Volatile Cash GenerationInconsistent free cash flow and relatively low operating cash flow versus debt constrain the company's ability to fund dividends, capital expenditure, and debt reduction reliably. Structural cash volatility raises execution risk for strategic initiatives and limits flexibility during industry slowdowns.
2025 Margin And Revenue DeteriorationA year-over-year revenue decline and a notable gross margin drop in 2025 indicate potential structural pressure from product mix shifts, input cost increases, or competitive pricing. If sustained, this could erode the historical margin bands and weaken earnings quality over the medium term.
Rising Absolute Debt And Declining EquityWhile leverage ratios improved, the trend of higher absolute debt and falling equity over 2024–2025 could reverse improvements if it continues. Persistent increases in nominal debt or equity erosion would reduce financial flexibility and amplify refinancing or interest-rate risks over time.