Recent Revenue And Margin DeclineA year-over-year revenue decline and sharp margin compression in 2025 signal weakening demand or margin pressure from costs or pricing. Persistently lower margins erode free cash flow and ROE, limiting reinvestment capacity and making long-term recovery harder without structural fixes.
Sharply Higher LeverageLeverage doubling materially reduces financial flexibility and raises interest and refinancing risk. Elevated debt increases vulnerability to cash-flow swings, constrains capital allocation, and can force suboptimal decisions (asset sales, cost cuts) that impair long-term competitive position.
Cash-flow Reversal And VolatilityA dramatic switch to negative operating and free cash flow in 2025 highlights unstable working capital and cash-conversion risk. Sustained cash outflows can prompt emergency financing, reduce capex, and weaken supplier/customer relationships, damaging durable operational capacity.