Meaningful Leverage RemainsAlthough improved, a debt-to-equity near 1.7 leaves the company sensitive to demand shocks, fuel price swings, and rising interest rates. Ongoing leverage constrains strategic flexibility and elevates refinancing and liquidity risks in downturns.
Weakened Cash Conversion Year-over-yearA deterioration in cash conversion signals less efficient working-capital or higher capex needs. Persistently weaker FCF coverage reduces buffer for debt repayment and investment, making the business more vulnerable if revenue or margins soften.
Margins Cooled From 2024 To 2025Margin normalization suggests rising costs or fading one-off benefits from prior periods. If higher unit costs persist, sustained margin compression could erode profitability and cash flow, limiting the durability of recent earnings improvements.