Negative Free Cash Flow From Heavy CapexPersistent negative free cash flow from elevated capex strains liquidity and forces external financing or slower deleveraging. Until investments demonstrably translate into higher cash conversion, the company faces constrained internal funding for dividends, debt repayment, or opportunistic investments.
Rising Total Debt Increases Refinancing RiskHigher debt raises interest and rollover exposure, reducing financial flexibility. Combined with weaker operating cash flow, elevated leverage could stress coverage metrics and force higher-cost financing or curtailed investment if market conditions tighten over the next several months.
Margin Vulnerability To Stainless-steel Input Price VolatilityProfitability depends on the ability to pass through volatile steel input costs. In a materials-price spike or slower pricing recovery, realized margins could compress quickly. This structural exposure creates earnings variability until stronger hedging or contract terms mitigate input pass-through risk.