Severe Revenue DeclineA 75% revenue collapse is a structural impairment to scale, harming bargaining power with OEMs and suppliers and eroding fixed-cost coverage. Restoring prior revenue levels typically requires multiple quarters of order recovery or new contracts, challenging margin and profitability recovery.
Persistent Losses And Negative ROEOngoing net losses and negative ROE signal that the firm cannot convert assets or equity into profits. This reduces retained earnings, limits reinvestment capacity, may constrain R&D or capex, and increases reliance on external financing to sustain operations over the medium term.
Automotive End-market CyclicalityHeavy exposure to the automotive industry ties performance to vehicle production cycles and OEM capex rhythms. Structural cyclicality increases revenue volatility and makes multi-quarter planning harder, pressuring margins and working capital during industry downturns.