Negative Operating And Free Cash FlowNegative OCF and FCF across two consecutive years, despite higher reported earnings, point to weak cash conversion and working-capital strain. This raises reliance on external financing, limits capacity for capex/dividends, and reduces resilience to shocks in the 2–6 month horizon.
Modest Absolute MarginsLow single-digit margins provide a thin earnings buffer against commodity cost inflation, input shortages, or customer price pressure. With limited margin headroom, profitability can deteriorate quickly under adverse cost or pricing trends, compromising durable cash generation.
Meaningful Leverage And Rising DebtAlthough leverage fell from earlier peaks, a ~0.82x debt/equity level and a 2025 debt increase leave financial flexibility constrained, especially given weak cash flow. Higher leverage raises refinancing and interest risks and limits ability to fund growth or absorb shocks.