Negative Free Cash Flow From High CapexPersistent negative free cash flow driven by elevated capex reduces financial flexibility, limiting capacity to pay down debt, increase payouts or build cash buffers. If capex remains structural, the company may need external financing or to reprioritize investments over the next several quarters.
Historical Earnings VolatilityMaterial swings in net income complicate planning and raise downside risk to margins and returns. Even with a recent rebound, past variability implies sensitivity to demand, pricing and input costs, making multi-quarter earnings stability and cash forecasting less certain.
Exposure To Cyclical Housing Demand And Input-cost SwingsBusiness reliance on homebuilding/renovation volumes and timber/logistics pricing is a structural risk. Downturns in construction or sustained raw-material inflation can compress margins for several months, limiting the durability of revenue and profit improvements absent diversification.