Revenue DeclinePersistent negative revenue growth undermines scale economics and long-term revenue visibility. Declining top line pressures fixed-cost absorption at mills, risks capacity under-utilization, and limits the company's ability to invest in growth or raise incremental margins sustainably.
Negative Free Cash FlowNegative free cash flow indicates earnings are not being converted into durable liquidity. This constrains capital allocation, reduces capacity to pay down debt or fund maintenance and growth capex, and forces reliance on external financing, raising structural liquidity risk.
Rising Leverage & Falling ROEHigher leverage alongside a materially lower ROE signals weakening capital efficiency and increased financial risk. Rising debt raises interest and refinancing exposure, while lower ROE suggests reduced returns on shareholder capital, pressuring long-term solvency and flexibility.