Negative Free Cash FlowMaterial negative free cash flow driven by capital spending reduces internally available funds to service growth, dividends, or unexpected stress. If continued, it could force external financing or slow organic expansion, raising medium-term execution risk.
Weak Cash ConversionOnly half of accounting profits convert to operating cash, implying earnings quality issues from working capital or non-cash items. Persistently low conversion constrains free cash flow even with strong reported margins, limiting durable cash availability.
High CapEx BurdenOngoing elevated capital expenditures are weighing on free cash flow and may be required to sustain growth. While investments can be strategic, sustained high capex reduces near-term liquidity and raises execution risk if returns on that spend take longer to materialize.