Declining Revenue TrendA material drop in total revenue undermines durability of the business despite strong margins. If top-line weakness persists it can erode operating leverage, reduce absolute profits, and limit reinvestment ability, threatening medium-term growth prospects.
Elevated Financial LeverageHigh debt-to-equity raises refinancing and interest-rate sensitivity risks. With elevated leverage, downturns or revenue shortfalls could strain cash flow and limit strategic flexibility, increasing the probability of constrained investment or tougher covenant dynamics.
Small Organizational ScaleA very small workforce constrains capacity to scale operations, diversify projects, and absorb key-person risk. In capital-intensive renewable utilities, limited human resources can slow project execution, business development, and operational resilience over the coming months.