High LeverageVery high debt-to-equity (~3.16x in 2025) materially limits financial flexibility in a cyclical auto-parts industry. Elevated leverage raises refinancing and interest-rate risk, constrains ability to absorb demand shocks, and reduces capacity to fund capex or pursue strategic initiatives without raising more capital.
Persistent Negative Free Cash FlowRepeated negative free cash flow, including about -6.7B in 2025, indicates the business cannot self-finance growth or deleveraging. Ongoing funding needs increase reliance on external financing, heighten liquidity risk, and limit the firm's ability to invest in efficiency or return capital over the medium term.
Operating Profitability WeaknessNegative operating profit despite revenue gains shows structural cost or margin issues that impair core earnings power. Continued negative EBIT constrains internal cash generation, signals limited pricing or cost-control leverage, and leaves profitability vulnerable to input cost or volume swings.