Declining Free Cash Flow GrowthAlthough FCF is positive, its recent decline signals potential pressure on internal funding for capex and working capital. Sustained negative FCF growth could force higher borrowing or curtail investment in R&D and customer projects, weakening long-term competitiveness.
Remaining Debt BurdenEven with lower leverage, management notes substantial outstanding debt. Persistent debt obligations constrain strategic flexibility, raise interest exposure, and could amplify stress during demand slowdowns, making capital allocation choices more conservative over the medium term.
Modest Profitability LevelsProfitability has improved from prior losses but remains low by industrial standards. Modest net margins and low ROE limit reinvestment capacity and shareholder returns, implying the company must sustain efficiency gains to achieve durable, above-cost-of-capital returns.