Margin CompressionRecent TTM margin compression versus 2025 signals vulnerability in pricing, product mix, or cost control. If structural competition or higher input/regulated costs persist, margins and free cash flow could re-tighten, limiting reinvestment capacity and slowing return normalization.
Short Track Record Of Cash RecoveryThe improvement in cash generation is encouraging but recent; the short track record raises uncertainty about resilience across cycles. A temporary demand downturn, regulatory change, or margin pressure could reverse cash flow gains and require renewed external funding.
Legacy Leverage & Refinancing SensitivityHaving emerged from a period of elevated leverage and negative returns, the company remains exposed to refinancing or higher-cost capital if market conditions deteriorate. Past leverage can constrain strategic moves and raise funding costs during industry stress.