Negative Free Cash Flow From High CapExSustained negative free cash flow from heavy capex reduces financial flexibility and forces external financing or higher leverage to fund expansion. Persistent FCF deficits can constrain discretionary spending, delay returns to shareholders, and raise execution risk during cycles.
Rising Liabilities And Debt RiskAlthough leverage remains moderate, growing liabilities and higher debt create refinancing and interest-rate exposure. If growth stalls, higher fixed obligations could pressure margins and reduce strategic optionality, making balance sheet management a key medium-term risk.
Earnings Volatility / Weak EPS GrowthMaterial negative EPS growth and single-digit net margins point to earnings volatility despite revenue gains. This reduces predictable cash available to reinvest or distribute, heightens execution risk for margin expansion, and complicates medium-term planning for investors.