What Applied Aerospace & Defense, Inc. told the SEC could break it.

Subject to U.S. import tariffs; ongoing federal litigation (post Learning Resources v. Trump, SCOTUS Feb 2026) over tariff treatment/recoverability, with more tariffs possible on little notice — could raise COGS if not passed through.

“We are also subject to tariffs on certain imports into the U.S. Notwithstanding the decision by the United States Supreme Court on February 20, 2026, in Learning Resources Inc. et al v. Trump, litigation continues in federal courts regarding the treatment and recoverability of certain U.S. tariffs. As the implementation of tariffs is ongoing, more tariffs may be added in the future with little or no advanced notice.”

Obtains certain hardware components and sub-assemblies from a limited group of suppliers, some sole-source; some customer contracts require purchasing specific materials from designated suppliers, limiting alternatives.

“We obtain certain of our hardware components and sub-assemblies from a limited group of suppliers, some of which are sole source suppliers. We also rely on certain subcontractors who perform portions of our manufacturing processes, including specialty processing and certain testing and inspection processes. Under certain customer contracts, we are required to purchase specific materials from designated suppliers, which may limit our ability to find alternative sources of supply.”