Deeply Negative Free Cash FlowPersistently negative free cash flow signals the company struggles to convert accounting profits into distributable cash, increasing dependence on external financing. Over months this constrains flexibility for discretionary capex, debt reduction and exposes the company to refinancing and liquidity risk in a volatile macro environment.
Sharp Increase In Debt / LeverageThe material rise in debt meaningfully increases fixed charges and reduces financial flexibility. Higher leverage limits ability to fund operations organically, raises refinancing needs, and magnifies exposure to interest rate and currency shifts, creating a longer‑term constraint on capital allocation decisions.
Operating Profit Weakness (EBIT Negative)EBIT turning slightly negative while EBITDA remains positive indicates non‑operating costs, heavier depreciation or regulatory timing effects are compressing operating profitability. This suggests earnings quality and margin sustainability issues that could persist without structural cost or tariff adjustments.