Residual High LeverageDespite recent improvement, the company remains relatively debt‑heavy for a cyclical industry. Elevated leverage variability can constrain strategic flexibility, increase interest burden vulnerability, and amplify downside risk if sector conditions deteriorate over the medium term.
Volatile Free Cash FlowLarge swings in free cash flow reflect uneven working-capital, reinvestment, or timing effects, reducing predictability of available cash. This volatility limits confidence in sustained dividend funding, buybacks, or large capex without reverting to external financing.
Margin PressureDeclining gross/EBITDA margins despite higher scale suggest rising input or operating costs and potential pricing pressure. If sustained, margin erosion would weaken long‑term profitability and free cash flow generation, challenging durable earnings quality.