Weakened Profitability And ReturnsNet margin compressed to ~4% and ROE dropped to ~2.8% in 2025 from double-digit returns previously. Persistently lower profitability reduces internal capital generation, weakens the return profile on invested capital, and could limit the firm's ability to fund growth or justify reinvestment absent structural margin recovery.
Rising Leverage TrendDebt-to-equity increasing to ~0.47 signals higher financial leverage versus prior years. Elevated leverage raises interest and refinancing risks, reduces financial flexibility for cyclical capex, and makes the company more vulnerable to demand slowdowns or rate increases, pressuring long-term stability if not reduced.
Volatile Cash-flow CoverageAlthough 2025 cash flow improved, operating cash flow covered only ~42% of total debt and free cash flow has swung materially year-to-year. This volatility weakens sustainable debt coverage metrics and can constrain consistent deleveraging or sustained capital allocation, raising medium-term funding risk.