OEM Demand ConcentrationHeavy reliance on OEM production links revenue to vehicle cycle, model refresh timing and platform changes. This structural exposure creates earnings volatility across 2-6 month horizons and raises risk if key OEM programs decline or content-per-vehicle normalizes.
Inconsistent Free Cash FlowWhile FCF has grown, noted inconsistency can hamper steady reinvestment, debt reduction, or shareholder distributions. Variable FCF constrains the company’s ability to fund multi-year product development or absorb OEM order timing shifts without tapping external financing.
Room To Reduce LiabilitiesBalance sheet leverage is reasonable but remaining liabilities reduce financial headroom. Elevated obligations limit flexibility to pursue M&A, withstand prolonged demand weakness, or lower financing cost, making the company more sensitive to adverse industry cycles.