Free Cash Flow Volatility And Slight Negative FCFVolatile and slightly negative free cash flow amid heavy growth capex reduces internal funding capacity and increases reliance on external financing. Over 2–6 months this can constrain strategic flexibility and magnify funding risk if capex remains elevated or demand softens.
Engineering Segment Collapse And Slow Order ConversionA sharp, persistent drop in Engineering revenue and slower customer decision cycles weaken business diversification and delay recovery of high-margin services. Prolonged weakness could depress utilization and prolong the timeline to realize returns from optimization efforts.
Margin Pressure From Depreciation, FX, Tariffs And Higher Tax RateRamp-related depreciation, currency headwinds, tariff costs and an increased tax rate compress gross and net margins. These structural cost burdens can persist through multi-quarter capacity ramps, reducing cash conversion and the pace of margin recovery even as sales grow.