Volatile Operating And Free Cash FlowLarge swings in operating and free cash flow point to working‑capital or project‑timing variability that can undermine earnings quality. Inconsistent cash conversion raises execution risk, complicates capital planning and makes dividends or reinvestment less predictable over the medium term.
Margin Compression Since 2023Declining margins suggest rising input costs or pricing pressure that could persist if competitive dynamics remain intense. Reduced profit per revenue dollar weakens cash generation and returns, making the business more sensitive to revenue slowdowns over months to years.
Step-up In Absolute Debt Since 2023Rising nominal debt elevates leverage risk if profitability weakens, increasing interest and refinancing exposure. Higher debt limits strategic optionality and raises the cost of adverse shocks, tightening the cushion against industry cyclicality or prolonged margin pressure.