Persistently Negative Free Cash FlowSustained negative free cash flow reflects heavy capex and capital intensity that operating cash generation has not covered. This structural shortfall forces reliance on external funding for investments, increases refinancing needs, and raises liquidity risk if operating cash conversion does not improve over the medium term.
Elevated LeverageA sharp rise in debt-to-equity increases interest expense and constrains financial flexibility. Even with a later reduction, the recent peak implies higher refinancing and covenant risk, limiting capacity for new investments and making the company more sensitive to tariff, fuel-cost, or dispatch shocks over multiple years.
Volatile Profitability And Cash ConversionEarnings and cash-conversion volatility point to sensitivity to fuel mix, dispatch patterns and working-capital cycles. That variability undermines predictability of free cash flow and debt-servicing metrics, complicating budgeting and increasing credit and operational risk for the firm over the medium term.