High LeverageVery elevated debt-to-equity (~3.16x in 2025) materially reduces financial flexibility and increases refinancing and covenant risk. In an auto-parts cyclic market, high leverage constrains capex, R&D and strategic options and raises vulnerability to demand shocks across the next several quarters.
Persistent Negative Free Cash FlowOngoing negative free cash flow, including ~-6.7B in 2025, implies the business cannot self-fund investment or debt reduction. Continued external financing needs elevate funding risk, limit capacity for sustainable margin improvement initiatives, and pressure liquidity over the medium term.
Operating Losses PersistDespite a slight net profit, continued negative operating profit and sub-1% EBIT margin indicate core operations are not yet self-sustaining. This structural margin weakness leaves earnings exposed to cost inflation and volume fluctuations, inhibiting durable cash flow and reserve build-up.