Negative Free Cash Flow From Heavy CapexPersistent negative free cash flow driven by heavy capex to build assets reduces internal funding and raises reliance on external financing. Over months, this can strain liquidity, limit flexibility for opportunistic investments, and increase vulnerability to funding cost rises.
Notable Leverage On The Balance SheetMaterial leverage increases interest expense sensitivity and refinancing needs. If operating cash conversion weakens or rates rise, servicing debt can compress margins and constrain reinvestment, elevating long-term financial risk despite current profitability.
Execution And Working-capital Risk From EPC ProjectsEPC contracts expose the company to execution, milestone timing, and working-capital swings. Delays or warranty/defect costs can erode margins and cash flow durability over months, making project management and counterparty credit quality critical structural risks.