Persistent Negative Cash GenerationConsistent negative operating cash flow and a worsening free cash flow profile force ongoing reliance on external financing. Over the medium term this increases dilution or refinancing risk and constrains the company’s ability to fund construction, maintenance or new project pipelines internally.
Rising Leverage Reduces FlexibilityDebt-to-equity jumping to ~1.62 materially elevates fixed interest obligations and refinancing exposure. With operating losses still present, higher leverage limits capacity to invest in new sites, increases vulnerability to interest rate cycles, and heightens the risk of costly capital raises.
Operating Losses Despite Gross Margin GainsAlthough gross margin improved, persistent negative EBITDA/EBIT/net income indicate fixed costs, overhead or scale inefficiencies are eroding profitability. Without structural cost reduction, higher utilization or contracted revenue streams, margin improvements alone may not produce sustainable operating profits.