High Leverage RemainsDespite improvement, leverage is still elevated at ~2.6x with equity reduced versus prior years. High leverage constrains strategic flexibility, raises refinancing and interest-rate sensitivity, and leaves limited room to absorb demand or cost shocks over the medium term.
Razor-thin Operating MarginsWith EBIT and EBITDA margins near zero, the business has minimal buffer to absorb cost increases or revenue dips. Such structural margin weakness limits reinvestment capacity, reduces pricing flexibility and heightens the risk that minor adverse changes wipe out profitability over coming quarters.
Volatile Cash Flow And Uneven RevenuesHistorical swings between positive and negative cash flow, plus a revenue decline in 2025 after a 2024 surge, create unpredictability in cash available for debt reduction or investment. This volatility undermines planning, makes sustained deleveraging harder, and raises execution risk over months.