High LeverageElevated leverage raises interest and refinancing risk and narrows financial flexibility. In a capital-intensive renewables business this can constrain the company’s ability to pursue new projects or absorb shocks, making balance-sheet management a lasting strategic priority.
Negative Free Cash FlowPersistent negative free cash flow reduces the firm’s capacity to self-fund growth or build liquidity buffers. If sustained, it may force additional debt or equity raises, increasing cost of capital and diluting shareholders, and limiting optionality over the medium term.
Large Ongoing Capex RequirementThe business remains capital intensive, requiring continuous investment to add or maintain capacity. This creates execution and timing risk: returns depend on project delivery and utilization, and the need for recurrent funding can pressure margins and liquidity across multiple reporting periods.