Weak Cash GenerationOperating cash conversion is very low and free cash flow remains persistently negative, increasing reliance on external financing. Over months this raises funding risk, constrains internally funded capex or distributions, and makes the company more vulnerable to higher borrowing costs or tighter liquidity conditions.
Rising Leverage TrendLeverage has increased materially versus prior years, reducing balance-sheet flexibility. If operating conditions or tariff timing worsen, higher indebtedness will amplify interest and refinancing pressure, limiting downside protection and the firm's capacity to fund further network upgrades without additional external capital.
Earnings Volatility And Regulatory DependenceHistorical swings to losses demonstrate sensitivity to tariff timing, energy costs and macro dynamics. Coupled with dependence on regulatory approvals (e.g., regulatory asset claims), this structural exposure means earnings and cash flow remain contingent on policy outcomes and commodity pass-throughs, limiting predictability.