High Leverage RiskElevated debt levels increase refinancing and interest-rate exposure in a capital-intensive industry. High leverage limits financial flexibility for new investments, raises default risk in downturns, and can pressure margins and credit metrics over the next several quarters.
Weak And Volatile MarginsPersistent low and uneven margins reflect operational efficiency challenges and cost pass-through limits. Margin volatility undermines earnings quality, reduces retained earnings for reinvestment, and makes long-term cashflow forecasting and project planning more uncertain.
Inconsistent Free Cash Flow ConversionIrregular FCF conversion impairs the firm's ability to consistently service debt, fund capex, or sustain distributions. In a capital-heavy power business, weak FCF reliability raises financing costs and increases vulnerability to operational shocks across a 2–6 month horizon.