Rising LeverageDebt-to-equity rising to 1.05 signals growing leverage that increases interest and refinancing risk. For a capital-intensive utility, higher leverage reduces financial flexibility for new projects, raises vulnerability to rate or collection stress, and can constrain strategic options over the medium term.
Negative Free Cash FlowMaterial negative free cash flow in 2025 indicates capex or investment outstripping operating cash generation. Persisting FCF deficits can force external financing, elevate leverage, or limit dividend and modernization spending, creating structural liquidity pressure beyond short-term cycles.
Volatile Revenue And Declining Net MarginInconsistent top-line growth and a drop in net margin from 36.3% to 29.0% indicate weakening profitability drivers. Over several quarters this volatility reduces earnings predictability, complicates budgeting for capex and debt service, and may reflect exposure to hydrology, tariffs or counterparty collection risks.