Revenue DeclineA roughly 24% revenue drop is a material structural concern: sustained top‑line weakness can erode operating leverage, pressure fixed cost coverage, and limit funding for R&D and dealer networks. Prolonged declines would challenge margin maintenance and long‑term growth initiatives.
Free Cash Flow Slowdown And VolatilityDeclining and volatile free cash flow growth undermines predictability of capital returns and reinvestment. Even with positive operating cash flow today, persistent FCF volatility can constrain strategic spending, increase funding uncertainty for capital programs, and limit shareholder returns.
Earnings ContractionAn ~12% EPS decline signals pressure on profitability drivers beyond margins alone, potentially reflecting weaker demand or mix shifts. Continued EPS contraction would reduce retained earnings, limit balance sheet strengthening, and weaken the firm's ability to invest for medium‑term market share gains.