Weak Cash ConversionOperating cash flow and free cash flow materially lag net income, reflecting working-capital swings and uneven cash conversion. Over time this limits self-funding of large capex, raises sensitivity to timing shocks, and could force external financing for growth.
Customer/Program ConcentrationHeavy reliance on a few OEMs and defense programs concentrates revenue risk. OEM delivery delays, program qualification lags or schedule shifts can produce lumpy revenue, margin swings, and postponed payoff from capacity investments over multi-year horizons.
Execution & Financing Risk For Capacity BuildA multi-year ~$50M plant build to double capacity creates execution, timing and cost risks that could delay revenue ramp. Management filed an S-3/ATM optionality; if cash conversion lags, the company may need equity or debt, risking dilution or higher financing costs.