Historic Cash Flow VolatilityIntermittent negative operating and free cash flow in prior years highlights working‑capital swings and project timing risks. This inconsistency weakens the company's ability to reliably fund capex, dividends, or debt reduction and raises execution and liquidity risk if margins or orders slip.
Low, Volatile ProfitabilityEven after improvement, net margins remain modest and historically oscillating. Low, volatile margins limit internal reinvestment capacity, make returns sensitive to order mix and cost inflation, and provide little cushion against demand slowdowns or margin compression in capital‑intensive industrial markets.
Debt Trend UncertaintyAlthough leverage improved from peak levels, the recent uptick in debt introduces refinancing and interest‑cost sensitivity. Renewed borrowing while margins are only mid‑single digits narrows financial flexibility and raises downside risk if cash flows revert to prior weak years or capex needs increase.