Debt Constraints On Strategic FlexibilityElevated debt leverage could constrain borrowing terms and limit capital allocation choices, reducing financial flexibility for growth initiatives.
Leverage And Credit Rating RiskLeverage remains above the level typically required for an investment-grade rating, meaning credit rating improvement depends on further deleveraging.
Relative Valuation Versus PeersRelative valuation on a leverage-neutral basis is not compelling compared with large-cap Canadian industrial peers, which may limit upside absent multiple expansion.