Volatile Free Cash FlowInconsistent and recently thin free cash flow limits the firm’s ability to self-fund capex, reduce debt, or return capital. High volatility—strong in some years, negative in others—reflects swings in working capital or capex and undermines confidence in sustainable cash conversion over the coming months.
Gross Margin VolatilityLarge swings in gross margin point to sensitivity to input costs, pricing recovery, or product mix. Such volatility makes operating leverage unpredictable, raises downside risk if commodity or raw-material costs rise, and complicates medium-term margin planning for supplier contracts.
Sizable Residual DebtAlthough leverage improved, absolute debt levels remain material and have not steadily declined. This can constrain strategic flexibility, increase interest and refinancing exposure if margins weaken, and reduce buffer against cyclical downturns in OEM vehicle production over the next several quarters.