High Financial LeverageA near-3.0 debt-to-equity ratio means capital structure is highly levered for a capital-intensive developer-owner-operator. This elevates sensitivity to rising rates, project delays or lower wholesale prices and may force additional equity or project-level financing within months if cash flows soften.
Weak Cash Conversion And Negative FCF GrowthSharp negative FCF growth and low operating-cash-to-net-income signal earnings are not reliably converting to cash. For a business with heavy near-term capex, this raises the likelihood of further external financing, slower deleveraging, or constrained internal funding for new projects.
Interconnection And Regulatory Execution RisksProject timelines and revenue realization depend on grid interconnection approvals and regulatory processes. Federal-level delays or setbacks can defer construction starts and cash flows on multi-hundred-million-dollar projects, increasing development costs and execution uncertainty over coming quarters.