Inconsistent And Declining Revenue GrowthSustained or recurring revenue declines limit scale benefits and can erode margin gains over time. Inconsistent top-line performance complicates forecasting, weakens bargaining power with OEMs, and can lead to underutilized capacity or pressure on fixed-cost absorption.
Historic Cash-flow Volatility And Late Free Cash Flow RecoveryPrior years of negative free cash flow indicate the company had limited internal funds for reinvestment or debt reduction. Although FCF turned positive in 2025, the inconsistent FCF trajectory creates execution risk for sustained capex funding, dividends, or strategic investments.
High Exposure To OEM Production Cycles And Program AwardsRevenue and profit are structurally linked to OEM production schedules and program wins; downturns in vehicle production or loss of program awards cause multi-year revenue declines. This cyclicality and dependence on platform awards amplify business volatility across planning horizons.