Rising LeverageDebt scaled up meaningfully in 2025 and now represents a much larger share of capital, raising structural financial risk. Higher leverage constrains strategic optionality, increases interest exposure, and reduces resilience to margin shocks or cyclical revenue weakness unless deleveraging occurs or cash generation remains strong.
Margin Compression From 2022–2023 LevelsOperating and net margins have declined from earlier peaks, suggesting persistent mix, cost or integration pressures rather than a one-off. If margins remain compressed, long-term return on invested capital and the ability to convert revenue growth into shareholder returns will be limited, raising structural profitability concerns.
Slowing Recent Revenue GrowthRevenue growth decelerated to low-single digits in 2025, reducing organic momentum behind the acquisitive model. Slower top-line expansion makes deleveraging harder, increases reliance on M&A to hit targets, and signals potential softness in end markets or challenges integrating/expanding subsidiaries over the medium term.