Negative Operating And Free Cash FlowConsecutive years of negative operating and free cash flow despite higher reported earnings indicate weak cash conversion and working-capital strain. This raises reliance on external financing, limits internal funding for capex/dividends, and reduces resilience if margins or revenue growth slow.
Rising Debt And Still-meaningful LeverageAlthough leverage improved versus earlier years, debt increased in 2025 and remains material for the sector. Elevated leverage heightens sensitivity to interest costs and constrains strategic optionality, making the company more vulnerable to cash-flow volatility or tighter credit conditions.
Low Absolute MarginsModest gross and operating margins leave limited room to absorb input-cost inflation or pricing pressure from suppliers/customers. Low margin structure constrains retained earnings and cash flow, increasing the risk that adverse commodity or pricing shifts will materially dent profitability.