Free Cash Flow Pressure From CapexA notable drop in free cash flow driven by higher capex constrains financial flexibility. Even with positive operating cash flow, weaker free cash conversion limits the company’s ability to fund dividends, reduce debt, or pursue new projects without raising external capital over the coming quarters.
Net Income Volatility And Falling ROEDeclines and variability in net income and ROE undermine predictability of returns and retained-earnings growth. This reduces internal funding for expansion and can pressure management to prioritize short-term earnings fixes, weakening long-term capital allocation consistency.
Geographic Concentration RiskHeavy reliance on a single regional market concentrates exposure to local economic cycles, demographic shifts, and property market swings. This limits diversification of demand drivers and raises the risk that regional downturns materially impact both transport ridership and real estate revenues over several quarters.