High And Rising LeverageMaterial increase in debt and a ~2.55x debt-to-equity structure materially reduces financial flexibility. In a sector sensitive to interest rates and cyclical demand, elevated leverage raises refinancing and interest-cost risk, constraining capital allocation and heightening downside if sales slow.
Weak, Volatile Cash GenerationLarge negative operating and free cash flows increase reliance on external funding or asset disposals to fund development and debt service. Sustained cash volatility undermines execution of longer-term projects, elevates refinancing risk, and can force concessionary sales or higher-cost borrowing.
Earnings Volatility And Weaker Capital BufferSharp swings to interim net losses and a lower equity ratio signal earnings instability and a thinner capital buffer. This unpredictability reduces visibility for planning and dividends, increases the probability of corrective capital actions, and can raise the company’s cost of capital over the medium term.