Declining RevenueA sustained ~14% TTM revenue decline erodes scale, reduces margin leverage, and threatens long‑term growth prospects. Continued top‑line contraction pressures cash returns and makes it harder to cover fixed costs, increasing sensitivity to adverse commodity or demand shifts.
Earnings And FCF VolatilityMaterial swings in margins and free cash flow reduce predictability of earnings and capital allocation. Volatility complicates budgeting, dividend sustainability, and long‑term investment planning, and raises the risk of covenant breaches or emergency financing in downturns.
Rising Absolute DebtIncreasing absolute debt raises interest and refinancing risk even if leverage ratios remain moderate. With only modest ROE and uneven profits, higher debt burdens could squeeze cash available for growth or distributions and reduce flexibility during prolonged industry weakness.