Declining RevenueA pronounced revenue contraction undermines scale economics and future earnings visibility. Over the next several quarters, persistent top-line decline could pressure fixed-cost absorption, limit reinvestment into the portfolio, and make delivery of growth targets more difficult.
Free Cash Flow DeteriorationA large drop in free cash flow and operating cash covering only 61% of net income signals weaker cash conversion. This reduces financial flexibility to cut debt, fund dividends or capex from operations, and increases dependence on external financing or asset measures.
Rising Interest Costs And LeverageHigher interest expense combined with material net debt increases financing vulnerability, especially in a higher-rate environment. Elevated interest burden erodes distributable earnings and tightens the window to execute planned net debt reductions without selling assets or cutting investment.