Operating Margin DevelopmentDespite very high gross margins, operating margins remain modest, indicating operating expenses (SG&A, R&D) still absorb a meaningful share of revenue. If cost structure isn't tightened, the company may struggle to convert gross profitability into sustainable net earnings and cashflow over the medium term.
Inconsistent Free Cash Flow ConversionCash conversion has improved but showed inconsistencies, with zero FCF in 2024 despite positive OCF. This uneven conversion reduces predictability of funds for capex, debt service or returns to shareholders, and implies the company may still need external financing or retain more earnings to fund growth.
Rising Absolute Debt In 2025A material increase in total debt in 2025 lowers prior balance-sheet optionality. Even with manageable leverage metrics, higher absolute debt raises fixed obligations and interest sensitivity, which can constrain strategic choices and increase vulnerability to rate moves or revenue slowdowns over the coming months.