Negative Free Cash FlowMaterial negative FCF and low operating-cash-to-net-income conversion signal weak cash generation versus reported profits. Persisting cash shortfalls constrain organic capex, debt reduction, and shareholder returns, forcing reliance on external financing and increasing financial risk over the coming months.
Low Net Profit MarginA narrow net margin leaves limited buffer against commodity price swings, input cost inflation, or revenue volatility. With thin after-tax profitability, adverse operational or market shocks can quickly erode earnings, making it harder to fund investments, deleverage, or sustain dividends without margin expansion.
High Total Debt ConcernAlthough leverage appears managed, the company’s high absolute debt level raises interest and refinancing exposure. In a cyclical aluminum industry, elevated debt amplifies downside risk if cash flow remains weak, limits strategic flexibility, and can pressure credit metrics over the medium term.