AVT

MKT CAP $7.6BP/E 23.2DIV YIELD 1.50%FCF YIELD -4.64%REV TTM $27.6B +24.5%NET INCOME $334.4M +39.2%NET DEBT $1.8B52W 44.37 – 106.94SEC XBRL · TTM TO Invalid Date

How AVT rewrote its risk factors

10-K ITEM 1A · FY2025 → FY2026

Text kept

81%

of sentences unchanged

Added

new sentences

Dropped

sentences removed

Length

−83

words, now 5,495

New in FY2026

While the Company attempts to identify changes in market conditions as soon as possible, the dynamics of the industries in which it operates make it difficult to predict and timely react to such changes, including those relating to product shortages or excess supply.
During fiscal 2026, 2025, and 2024, sales of semiconductors represented approximately 79%, 78%, and 80% of the Company’s consolidated sales, respectively, and the Company’s sales closely follow the strength or weakness of the semiconductor industry.
For fiscal 2026, one supplier accounted for over 10% of the Company’s consolidated billings.
The Company’s contracts with its suppliers vary in duration and are generally terminable by either party at will and upon notice.
Customers, suppliers, and investors are increasingly requesting information and action regarding the Company’s supply chain due diligence, environmental impacts, cybersecurity, and other social and governance practices.
Risks related to international operations During fiscal 2026, 2025, and 2024 approximately 78%, 77% and 77%, respectively, of the Company’s sales came from its operations outside the United States.
Supreme Court decision invalidating certain tariffs has increased complexity.
Cybersecurity attacks have not yet materially impacted the Company’s data or the Company’s operations, financial condition, or data security.
However, future attacks could have a material impact.
Further, the Company relies on third-parties, whose systems and controls are outside the Company’s control.
A failure, breach, or disruption involving such third parties could materially affect the Company’s operations.
Measures taken include implementing and enhancing information security controls, such as enterprise-wide firewalls, continuous monitoring, intrusion detection, endpoint protection, email security, disaster recovery, vulnerability management, and cybersecurity training for employees to enhance awareness of general security best practices, financial fraud, and phishing.
In addition, certain Company sales are made pursuant to individual purchase orders, rather than through long-term sales contracts.
As of June 27, 2026, the Company had debt outstanding with financial institutions under various notes, secured borrowings, and committed and uncommitted lines of credit.
Many countries have adopted provisions to align their international tax rules with the Base Erosion and Profit Shifting Project, led by the Organisation for Economic Co-operation and Development (“OECD”), which applied to the Company as of fiscal year 2026.
The Company’s failure to maintain and enhance its competitive position, including by adopting or enhancing digital capabilities, could adversely affect its business and prospects.
Employee retention and hiring constraints The Company’s success depends on its ability to attract, engage, develop, and retain qualified employees in a competitive labor market.
Key talent acquisition may be impacted by immigration restrictions, shifting workforce demographics, and evolving skill requirements driven by technological change, including artificial intelligence.
Restructuring activities and position eliminations may also affect the Company’s brand reputation as an employer, employee morale, and retention, particularly in areas where employees are represented by works councils and unions.
Any challenges in maintaining a skilled and engaged workforce could adversely affect the Company’s business, financial condition, and results of operations.

Gone since FY2025

While the Company attempts to identify changes in market conditions as soon as possible, the dynamics of the industries in which it operates make it difficult to predict and timely react to such changes, including those relating to product capacity and lead times.
During fiscal 2025, 2024, and 2023, sales of semiconductors represented approximately 78%, 80%, and 81% of the Company’s consolidated sales, respectively, and the Company’s sales closely follow the strength or weakness of the semiconductor industry.
For fiscal 2025, one supplier accounted for approximately 10% of the Company’s consolidated billings.
The Company’s contracts with its suppliers vary in duration and are generally terminable by either party at will upon notice.
Customers, suppliers, and investors are increasingly requesting information and action regarding the Company’s supply chain due diligence, environmental impacts, and other social and governance practices.
Risks related to international operations During fiscal 2025, 2024, and 2023 approximately 77%, 77% and 76%, respectively, of the Company’s sales came from its operations outside the United States.
Cybersecurity attacks have not yet materially impacted the Company’s data (including data about customers, suppliers, and employees) or the Company’s operations, financial condition, or data security, but future attacks could have a material impact.
Further, the Company’s business partners and service providers (such as suppliers, customers, and hosted solution providers) pose a security risk because their own security systems or infrastructure may become compromised.
Measures taken include implementing and enhancing information security controls, such as enterprise-wide firewalls, intrusion detection, endpoint protection, email security, disaster recovery, vulnerability management, and cybersecurity training for employees to enhance awareness of general security best practices, financial fraud, and phishing.
In addition, most Company sales are made pursuant to individual purchase orders, rather than through long-term sales contracts.
As of June 28, 2025, the Company had debt outstanding with financial institutions under various notes, secured borrowings, and committed and uncommitted lines of credit.
Many countries have adopted provisions to align their international tax rules with the Base Erosion and Profit Shifting Project, led by the Organisation for Economic Co-operation and Development (“OECD”), which applies to the Company as of fiscal year 2025.
The Company’s failure to maintain and enhance its competitive position could adversely affect its business and prospects.
Employee retention and hiring constraints Identifying, hiring, training, developing, and retaining qualified and engaged employees is critical to the Company’s success, and competition for experienced employees in the Company’s industry can be intense.
Restrictions on immigration or changes in immigration laws, including visa restrictions, may limit the Company’s acquisition of key talent, including talent with diverse experience and perspectives.
Changing demographics and labor work force trends may result in a loss of knowledge and skills as experienced workers leave the Company.
As global opportunities and industry demands shift, and as technology (including artificial intelligence) impacts how work is performed, the Company may encounter challenges in realigning, training, and hiring skilled personnel.
Through organizational design activities, the Company periodically eliminates positions due to restructurings or other reasons, which may risk the Company’s brand reputation as an employer of choice and negatively impact the Company’s ability to hire and retain qualified personnel.
Also, position eliminations may negatively impact the morale of employees who are not terminated, which could result in work stoppages or slowdowns, particularly where employees are represented by unions or works councils.
If these circumstances occur, the Company’s business, financial condition, and results of operations could be seriously harmed.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2025 ↗, FY2026 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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