Elevated LeverageModerate-to-high leverage increases financial risk and reduces strategic flexibility. With meaningful debt on the balance sheet, adverse demand or interest-rate rises could force tighter cash allocation, limit capex or pressure dividends over the medium term.
Sharp Decline In FCF GrowthA near-50% drop in free cash flow growth materially weakens internal funding for capex, deleveraging and shareholder returns. If sustained, this reduces the company's ability to self-finance growth or absorb shocks, increasing reliance on external financing.
Modest Absolute ProfitabilityLow absolute margins limit the buffer against cost inflation and competitive pressure. In manufacturing, modest profitability constrains cash accumulation and leaves less room for strategic investment or pricing flexibility during industry headwinds.