Revenue Growth SlowdownA deceleration to ~3% top-line growth reduces the scope for operating leverage and could constrain medium-term EPS expansion absent new market share gains or product wins. Over multiple quarters, slower revenue puts pressure on return targets and increases reliance on margin or cost improvements.
Volatile Free Cash FlowHistoric FCF volatility and past declines in FY2023–FY2024 suggest working-capital swings or lumpy investment cycles. Inconsistent FCF reduces predictability for dividends, buybacks or funding growth initiatives and complicates longer-term capital-allocation planning.
Cyclical End-market ExposureReliance on semiconductor, electronics and industrial equipment end-markets creates structural cyclicality. Downturns in these sectors can materially compress demand and revenues, making multi-year growth and capital planning sensitive to external industry cycles.