Weakening Cash ConversionA sharp decline in FCF and lower conversion of earnings into cash implies higher working-capital needs or elevated reinvestment. This reduces financial flexibility for capex, dividends, or M&A and raises execution risk if cash conversion does not normalize over the next several quarters.
Gross Margin VolatilityWide swings in gross margins point to sensitivity to input costs, product mix, or pricing dynamics. Such volatility can pressure operating margins and cash flow during raw-material or commodity cycles, making earnings less predictable and complicating medium-term planning.
Customer Concentration RiskHeavy reliance on a single OEM/brand and group ecosystem concentrates demand risk: any slowdown, order reshaping, or strategic shift by that customer could materially affect volumes. This customer concentration raises revenue and negotiation risk over the 2–6 month horizon and beyond.