Elevated LeverageHigh leverage leaves the company sensitive to earnings swings and market funding conditions, common risks in capital-intensive renewables. Elevated debt burdens limit financial flexibility for new projects, raise refinancing risk and amplify downside in weaker revenue years, constraining durable growth options.
Volatile Cash GenerationNegative free cash flow undermines the firm's ability to self-fund capital expenditure, service debt, or return capital. The reversal from prior positive FCF shows cash generation is cyclical and unreliable, increasing long-term reliance on external financing and elevating execution and liquidity risk.
Profitability InstabilityThe shift to a net loss despite healthy core margins indicates below-the-line pressures (financing, other costs) and uneven earnings quality. Persistent volatility in net income weakens credit profiles, complicates long-term planning and undermines investor confidence in consistent cash returns.