Declining MarginsEroding gross and net margins point to rising input costs, pricing pressure or efficiency shortfalls. Sustained margin deterioration weakens reinvestment capacity, reduces cash available for debt and capex, and undermines long-term return on invested capital.
Inconsistent Revenue GrowthVolatile revenue undermines predictability of cash flows and complicates operational planning for a capital-intensive utility. Inconsistent top-line trends hinder economies of scale, make margin recovery harder, and raise execution risk for multi-period investments.
Erratic Free Cash Flow / Capital EfficiencyUnstable free cash flow reduces the company's ability to consistently fund capex, service debt, or return capital to shareholders. For a generator with ongoing maintenance and upgrade needs, erratic FCF raises refinancing and investment-timing risk over the medium term.