Volatile Free Cash FlowInconsistent free cash flow undermines the firm's ability to fund capex, pay dividends, and deleverage without external financing. For a utility with steady capex needs, this volatility is a persistent constraint on strategic flexibility and raises refinancing and payout risks.
Inconsistent Revenue TrendUneven top-line trends reduce earnings visibility and complicate multi-year planning for infrastructure and customer initiatives. In a regulated environment, such inconsistency often reflects exposure to fuel cost pass-throughs and demand cycles, limiting predictable cash generation.
Sizeable Absolute DebtDespite recent leverage improvement, significant outstanding debt and a history of higher leverage leave the company exposed to rising rates or funding shocks. For a capital-heavy utility, this structural debt burden can constrain investment and increase vulnerability during cash-flow downturns.