Sharp Margin CompressionMaterial margin deterioration in 2025 signals weakening core profitability and lower operating leverage. If persistent, this reduces free cash generation and return on capital, constrains reinvestment or shareholder distributions, and may reflect structural pricing or cost pressures rather than a transient blip.
Declining Revenue TrendConsecutive annual revenue declines suggest demand softness or competitive displacement in key segments. Persistent top-line weakness limits scalability of fixed costs and margin recovery, and heightens reliance on aftermarket or pricing actions to restore growth, making medium-term earnings recovery less certain.
Falling Free Cash FlowThe sharp decline in free cash flow and reduced coverage of net income materially limits internal funding for capex, R&D, and shareholder returns. This erodes a key buffer against shocks, reduces strategic flexibility, and increases sensitivity to further profit or working capital setbacks.