preferences of our customers in the various markets we serve.

Volatility of end markets that we serve could materially and adversely affect our business, financial condition and results of operations.

On January 26, 2026, we announced our intention to spin-off our Mobility business, which consists of the legacy Vehicle and eMobility segments, by the end of the first quarter of 2027, subject to the satisfaction of c…

We may not complete the anticipated spin-off or complete it within the time frame we anticipate or at all; the spin-off may present difficulties that could have an adverse effect on us; costs associated with the spin-…

In addition, the nature of our business requires us to maintain a labor force that is sufficiently large enough to support our manufacturing operations to meet customer demand, as well as provide on-site services and…

The market for employees and leaders with certain skills and experiences is very competitive.

Our ability to identify, attract, develop, engage, and retain qualified employees could affect our ability to execute our strategy.

Extreme weather events may create physical risks to our operating locations and supply chains, as well as to our suppliers’ and customers’ operations.

Recent technological advances in artificial intelligence (AI) and machine-learning technology have presented opportunities for us to drive internal efficiencies in our business operations, but they also pose risks to us.

Risks and uncertainties related to the development and use of artificial intelligence may present business, compliance and reputational risks.

We may rely on third-party suppliers for the components used in our products, and we may rely on third-party manufacturers to manufacture certain of our assemblies and finished products.

Any of these uncertainties could adversely impact our financial results and ability to compete.

•intellectual property risks such as challenges to ownership of rights or alleged infringement by suppliers.

•sanctions, embargoes, and other trade restrictions that may affect our ability to purchase commodities, components, or other materials from various suppliers; and

•climate impacts, severe weather events, or natural and other disasters that impact our suppliers;

•poor quality or insecure supply chain, which could adversely affect the reliability and reputation of our products, solutions, and services;

•changes in the cost of these purchases due to inflation, exchange rate fluctuations, taxes, tariffs, commodity market volatility, or other factors that affect our suppliers;

•shortages of commodities, components, or other materials, which could adversely affect our manufacturing efficiencies and ability to make timely delivery of our products, solutions, and services;

Our business requires that we buy raw materials, components, and services from third parties.

We rely on suppliers to provide raw materials, components, and services.

As part of our strategy, we pursue strategic transactions, including but not limited to acquisitions, joint ventures, and investments.

We are subject to risks relating to acquisitions, joint ventures and investments, and risks relating to the integration of acquired companies.