Substantial Remaining DebtAlthough leverage has improved, the firm still carries significant absolute debt. Elevated debt can constrain strategic flexibility, increase interest expense sensitivity and amplify downside risk in slower demand periods or higher interest-rate environments over coming months.
Negative EPS GrowthEPS declined substantially despite revenue growth, suggesting earnings per share were pressured by non-operating costs, higher interest, dilution or one-offs. Persistent EPS weakness versus sales gains can erode investor returns and signal earnings-quality issues if unresolved.
Declining Free Cash Flow TrendA drop in free cash flow, even if still positive, reduces surplus available for debt reduction, capex or dividends. If the decline continues, it could limit the company’s ability to deleverage or invest in growth, weakening financial resilience over a 2–6 month horizon.