Elevated Financial LeverageDebt-to-equity remaining above ~1.9x (historically ~2.2–2.8x) limits balance sheet flexibility and raises refinancing and interest-rate sensitivity. High leverage constrains capital allocation, increases downside risk if margins weaken, and reduces headroom for opportunistic investment or large-scale organic expansion without additional financing.
Weakening Revenue And MarginsA 2025 revenue decline (−4.49%) alongside net margin compression to ~1.7% and ROE falling to ~3.1% signals structural pressure on profitability. Sustained top-line weakness and thin bottom-line returns reduce internal funding capacity, limit reinvestment, and make operational improvements or margin recovery critical for long-term value creation.
Deteriorating Free Cash Flow ConversionFCF growth plunged −32.23% in 2025 and FCF has generally converted at below 1.0x net income, limiting surplus cash for deleveraging or capex. Weak FCF conversion constrains the company’s ability to reduce leverage, invest in facility upgrades, or absorb project delays without resorting to external funding, raising medium-term execution risk.