Volatile Free Cash FlowUneven conversion of profits into free cash flow—including negative FCF in 2023 and near breakeven in 2025—signals potential working-capital strain or elevated capex. This volatility undermines capacity to self-fund growth, raise dividends reliably, or absorb shocks without external financing.
Meaningful Debt Increase In 2025A notable rise in total debt in 2025 marks a shift from prior conservatism and raises leverage-related risk. Higher debt can increase interest expense, restrict strategic optionality, and magnify downside in cyclical slowdowns unless matched by sustained cash generation improvements.
Margin Compression From 2022 PeakCompression of operating and net margins since 2022 suggests rising input costs or reduced pricing leverage. Persistently lower margins would limit free cash flow potential, constrain reinvestment and returns on equity, and weaken the buffer against competitive or cyclical pressures.