Negative Free Cash FlowA large swing to negative free cash flow constrains the firm's ability to self‑fund capex, pay down debt, or increase shareholder returns. Until FCF sustainably recovers, the company remains reliant on facilities and must prioritize liquidity over discretionary investment.
Rising LeverageHigher leverage raises financial risk and reduces flexibility to absorb shocks or fund further growth. With material capex underway and negative FCF in the period, elevated net debt increases interest and refinancing sensitivity during a multi‑year margin recovery.
Higher Fixed Cost BaseA step‑up in structural fixed costs raises the breakeven operating level and prolongs margin recovery if volumes fall short. Combined with wage inflation and modest guidance, the enlarged cost base could compress near‑term margins until sustained higher throughput materializes.