Declining Revenue TrendA persistent material revenue decline reduces scale benefits and weakens bargaining leverage with suppliers and clients. If demand does not recover, it can erode investment capacity, slow product development, and impair the ability to convert structural EV demand into consistent sales.
Weakened Free Cash Flow GrowthA sharp drop in free cash flow growth constrains reinvestment in automation tooling and R&D, and limits the company’s buffer for cyclical downturns. Even with low debt, reduced FCF raises funding risk for growth initiatives and shareholder returns.
Exposure To Cyclical Automotive CustomersHeavy reliance on automotive OEMs and suppliers concentrates revenue into cyclical capex cycles. Slower OEM investment or production cuts can meaningfully impact order volumes, making near-term revenue and backlog sensitive to automotive industry downturns.