Elevated LeverageA debt-to-equity ratio near 1.6x reduces financial flexibility in a sector prone to price and demand variability. Elevated leverage raises interest and refinancing risk, limiting the company's ability to invest in capacity, absorb shocks, or sustain a multi‑month turnaround without additional costly financing or dilution.
Negative Operating & Free Cash FlowThe reversion to negative operating and free cash flow after a prior positive year signals that operational gains have not yet translated into durable cash generation. Persistent negative cash flow forces dependence on external funding, constrains capex and working capital, and elevates refinancing and execution risk.
Persisting Net Losses And Negative ROEDespite operating margin gains, negative net margins and ROE show below-the-line costs (interest, non-operating items) still push the company to losses. This undermines shareholder returns and means operational improvements must be sustained and enlarged to fully offset financial burdens and achieve lasting profitability.