Negative Free Cash Flow Due To High CapexPersistent negative free cash flow driven by elevated capital spending can erode liquidity and necessitate external funding or asset sales. Over a multi-month horizon this constrains strategic flexibility and reduces the cash available for dividends or deleveraging unless capex yields clear long-term returns.
Historical Earnings VolatilityMaterial swings in net income undermine predictability of profits and complicate capital allocation and forecasting. For stakeholders this raises the probability that future quarters may diverge from expectations, limiting the company’s ability to plan stable dividends or multi-period investments.
Exposure To Housing Cycle And Input-cost SwingsBusiness reliance on residential construction and timber inputs creates structural sensitivity to housing demand cycles and commodity/logistics cost shifts. Over months, downturns in building activity or rising wood prices can compress margins and sales volumes, posing durable headwinds to revenue reliability.