Moderate LeverageNet leverage remains materially higher than 2021, limiting balance‑sheet flexibility. In a downturn or to fund strategic investments, higher debt restricts optionality for buybacks, M&A or incremental capex and raises sensitivity to interest costs, a durable constraint over months.
Inconsistent Cash ConversionWhile free cash flow is positive, conversion is only ~64% of net income and OCF relative to sales is weaker than prior years. Working‑capital volatility suggests cash generation may lag profits episodically, constraining consistent capital returns or reinvestment for the medium term.
Margins Below Peak LevelsAlthough profitability recovered from 2023, margins have not fully normalized to pre‑downturn peaks. Persistent gap versus 2021 implies ongoing structural pressures—competition, pricing mix, or higher costs—that could cap margin expansion and long‑term ROE unless addressed.