Margin Compression Since 2023 PeakEroding gross and net margins since 2023 imply a tougher pricing or cost environment for the supply business. If competitive or wholesale pressures persist, margin recovery may be limited, constraining long-run profitability despite higher revenues.
Volatile Cash Generation / Weaker 2025 Cash ConversionMaterial swings in operating and free cash flow, including a 15% FCF decline in 2025 and weaker cash conversion, signal working-capital and timing risk. That volatility can strain liquidity and limit reinvestment or dividend flexibility during stress periods.
Leverage Rising From Very Low Levels; Returns May NormalizeAn uptick in leverage from historically minimal levels reduces the previous margin of safety and could amplify earnings volatility. Exceptionally high recent equity returns may revert, exposing investors to normalization risk if growth or margins decelerate.