Sharp Margin DeteriorationA steep compression in net and EBIT margins materially reduces earnings power and the company's margin buffer. Sustained lower margins constrain reinvestment, reduce resilience to commodity or cost inflation, and heighten sensitivity to demand swings over the next several quarters.
Material Free Cash Flow DeclineA large drop in FCF and weaker cash conversion limits internal funding for capex, electrification, and shareholder payouts. Even with positive absolute FCF, the magnitude of the decline reduces financial flexibility and increases reliance on operational recovery to restore long-term investment capacity.
Weak Revenue And Earnings GrowthDeclining top-line and a pronounced EPS drop reflect demand, pricing or cost pressures that impair profitability sustainability. Structural slowdown in revenue and earnings undermines margins and the company's ability to scale returns on investments or regain prior margin levels without product or market mix improvements.