Rising LeverageLeverage rising to a D/E of ~1.05 increases interest and refinancing burdens for a capital-intensive utility. Higher debt limits financial flexibility for new projects or absorbing generation shortfalls, raising medium-term financial risk if not offset by stronger cash generation.
Negative Free Cash FlowMaterial negative free cash flow signals that operating cash generation after capex is insufficient, making the company reliant on external funding or asset sales. Persistently negative FCF constrains debt reduction, dividend policy and reinvestment into new capacity.
Revenue And Net Margin VolatilityInconsistent revenue and a declining net margin point to exposure to hydrology, off-taker demand, and tariff pressures. This variability undermines earnings predictability and complicates long-term planning for capital cycles and debt servicing in the utility's regulated environment.