Risk Factors Update Summary

• Our sales to commercial customers were $1,637.9 million, representing 71% of consolidated sales in fiscal 2024. This change might result in increased investor confidence.
• The restrictive covenants could limit our ability to finance operations and make strategic acquisitions. Failure to comply may require immediate repayment of outstanding amounts.
• A slowdown in the global economy or recession may materially adversely affect our business, results of operations, financial condition, and liquidity.
• Future environmental regulations concerning climate change could significantly increase operating costs and reduce demand for our products and services.
• The supply chains for our business could be disrupted by natural disasters, extreme weather events, or pandemics, impacting operations significantly.
• Our ability to obtain future financing may be adversely affected by pledged assets as collateral for existing indebtedness.
• If customers become insolvent, we may be unable to collect amounts owed, adversely affecting our financial condition.
• We may need to seek higher-level security clearances to perform on classified contracts, impacting business continuity.
• We may not realize anticipated benefits from our acquisition of the Product Support business from Triumph Group, which could adversely affect our financial results.
• Compliance with extensive export control laws and regulations may incur significant expenses and regulatory actions affecting our financial condition.
• We face substantial risks tied to cybersecurity threats, which could lead to significant operational disruptions and reputational damage.