Respironics Legal & Recall RiskActive regulatory actions and large settlement payments create enduring legal, compliance and cash‑flow uncertainty. These matters can require ongoing remediation spend, constrain capital allocation, distract management, and risk further liabilities or operational restrictions that could depress profitability and cash generation for multiple quarters or years.
Tariff HeadwindsMaterial, recurring tariff exposure meaningfully increases costs and pressures gross margins absent full mitigation. Over the medium term tariffs force pricing, localization and supply‑chain changes that can erode competitiveness, require sustained productivity offsets, and cap margin upside during uncertain trade policy environments.
Volatile Cash GenerationFree cash flow has shown sharp swings due to legal settlements, insurance receipts and working‑capital variability. This volatility reduces predictability for reinvestment, debt reduction and dividends, and elevates refinancing or liquidity risk if adverse events recur, limiting financial flexibility until cash conversion stabilizes.