Severe Profitability DeteriorationNet margin plunged to roughly -19% in 2025 from about -2% in 2024, a material earnings deterioration. Persistently deep losses erode equity, limit reinvestment capacity, and make it difficult to generate durable returns without substantive restructuring of pricing, costs, or product mix.
Negative Operating And Free Cash FlowOperating and free cash flow returned to negative in 2024–2025 after prior strong years, creating clear funding risk. Continued cash burn forces reliance on external financing or asset disposals, which can raise costs, dilute shareholders, and constrain long-term investments and recovery options.
Rising Leverage And Balance-sheet ContractionDebt-to-equity roughly doubled to ~0.51 while total assets and equity declined, signaling balance-sheet contraction. Higher leverage alongside shrinking assets reduces financial flexibility and increases vulnerability to demand shocks or higher funding costs during a multi-quarter recovery.