Persistent Negative Profitability And Cash BurnDeep, sustained losses and multi-year negative operating and free cash flow indicate the core business is not currently self-funding. Continued cash burn erodes flexibility, forces dependence on external financing, and raises risk of asset sales or severe cost cuts if cyclical demand and pricing fail to improve.
Rising Leverage And Weakened Balance SheetMaterial increase in leverage and declining equity reduce financial resilience and heighten refinancing and covenant risk. In a capital-intensive, cyclical industry, elevated debt burdens limit ability to fund capex or withstand price downturns and increase cost of capital over the medium term.
High Duties And Demand HeadwindsLarge and persistent tariffs materially raise unit costs and impair competitiveness in key export markets. Coupled with weak shipments and housing affordability headwinds, tariffs structurally depress margins, limit pricing power, and extend the recovery timeline for sustainable profitability.