Sharp 2025 Profitability DeclineMargins compressed sharply in 2025, driving earnings to very low levels. Sustained low profitability limits free cash flow upside, weakens retention of earnings for reinvestment, and raises risk that temporary pricing or cost issues become structural without corrective action.
Rising LeverageLeverage increased materially, reducing balance-sheet flexibility and amplifying earnings volatility risk. Higher gearing raises interest burden and constrains capital allocation choices, making the company more sensitive to margin shocks and less able to fund strategic initiatives organically.
Weak Cash Conversion Vs. EBITAlthough cash flows improved, low operating-cash-to-EBIT conversion implies cash is sensitive to working-capital swings and timing. This instability can cause quarter-to-quarter liquidity stress and makes sustainable free-cash generation less predictable without better working-capital management.