Negative Free Cash FlowA swing to materially negative free cash flow weakens internal funding for maintenance capex, working capital and shareholder returns. Persisting FCF deficits may force external financing, constrain growth initiatives, or pressure margins if funding costs rise.
Weak Cash ConversionLow OCF-to-net-income indicates earnings are not being converted to cash efficiently, likely from working capital or timing issues. Structurally this raises refinancing and liquidity risks and can undermine sustainability of reported profits if not corrected.
Cyclicality Of Project-driven DemandRevenue depends on industrial and power project capex timing, creating backlog and cashflow volatility. Over several months this exposure can produce uneven order intake and execution risk, pressuring margins and forecasting accuracy during capex downturns.