Weak Cash GenerationMaterial declines in operating cash flow and negative free cash flow impair financial flexibility. Over months this raises reliance on external funding for capex and working capital, increases refinancing risk, and can constrain timely project completion or asset maintenance.
Rising LeverageHigher debt levels increase fixed interest burdens and reduce balance sheet resilience. If leverage remains elevated, it limits capacity to finance new projects internally, heightens exposure to rate changes, and can force more dilutive or costly financing over the medium term.
Profitability DeteriorationDeclining gross and net margins and lower ROE signal margin compression and weaker returns on capital. Persisting profitability pressure reduces cash available for reinvestment, undermines shareholder returns and makes it harder to scale without structural margin improvements.