Declining Free Cash FlowA 39% drop in free cash flow is a durable concern: it reduces internal capital for development, repairs the balance sheet, or dividends. Sustained FCF weakness can force asset sales, curtail growth projects, or increase reliance on partners and external funding in future cycles.
Margin DeteriorationA marked fall in gross and net margins reflects rising costs or lower realizations, eroding the company’s profit buffer. Persisting margin compression reduces retained earnings, weakens returns on projects, and makes the business more vulnerable to prolonged price or operating-cost pressures.
Lower Return On EquityROE halving to 10.9% signals weaker returns on shareholder capital, which may reflect lower profitability or capital intensity. If persistent, this reduces the appeal to equity holders and constrains the company’s ability to grow equity value without materially improving margins or cash generation.