Declining RevenueSustained top-line contraction reduces scale and weakens the company's ability to spread fixed costs, pressuring margins and reinvestment capacity. If demand in key end markets (automotive, electronics) remains soft, revenue erosion could be a prolonged headwind to growth.
Sharply Weakened Operating ProfitabilityA material decline in EBIT margin signals either higher input costs, lost pricing power, or operational inefficiencies. Persistently compressed operating profits reduce free cash flow, limit investment, and heighten vulnerability to competition and cyclical downturns over the medium term.
Deteriorating Free Cash FlowA marked drop in free cash flow tightens discretionary liquidity, constraining capex, dividend flexibility, and strategic initiatives. Even with healthy operating cash flow, worsening FCF trends raise funding risk for long-term investments if the decline persists.