Weak And Volatile Cash GenerationVolatile free cash flow and low operating cash conversion reduce financial flexibility for dividends, buybacks, or rapid deleveraging. Over the medium term this constrains the company's ability to absorb shocks, fund growth organically, or respond tactically to cyclical downturns without raising external capital.
2025 Gross Margin PressureA sharp gross margin hit in 2025 suggests structural pressure from costs, pricing or mix that can persist beyond a quarter. Sustained margin erosion would compress operating profitability, reduce reinvestment capacity, and make earnings less predictable in the cyclical aluminum market.
Rising Debt Vs 2023Increased leverage amid cyclical end markets raises downside risk if profitability weakens. Higher debt limits strategic optionality, increases interest expense sensitivity to rate moves, and could slow de-risking in a prolonged downturn, pressuring credit metrics and capital allocation choices.