High LeverageSignificant leverage raises interest and refinancing vulnerability, constraining investment in product development and OEM program bids. Over several months, high debt limits flexibility to execute restructuring or capitalize on market opportunities, increasing financial risk.
Weak Cash GenerationNegative free cash flow and worsening operating cash conversion signal liquidity stress that undermines reinvestment, capex and debt reduction. Persisting cash deficits can force asset sales, restructuring, or costly refinancing, impairing operational continuity over the medium term.
Persistent Profitability IssuesOngoing negative EBIT and net margins indicate structural operating inefficiencies or weak pricing power. Without sustained margin improvement or revenue recovery, the firm will struggle to generate sustainable cash and restore equity, hampering medium-term recovery plans.