Earnings Volatility And Prior LossesThe recent recovery comes after consecutive weak years including a 2023 net loss, underscoring pronounced cyclicality. Such volatility makes multi-year planning harder, increases the chance of future cash squeezes in downturns, and complicates consistent returns to shareholders.
Suboptimal Cash-conversion QualityFCF being materially lower than accounting earnings and operating cash below EBITDA point to working-capital or non-cash timing issues that weaken conversion. Persistent conversion gaps can limit sustainable capex, debt reduction, or reliable distributions despite reported profitability.
Operational Headwinds: Supply Chain & Domestic SalesManagement cited supply-chain disruptions raising costs and delivery delays alongside a 5% decline in domestic sales. If these operational pressures persist, they can structurally raise unit costs, erode margins and slow domestic volume growth, pressuring medium-term cash generation.