High LeverageVery high leverage (D/E ~3.16x) materially raises refinancing and liquidity risk in a cyclical auto-parts sector. Elevated debt constrains capital allocation, limits ability to fund capex or R&D internally, and makes the company more sensitive to demand shocks or interest-rate changes over the medium term.
Consistent Negative Free Cash FlowPersistent negative free cash flow, including ~-6.7B in 2025, implies ongoing external funding needs. Weak cash conversion limits the firm's ability to delever, invest in efficiency or new product development, and raises dependence on bank financing or capital markets for sustaining operations and strategy execution.
Weak Operating ProfitabilityA negative EBIT margin despite revenue gains shows operating leverage has not yet materialized. Continued operating losses mean slim buffers against cost inflation or OEM pricing pressure, hindering durable margin recovery and increasing the chance that modest net profits remain fragile and reversible.