Cash GenerationConsistent positive operating cash flow and promising free cash flow growth provide durable internal funding for capex, R&D and working capital. This strengthens the firm's ability to weather auto-cycle volatility, reduce leverage, and fund shareholder returns or strategic investments over months.
Improving MarginsSustained improvement in gross and net margins indicates better cost control and pricing power, which supports long-term profitability. Higher margins enhance resilience to raw-material swings, enable reinvestment in product development, and improve cash conversion over a 2–6 month horizon.
OEM Relationships And Product MixLong-term OEM contracts and a mix of OEM plus aftermarket/custom work create durable demand and repeat revenue. Close OEM ties and bespoke high-performance offerings raise switching costs, support steady orderbooks, and underpin predictable revenue streams across industry cycles.