Revenue ContractionA sharp revenue decline after a flat year reduces scale and can erode the base for fixed-cost absorption and power-sales volume. Sustained top-line weakness threatens long-term margin sustainability, cash generation, and the company's ability to fund new project bids or renew contracts without margin pressure.
Leveraged Balance SheetDebt exceeding equity increases refinancing, interest-rate and covenant risk, limiting strategic flexibility. High leverage constrains the firm's capacity to invest in new projects or absorb revenue shocks, making performance sensitive to cash-flow dips despite trend improvement from prior highs.
Volatile Free Cash FlowHistoric volatility and a 2025 FCF decline complicate capital allocation and raise the risk of funding shortfalls in weaker years. Irregular free cash flow can force higher borrowing, asset disposals, or reduced reinvestment, undermining the company's ability to consistently fund capex and service long-term projects.